According to the latest report by IMARC Group, titled "Automotive Engineering Services Outsourcing Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027," the global automotive engineering services outsourcing market reached a value of US$ 80.75 Billion in 2021. Automotive engineering services outsourcing utilizes advanced technology and services, such as auto designing, system integration, testing, and designing, to produce new-age automotive engineering products at low costs with a competitive edge. It supports a variety of capabilities, such as designing the parts of a vehicle, working with a company's supply chain, and developing aftermarket support for engineering. Outsourcing services help with multiple tasks, including creating parts, dealing with a company's supply chain, and developing engineering aftermarket assistance. These services are required for starting the product design and development process by using various IT-based tools and databases. To follow the standards from conception to production, automotive companies outsource their projects for better output and time-saving. Consequently, it finds extensive applications in commercial, passenger, electric, and hybrid vehicles.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Automotive Engineering Services Outsourcing Market Trends:
The global market is majorly driven by significant growth in the automotive industry. The automotive engineering outsourcing services market is continually expanding due to increased vehicle production and the escalating demand for hybrid vehicles. Besides this, the rising demand for advanced and enhanced connectivity solutions by automotive manufacturers is positively influencing the market. Furthermore, the growing demand for improved connectivity solutions is favoring the market growth due to its ability to offer various services, such as navigation, smart infotainment, passenger safety, and remote diagnostics. In line with this, the diverse technological skills of Engineering Service Providers (ESPs) to deliver product innovations in their offerings for vehicle positioning, connected automobiles, and guidance systems are providing an impetus to the market. Moreover, the increasing initiatives by various governments to deploy green vehicles for reducing harmful gas discharges and the shifting inclination of Original Equipment Manufacturers (OEMs) toward digitalized solutions are offering numerous growth opportunities in the market. Additionally, the rapid integration of advanced technology solutions, such as Artificial Intelligence (AI) and the Internet of Things (IoT), is also creating a positive outlook for the market. On account of the aforementioned factors,?the market is anticipated to reach a value of US$ 221.79 Billion by 2027, exhibiting a CAGR of 17.60% during 2022-2027.
- On the basis of the service, the market has been segmented into designing, prototyping, system integration, testing, and others.
- Based on the vehicle type, the market has been divided into passenger and commercial vehicles.
- On the basis of the location type, the market has been classified into on-shore and off-shore.
- On the basis of the application, the market has been categorized into autonomous driving/ADAS, body and chassis, powertrain and after-treatment, infotainment and connectivity, and others.
- On the basis of the region, the market has been divided into North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia and others), Latin America (Brazil, Mexico and others) and the Middle East and Africa.
- The competitive landscape of the market has been studied in the report with the detailed profiles of the key players operating in the market.?Some of the key players 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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