Automotive Engineering Service Market Report 2025 (Global Edition)

Global Automotive Engineering Service Market Report 2025 Market Size Split by Vehicle Type (Passenger Cars, Commercial Vehicles), by Application (ADAS and safety, Electrical electronics and body contr...

Automotive Engineering Service Market Report Description

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Automotive Engineering Service Market Insights Video

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

• In April 2022, Akkodis, a leader in the world of engineering and research and development, is the newest corporate member of the MIT Initiative on the Digital Economy (IDE), a research center at the MIT Sloan School of Management that examines the implications of the digital economy. Akkodis and MIT IDE have partnered to engage in research initiatives, events, and teaching, key components of MIT IDE’s mission to advance digital transformation and leadership in the smart industry.

(Source: www.akka-technologies.com/press-release/the-mit-initiative-on-the-digital-economy-ide-welcomes-akkodis-to-collaborate-on-innovation-projects-and-support-the-development-of-tomorrows-tech-talents/)

• In November 2023, IAV and TU Berlin developed a solution that allows big, networked commercial trucks to stop even more safely in bad road conditions by assessing on-board meteorological data and using existing sensors.

(Source: www.iav.com/en/news/intelligent-safety-technology-iav-and-tu-berlin-develop-new-method-for-commercial-vehicles/)

Top Companies Market Share in Automotive Engineering Service Industry: (In no particular order of Rank)

• Capgemini (France)
• IAV Automotive Engineering (Germany)
• Tech Mahindra (India)
• AKKA Technologies (Belgium)
• HCL Technologies (India)
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

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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.

The current report Scope analyzes Automotive Engineering Service Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Automotive Engineering Service Market Analysis

According to Cognitive Market Research, the global automotive engineering services market size was estimated at USD 155.8 Billion out of which North America held the major market of more than 30% of the global revenue with a market size of USD 43.74 billion in 2023 and will grow at a compound annual growth rate (CAGR) of 7.00% from 2023 to 2030. Because of the automobile electrification development, new electrical and hybrid-powered car developments, increased automotive R&D spending, stringent government regulations, and the introduction of new technology. According to Cognitive Market Research, in the North American area, body leasing is presumed to have the fastest growth in the coming years because integrating the vehicle's chassis, powertrain, and safety systems is an integral part of body engineering. When it comes to a car's overall performance and operation, automotive engineering services ensure everything works together smoothly. This market sector is anticipated to develop fastest throughout the forecast period. In conclusion, According to Cognitive Market Research, advancements in autonomous vehicle technology, government programs and funding for scientific inquiry and technological advancement will increase the demand during this region's forecast period.

Europe Automotive Engineering Service Market Analysis

According to Cognitive Market Research, the global automotive engineering services market size was estimated at USD 155.8 Billion out of which Europe held the major market of more than 28% of the global revenue with a market size of USD 43.62 billion in 2023 and will grow at a compound annual growth rate (CAGR) of 7.2% from 2023 to 2030. The market is growing due to an increase in the demand for high-end automobiles, a surge in the confidence that consumers have in engineering services, a surge in the number of people using electric vehicles as their primary mode of transportation, and a general uptick in the desire for technological advancements in the automotive industry. According to Cognitive Market Research, the system integration category of automotive engineering services is predicted to expand rapidly in the European market in the coming years because a wide variety of automotive systems and components can work together harmoniously due to system integration. This optimization improves a vehicle's overall performance by ensuring that all systems work together efficiently. In conclusion, Europe's automotive engineering services market is expected to have robust expansion over the forecast period, driven by emerging nations like Germany, France, Italy, Spain, Russia, and the rest of Europe.

Asia Pacific Automotive Engineering Service Market Analysis

According to Cognitive Market Research, the global automotive engineering services market size was estimated at USD 155.8 Billion out of which Asia Pacific held the major market of more than 35% of the global revenue with a market size of USD 54.53 billion in 2023 and will grow at a compound annual growth rate (CAGR) of 9.6% from 2023 to 2030. This can be attributed to several factors, such as the rising need for autonomous vehicles, the rising cost of driver comfort, strict pollution restrictions, and the surge in sales of new electric vehicles are all contributing factors. In addition, expanding urbanization and rising consumer disposable income levels will fuel demand in this region. According to Cognitive Market Research, in the Asia-Pacific region, the passenger cars category is presumed to witness the most significant growth in the coming years because there is a high demand for passenger cars worldwide. Automotive engineering services can help develop new models and technology to fulfil various market demands as emerging markets expand and customer preferences change. In conclusion, the high availability of labor in Asian nations like China and India has led to outsourcing production and related activities by leading automotive manufacturers, which fuels the industry's growth during the forecast period.

