Automotive engineering services market expected to double in growth by 2033
The automotive engineering services market is expected to double in growth to around $3.2 billion by 2033.
Automotive industry insights
- Rising demand for safety systems and lightweight vehicles drives the growth of the global automotive engineering services market according to Future Market Insights research.
- Innovations in connectivity and investments in emerging regions significantly impact the automotive engineering services industry’s landscape.
The worldwide automotive engineering services market will reach $1.6 billion in 2023. According to Future Market Insights (FMI) research, the automotive engineering services market is expected to grow at a compound annual growth rate (CAGR) of 7.17% from 2023 to 2033, with a projected value of around $3.2 billion by that time.
The market is expanding due to rising consumer awareness of and desire for technology solutions in the automobile industry, such as connection and collision avoidance sensors. Demand for lightweight cars is growing as manufacturers and governments concentrate primarily on designing and developing lightweight vehicles to provide more fuel-efficient automobiles.
The primary driver of the automotive engineering services market is the escalation of government laws pertaining to safety-related systems. The increased demand for electric and hybrid cars is driving up manufacturing of these vehicles, which is expected to fuel market expansion over the course of the projected period.
Six key market takeaways:
The global automotive engineering services market expanded at a CAGR of 6.42% between 2018 and 2022.
India is forecasted to develop a 6.8% CAGR from 2023 to 2033.
China is anticipated to expand at a CAGR of 7.2% from 2023 to 2033.
North America has captured a market share of 43.2% in 2022.
The European market bolstered at a market share of 48.2% in 2022.
Under the service segment, prototypes were registered at a market share of 56.2% in 2022.
“Demand for advanced and autonomous connectivity features is influencing innovation intensely and is one of the major key drivers of the automotive engineering services market”, commented by Nikhil Kaitwade, Principal Consultant, Future Market Insights analyst.
From the product’s conception and design phase until the conclusion of its service life, companies strive to provide innovative solutions. In order to best serve the developing markets, they also purposefully site their primary plants in emerging regions.
The following are a few recent innovations in the automotive engineering services market:
In May 2023, Tech Mahindra inaugurated Technology Development Center in Oman.
In August 2023, Temasek is planning to invest 12 billion rupees ($145 million) in Mahindra & Mahindra Ltd.’s electric vehicle unit, valuing it at $9.8 billion.