Global $384.6Bn Automotive Engineering Services Market 2019-2027 - Increasing Demand for Advanced Connectivity Solutions

News provided by

Jul 24, 2019, 19:15 ET

DUBLIN, July 24, 2019 /PRNewswire/ -- The "Automotive Engineering Services Market by Application (ADAS & Safety, Electronics & Body Control, Chassis, Connectivity, Interior/Exterior & Body, Powertrain & Exhaust, Simulation), Service, Location, Vehicle, & Region - Global Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.

The Automotive Engineering Services Market is Projected to Grow from US$ 153.1 Billion in 2019 to US$ 384.6 Billion by 2027, at a CAGR of 12.2%.

The study covers the automotive engineering services market across various segments. It aims at estimating the market size and future growth potential of this market across different segments such as service type, application, location, vehicle type, and region. The study also includes an in-depth competitive analysis of key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and acquisitions.

The automotive engineering services market comprises major manufacturers such as FEV (Germany), IAV Automotive Engineering (Germany), Ricardo (UK), AVL (Austria), Alten (France), Bertrandt AG (Germany), Altran (France), L&T Technology Services (India), and many others.

The rising demand for vehicle & passenger safety features, connectivity services, and technological advancements in the automotive industry are driving the growth of automotive engineering services market

Factors such as the increasing demand for connected vehicles, increasing EV sales, and adoption of advanced technologies are expected to boost the market. However, high investment risk and increasing competition are the key challenges in the automotive engineering services market.

Increasing emphasis on zero-emission vehicles is likely to propel the growth of the market during the forecast period

Increasing concerns over air pollution and global warming have forced the governments of several countries to enforce strict emission policies and regulations for ICE vehicles. Increasing adoption of electric vehicles is expected to change the outlook of the automotive engineering services market. More EV sales would accentuate the need to develop new battery technologies, new chassis and exterior designs, and advanced transmission systems for these vehicles. EV manufacturers such as Tesla, Nissan, and BAIC outsource design and development of new technologies and solutions to tier 1 engineering companies. This trend is likely to grow with the rise in EV sales and would drive the automotive engineering services market during the forecast period.

Asia-Pacific is expected to register the highest growth during the forecast period

The Asia-Pacific region comprises rapidly emerging economies such as China and India, along with developed nations such as Japan, and is the largest market for automotive. In recent years, the region has emerged as a hub for automobile production. The key drivers for the automotive engineering services market in the region are the growing concerns about rising emission and traffic congestions. Countries such as China, India, and Japan are taking initiatives to reduce emission by adopting a hybrid, plug-in, fuel cell, and battery electric vehicles. Japan has proposed strict guidelines to reduce carbon emission for passenger cars by 2020. The rising demand for clean, safe, and smart mobility in China, India, and Japan augurs well for the growth of automotive engineering services. Also, the growth of the automotive engineering services market can be attributed to increasing investments by regional OEMs such as BYD, Toyota, Honda, and Nissan.

Europe is expected to dominate the market during the forecast period

Europe is the largest market for automotive engineering services in 2019 but will be taken over by Asia Pacific by 2027. Europe is a major hub for several renowned automotive engineering service providers such as FEV, IAV, AVL, Ricardo, Alten, and others. According to the European Commission, there are about 180 automobile facilities across the EU, and the sector is the largest investor in R&D. European automakers such as Volkswagen, Volvo, and Daimler AG invest heavily in R&D activities. Germany is estimated to be the largest market in the region. The rising vehicle production and high investments in R&D by car manufacturers and engineering service providers would fuel the demand for engineering services in the region.

