Automotive Engineering Services Outsourcing Market Size, Share | Report 2023-2032
The global automotive engineering services outsourcing market was valued at USD 84.90 billion in 2022 and it is predicted to surpass around USD 247.00 billion by 2032 with a CAGR of 11.27% from 2023 to 2032.
Key Pointers
| Report Coverage | Details |
| Market Size in 2022 | USD 84.90 billion |
| Revenue Forecast by 2032 | USD 247.00 billion |
| Growth rate from 2023 to 2032 | CAGR of 11.27% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Regions Covered | North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
| Companies Covered | AKKA; Altair Engineering Inc.; Alten Group; Altran (Cap Gemini Engineering); ARRK Product Development Group Ltd.; ASAP Holding GmbH; AVL List GmbH; Bertrandt AG; EDAG Group; ESG Elektroniksystem- und Logistik-GmbH; FEV Group GmbH; Horiba, LTD.; IAV; ITK Engineering GmbH Kistler Group; P3 group GmbH; RLE International Group |
The rapid demand for advanced and enhanced connectivity solutions by the automotive manufacturers is driving the automotive engineering services outsourcing (ESO) market growth. The demand for enhanced connectivity solutions is rising due to its ability to offer various services, such as navigation, smart infotainment, passenger safety, and remote diagnostics.
The growing technological skills of Engineering Service Providers (ESPs) to deliver research and development (R&D) and product innovation in their offerings for vehicle positioning, connected automobiles, and guidance systems is expected to fuel the automotive ESO market growth. Furthermore, the rising initiatives by governments to deploy green vehicles for reducing harmful gas discharges are also propelling the automotive ESO market growth.
The automotive ESO industry evolved from delivering mechanical services to the integration of advanced technology solutions such as Artificial Intelligence (AI), the Internet of Things (IoT), and others. With the rapid integration of Information Technology (IT) in automobiles, an increase in advanced services was witnessed, accomplishing the commutation objectives and providing comfort, safety, and ease of use to the consumers. The IT-enabled the incorporation of various enhanced features such as Bluetooth and Wireless Local Area Network (WLAN) connectivity, navigation system, app connection, and other car information from sensors.
During the inception of procuring services from the Engineering Service Providers (ESPs), the automotive industry focused on mass production by combining standardization, synchronization, precision, continuity, and interchangeability. With the paradigm shift in the requirements of customers, companies now emphasize offering mass customization of automobile production engineering services.
The growing inclination of Original Equipment Manufacturers (OEMs) for digitalized solutions is anticipated to offer opportunities for automotive ESO market growth. This is attributed to the paradigm shift of end-users towards more technological solutions. The Autonomous, Connected, Electric, and Shared vehicles (ACES) disruptions is a digitalized model being adopted by the key players in the market to allow advanced mobility standards to enhance consumer's interaction and experience with vehicles.
Autonomous driving evolved through the Advanced Driver Assistance Systems (ADAS), including pedestrian detection, collision warning, and others. The connected systems enable processing data in the cloud and at the edge from a growing suite of endpoint sensors to enhance vehicle reliability and passenger safety, boost fleet efficiency, enable maintenance schedules, and offer information to smart city planners and other road users about the travel.
Considering the ongoing trend of convenience preferred by the end-users, automobile manufacturers have started offering lightweight vehicles to provide better driving performance, minimize environmental pollution, improve fuel efficiency, and reduce fuel cost and car repair frequency. For instance, in November 2019, FEV Group GmbH launched solutions and technologies for sustainable mobility at the Ninth Aachen Colloquium China Automobile and Engine Technology, a technical exhibition.
