Automotive Engineering Services Outsourcing Market Size

Statistics for the 2023 & 2024 Automotive Engineering Services Outsourcing market size, created by Mordor Intelligence™ Industry Reports. Automotive Engineering Services Outsourcing size report includes a market forecast to 2029 and historical overview. Get a sample of this industry size analysis as a free report PDF download.

Market Size of Automotive Engineering Services Outsourcing Industry

Automotive Engineering Services Outsourcing Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR 25.50 %
Fastest Growing Market Asia Pacific
Largest Market Asia-Pacific
Market Concentration Medium

Major Players

Automotive Engineering Services Outsourcing Market 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 was valued at USD 70.7 billion, and it is projected to reach USD 276.3 billion, registering a CAGR of 25.5% in the next five years.

The COVID-19 outbreak has affected many industries across the world. Many countries imposed a complete lockdown for a few months because of the COVID-19 pandemic, which hampered the production of vehicles. Vehicle sales took a hit as manufacturing sites throughout the world were shut down. The impact of the pandemic was moderate on the automotive engineering services market. However, most automakers have resumed vehicle manufacturing with limited capacity and safety measures in place. The market is expected to grow positively during the forecast period as economies are recovering in the post-pandemic period.

Over the long term, engineering firms are rapidly shifting to outsourcing, either to save costs, boost efficiency, or increase competence. Companies outsource engineering services for a variety of reasons, some of the key factors are the need for fast delivery, the need for 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, automonous vehicle innovative technologies such as ADAS for vehicle and passenger safety, and lightweight vehicles, are some of the key factors that would positively impact market growth in the coming years.

Considering the growth in electric vehicle sales, several companies from the supply chain are entering into partnership to enhance the design of vehicle components. Various plans and efforts have been launched by governments throughout the world to encourage buyers to prefer electric vehicles over conventional automobiles.

  • One such plan that encourages the purchase of electric vehicles is the California ZEV programme, which intends to have 1.5 million electric vehicles on the road by 2025.
  • In February 2021, AVL and Batemoformed a strategic agreement in the area of virtual battery development. AVL and Batemo'scollaboration seeks to consolidate battery modeling knowledge so that clients may be advised in design, function and system development, battery testing, and fleet operation.

However, the market faces challenges from restraining factors like the high cost of engineering services which may hamper market growth.

Europe region is expected to be the grow with a significant rate in the target market, owing to the presence of OEMs and changing consumer preference toward electric vehicles. Prsence of countries such as Germany, and United Kingdom, among others, are also positively impact the growth to target market owing to their policies and regulations implemented by their governments related to emissions and encourage the usage of green technology. Furthermore, North America is also expected to witness considerable market growth during the forecast period.

Automotive Engineering Services Outsourcing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)