Key Topics Covered

1 Introduction
1.1 Objectives of the Study
1.2 Market Definition
1.3 Market Scope
1.3.1 Markets Covered
1.3.2 Years Considered for the Study
1.4 Currency
1.5 Limitations
1.6 Stakeholders

2 Research Methodology
2.1 Research Data
2.1.1 Secondary Data
2.1.1.1 Key Secondary Sources
2.1.1.2 Key Data from Secondary Sources
2.1.2 Primary Data
2.1.2.1 Sampling Techniques & Data Collection Methods
2.1.2.2 Primary Participants
2.1.2.3 Key Data From Primary Sources
2.2 Market Size Estimation
2.2.1 Top-Down Approach
2.3 Market Breakdown and Data Triangulation
2.4 Assumptions

3 Executive Summary

4 Premium Insights
4.1 Automotive Engineering Services Market to Grow at A Significant Rate During the Forecast Period (2019-2027)
4.2 Europe to Lead the Global Market
4.3 Market, By Vehicle Type and Location
4.4 Market, By Service Type
4.5 Market, By Application
4.6 Market, By Location
4.7 Market, By Vehicle Type

5 Market Overview
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Increasing Demand for Advanced Connectivity Solutions
5.2.1.2 Adoption of EVs and Shared Mobility for Greener Environment
5.2.2 Restraints
5.2.2.1 Intellectual Property (IP) Constraint
5.2.2.2 Shift in Business Model
5.2.3 Opportunities
5.2.3.1 Standardization of Safety Features
5.2.3.2 Rise of Autonomous Vehicles
5.2.3.3 Demand for Outsourcing
5.2.4 Challenges
5.2.4.1 Intense Competition
5.2.4.2 Risk of High Investment
5.2.5 Impact of Market Dynamics

6 Industry Trends
6.1 Introduction
6.2 Technological Overview
6.2.1 Connected Vehicles
6.2.2 Electric and Hybrid Vehicles
6.2.3 Advanced Driver-Assistance Systems (ADAS)
6.3 Value Chain Analysis
6.4 Macro indicator Analysis
6.4.1 Growth of Automotive Engineering Services
6.4.2 GDP (USD Billion)
6.4.3 Gni Per Capita, Atlas Method (USD)
6.4.4 GDP Per Capita Ppp (USD)
6.4.5 Macro indicators Influencing the Global Market, Top 3 Countries
6.4.5.1 Germany
6.4.5.2 US
6.4.5.3 China

7 Global Market, By Service Type
7.1 Introduction
7.2 Research Methodology
7.3 Concept/Research
7.3.1 Rise of Autonomous Vehicles Will Require Newer Concepts/Research
7.4 Designing
7.4.1 Low Emission Engines Would Increase Demand for Advanced Engineering Designs
7.5 Prototyping
7.5.1 Rapid Prototyping Demands New Prototyping Methods
7.6 System Integration
7.6.1 Competitive Challenges With Automation Would Boost the Market for System Integration
7.7 Testing
7.7.1 Focus on EVs and Hybrid Vehicles Would Increase Demand for Testing to Maintain Efficiency
7.8 Key Primary Insights

8 Global Market, By Application
8.1 Introduction
8.2 Research Methodology
8.3 ADAS and Safety
8.3.1 Increasing Safety Regulations Will Fuel Growth of ADAS and Safety Segment
8.4 Electrical, Electronics, and Body Controls
8.4.1 Wide Implementation of IoT Devices in Automotive Will Require More Specialized Engineering Services
8.5 Chassis
8.5.1 New Chassis Design Would Drive the Market
8.6 Connectivity Services
8.6.1 Demand for Advanced Connectivity Solutions Would Drive the Market
8.7 Interior, Exterior, and Body Engineering
8.7.1 More Comfort Features Would Fuel the Market for Interior, Exterior, and Body Engineering
8.8 Powertrain and Exhaust
8.8.1 Adoption of Emission-Friendly Vehicles Would Fuel the Powertrain and Exhaust Market
8.9 Simulation
8.9.1 Refinements in Car Design Would Demand Better Simulation Solutions During the Forecast Period
8.10 Others
8.10.1 Refined Car Designs Would Demand Better Solutions During the Forecast Period
8.11 Key Primary Insights

9 Global Market, By Location
9.1 Introduction
9.2 Research Methodology
9.3 In-House
9.3.1 Focus on Curbing Emissions Would Drive the Market for In-House Development
9.4 Outsource
9.4.1 Integration of Advanced Safety Features Will Boost Outsourcing Market
9.5 Key Primary Insights

