Automotive Engineering Service market size is USD 155.8 billion in 2023 and will grow at a CAGR of 8.50% from 2023-2030: Cognitive Market Research
Introduction of the?Automotive Engineering Service Market
Automotive engineering services?play a crucial role in the automotive industry. New and existing vehicles must undergo rigorous inspections by automotive engineers to ensure they adhere to safety and efficiency standards. A major element propelling the market is expected to be a surge in the desire for premium cars. Consumers' trust in engineering services is growing, and the number of people using electric vehicles for personal reasons is increasing, the most essential factor driving the expansion of the automotive engineering services market. Additionally, increasing demand for zero-emission vehicles, strong government support, the expanding usage of electric vehicles, enhancements to the standard of design, and the efficiency of the design increases. Because increased connection solutions provide a range of services, including remote diagnostics, smart entertainment, directions, and security for passengers, there is a surge in demand for these solutions, which are expected to propel the growth of the automotive engineering services market during the forecast period.
For instance, in November 202 3, Roadzen, a top AI-driven auto insurance technology startup, and HCLTech, a multinational technology company, established a partnership to leverage AI and data engineering to benefit auto insurance companies, their clients, and automobile owners.
Key Insights from Automotive Engineering Service Market Report
The Global Automotive Engineering Service market size is USD 155.8 billion in 2023 and will grow at a CAGR of 8.50% from 2023 to 2030.
Increasing Priority for Autonomous and Electric Vehicles is Driving Market Growth
There has been a major shift in automotive manufacturing at EVs and autonomous driving technologies. This led to a surge in the need for engineers specializing in software development, advanced driver aid systems, battery technology, and electrical engineering. Rising customer expectations for a linked driving experience are driving an increase in the incorporation of digital technology and connection elements into automobiles, which will grow in demand in the coming years.
For instance, in November 2023, HCLTech was a well-known international technology company. Its ability to help businesses transform their networks for increased productivity and end-user experiences has earned it a position as a Leader in the ISG—the supplier Lens’s Network — Software-Defined Solutions and Services, 2023 report for the UK region.
The market for automotive engineering services is growing because the growing need for automobiles with internet connectivity and high-tech infotainment systems among consumers pushed the need for engineering services, which conducted R&D to remain competitive in areas like the science of materials, battery storage, and innovative manufacturing techniques. Automotive technologies developed quickly, demanding ongoing creativity and increased demand during the forecast period.
For instance, in May 2023, IAV and Sonplas, a testing equipment manufacturer, are working collaboratively to sell measurement devices to evaluate and improve injection systems for conventional and alternative fuels.
Market Dynamics of the?Automotive Engineering Services
The company faces budgetary limitations due to the high development expenses associated with automotive engineering services. The industry's capacity to take on new projects and innovate can be hindered by a lack of qualified individuals in specific fields, making it difficult to balance the demand for innovation and the need for cost-effective solutions. This is especially significant because new technology often requires specialized knowledge and abilities. This factor hampered the global automotive engineering services market during the forecast period.
Impact of COVID-19 on the?Automotive Engineering Services Market
The automobile sector is highly dependent on complex international supply systems. Due to travel restrictions, lockdowns, and factory closures brought about by the pandemic, supply chain disruptions affected the manufacturing of automobiles and associated engineering services. The market for new cars shrank due to uncertain economic conditions and lower consumer spending. This drop in automobile sales negatively impacted the market for automotive engineering services.
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Competitive Landscape of the Automotive Engineering Service Market
The leading suppliers of automotive engineering services are constantly innovating to serve their clients better and cement their place in the industry. Sales of automotive engineering services are being propelled by mergers and partnerships, which are the primary focus of the market's leading companies.
Automotive Engineering Service?Industry News
Top Companies Market Share in Automotive Engineering Service Industry:
Automotive Engineering Service Market Analysis
Type Segment Analysis:
According to Cognitive Market Research, passenger cars held the major market share over the forecast period because comprehensive evaluation and certification services are necessary for passenger cars to meet safety and environmental criteria. Vehicle components can be rigorously tested using testing facilities, simulation tools, and knowledge provided by the automotive engineering vehicle services sector.
Commercial vehicles are the fastest-growing category over the forecast period. Companies producing commercial vehicles work hard to reduce pollutants and increase fuel efficiency. The development of technology and solutions to improve the fuel economy of big, heavy-duty vehicles and guarantee compliance with environmental standards is one-way automotive engineering services contribute.
Application Segment Analysis:
Location Segment Analysis:
Service Segment Analysis:
Propulsion Segment Analysis:
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Nature Type Segment Analysis:
Europe?Automotive Engineering Service Market dominated?in 2023
According to Cognitive Market Research, Asia-Pacific dominated the market in 2023 and is predicted to show the fastest CAGR of 7.5% because of growing profitability and decreased resource costs. In the future, many governments in the Asia-Pacific area intend to switch out their current public fleets for electric cars.?
The government's increased support for using green vehicles and reducing hazardous gas emissions is also driving the expansion of the automotive engineering services sector. In addition, a growing number of industry participants' mergers and acquisitions are driving the market's expansion during the forecast period.
The Middle East and Africa region accounted for the largest share of the market because demand for luxury vehicles is skyrocketing, consumers are placing greater faith in engineering services, a greater number of individuals are utilizing electric vehicles for their transportation, the broad use of electric passenger cars, which reduce emissions and promote the use of environmentally friendly technology is anticipated to be boosted the demand during the forecast period.
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