Redding, California, Oct. 06, 2021 (GLOBE NEWSWIRE) -- According to a new market research report titled “Automotive Engineering Services Market by Service Type (Concept, Prototyping, Testing), Application (Body Engineering, Powertrain, Infotainment, Chassis, Safety Systems, Electrical, Body Controls, Connected Cars), Vehicle Type – Global Forecast to 2027,” published by Meticulous Research®, the automotive engineering services market is expected to grow at a CAGR of 6.7% from 2021 to 2027 to reach $18.6 billion by 2027.
Download Free Sample Report Now @ https://www.meticulousresearch.com/download-sample-report/cp_id=5043
Automotive engineering is a branch of vehicle engineering that focuses on the application, design, and manufacturing of various automobiles. This field of engineering involves the direct application of mathematics in the design and production of vehicles. Engineering disciplines that may be practiced in this field include safety engineering, vehicle electronics, quality management, and fuel economy and emissions.
Automotive engineering services include designing and testing brake systems, engines, safety mechanisms, fuel technologies, and transmission. The major factors that boost the global automotive engineering services market are growing competition in the automobile industry among auto OEMs and increasing focus on enhancing key capabilities among auto OEMs.
Some of the other factors driving the growth of this market include rising sales of electric vehicles, increasing R&D investments in the automotive industry, and stringent government policies and regulations for internal combustion engine (ICE) vehicles. In addition, the advent of autonomous vehicles is offering considerable growth opportunities for automotive engineering service providers. However, intellectual property (IP) constraint and shifting business model hinders the growth of the automotive engineering services market. Besides, fragile economic conditions across the globe owing to the spread of COVID-19 are posing serious challenges for the overall market growth.
The Impact of COVID-19 on the Automotive Engineering Services Market
The COVID-19 outbreak was declared a global pandemic as it spread in many countries. The pandemic has adversely hit many economies around the globe. The combat measures such as complete lockdown and quarantine to fight COVID-19 have put a strong adverse impact on many industries across the globe, including the automotive industry. The auto industry has seen the impact of the coronavirus crisis evolve from a supply shock to a global demand shock. The uncertainty regarding the possible length of lockdown and supply chain disruptions has made it even more difficult for industry players to anticipate the resurgence in the automotive industry. In addition to the impact on production activities, the ongoing pandemic has taken a toll on the consumer demand for automobiles, likely exacerbated by the lockdown imposed across major countries.
Speak to our Analysts to Understand the Impact of COVID-19 on Your Business: https://www.meticulousresearch.com/speak-to-analyst/cp_id=5043
As the coronavirus spread, many auto companies across the globe closed their doors as part of local shutdowns. Top global automotive manufacturing countries including China, the U.S., Germany, the U.K., and India almost stood still in manufacturing and sales during the first quarter of 2020. According to data published by Autocar India Magazine, global vehicle sales in March 2020 dipped to just above 5 million units and witnessed a significant drop of 39% compared to sales in March 2019. The U.S. and China registered a double-digit decline in automobile sales. However, Europe witnessed the worst decline in more than 38 years. Combined sales of Europe-27 registered a drop of 52% compared to the previous year. However, sales in electric cars, especially in some European countries, showed positive signs of growth. Electric vehicles, including hybrids, plug-ins, and full-electrics, recorded a positive growth of 15% and a total market share of 17.4% in European countries.
In the time of crisis, automotive companies along with the local government are trying to revive the glooming automotive industry by adopting several bailout strategies and packages. For instance, the Finance Ministry of India announced severance packages for automotive industries. Similarly, the Japanese government proposed a package of approximately USD 240 billion to mitigate the economic impact of COVID-19 and help industries, including the automotive industry.
The Japanese government also announced special perks and rebates for the companies willing to move their manufacturing unit out of China. The South Korean government assured automakers to speed up customs clearance, arrange freight transportation, and provide liquidity support. Although some governments are proactive, some are still planning and framing appropriate bailout packages for their automotive industry. Companies including General Motors, Volkswagen AG, and Toyota Motors urged the U.S. government to set-up facilities to provide loans and loan guarantees to large employers, medium-size manufacturers, and small businesses. Such strategy reforms and government aids are expected to help the automotive industry and associated industries re-track their growth path in the next 4 to 5 years.