10 Global Market, By Vehicle Type
10.1 Introduction
10.2 Research Methodology
10.3 Passenger Car
10.3.1 Internal Combustion Engine
10.3.1.1 New Combustion Process Would Drive Innovation in this Market
10.3.2 Electric Vehicle
10.3.2.1 Increasing Adoption of Electric Vehicles Would Drive the Global Market
10.4 Commercial Vehicle
10.4.1 Internal Combustion Engine
10.4.1.1 Low Emission Trucks Will Drive the Market for New Engineering Services
10.4.2 Electric Vehicle
10.4.2.1 Developments in EV Trucks Would Require New Engineering Services
10.5 Key Primary Insights

11 Global Market, By Region
11.1 Introduction
11.2 Asia Pacific
11.2.1 China
11.2.1.1 Technological Advancements in Autonomous Driving Will Boost the Market in China
11.2.2 India
11.2.2.1 Government Subsidies Will Impact the Market Positively
11.2.3 Japan
11.2.3.1 Development of Advanced EV Technologies to Reduce Carbon Footprint Will Drive the Market
11.2.4 South Korea
11.2.4.1 Government Initiatives for Adoption of EV to Propel the Market
11.2.5 Others
11.2.5.1 Government Initiatives Toward Smarter Transportation to Drive the Overall Market
11.3 Europe
11.3.1 France
11.3.1.1 High Demand for Electric Vehicles Will Drive the Market
11.3.2 Germany
11.3.2.1 Innovations From German Automaker Volkswagen to Drive the Market
11.3.3 Italy
11.3.3.1 Growing Alternate Fuel Vehicle Sale to Propel the Market
11.3.4 Russia
11.3.4.1 Increasing Investment is the Key Factor in the Overall Growth
11.3.5 Spain
11.3.5.1 Demand for Specialized Commercial Vehicles Will Have A Positive Impact on the Market
11.3.6 UK
11.3.6.1 Increasing Focus on Innovation is Driving the Demand
11.3.7 Others
11.3.7.1 Increasing EV Sales in These Countries Will Boost the Market
11.4 North America
11.4.1 Canada
11.4.1.1 Developments in Alternative Powertrains Will Propel the Growth
11.4.2 Mexico
11.4.2.1 Implementation of Connected Services Will Drive the Market
11.4.3 Us
11.4.3.1 Large Scale Autonomous Driving Test Will Drive the Market
11.5 Rest of the World (RoW)
11.5.1 Brazil
11.5.1.1 Government Initiatives May Impact the Market Positively
11.5.2 Iran
11.5.2.1 Growing Car Sales Will Impact the Market
11.5.3 Others
11.5.3.1 Growing Vehicle Production May Impact the Market Positively

12 Competitive Landscape
12.1 Overview
12.2 Market Ranking Analysis
12.3 Competitive Scenario
12.3.1 New Product Developments
12.3.2 Collaborations/Joint Ventures/Supply Contracts/Partnerships/Agreements
12.3.3 Expansions, 2017-2019
12.4 Competitive Leadership Mapping
12.4.1 Visionary Leaders
12.4.2 Innovators
12.4.3 Dynamic Differentiators
12.4.4 Emerging Companies

13 Company Profiles
Business Overview, Products and Services Offered, Recent Developments & SWOT Analysis
13.1 Harman
13.2 Capgemini
13.3 AVL
13.4 Bertrandt AG
13.5 Alten Cresttek
13.6 L&T Technology Services
13.7 FEV
13.8 Akka Technologies
13.9 HCL Technologies
13.10 IAV Automotive Engineering
13.11 Altran
13.12 Ricardo
13.13 Tech Mahindra
13.14 Other Key Players
13.14.1 Asia-Pacific
13.14.1.1 Imaginative Automotive Engineering Services
13.14.1.2 Onward Technologies
13.14.1.3 Automotive Engineering Services (AES)
13.14.2 Europe
13.14.2.1 Kistler
13.14.2.2 Continental Engineering Services
13.14.2.3 EDAG
13.14.2.4 ESI Group
13.14.2.5 Semcon
13.14.2.6 Segula Technologies
13.14.3 North America
13.14.3.1 Globallogic
13.14.3.2 EPAM Systems
13.14.3.3 Belcan

For more information about this report visit https://www.researchandmarkets.com/r/eckk7z

Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.

Media Contact:

Laura Wood, Senior Manager
[email protected]

For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

SOURCE Research and Markets