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Automotive Engineering Services Market Size

Report ID: GMI5860
Published Date: Oct 2024
Report Format: PDF

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Automotive Engineering Services Market Size

The global automotive engineering services market size was valued at USD 164.9 billion in 2023 and is projected to grow at a CAGR of 8.2% between 2024 and 2032. The growing emphasis on sustainability and fuel economy among consumers and manufacturers is significantly driving the growth of the market. The use of lightweight materials, such as advanced composites and high-strength steel, enhances vehicle efficiency by reducing weight, thereby improving fuel economy and lowering emissions. This shift necessitates specialized engineering services for material selection, design optimization, and structural analysis.

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For instance, according to Statista, in 2024, the revenue in the electric vehicles market is projected to reach a staggering USD 786.2 bn worldwide. Additionally, manufacturers seek innovative engineering solutions to balance performance, safety, and cost while complying with stringent regulations. As automakers invest in developing fuel-efficient technologies, including hybrid and electric drivetrains, the demand for advanced engineering services is increasing. This trend creates opportunities for engineering firms to offer tailored solutions that support the production of vehicles meeting both consumer expectations and regulatory requirements.

Automotive Engineering Services Market Report Attributes
Report Attribute	Details
Base Year:	2023
Automotive Engineering Services Market Size in 2023:	USD 164.9 Billion
Forecast Period:	2024 to 2032
Forecast Period 2024 to 2032 CAGR:	8.2%
2032 Value Projection:	USD 333 Billion
Historical Data for:	2021 – 2023
No. of Pages:	180
Tables, Charts & Figures:	200
Segments covered:	Type, Application, Location, Vehicle, Propulsion
Growth Drivers:	Cost constraints Lack of skilled workforce
Pitfalls & Challenges:	Cost constraints Lack of skilled workforce

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Moreover, the increasing demand for vehicle customization and personalization is a key driver of growth in the automotive engineering services market. Consumers now seek unique features that cater to their preferences, such as bespoke interiors, advanced infotainment systems, and specialized performance enhancements. This trend compels automakers to invest in engineering services that enable flexible design and manufacturing processes. Consequently, engineering service providers are developing tailored solutions to meet diverse customer needs, including modular vehicle architectures and software customization.

Additionally, the rise of digital tools for customer engagement allows manufacturers to gather insights into consumer preferences, further fueling the demand for personalized offerings. This emphasis on customization enhances the role of automotive engineering services, driving market growth and innovation.

Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of automotive engineering services reached USD 164.9 billion in 2023 and is set to grow at a CAGR of 8.2% between 2024 and 2032, driven by the increasing focus on sustainability and fuel efficiency.

The in-house segment accounted for over 55% of the market share in 2023 and is expected to exceed USD 185 billion by 2032, as manufacturers prefer in-house engineering to maintain control over critical processes.

The passenger cars segment held around 64% of the market share in 2023, led by the rising global demand for personal mobility and investments in advanced technologies like electric and autonomous vehicles.

The Germany market is expected to exceed USD 44 billion by 2032, supported by its robust automotive industry and strong R&D investments.

Major players in the industry include Alten Group, Capgemini Engineering, Continental, EDAG Engineering, FEV Group, Harman International Industries, IAV, Mahindra Engineering Services, Robert Bosch, and Tata Technologies.