Automotive Engineering Services Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2024 to 2032
The Global Automotive Engineering Services Market, valued at USD 164.9 billion in 2023, is anticipated to grow at a steady 8.2% CAGR from 2024 to 2032. The drive toward sustainability and fuel efficiency is a major catalyst for market growth, as both consumers and manufacturers emphasize reducing emissions and enhancing fuel economy. Lightweight materials, including advanced composites and high-strength steel, are becoming integral to vehicle design as they reduce overall weight, which in turn boosts fuel efficiency and cuts emissions. This trend increases the demand for specialized engineering services in material selection, structural analysis, and design optimization. The rising trend of vehicle customization and personalization is another key factor bolstering the automotive engineering services market.
As consumers seek unique features tailored to their tastes—like custom interiors, cutting-edge infotainment, and performance tweaks—automakers invest more in engineering services that allow for adaptable design and production processes. To meet these evolving needs, engineering service providers are offering modular vehicle architecture solutions and advanced software customization, which enable manufacturers to adapt to diverse customer requirements. The market is segmented by location into in-house and outsourced engineering services. In 2023, the in-house segment dominated with over 55% of the market share and is projected to surpass USD 185 billion by 2032. Many automotive companies favor in-house engineering to maintain control over critical aspects of design, development, and testing, which ensures alignment with their standards and facilitates rapid adjustments based on real-time feedback.
In-house teams also support improved collaboration across various departments like R&D, production, and marketing, which enhances innovation and operational efficiency. By vehicle type, the market is divided into passenger and commercial vehicles, with the passenger car segment holding around 64% of the market share in 2023. The growing global demand for personal mobility drives significant production and innovation in this segment. As manufacturers accelerate investment in electric and autonomous vehicle technologies, the need for extensive engineering services in development, testing, and compliance rises. Additionally, stringent environmental and safety regulations push companies to seek comprehensive engineering solutions to meet evolving standards.
Germany's automotive engineering services market is projected to exceed USD 44 billion by 2032, supported by the country’s strong automotive sector. Known for its concentration of major OEMs and pioneering advancements in electric and autonomous vehicles, Germany continues to lead in R&D investments focusing on sustainable, high-tech solutions. The country's rigorous regulatory environment further drives demand for engineering services that ensure safety and compliance. The extensive network of engineering firms in Germany also fuels the creation of cutting-edge automotive technologies, reinforcing the country’s leadership in the global automotive industry.
As consumers seek unique features tailored to their tastes—like custom interiors, cutting-edge infotainment, and performance tweaks—automakers invest more in engineering services that allow for adaptable design and production processes. To meet these evolving needs, engineering service providers are offering modular vehicle architecture solutions and advanced software customization, which enable manufacturers to adapt to diverse customer requirements. The market is segmented by location into in-house and outsourced engineering services. In 2023, the in-house segment dominated with over 55% of the market share and is projected to surpass USD 185 billion by 2032. Many automotive companies favor in-house engineering to maintain control over critical aspects of design, development, and testing, which ensures alignment with their standards and facilitates rapid adjustments based on real-time feedback.
In-house teams also support improved collaboration across various departments like R&D, production, and marketing, which enhances innovation and operational efficiency. By vehicle type, the market is divided into passenger and commercial vehicles, with the passenger car segment holding around 64% of the market share in 2023. The growing global demand for personal mobility drives significant production and innovation in this segment. As manufacturers accelerate investment in electric and autonomous vehicle technologies, the need for extensive engineering services in development, testing, and compliance rises. Additionally, stringent environmental and safety regulations push companies to seek comprehensive engineering solutions to meet evolving standards.
Germany's automotive engineering services market is projected to exceed USD 44 billion by 2032, supported by the country’s strong automotive sector. Known for its concentration of major OEMs and pioneering advancements in electric and autonomous vehicles, Germany continues to lead in R&D investments focusing on sustainable, high-tech solutions. The country's rigorous regulatory environment further drives demand for engineering services that ensure safety and compliance. The extensive network of engineering firms in Germany also fuels the creation of cutting-edge automotive technologies, reinforcing the country’s leadership in the global automotive industry.
