What Is The Automotive Engineering Services Outsourcing Market Growth By 2030?

Automotive Engineering Services Outsourcing Industry Overview

The global automotive engineering services outsourcing market size is anticipated to reach USD 286.38 billion by 2030 registering a CAGR of 20.8% during the forecast period, according to a new report by Grand View Research, Inc. Increasing collaborative activities between Original Equipment Manufacturers (OEMs) and Engineering Service Providers (ESPs) to achieve promising technologies for performance enhancement, self-driving, and safety assurance adjustments are the factors anticipated to propel the automotive ESO market growth.

Automotive Engineering Services Outsourcing Market Segmentation

Grand View Research has segmented the global automotive engineering service outsourcing market based on the application, service, location, and region:

Based on the Application Insights, the market is segmented into Autonomous Driving/ADAS, Body & Chassis, Power train and After-treatment, Infotainment & Connectivity and Others.

• The powertrain and after-treatment segment registered for the largest revenue share of around 31.0% of the automotive ESO market in 2021.
• This is attributed to the electrification of powertrains as a replacement for Internal Combustion Engines (ICE) fueled by petroleum and gasoline that can minimize the impact of carbon emissions on the environment.
• The infotainment & connectivity segment is estimated to record the fastest growth registering a CAGR of more than 24.0% during the forecast period.
• The body & chassis segment accounted for substantial growth in the revenue share during 2021 due to the rapid production of green vehicles that reduce harmful emissions.
• The adoption of autonomous driving/ADAS is expected to witness significant growth in the forecast period due to its ability to sense & identify its environment and offer a safe movement.
• ADAS comprises various sensors, including lidar, GPS, radar, inertial measurement units, and others that provide advanced sensory information and control systems to navigate paths.

Based on the Service Insights, the market is segmented into Designing, Prototyping, System Integration, Testing and Others.

• The prototyping segment accounted for the largest revenue share of over 31.0% in 2021 and is expected to lead the automotive ESO market throughout the forecast period.
• The testing segment is expected to account for the fastest growth registering a CAGR of around 30.0% during the eight years as ESPs are investing in the construction of new test centers in an attempt to expand and meet the increasing requirements for automotive testing.
• Moreover, the designing segment is anticipated to register significant growth from 2022 to 2030.

Based on the Location Insights, the market is segmented into On-shore and Off-shore.

• The on-shore segment accounted for the largest revenue share of around 60.0% of the overall market in 2021 and is expected to register the fastest growth in the forecast period.
• The off-shore segment is expected to register significant growth in the forecast period. This is attributed to the emerging preferences of OEMs to outsource services from low-cost countries such as India, China, Brazil, Mexico, and Ukraine.

Automotive Engineering Services Outsourcing Regional Outlook

• North America
• Europe
• Asia-Pacific
• South America
• MEA

Key Companies Profile & Market Share Insights

The growing use of sustainable technology solutions has forced key participants to concentrate on business strategies like mergers, partnerships, and acquisitions beneficial for their businesses. The key participants focus on collaboration with OEMs to have a competitive edge over others in the market.

Some prominent players in the Automotive Engineering Services Outsourcing market include

• Alten Group
• Altran (Capgemini Engineering)
• AVL List GmbH
• Bertrandt AG
• FEV Group GmbH
• Horiba, LTD.

Order a free sample PDF of the Automotive Engineering Services Outsourcing Market Intelligence Study, published by Grand View Research.

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