With several businesses resuming operations and adjusting to the new normal while recovering from the impact of COVID-19, the global Automotive engineering The services market is expected to grow from $199.0 billion in 2021 to $220.9 billion. According to a recent Research and Markets report, the global market is expected to reach $336 billion by 2026 with a CAGR of 11.06%.
Previously, these businesses have been forced into restrictive containment measures involving social distancing, remote work, and business closures due to COVID-19, resulting in operational challenges.
The automotive engineering services market consists of sales of engineering services by entities (organizations, sole traders, and associations) including mechanical, electrical, software, security, and electronic engineering for vehicle design.
Automotive engineering Services streamline the manufacturing process to improve overall vehicle operating efficiency. In addition, the services offer advanced and innovative features in comfort, infotainment and safety by integrating advanced electronics into the vehicles.
The major players in the automotive engineering services market are Capgemini Se, IAV, Tech Mahindra, AKKA Technologies, Bertrandt AG, Harman International, Alten Cresttek, L & T Technology Services, Fev Europe, AVL, FEV, Ricardo, EDAG Engineering GmbH , Valmet Automotive , Onward Technologies, T-NET Japan, Kistler Group, Continental AG, Semcon and Robert Bosch. The report covers Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the United Kingdom, the United States.
The main types of vehicles covered by automotive engineering services include passenger cars and commercial vehicles. Passenger cars are designed and built to carry passengers and have fewer than eight seats, not including the driver’s seat. Different types of automotive engineering services include concept/research, design, prototyping, system integration, and testing.
Automotive engineering services are located onshore and offshore for different applications such as electrical, electronics, body controls, ADAS, safety, chassis, connectivity services, powertrain and exhaust, interior, exterior and body engineering and simulation .
According to Research and Markets, Asia-Pacific was the largest region in the automotive engineering services market in 2021. Regions covered in this report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa
The increasing demand for emission-free transportation is expected to fuel the growth of the automotive engineering services market. The use of fossil fuels such as diesel and gasoline releases greenhouse gases such as carbon dioxide, methane, hydrofluorocarbons, and nitrous oxide into the atmosphere, causing changes in the climate and therefore increasing the demand for means of emission-free transportation, such as electric vehicles, according to the report. .
For example, in 2021, electric car sales doubled to 6.6 million from 3 million in 2020. The growing demand for zero-emission transportation reduces fossil fuel consumption and reduces greenhouse gas emissions. The demand for zero-emission transportation coupled with increased awareness of zero-emission transportation is expected to boost the market for automotive engineering services.
The deployment of Artificial Intelligence (AI) in automotive engineering is a key trend that is gaining popularity. Helpful AI algorithms and drivers help provide realistic driving range estimation and optimize energy conservation in EVs, ultimately helping to add additional driving range. AI is also at the center of self-driving cars, which are becoming increasingly popular in the auto industry.
For example, in 2021, US-based automaker Ford collaborated with Google to harness artificial intelligence to improve customer experiences, accelerate product development modernization, improve supply chain management supply and manufacturing, and accelerate the implementation of data-driven business models. added the report.
Courtesy: Investigation and Markets. The photo is representative; Courtesy: Continental.