11630 SW 97 Street, Miami, Florida 33176, US
Advertising Driven Press Release Distribution
Advertising Driven Press Release Distribution
The Automotive Engineering Services Market is projected to reach USD 384.6 billion by 2027 from USD 153.1 billion in 2019, at a CAGR of 12.2%. The growth of the market is driven by high investments in R&D, expansion of research centers by OEMs and engineering service providers, increasing demand for connectivity services, and the introduction of 5G network technology in the automotive industry.
Vehicle manufacturers are increasingly focusing on the implementation of advanced technologies in vehicles. The megatrends of vehicle lightweighting, autonomous vehicles, connectivity services, and electrification of vehicles will transform the automotive industry. These trends would also create revenue generation opportunities for automotive engineering service providers.
The global automotive engineering services market is dominated by major players 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.
Market Dynamics:
Drivers
1 Increasing Demand for Advanced Connectivity Solutions
2 Adoption of Evs and Shared Mobility for Greener Environment
Restraints
1 Intellectual Property (IP) Constraint
2 Shift in Business Model
Opportunities
1 Standardization of Safety Features
2 Rise of Autonomous Vehicles
3 Demand for Outsourcing
Challenges
1 Intense Competition
2 Risk of High Investment
Request FREE Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.asp?id=151284922
The Asia Pacific is expected to be the fastest-growing market during the forecast period
The Asia Pacific region is the fastest-growing market for automotive engineering services because of the growth in India, China, Japan, and South Korea. Rising vehicle production, increasing demand for luxury vehicles, growing sales of electric cars, and technological development are driving the automotive engineering services market in the Asia Pacific region.
The key market players in the region include car manufacturers such as Honda, Toyota, Geely, BYD, Kia, Suzuki, and Hyundai and engineering service providers such as Wipro, Tech Mahindra, L&T, and AES. Additionally, Japan is the highest contributor in the global automotive engineering services market. The Japanese automotive industry has embraced the shift toward electric mobility. The high growth in the adoption of EVs in Japan is driven by government initiatives to increase the number of charging stations and extensive R&D to improve EV charging infrastructure. The rising adoption of EVs would increase the demand for advanced engineering services in the country. In September 2018, the South Korean government announced a plan to invest more than USD 860 billion in the development of electric vehicles.
.jpg?1603785186098)
“Europe is expected to lead the market during the forecast period.”
The increasing consumer demand for refined and low emission vehicles has compelled OEMs in Europe to redesign the powertrain and exhaust systems. Also, the goal of reducing 80% CO2 emission by 2050 has boosted the overall demand for EVs in the region. OEMs plan to launch electric variants of the existing gasoline models in the coming years. Thus, the overall demand for engineering services in Europe is likely to grow. Germany is expected to be the largest market for automotive engineering services. The country is home to major car manufacturers and tier 1 companies such as Volkswagen, Daimler, Bosch, Continental, and others. Also, the demand for connected cars is set to increase significantly in the premium segment in the country. The automotive industry accounts for one-third of the total R&D investments in the country. The German automakers’ desire to embrace electronic technologies and software solutions is expected to drive the market for automotive engineering services.
In-house engineering services are expected to lead the global market during the forecast period
The in-house engineering services are expected to be the largest market. Major OEMs keep complicated automotive engineerings services such as engine design, powertrain design, and transmission systems for in-house development. These designs and optimizations vary from one OEM to another and, thus, require different techniques and specialization that can be done in-house for better results. Also, the growing focus on zero-emission vehicles has compelled OEMs to redesign their existing engines to comply with the latest emission standards. The designing of electric vehicles would enhance the demand for in-house investments by OEMs.
For exclusive content regarding the latest trends in the world of Press Release distribution.