Report Content
CHAPTER 1 METHODOLOGY & SCOPE
1.1 Research design
1.1.1 Research approach
1.1.2 Data collection methods
1.2 Base estimates and calculations
1.2.1 Base year calculation
1.2.2 Key trends for market estimates
1.3 Forecast model
1.4 Primary research & validation
1.4.1 Primary sources
1.4.2 Data mining sources
1.5 Market definition
CHAPTER 2 EXECUTIVE SUMMARY
2.1 Industry 360° synopsis, 2021 - 2032
CHAPTER 3 INDUSTRY INSIGHTS
3.1 Industry ecosystem analysis
3.2 Supplier landscape
3.2.1 Tier 1 suppliers
3.2.2 Tier 2 suppliers
3.2.3 Engineering service providers
3.2.4 OEMs (Original Equipment Manufacturers)
3.2.5 Research and development institutions
3.3 Profit margin analysis
3.4 Pricing models in automotive engineering services
3.5 Technology & innovation landscape
3.6 Key news & initiatives
3.7 Regulatory landscape
3.8 Impact forces
3.8.1 Growth drivers
3.8.1.1 Demand for lightweight and fuel-efficient vehicles
3.8.1.2 Growing demand for customization and personalization
3.8.1.3 Advancements in electric and hybrid vehicles
3.8.1.4 Cost optimization and efficiency improvement
3.8.2 Industry pitfalls & challenges
3.8.2.1 Cost constraints
3.8.2.2 Lack of skilled workforce
3.9 Growth potential analysis
3.10 Porter’s analysis
3.11 PESTEL analysis
CHAPTER 4 COMPETITIVE LANDSCAPE, 2023
4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix
CHAPTER 5 MARKET ESTIMATES & FORECAST, BY TYPE, 2021 - 2032 ($BN)
5.1 Key trends
5.2 Concept/research
5.3 Designing
5.4 Prototyping
5.5 System integration
CHAPTER 6 MARKET ESTIMATES & FORECAST, BY APPLICATION, 2021 - 2032 ($BN)
6.1 Key trends
6.2 Product design & development
6.3 Prototyping & testing
6.4 Powertrain optimization
6.5 Electric & autonomous vehicle development
6.6 Software & electronics integration
6.7 Chassis
6.8 Electrical and electronics engineering
6.9 Body & interior engineering
6.10 Others
CHAPTER 7 MARKET ESTIMATES & FORECAST, BY LOCATION, 2021 - 2032 ($BN)
7.1 Key trends
7.2 In-house
7.3 Outsourced
CHAPTER 8 MARKET ESTIMATES & FORECAST, BY VEHICLE, 2021 - 2032 ($BN)
8.1 Key trends
8.2 Passenger cars
8.3 Commercial cars
CHAPTER 9 MARKET ESTIMATES & FORECAST, BY PROPULSION, 2021 - 2032 ($BN)
9.1 Key trends
9.2 ICE
9.3 Electric
CHAPTER 10 MARKET ESTIMATES & FORECAST, BY REGION, 2021 - 2032 ($BN)
10.1 Key trends
10.2 North America
10.2.1 U.S.
10.2.2 Canada
10.3 Europe
10.3.1 UK
10.3.2 Germany
10.3.3 France
10.3.4 Spain
10.3.5 Italy
10.3.6 Russia
10.3.7 Nordics
10.4 Asia Pacific
10.4.1 China
10.4.2 India
10.4.3 Japan
10.4.4 South Korea
10.4.5 ANZ
10.4.6 Southeast Asia
10.5 Latin America
10.5.1 Brazil
10.5.2 Mexico
10.5.3 Argentina
10.6 MEA
10.6.1 UAE
10.6.2 South Africa
10.6.3 Saudi Arabia
CHAPTER 11 COMPANY PROFILES
11.1 AKKA Technologies
11.2 Altair Engineering
11.3 Alten Group
11.4 Assystem Group
11.5 Capgemini Engineering
11.6 Continental AG
11.7 EDAG Engineering GmbH
11.8 FEV Group
11.9 Harman International Industries
11.10 HCL Technologies
11.11 Horiba MIRA
11.12 IAV GmbH
11.13 L&T Technology Services
11.14 Mahindra Engineering Services
11.15 MathWorks
11.16 Ricardo plc
11.17 RLE International Group
11.18 Robert Bosch GmbH
11.19 Schaeffler Engineering GmbH
11.20 Tata Technologies Limited