Rising sales of electric vehicles are expected to drive the automotive engineering services market
The global electric vehicle (EV) industry is continuously expanding. The increasing vehicle range, better availability of charging infrastructure, and proactive participation of automotive original equipment manufacturers (OEMs) are driving the global electric vehicles market. Besides, the growing sensitivity of governments worldwide toward a cleaner environment is driving the demand for zero-emission vehicles. The U.S., Germany, and the U.K. are actively promoting the use of electric vehicles to reduce emissions. According to the Edison Electric Institute (EEI), more than 1.18 million electric vehicles are on the road in the U.S., and total sales for 2018 were up by almost 81% compared to 2017. Electric car deployment has been growing rapidly over the past ten years, with the global stock of electric passenger cars passing 5 million in 2018, an increase of 63% from the previous year.
The increasing adoption of electric vehicles is expected to change the outlook of the automotive engineering services market. Growing EV sales would accentuate the need to develop new battery technologies, better chassis & exterior designs, and advanced transmission systems compatible with such vehicles. EV manufacturers, such as Tesla, Nissan, and BAIC, are outsourcing their design and development of new technologies and solutions to tier 1 engineering companies. This trend is likely to grow with the rise in EV sales and drive the automotive engineering services market during the forecast period.
Quick Buy – Automotive Engineering Market Research Report: https://www.meticulousresearch.com/Checkout/85164188
To provide efficient analysis, Meticulous Research® has segmented this market on the basis of service type (concept/research, designing, prototyping, system integration, and testing), location (in-house and outsourced), application (interior, exterior, and body engineering (body electronics, BIW, and others), powertrain and exhaust (engine systems, electric systems, and others), infotainment & connectivity (connectivity, HMI and others), chassis (braking system, steering system, and others), safety systems (ADAS, passive safety, and others), electrical, electronics and body controls, simulation, and autonomous & connected cars (radar, adaptive control, and others), vehicle type (passenger car and commercial vehicle), and geography (Asia-Pacific, Europe, North America, Latin America, and the Middle East and Africa).
Based on service type, the prototyping segment accounted for the largest share of the overall automotive engineering services market in 2020. The growth of this segment is attributed to the constant pressure in the automotive industry to achieve higher performance standards with respect to energy efficiency, aerodynamics in designs, seamless connectivity, and reliable security. On the other hand, the automotive design engineering segment is expected to grow with the highest CAGR over the forecast period.
Based on application, the interior, exterior, & body engineering segment accounted for the largest share of the overall automotive engineering services market in 2020. The rise in customer expenditure on advanced automobiles, growing demand for customized interior and exterior designs, awareness regarding vehicle safety, and growing technological integrations with modern vehicles are driving the growth of this segment. However, the autonomous and connected cars segment is projected to grow at the highest CAGR during the forecasted period.
Based on vehicle type, the passenger cars segment accounted for the largest share of the overall automotive engineering services market in 2020. The large share of the segment is attributed to the growing adoption of connected sensors, utilization of vehicle data for autonomous driving, and predictive maintenance. In addition, the growing demand for reliable, safe, and comfortable passenger vehicles is forcing OEMs to invest in vehicle safety, advanced connectivity features, and smart infotainment systems.
Geographically, Asia-Pacific commanded the largest share of the global automotive engineering services market in 2020. Consistently growing vehicle production, increasing demand for luxury vehicles, growing sales of electric cars, and technological development are the key driving factor for the automotive engineering services market in the Asia-Pacific region.
On the other hand, the North American region is projected to grow at the highest CAGR during the forecast period. North America is one of the largest automotive manufacturing hubs globally, and vehicle production is a crucial element of its economy. There has been a surge in demand for electric vehicles in the region as the government is extending subsidies and pushing the availability of energy-efficient vehicles. Furthermore, the advent of autonomous vehicles is creating ample opportunities for the growth of the automotive engineering services market in the region.
