Global Automotive Engineering Services Market Expected to Grow at a CAGR of 8.8%, from $ 153.3 Billion in 2021 to $ 253.9 Billion by 2027
Factors such as growing demand for connected vehicles, increasing sales of electric vehicles, and adoption of advanced technologies are expected to drive the market. However, the high investment risk and growing competition are the major challenges in the automotive engineering services market.
New York, April 23, 2021 (GLOBE NEWSWIRE) – Reportlinker.com Announces the Release of “Automotive Engineering Services Market by Application, Service, Location and Vehicle – Forecast to 2027” – https: //www.reportlinker .com / p05797425 /? utm_source = GNW
Growing concerns about air pollution and global warming have forced governments in several countries to enforce strict emissions policies and regulations for ICE vehicles The growing adoption of electric vehicles is expected to change the outlook of the automotive engineering services market.
More sales of electric vehicles would accentuate the need to develop new battery technologies, new chassis and exterior designs, and advanced drivetrain systems for these vehicles. Electric vehicle manufacturers such as Tesla, Nissan and BAIC are outsourcing the design. and the development of new technologies and solutions at level 1. engineering companies.
This trend is expected to increase with increasing sales of electric vehicles and will boost the automotive engineering services market during the forecast period.
The introduction of autonomous vehicles is expected to transform commuting. ADAS technologies have dramatically reduced the complexity of driving with features such as lane monitoring and emergency braking, stability.
Autonomous vehicles rely on advanced technologies such as LiDAR, radar, ultrasonic sensors and high-definition cameras to collect data, which is analyzed by an on-board intelligent autonomous driving system to safely maneuver the vehicle.
The algorithms used in autonomous vehicles increase driving precision and the benefits are also shared with all other vehicles.
Tesla, Volkswagen, Ford, General Motors and Google plan to launch fully autonomous vehicles in the coming years. These vehicles would require automotive engineering services, including newly designed chassis systems and body controls, new electronic components, advanced vehicle aerodynamics and stability solutions.
Major OEMs and email service providers such as General Motors, Ford, Uber, Lyft and Waymo have launched robot taxi trials in the U.S. Passengers can flag down an autonomous cab from a dedicated app.
The United States became the first country to fully deploy robot taxis for public transportation. Companies such as Tesla, Volkswagen, Ford, General Motors and Waymo also plan to launch fully autonomous vehicles in the coming years.
In March 2018, Nissan announced plans to roll out ProPILOT in 20 models by 2022. Growing focus on autonomous driving systems would force OEMs to incorporate more cruise control features and advanced safety systems for vehicles. semi-autonomous.
It should also generate more opportunities for engineering service companies, especially in the field of autonomous vehicles. However, the negative impact of COVID-19 could delay the development and deployment of autonomous driving systems. For example, Ford has delayed the deployment of autonomous vehicles until 2022, compared to 2021 announced earlier.
The passenger car segment is expected to be the largest and fastest growing segment in the forecast.
According to the OICA, passenger car production reached around 55 million units in 2020 despite the COVID-19 outbreak, which production volume is expected to be the main driver of growth in the automotive engineering services market.
The passenger vehicle segment is the most targeted vehicle segment for service providers. The technologies used in these vehicles change frequently due to high consumer demand for luxury and ADAS features.
In addition, government emissions regulations change frequently, prompting manufacturers to increase EV power ranges and provide consumers with fuel-efficient, low-maintenance technologies.
Growing urbanization and changing customer needs have influenced the global passenger car sales in recent years.The automotive engineering services market has grown significantly in the passenger car segment due to the increasing demand for passenger cars. clients for connectivity and security features.
The growing demand for digital connectivity features is supported by wide network coverage of 5G connectivity and the installation of IoT devices in high-end sedans and SUVs. In the current scenario, customers want green mobility combined with Communication.
This creates an opportunity for OEMs to offer more connectivity features in their upcoming vehicles. Hence, the demand for various automotive engineering services is expected to increase during the forecast period.
For example, in 2020, Altran and 5TONIC collaborated on 5G mobile projects to improve the reliability and performance of advanced driver assistance systems (ADAS) in cars.
Outsourcing is expected to be the fastest localization segment during the forecast period.
Growing consumer demand for advanced vehicle connectivity services is expected to fuel the outsourcing market during the forecast period. OEMs should focus on increasing their outsourcing of automotive engineering services as they prefer flexibility to meet specific customer demand in all regional markets.
Research and testing of connected cars and cybersecurity are major issues that are contributing to a large number of software changes and software management services. Thus, it is the OEMs who derive the most value from their collaborations with engineering providers who will select their external partners and ensure that the projects stay on track.
All of these advantages of outsourcing will have a positive impact on the whole market.Moreover, the ongoing developments in the field of EV batteries are aimed at improving the range of electric vehicles, most of the major manufacturers of EV batteries are innovating in battery design and chemistry to expand the range of electric vehicles to eliminate the requirement for regular charging.
It also promotes the outsourcing of automotive engineering services for battery management.
In-depth interviews were conducted with CEOs, Marketing Directors, other Innovation and Technology Directors, and executives from various key organizations operating in this market.
• By type of business: Tier I – 23%, engineering service providers – 32% and OEM – 45%
• By designation: level C – 61%, level D – 23% and others – 16%
• By region: North America – 30%, Europe – 38% and Asia-Pacific – 32%
The automotive engineering services market is dominated by global players such as Capgemini (France), IAV Automotive Engineering (Germany), Tech Mahindra (India), AKKA Technologies (Belgium) and Bertrandt AG (Germany).
The study covers the automotive engineering services market in various segments and aims to estimate the market size and future growth potential of this market across different segments such as type of service, application, location, vehicle type and region.
The study also includes in-depth competitive analysis of key market players, along with their company profiles, key observations related to product and business offerings, recent developments and acquisitions.
Key benefits of purchasing the report:
• The report will help the market leaders / new entrants in this market with information about the closest approximations to revenue figures for the entire Automotive Engineering Services market and its sub-segments.
• This report will help stakeholders understand the competitive landscape and gain more information to better position their businesses and plan appropriate go-to-market strategies.
• The report also helps stakeholders to understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
Read the full report: https://www.reportlinker.com/p05797425/?utm_source=GNW
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