Automotive Engineering Services - Global Strategic Business Report

The global market for Automotive Engineering Services was estimated at US$219.9 Billion in 2024 and is projected to reach US$355.3 Billion by 2030, growing at a CAGR of 8.3% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Automotive Engineering Services market.

Global Automotive Engineering Services Market - Key Trends & Drivers Summarized

Automotive engineering services encompass a broad range of design, development, and testing activities aimed at creating and improving vehicles and their components. These services are provided by specialized firms and include areas such as mechanical design, electrical engineering, software development, prototyping, and testing. The automotive industry relies heavily on these engineering services to innovate and stay competitive in a rapidly evolving market. Key areas of focus include the development of electric and autonomous vehicles, advanced driver-assistance systems (ADAS), and the integration of new technologies such as artificial intelligence (AI) and the Internet of Things (IoT) into vehicles.

The demand for automotive engineering services has been significantly influenced by the shift towards electric mobility and the pursuit of autonomous driving capabilities. Electric vehicle (EV) development requires expertise in battery technology, power electronics, and electric drivetrains. Autonomous vehicles (AVs) and ADAS demand advanced skills in sensor integration, machine learning algorithms, and vehicle-to-everything (V2X) communication. Additionally, the need for lighter, more fuel-efficient vehicles drives the demand for innovative materials and manufacturing processes. The collaboration between traditional automakers and tech companies is also shaping the future of automotive engineering.

The growth in the automotive engineering services market is driven by several factors. Firstly, the accelerating development and adoption of electric vehicles (EVs) and autonomous vehicles (AVs) are major drivers, necessitating advanced engineering expertise. Secondly, the continuous innovation in ADAS and vehicle safety technologies is boosting the demand for specialized engineering services. Thirdly, regulatory pressures to reduce emissions and enhance vehicle safety are encouraging automakers to seek external engineering support. Additionally, the rise of connected vehicles and the integration of IoT technologies are creating new opportunities for engineering services. Furthermore, the increasing complexity of automotive systems and the need for rapid prototyping and testing are driving the demand for comprehensive engineering solutions. Lastly, the trend towards digitalization and the use of simulation and virtual testing tools are enhancing the capabilities and efficiency of automotive engineering services.

SCOPE OF STUDY:

The report analyzes the Automotive Engineering Services market in terms of units by the following Segments, and Geographic Regions/Countries:

• Segments: Location (In-House, Outsource); Application (Electrical, Electronics & Body Controls, ADAS & Safety, Chassis, Connectivity Services, Other Applications); End-Use (Passenger Cars, Commercial Vehicles)
• Geographic Regions/Countries: World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the In-House segment, which is expected to reach US$235.3 Billion by 2030 with a CAGR of a 8.7%. The Outsource segment is also set to grow at 7.5% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $29.5 Billion in 2024, and China, forecasted to grow at an impressive 12.7% CAGR to reach $75.5 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Automotive Engineering Services Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Automotive Engineering Services Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Automotive Engineering Services Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as AKKA Technologies, ALTEN Group, AVL List GmbH, Bertrandt AG, Continental AG and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 106 companies featured in this Automotive Engineering Services market report include:

• AKKA Technologies
• ALTEN Group
• AVL List GmbH
• Bertrandt AG
• Continental AG
• EDAG Engineering Group AG
• ESI Group
• FEV Europe GmbH
• HARMAN International
• HCL Technologies Limited
• IAV Automotive Engineering Inc.
• Kistler Group
• L&T Technology Services Limited
• Onward Technologies Ltd.
• Ricardo PLC
• Semcon
• SOLIZE Corporation
• Tech Mahindra Limited
• T-NET JAPAN Co., Ltd.
• Valmet Automotive

This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:

• Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
• Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
• Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
• Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
• Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
• Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
• Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.