Automotive Transmission Engineering Services Outsourcing Global Market Report 2024

Automotive transmission engineering services outsourcing refers to the provision of outsourced development assistance for advanced powertrain systems. This critical aspect of automotive manufacturing ensures the seamless flow of power from the engine to the wheels, facilitating the vehicle's movement.

The primary service categories within automotive transmission engineering services outsourcing encompass designing, prototyping, testing, system engineering and integration, and simulation. Designing services involve leveraging expert knowledge and modeling components, conceptualizing and assessing ideas, and utilizing automatically proportioned components. This also includes the provision of a new set of driveline components or systems as a starting point for the final design. The two main types of powertrains, conventional and hybrid, support both automatic and manual transmission types. Automotive transmission engineering services outsourcing is applicable across commercial automotive, industrial automotive, and passenger automotive sectors.

The automotive transmission engineering services outsourcing market research report is one of a series of new reports that provides automotive transmission engineering services outsourcing market statistics, including automotive transmission engineering services outsourcing industry global market size, regional shares, competitors with an automotive transmission engineering services outsourcing market share, detailed automotive transmission engineering services outsourcing market segments, market trends and opportunities, and any further data you may need to thrive in the automotive transmission engineering services outsourcing industry. This automotive transmission engineering services outsourcing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The automotive transmission engineering services outsourcing market size has grown steadily in recent years. It will grow from $12.19 billion in 2023 to $12.7 billion in 2024 at a compound annual growth rate (CAGR) of 4.2%. The growth observed in the historical period can be attributed to several key factors. These include the globalization of the automotive industry, a heightened demand for cost-effective engineering solutions, the increasing complexity of modern transmission systems, a strategic focus on core competencies by automotive companies, and a rising demand for fuel-efficient vehicles. These factors collectively contributed to the expansion and development of the automotive sector during the specified historic period.

The automotive transmission engineering services outsourcing market size is expected to see steady growth in the next few years. It will grow to $15.41 billion in 2028 at a compound annual growth rate (CAGR) of 4.9%. The anticipated growth in the forecast period can be attributed to several key drivers. These include the increasing demand for hybrid and electric vehicles, a rising market for advanced driver assistance systems (ADAS), a growing appetite for connected cars and autonomous vehicles, an augmented focus on reducing carbon emissions, and an increasing demand for advanced materials in automotive manufacturing. Notable trends expected in the forecast period encompass advancements in transmission technology, the outsourcing of transmission software development, collaborative initiatives between automotive manufacturers and engineering service providers, the adoption of digital twin technology in transmission engineering services, and a shift towards virtual testing and simulation in transmission design. These trends are poised to significantly impact and shape the trajectory of the automotive industry during the forecast period.

The rise in hybrid vehicle production is set to drive the expansion of the automotive transmission engineering services outsourcing market within the forecast period. Hybrid cars, equipped with both electric and traditional engines, offer distinct advantages over conventional vehicles, leading to a surge in their popularity and subsequently boosting the global demand for automotive transmission engineering services outsourcing. For instance, in the EU region, hybrid vehicles accounted for 19.6% of new passenger car sales in 2021, a substantial increase from the 11.9% market share in 2020. The environmentally conscious appeal of hybrid vehicles is fueling their demand, thereby stimulating growth in the outsourcing sector for automotive transmission engineering services.

Anticipated growth in the electric vehicle sector is projected to be a key driver propelling the automotive transmission engineering services outsourcing market. The burgeoning demand for electric vehicles, characterized by automobiles powered by electric motors and rechargeable through external sources, is driving manufacturers to seek specialized expertise through outsourcing. Leveraging external expertise for automotive transmission engineering services enables manufacturers to optimize powertrains, reduce costs, and accelerate the development of efficient and high-performance electric vehicles. In May 2022, globally, electric vehicle sales nearly doubled to 6.6 million in 2021, as reported by the International Energy Agency, bringing the total number of electric vehicles on roads worldwide to 16.5 million. Consequently, the increasing popularity of electric vehicles is a significant catalyst driving growth in the outsourcing landscape for automotive transmission engineering services.

Technological advancements in automotive transmission represent a prominent trend influencing the automotive transmission engineering services outsourcing market. Companies embracing and implementing new technological innovations are witnessing substantial growth opportunities in the outsourcing sphere for automotive transmission engineering services. For instance, a cooperative research initiative launched in June 2021 between IAV and the Massachusetts Institute of Technology (MIT) focused on exploring alternative propulsion systems for heavy-duty vehicles. This collaborative effort involves comprehensive analysis and assessment of various drive types, encompassing hydrogen-based systems, electrification, hybridization, and methane combustion, showcasing the importance of technological advancements in shaping the future of automotive transmission engineering.

Major players in the automotive transmission engineering services outsourcing market are forging strategic partnerships and collaborations to establish joint ventures, aiming to secure a competitive advantage in the industry. These alliances are designed to harness the collective expertise and capabilities of partnering entities, focusing on the design, development, testing, and optimization of automotive transmission systems. Their primary goal is to deliver innovative and cost-effective solutions to automotive manufacturers and suppliers. An example of this strategy is seen in the partnership formed in September 2022 between TATA AutoComp Systems Limited, an India-based provider of automotive OEM products and services, and Punch Powertrain, a Belgium-based transmission systems provider. Through this joint venture, both entities intend to introduce sustainable mobility solutions with a focus on affordability in the Indian market. Their collaboration will result in the creation, marketing, and global distribution of advanced products like the compact dual-clutch transmission design (DT1) to cater to Indian consumers and beyond. Additionally, Punch Powertrain's portfolio of products, including EV reducers and continuously variable transmissions (CVTs), will be made available to the Indian market through the collaborative efforts of the joint venture.

In February 2021, Apollo Future Mobility Group Limited, a prominent mobility technology solutions provider based in China, completed the acquisition of Ideenion Automobil AG for an undisclosed sum. This acquisition plays a vital role in Apollo Future Mobility Group's strategic expansion in the realm of new energy vehicle solutions and services, positioning the company as a comprehensive full-service provider in the automotive domain. Ideenion Automobil AG, based in Germany, specializes in automotive engineering services outsourcing (ESO), making this acquisition a significant move toward enhancing Apollo Future Mobility Group's market presence and service capabilities in the automotive industry.

Major companies operating in the in the automotive transmission engineering services outsourcing market report are AVL List GmbH, FEV Group GmbH, IAV GmbH, Ricardo plc, Intertek Group plc, Bertrandt AG, EDAG Engineering GmbH, Tata Consultancy Services Limited, Marelli Europe SpA, Horiba Ltd. , Porsche Engineering Group GmbH, Alten SA, P3 Automotive GmbH, Altair Engineering Inc. , RLE International Group, ASAP Holding GmbH, Kistler Holding AG, M Plan GmbH, P+Z Engineering GmbH, Magna International Inc. , Robert Bosch GmbH, Akka Technologies India Private Limited, ESG Group Pty Ltd. , ITK Engineering GmbH, ZF Friedrichshafen AG, Jatco Ltd. , Aisin Seiki Co. Ltd. , Infosys Limited, Wipro Limited, HCL Technologies Limited, Tech Mahindra Limited, Capgemini SE

Asia-Pacific was the largest region in the automotive transmission engineering services outsourcing market share in 2023. The regions covered in the automotive transmission engineering services outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the automotive transmission engineering services outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The automotive transmission engineering services outsourcing market includes revenues earned by entities by providing services such as backward vertical integration, conglomerate integration, forward vertical integration, horizontal integration. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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