Some of the key players operating in the global automotive engineering services market are Altran Technologies (France), Akka Technologies (France), Bertrandt AG (Germany), EDAG Engineering GmbH (Germany), IAV GmbH (Germany), HCL Technologies Limited (India), Alten Cresttek (U.S.), L&T Technology Services Limited (India), and FEV Group GmbH (Germany), among others.
To gain more insights into the market with a detailed table of content and figures, click here: https://www.meticulousresearch.com/product/automotive-engineering-services-market-5043
Scope of the Report
Automotive Engineering Services Market, by Service Type
- Concept/Research
- Designing
- Prototyping
- System Integration
- Testing
Automotive Engineering Services Market, by Location
- In-house
- Outsourced
Automotive Engineering Services Market, by Application
- Interior, Exterior, and Body Engineering
- Body Electronics
- BIW
- Others
- Powertrain and Exhaust
- Engine Systems
- Electric Systems
- Others
- Infotainment & Connectivity
- Connectivity
- HMI
- Others
- Chassis
- Braking Systems
- Steering Systems
- Others
- Safety Systems
- ADAS
- Passive Safety
- Others
- Electrical, Electronics and Body Controls
- Simulation
- Autonomous & Connected Cars
- Radar
- Adaptive Control
- Others
Automotive Engineering Services Market, by Vehicle Type
- Passenger Car
- Commercial Vehicle
Automotive Engineering Services Market, by Geography
- North America
-
- U.S.
- Canada
-
- Europe
-
- UK
- Germany
- France
- Italy
- Rest of Europe
-
- Asia-Pacific
-
- China
- India
- Japan
- Rest of Asia-Pacific
-
- Latin America
- Middle East & Africa
Download Free Sample Report Now @ https://www.meticulousresearch.com/download-sample-report/cp_id=5043
Amidst this crisis, Meticulous Research® is continuously assessing the impact of COVID-19 pandemic on various sub-markets and enables global organizations to strategize for the post-COVID-19 world and sustain their growth. Let us know if you would like to assess the impact of COVID-19 on any industry here- https://www.meticulousresearch.com/custom-research
Related Reports:
Automotive TIC Market by Service (Testing, Inspection, Certification), Sourcing, Supply Chain (Design, Production,), Application (VIS, Materials, Components, EVs, Fuels, Lubricants, Homologation, ADAS, Telematics), and Geography – Global Forecast to 2027
https://www.meticulousresearch.com/product/automotive-tic-market-4977
Automotive Powertrain Sensors Market by Sensors Type (Temperature, Position, Exhaust, Pressure, Speed, Knock), Powertrain Subsystems (Engine Management, Transmission Management, Power Steering), and Vehicle Type (ICE, EV) - Global Forecast To 2027
https://www.meticulousresearch.com/product/automotive-powertrain-sensors-market-5155
About Meticulous Research®
Meticulous Research® was founded in 2010 and incorporated as Meticulous Market Research Pvt. Ltd. in 2013 as a private limited company under the Companies Act, 1956. Since its incorporation, the company has become the leading provider of premium market intelligence in North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
The name of our company defines our services, strengths, and values. Since the inception, we have only thrived to research, analyze, and present the critical market data with great attention to details. With the meticulous primary and secondary research techniques, we have built strong capabilities in data collection, interpretation, and analysis of data including qualitative and quantitative research with the finest team of analysts. We design our meticulously analyzed intelligent and value-driven syndicate market research reports, custom studies, quick turnaround research, and consulting solutions to address business challenges of sustainable growth.
Contact:
Mr. Khushal Bombe
Meticulous Market Research Inc.
1267 Willis St, Ste 200 Redding,
California, 96001, U.S.
USA: +1-646-781-8004
Europe : +44-203-868-8738
APAC: +91 744-7780008
Email- sales@meticulousresearch.com
Visit Our Website: https://www.meticulousresearch.com/
Connect with us on LinkedIn- https://www.linkedin.com/company/meticulous-research
Content Source: https://www.meticulousresearch.com/pressrelease/71/automotive-engineering-services-market-2027