South America Automotive Engineering Service Market Analysis

According to Cognitive Market Research, the global automotive engineering services market size was estimated at USD 155.8 Billion out of which Latin America held the major market of more than 5.00% of the global revenue with a market size of USD 7.79 billion in 2023 and will grow at a compound annual growth rate (CAGR) of 8.1% from 2023 to 2030. This is because there are significant market players for automotive engineering services, the transition to electric vehicles, advancements in electric and hybrid vehicles, increased spending on research and development in the automotive industry, and stringent government regulations are all factors that are increasing demand in the automotive engineering services market in this region. According to Cognitive Market Research, the Latin American market is expected to increase in the following years. ADAS technologies help make cars safer by facilitating functions like lane departure warning, automatic emergency braking, and collision avoidance. These devices are designed to reduce the likelihood of accidents and lessen the impact of those that occur, improving overall market ADAS and safety category growth. In conclusion, rapid urbanization and increasing focus on EVs in the automotive engineering services business have contributed to Latin America's rising economic growth over the next few years.

Middle East Automotive Engineering Service Market Analysis

According to Cognitive Market Research, the global automotive engineering services market size was estimated at USD 155.8 Billion out of which Middle East and Africa held the major market of more than 2.00% of the global revenue with a market size of USD 3.12 billion in 2023 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2023 to 2030 due to factors such as original equipment manufacturers are present, consumer tastes are shifting toward electric vehicles, and new technologies are being developed and implemented at a quick pace. According to Cognitive Market Research, outsourcing automotive engineering services will expand in the coming years because reduced project duration and increased time-to-market are two benefits of outsourcing. Companies may speed up developing and launching new automotive goods or features with access to a dedicated team of experts. In conclusion, According to Cognitive Market Research, initiatives in infrastructure development and pioneering use of cutting-edge vehicle technology in the Middle East and Africa will grow significantly during the forecast period.

Automotive Engineering Service Market Analysis

Automotive Engineering Service Vehicle 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.

• Passenger Cars
• Commercial Vehicles

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Automotive Engineering Service Industry. Request a Free Sample PDF!

Automotive Engineering Service Application Segment Analysis

According to Cognitive Market Research, ADAS and safety hold a prominent market share because autonomous driving assistance systems can drastically decrease traffic accidents and deaths. Technologies that improve drivers' situational awareness and safety on the road include adaptive cruise control, blind-spot recognition, and rear-view cameras.

Battery development and management is the fastest-growing category over the forecast period because batteries' health, safety, and performance can be monitored and managed with the help of a BMS. Battery performance, energy density, and range can all be enhanced with the help of automotive engineering services that develop, test, and optimize batteries.

• ADAS and safety
• Electrical electronics and body controls
• Chassis
• Connectivity services
• Interior exterior and body engineering
• Powertrain and exhaust
• Simulation
• Battery development and management
• Charger testing
• Motor controls
• Others

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Automotive Engineering Service Location Segment Analysis

According to Cognitive Market Research, outsourcing holds a prominent market share because of its adaptability; engineering teams can be sized and assembled according to the needs of individual projects. Because of outsourcing's accessibility to a varied and worldwide talent pool and its scalability, businesses can respond rapidly to shifting project demands and market circumstances.

In-house is the fastest-growing category over the forecast period. Because there is more direct supervision and control over the whole engineering process when teams work in-house, companies can maintain strict controls on project schedules, quality standards, and overarching strategies, and internal teams need help coordinating with those in other divisions, including sales, marketing, and production, contributing to the market's growth.

• In-house
• Outsource

Automotive Engineering Service Service Segment Analysis

According to Cognitive Market Research, system integration holds a prominent market share due to system integration; all of an automobile's moving parts and systems can work together without a hitch. By maximizing the efficiency of interdependent systems this optimization boosts vehicles' overall performance.

Concept/Research is the fastest-growing category over the forecast period because exploring novel concepts, technologies, and processes drives research and concept development innovation. This leads to new ways of thinking and advancements in automotive engineering.

• Concept/Research
• Designing
• Prototyping
• System Integration
• Testing

Automotive Engineering Service Propulsion Segment Analysis

According to Cognitive Market Research, electric holds a prominent market share because electric propulsion significantly reduces pollutants and greenhouse gas emissions since it does away with the necessity for internal combustion engines. Automotive engineering services are priceless since they aid in creating eco-friendly technology that bolsters international initiatives to fight climate change.

The ICE is the fastest-growing category over the forecast period because ICE vehicles have been fine-tuned for decades, and its fuel has a high energy density, so they can go farther between fill-ups and require less frequent recharging. Because of this level of development, automotive engineering services can draw on a wealth of information to create innovative internal combustion engines that are both efficient and dependable.

• ICE
• Electric

Automotive Engineering Service Nature Type Segment Analysis

According to Cognitive Market Research, body leasing holds a prominent market share as body leasing's primary goals are weight reduction and the creation of novel materials. Improved fuel economy, enhanced handling, and conformity with environmental and safety standards depend on technology.

Turnkey is the fastest-growing category over the forecast period because a turnkey solution simplifies coordinating several parts of a project. Managing many vendors or service providers separately increases the likelihood of delays or miscommunication.

• Body Leasing
• Turnkey

Author's Detail

Swasti Dharmadhikari

Research associate at Cognitive Market Research

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Swasti Dharmadhikari, an agile and achievement-focused market researcher with an innate ardor for deciphering the intricacies of the Service & Software sector. Backed by a profound insight into technology trends and consumer dynamics, she has committed herself to meticulously navigating the ever-evolving terrain of digital Services and software solutions.

Author's Conclusion