Market Size of Automotive Engineering Services Outsourcing Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 88.02 Billion |
| Market Size (2029) | USD 343.99 Billion |
| CAGR (2024 - 2029) | 24.50 % |
| Fastest Growing Market | Europe |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Automotive Engineering Services Outsourcing Market Analysis
The Automotive Engineering Services Outsourcing Market size is estimated at USD 88.02 billion in 2024, and is expected to reach USD 343.99 billion by 2029, growing at a CAGR of 24.5% during the forecast period (2024-2029).
Over the long term, engineering firms are rapidly shifting to outsourcing to save costs, boost efficiency, or increase competence. Companies outsource engineering services for various reasons, including the need for fast delivery, flexibility, a lack of in-house specialists, and a constrained budget. Additionally, increasing demand for electric vehicles, as well as increasing adoption of electric vehicles, autonomous vehicle innovative technologies such as ADAS for vehicle and passenger safety, and lightweight vehicles, are key factors that may positively impact market growth in the coming years.
Considering the growth in electric vehicle sales, several companies from the supply chain are entering into partnerships to enhance the design of vehicle components. Governments have launched various plans and efforts worldwide to encourage buyers to lean toward electric vehicles over conventional automobiles.
- One such plan that encourages the purchase of electric vehicles is the California ZEV program, which intends to have 1.5 million electric vehicles on the road by 2025.
- In November 2023, Capgemini offered sustainable, safe, secure, and connected solutions with key expertise such as software development and product engineering in the Autonomous, Connected, Electric, and Shared vehicles domains. It received the highest “Vision and Capability” rating and was designated the top Leader by the Everest Group ACES Automotive Engineering Services PEAK Matrix Assessment 2023.
Europe is expected to grow significantly in the target market, owing to the presence of OEMs and changing consumer preference toward electric vehicles. The presence of countries such as Germany and the United Kingdom also positively impacts the market’s growth due to the policies and regulations implemented by their governments related to emissions and encouraging the usage of green technology. North America is also expected to witness considerable market growth during the forecast period.
