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Automotive Engineering Services Market Size - By Type (Concept/Research, Designing, Prototyping, System Integration), Location (In-house, Outsourced), Vehicle Type (Passenger, Commercial), Propulsion (ICE, Electric), Application, & Forecast, 2023 - 2032

  • Report ID: GMI5860
  • Published Date: May 2023
  • Report Format: PDF

Automotive Engineering Services Market Size

Automotive Engineering Services Market size surpassed USD 150 billion in 2022 and is anticipated to grow at 5% CAGR from 2023 to 2032. The automotive industry is evolving rapidly with the introduction of technologies such as electric power, autonomous driving, connectivity, and Advanced Driver Assistance System (ADAS). These technologies are evolving and require specialized engineering services to design, develop, integrate & test effectively.

Automotive Engineering Services Market

The automotive industry relies on professionals to manage complex operations. However, there is a growing concern about the lack of qualified professionals and experts in this field. The lack of technical skills causes problems for auto companies, especially in recruiting and retaining skilled workers. The automotive industry is growing rapidly with developments in areas such as electric vehicles, autonomous driving, connected vehicles, and technology. These advancements require employees with new knowledge & skills in fields such as mechanical engineering, electrical engineering, computer science, and data analysis.

Automotive Engineering Services Market Trends

Advancements in electric vehicles and hybrid vehicles are driving the automotive engineering services market demand. Automotive engineering service providers support automakers in the designing & manufacturing of electrical systems including generators, inverters, and electric motors. They optimize the performance, efficiency, and reliability of these systems to meet the requirements of electric & hybrid vehicles. Furthermore, the rise of electric vehicles will directly propel the development of electric charging. Automotive engineering companies contribute to the construction and operation of charging stations for private & public uses. They considered factors such as charging speed, compatibility, and network connectivity. All these factors are expected to drive industry growth by 2032.

Automotive Engineering Services Market Analysis

Automotive Engineering Services Market Size,

The prototyping segment will hold a significant market share during 2023-2032. The complexity of automotive systems and technologies is driving demand for prototyping services. As vehicles become more connected, electronic, and autonomous, the integration and usability of various devices and systems is becoming more common. By identifying design issues or performance issues early in the development process, manufacturers can prevent rework or rollbacks at later stages. Prototyping also allows cost-effectiveness testing and verification of alternative materials, manufacturing, or engineering solutions. This helps companies improve their production processes, reduce costs and reduce the risks associated with launching new products.

Automotive Engineering Services Market Share, By Application, 2022

The powertrain optimization segment in automotive engineering services market witnessed 5% growth in 2022. Powertrain optimization focuses on improving the performance, efficiency, and reliability of a vehicle's drivetrain system. Drivetrain optimization includes various activities aimed at improving the overall performance of the engine, transmission, electronic components, and more. Powertrain optimization also includes the use of lightweight components and optimized designs to reduce the overall weight & increase fuel efficiency. Suppliers can identify and recommend materials, such as advanced alloys, composites, and lightweights, to improve energy efficiency.

The commercial automotive engineering services industry captured 40% share in 2022 and expected to grow rapidly. Growth in the global economy, the spread of e-commerce, and an increase in transportation have increased the automotive sector demand. These factors lead to the demand for engineering services to design, build & optimize the automotive industry to meet the changing business environment. Businesses need commercial vehicles, according to their special needs. The automotive industry provides specialized services and tailored solutions to various industries including transport & logistics, construction, and utilities. This update helps businesses increase efficiency, productivity, and security. The market is also driven by the need for specialized engineering expertise to meet the specific needs of the auto market, thus driving industry progression & demand.

Europe automotive engineering services market held the highest global share of 30% in 2022. The region is home to automobile manufacturers, suppliers, and engineering companies. The presence of established business players contributes to the demand and development of automotive engineering services in Europe. Moreover, Europe has strict safety and environmental regulations for the automobile industry. Automotive engineering service providers play an important role in helping automakers meet these regulatory requirements. They ensure compliance with standards established by organizations, such as the European Union (EU), the European Commission, and the European Automotive Safety Council (EASC), to ensure that vehicles comply with high safety standards.

France Automotive Engineering Services Market Size, 2021-2032, (USD Billion)

Automotive Engineering Services Market Share

Major companies operating in the automotive engineering services market landscape include

  • AKKA Technologies
  • Alten Group
  • Assystem Group
  • Capgemini
  • Continental AG
  • EDAG Engineering GmbH
  • FEV Group
  • Harman International Industries
  • IAV GmbH
  • L&T Technology Services
  • Mahindra Engineering Services
  • Ricardo plc
  • RLE International Group
  • Robert Bosch GmbH
  • Tata Technologies Limited.

Automotive Engineering Services Industry News:

  • In June 2022, Altair Mühendislik A.?. acquired Concept Engineering, a provider of electronic system visualization software that accelerates the development, manufacturing, and servicing of complex electrical & electronic systems.

This automotive engineering services market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Type

  • Concept/Research
  • Designing
  • Prototyping
  • System integration

Market, By Application

  • Product design & development
  • Prototyping & testing
  • Powertrain optimization
  • Electric & autonomous vehicle development
  • Software & electronics integration
  • Chassis
  • Electrical & electronics engineering
  • Body & interior engineering
  • Others

Market, By Location

  • In-house
  • Outsourced

Market, By Vehicle Type

  • Passenger
  • Commercial

Market, By Propulsion

  • ICE
  • Electric

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • UAE
    • South Africa


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of automotive engineering services exceeded USD 150 billion in 2022 and is anticipated to grow at 5% CAGR from 2023 to 2032, on account of introduction of technologies such as electric power, autonomous driving, connectivity, and Advanced Driver Assistance System (ADAS) which require specialized services to design, develop, integrate & test effectively.

The powertrain optimization segment will contribute substantially to industry share over 2023 to 2032, owing to focus on improving the performance, efficiency, and reliability of a vehicle's drivetrain system by reducing the overall weight and increasing fuel efficiency.

Europe held the highest share in automotive engineering services industry of over 30% in 2022, region being a hub for automotive manufacturing and engineering excellence. Strict vehicle safety compliance and focus on delivering compliant & advanced vehicles are boosting the regional business growth.

AKKA Technologies, Alten Group, Assystem Group, Capgemini, Continental AG, EDAG Engineering GmbH, FEV Group, Harman International Industries, IAV GmbH, L&T Technology Services, Mahindra Engineering Services, and Ricardo plc among others.

Automotive Engineering Services Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 322
  • Countries covered: 15
  • Pages: 250
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