Home > Automotive > Automotive Services > Repair and Maintenance > Automotive Engineering Services Outsourcing Market

Automotive Engineering Services Outsourcing Market Size

Report ID: GMI9662
Published Date: May 2024
Report Format: PDF

Download Free Sample

Automotive Engineering Services Outsourcing Market Size

Automotive Engineering Services Outsourcing Market size was valued at USD 59.1 billion in 2023 and is estimated to register a CAGR of 6% between 2024 and 2032. The rapid pace of technological innovation in the automotive industry, particularly in areas such as autonomous driving, connected cars, and advanced safety systems, alongside the expansion of electric vehicle fleets, is a significant driver. Automotive companies often seek specialized expertise and capabilities that external engineering service providers can offer to stay competitive and keep up with these advancements.

To get key market trends

Download Free Sample

In addition, governments worldwide have launched various initiatives to encourage consumers to prefer electric vehicles over fuel-powered automobiles. For instance, the California ZEV program intends to have 1.5 million zero-emission vehicles on the road, promoting the adoption of electric vehicles, thus stimulating the automotive engineering services outsourcing industry growth.

Automotive Engineering Services Outsourcing Market Report Attributes
Report Attribute	Details
Base Year:	2023
Automotive Engineering Services Outsourcing Market Size in 2023:	USD 59.1 Billion
Forecast Period:	2024 to 2032
Forecast Period 2024 to 2032 CAGR:	6%
2032 Value Projection:	USD 99.2 Billion
Historical Data for:	2021 - 2023
No. of Pages:	280
Tables, Charts & Figures:	330
Segments covered:	Services, Application, Location, End-user
Growth Drivers:	Rapidly growing technological advancements in areas like EVs Growing focus on cost efficiency Rising focus on accessing specialized expertise and services Increasing complexity of automotive systemse
Pitfalls & Challenges:	Quality and consistency issues Concerns around protecting proprietary technologies, designs, and intellectual property

Learn more about the key segments shaping this market

Download Free Sample

Quality control and compliance issues, alongside data security and intellectual property concerns, pose significant challenges to the outsourcing of engineering services. Ensuring adherence to standards and protecting sensitive information becomes complex when services are handled externally. These risks can affect market dynamics, as companies may hesitate to outsource critical engineering tasks, fearing potential breaches and loss of proprietary data. This apprehension could lead to increased scrutiny of outsourcing partners and potentially higher costs to ensure robust security measures and compliance, impacting the long-term growth and efficiency of the market.

Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of automotive engineering services outsourcing reached USD 59.1 billion in 2023 and is set to witness 6% CAGR between 2024 and 2032, due to the growing focus on cost efficiency and rising emphasis on accessing specialized expertise and services.

The onshore segment is expected to cross USD 53 billion by 2032, owing to the rising collaboration and communication between client and service provider and highly skilled technical expertise.

Asia Pacific market held over 33% share in 2023, attributed to an abundance of highly skilled engineers, offering cost-effective solutions without compromising quality and increasing technological innovation and adoption.

AKKA Technologies, Altair Engineering Inc., Alten Group, Altran Technologies, ARRK Product Development Group, ASAP Holding GmbH, AVL List GmbH, Bertrandt AG and Capgemini SE.