CHAPTER 1 METHODOLOGY & SCOPE
1.1 Research design
1.1.1 Research approach
1.1.2 Data collection methods
1.2 Base estimates and calculations
1.2.1 Base year calculation
1.2.2 Key trends for market estimates
1.3 Forecast model
1.4 Primary research & validation
1.4.1 Primary sources
1.4.2 Data mining sources
1.5 Market definition
CHAPTER 2 EXECUTIVE SUMMARY
2.1 Industry 360° synopsis, 2021 - 2032
CHAPTER 3 INDUSTRY INSIGHTS
3.1 Industry ecosystem analysis
3.2 Supplier landscape
3.2.1 Tier 1 suppliers
3.2.2 Tier 2 suppliers
3.2.3 Engineering service providers
3.2.4 OEMs (Original Equipment Manufacturers)
3.2.5 Research and development institutions
3.3 Profit margin analysis
3.4 Pricing models in automotive engineering services
3.5 Technology & innovation landscape
3.6 Key news & initiatives
3.7 Regulatory landscape
3.8 Impact forces
3.8.1 Growth drivers
3.8.1.1 Demand for lightweight and fuel-efficient vehicles
3.8.1.2 Growing demand for customization and personalization
3.8.1.3 Advancements in electric and hybrid vehicles
3.8.1.4 Cost optimization and efficiency improvement
3.8.2 Industry pitfalls & challenges
3.8.2.1 Cost constraints
3.8.2.2 Lack of skilled workforce
3.9 Growth potential analysis
3.10 Porter’s analysis
3.11 PESTEL analysis
CHAPTER 4 COMPETITIVE LANDSCAPE, 2023
4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix
CHAPTER 5 MARKET ESTIMATES & FORECAST, BY TYPE, 2021 - 2032 ($BN)
5.1 Key trends
5.2 Concept/research
5.3 Designing
5.4 Prototyping
5.5 System integration
CHAPTER 6 MARKET ESTIMATES & FORECAST, BY APPLICATION, 2021 - 2032 ($BN)
6.1 Key trends
6.2 Product design & development
6.3 Prototyping & testing
6.4 Powertrain optimization
6.5 Electric & autonomous vehicle development
6.6 Software & electronics integration
6.7 Chassis
6.8 Electrical and electronics engineering
6.9 Body & interior engineering
6.10 Others
CHAPTER 7 MARKET ESTIMATES & FORECAST, BY LOCATION, 2021 - 2032 ($BN)
7.1 Key trends
7.2 In-house
7.3 Outsourced
CHAPTER 8 MARKET ESTIMATES & FORECAST, BY VEHICLE, 2021 - 2032 ($BN)
8.1 Key trends
8.2 Passenger cars
8.3 Commercial cars
CHAPTER 9 MARKET ESTIMATES & FORECAST, BY PROPULSION, 2021 - 2032 ($BN)
9.1 Key trends
9.2 ICE
9.3 Electric
CHAPTER 10 MARKET ESTIMATES & FORECAST, BY REGION, 2021 - 2032 ($BN)
10.1 Key trends
10.2 North America
10.2.1 U.S.
10.2.2 Canada
10.3 Europe
10.3.1 UK
10.3.2 Germany
10.3.3 France
10.3.4 Spain
10.3.5 Italy
10.3.6 Russia
10.3.7 Nordics
10.4 Asia Pacific
10.4.1 China
10.4.2 India
10.4.3 Japan
10.4.4 South Korea
10.4.5 ANZ
10.4.6 Southeast Asia
10.5 Latin America
10.5.1 Brazil
10.5.2 Mexico
10.5.3 Argentina
10.6 MEA
10.6.1 UAE
10.6.2 South Africa
10.6.3 Saudi Arabia
CHAPTER 11 COMPANY PROFILES
11.1 AKKA Technologies
11.2 Altair Engineering
11.3 Alten Group
11.4 Assystem Group
11.5 Capgemini Engineering
11.6 Continental AG
11.7 EDAG Engineering GmbH
11.8 FEV Group
11.9 Harman International Industries
11.10 HCL Technologies
11.11 Horiba MIRA
11.12 IAV GmbH
11.13 L&T Technology Services
11.14 Mahindra Engineering Services
11.15 MathWorks
11.16 Ricardo plc
11.17 RLE International Group
11.18 Robert Bosch GmbH
11.19 Schaeffler Engineering GmbH
11.20 Tata Technologies Limited
