The global automotive engineering services outsourcingmarket size reached US$ 96.5 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 257.9 Billion by 2028, exhibiting a growth rate (CAGR) of 17.1% during 2023-2028.
Automotive engineering services outsourcing refers to the process of hiring various non-physical engineering functions, such as design, prototyping, system integration, and testing, from an external source. They support a variety of capabilities, such as production, designing the parts of the vehicle, and safety testing. These services utilize various technological tools and mathematical models and are usually required at the early stages of the product design and development processes. Automotive engineering services outsourcing assists in reducing overall labor costs, increasing efficiency and flexibility, and reducing time. As a result, these services are widely employed in commercial, passenger, electric and hybrid vehicles (EVs/HVs).
Significant growth in the automotive industry across the globe is creating a positive outlook for the market. Automotive engineering services outsourcing helps in enhancing the overall efficiencies of the production processes and assists in producing automobile parts, dealing with a company's supply chain, and developing engineering aftermarket assistance. Moreover, the widespread utilization of engineering systems, such as computer-aided engineering (CAE) and computer-aided design (CAD) software that assists in advanced surfacing and handling aesthetic issues, are favoring the market growth. Apart from this, various advancements in technology, such as the integration of the Internet of Things (IoT), robotics and artificial intelligence (AI) solutions for improving modeling and detailing of products, are providing an impetus to the market growth. Additionally, the introduction of highly complex designs with the production of energy-efficient and environmentally sustainable vehicle is positively impacting the market growth. Other factors, including increasing automation and adoption of integrated solutions, extensive research and development (R&D) activities, and the implementation of various government initiatives supporting the development of EVs and HVs, are anticipated to drive the market toward growth.
Key Market Segmentation:
IMARC Group provides an analysis of the key trends in each sub-segment of the global automotive engineering services outsourcingmarket report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on service, vehicle type, location type and application.
Breakup by Service:
Breakup by Vehicle Type:
Breakup by Location Type:
Breakup by Application:
Body and Chassis
Powertrain and After-treatment
Infotainment and Connectivity
Breakup by Region:
Middle East and Africa
The competitive landscape of the industry has also been examined along with the profiles of the key players being Altair Engineering Inc., ALTEN Group, ASAP Holding GmbH, AVL List GmbH, Bertrandt AG, Capgemini SE, EDAG Engineering Group AG, FEV Group GmbH, Horiba Ltd., IAV GmbH (Volkswagen AG), P3 group GmbH and RLE INTERNATIONAL Group.
Base Year of the Analysis
Service, Vehicle Type, Location Type, Application, Region
Asia Pacific, Europe, North America, Latin America, Middle East and Africa
United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Altair Engineering Inc., ALTEN Group, ASAP Holding GmbH, AVL List GmbH, Bertrandt AG, Capgemini SE, EDAG Engineering Group AG, FEV Group GmbH, Horiba Ltd., IAV GmbH (Volkswagen AG), P3 group GmbH and RLE INTERNATIONAL Group.
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Key Questions Answered in This Report
The global automotive engineering services outsourcing market was valued at US$ 96.5 Billion in 2022.
We expect the global automotive engineering services outsourcing market to exhibit a CAGR of 17.1% during 2023-2028.
The sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across several nations resulting in temporary closure of numerous manufacturing units for vehicles, thereby negatively impacting the global market for automotive engineering services outsourcing.
The rising deployment of automotive engineering services outsourcing for reducing overall labor costs, enhancing operational efficiency, and improving the production of the commercial, passenger, electric, and hybrid vehicles, is primarily driving the global automotive engineering services outsourcing market.
Based on the service, the global automotive engineering services outsourcing market has been segregated into designing, prototyping, system integration, testing, and others. Among these, prototyping currently holds the largest market share.
Based on the application, the global automotive engineering services outsourcing market can be bifurcated into autonomous driving/ADAS, body and chassis, powertrain and after-treatment, infotainment and connectivity, and others. Currently, powertrain and after-treatment exhibits a clear dominance in the market.
On a regional level, the market has been classified into North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa, where Asia-Pacific currently dominates the global market.
Some of the major players in the global automotive engineering services outsourcing market include Altair Engineering Inc., ALTEN Group, ASAP Holding GmbH, AVL List GmbH, Bertrandt AG, Capgemini SE, EDAG Engineering Group AG, FEV Group GmbH, Horiba Ltd., IAV GmbH (Volkswagen AG), P3 group GmbH, and RLE INTERNATIONAL Group.
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