Automotive Engineering Services Outsourcing Market Segmentations:
| By Application | By Service | By Location |
|
Autonomous Driving/ADAS Body & Chassis Powertrain and After-Treatment Infotainment & Connectivity Others |
Designing Prototyping System Integration Testing Others |
On-shore Off-shore |
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Automotive Engineering Services Outsourcing Market
5.1. COVID-19 Landscape: Automotive Engineering Services Outsourcing Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Automotive Engineering Services Outsourcing Market, By Application
8.1. Automotive Engineering Services Outsourcing Market, by Application, 2023-2032
8.1.1 Autonomous Driving/ADAS
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Body & Chassis
8.1.2.1. Market Revenue and Forecast (2020-2032)
8.1.3. Powertrain and After-Treatment
8.1.3.1. Market Revenue and Forecast (2020-2032)
8.1.4. Infotainment & Connectivity
8.1.4.1. Market Revenue and Forecast (2020-2032)
8.1.5. Others
8.1.5.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Automotive Engineering Services Outsourcing Market, By Service
9.1. Automotive Engineering Services Outsourcing Market, by Service, 2023-2032
9.1.1. Designing
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Prototyping
9.1.2.1. Market Revenue and Forecast (2020-2032)
9.1.3. System Integration
9.1.3.1. Market Revenue and Forecast (2020-2032)
9.1.4. Testing
9.1.4.1. Market Revenue and Forecast (2020-2032)
9.1.5. Others
9.1.5.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Automotive Engineering Services Outsourcing Market, By Location
10.1. Automotive Engineering Services Outsourcing Market, by Location, 2023-2032
10.1.1. On-shore
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. Off-shore
10.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 11. Global Automotive Engineering Services Outsourcing Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Application (2020-2032)
11.1.2. Market Revenue and Forecast, by Service (2020-2032)
11.1.3. Market Revenue and Forecast, by Location (2020-2032)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Application (2020-2032)
11.1.4.2. Market Revenue and Forecast, by Service (2020-2032)
11.1.4.3. Market Revenue and Forecast, by Location (2020-2032)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Application (2020-2032)
11.1.5.2. Market Revenue and Forecast, by Service (2020-2032)
11.1.5.3. Market Revenue and Forecast, by Location (2020-2032)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Application (2020-2032)
11.2.2. Market Revenue and Forecast, by Service (2020-2032)
11.2.3. Market Revenue and Forecast, by Location (2020-2032)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Application (2020-2032)
11.2.4.2. Market Revenue and Forecast, by Service (2020-2032)
11.2.4.3. Market Revenue and Forecast, by Location (2020-2032)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Application (2020-2032)
11.2.5.2. Market Revenue and Forecast, by Service (2020-2032)
11.2.5.3. Market Revenue and Forecast, by Location (2020-2032)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Application (2020-2032)
11.2.6.2. Market Revenue and Forecast, by Service (2020-2032)
11.2.6.3. Market Revenue and Forecast, by Location (2020-2032)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Application (2020-2032)
11.2.7.2. Market Revenue and Forecast, by Service (2020-2032)
11.2.7.3. Market Revenue and Forecast, by Location (2020-2032)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Application (2020-2032)
11.3.2. Market Revenue and Forecast, by Service (2020-2032)
11.3.3. Market Revenue and Forecast, by Location (2020-2032)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Application (2020-2032)
11.3.4.2. Market Revenue and Forecast, by Service (2020-2032)
11.3.4.3. Market Revenue and Forecast, by Location (2020-2032)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Application (2020-2032)
11.3.5.2. Market Revenue and Forecast, by Service (2020-2032)
11.3.5.3. Market Revenue and Forecast, by Location (2020-2032)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Application (2020-2032)
11.3.6.2. Market Revenue and Forecast, by Service (2020-2032)
11.3.6.3. Market Revenue and Forecast, by Location (2020-2032)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Application (2020-2032)
11.3.7.2. Market Revenue and Forecast, by Service (2020-2032)
11.3.7.3. Market Revenue and Forecast, by Location (2020-2032)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Application (2020-2032)
11.4.2. Market Revenue and Forecast, by Service (2020-2032)
11.4.3. Market Revenue and Forecast, by Location (2020-2032)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Application (2020-2032)
11.4.4.2. Market Revenue and Forecast, by Service (2020-2032)
11.4.4.3. Market Revenue and Forecast, by Location (2020-2032)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Application (2020-2032)
11.4.5.2. Market Revenue and Forecast, by Service (2020-2032)
11.4.5.3. Market Revenue and Forecast, by Location (2020-2032)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Application (2020-2032)
11.4.6.2. Market Revenue and Forecast, by Service (2020-2032)
11.4.6.3. Market Revenue and Forecast, by Location (2020-2032)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Application (2020-2032)
11.4.7.2. Market Revenue and Forecast, by Service (2020-2032)
11.4.7.3. Market Revenue and Forecast, by Location (2020-2032)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Application (2020-2032)
11.5.2. Market Revenue and Forecast, by Service (2020-2032)
11.5.3. Market Revenue and Forecast, by Location (2020-2032)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Application (2020-2032)
11.5.4.2. Market Revenue and Forecast, by Service (2020-2032)
11.5.4.3. Market Revenue and Forecast, by Location (2020-2032)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Application (2020-2032)
11.5.5.2. Market Revenue and Forecast, by Service (2020-2032)
11.5.5.3. Market Revenue and Forecast, by Location (2020-2032)
Chapter 12. Company Profiles
12.1. AKKA
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. Altair Engineering Inc.
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. Alten Group
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. Altran (Cap Gemini Engineering)
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. ARRK Product Development Group Ltd.
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. ASAP Holding GmbH
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. AVL List GmbH
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. Bertrandt AG
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. EDAG Group
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. ESG Elektroniksystem- und Logistik-GmbH
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers