Automotive Engineering Services Market Report 2026

The automotive engineering services market size has grown rapidly in recent years. It will grow from $295.47 billion in 2025 to $327.21 billion in 2026 at a compound annual growth rate (CAGR) of 10.7%. The growth in the historic period can be attributed to rising automotive production volumes, early adoption of vehicle electronics, demand for improved vehicle efficiency, growth in outsourced engineering capabilities, globalization of automotive development networks.

The automotive engineering services market size is expected to see rapid growth in the next few years. It will grow to $486.8 billion in 2030 at a compound annual growth rate (CAGR) of 10.4%. The growth in the forecast period can be attributed to expansion of software defined vehicles, increasing regulatory compliance requirements, rising demand for customized automotive solutions, continued digitalization of engineering workflows, growth of next generation vehicle platforms. Major trends in the forecast period include increasing demand for advanced infotainment integration, rising focus on vehicle interior comfort and ergonomics, growing emphasis on enhanced safety design and system reliability, expansion in virtual prototyping and simulation based engineering, optimization of manufacturing efficiency and cost performance.

The rising demand for passenger vehicles is anticipated to drive the growth of the automotive engineering services market in the coming years. Passenger vehicles refer to motorized vehicles used for private or public transportation to carry passengers. As the number of passenger vehicles on the road increases, the demand for safety features and systems such as airbags, collision avoidance technologies, and advanced driver-assistance systems (ADAS) is expected to grow. As a result, automotive engineering services play a crucial role in enhancing vehicle safety. For example, in April 2024, according to the Serbian Association of Vehicle and Parts Importers, a Serbia-based automotive industry organization, global vehicle production reached 93,546,599 units in 2023, including 67,133,570 passenger vehicles, compared to 84,830,376 vehicles produced in 2022. Consequently, the increasing demand for passenger vehicles is contributing to the expansion of the automotive engineering services market.

Leading companies in the automotive engineering services market are introducing technologically advanced solutions, such as parking development solutions, to boost efficiency, optimize space usage, and enhance user experience. A parking development solution is an integrated system designed to improve the planning, construction, and management of parking facilities, enhancing space utilization, traffic flow, and convenience in urban or commercial settings. For example, in March 2024, Applied Intuition, a US-based software firm, launched an automated parking development solution for advanced driver-assistance systems (ADAS) and automated driving (AD). This solution enables ADAS and AD development teams to create, test, and deploy machine learning-based or classical automated parking systems (APS) up to 12 times faster with enhanced safety and reliability.

In September 2023, HCL Technologies, an Indian-based multinational IT services and consulting company, acquired ASAP Group for $266. 49 million. Through this acquisition of ASAP and HCL Tech’s own presence in the automotive space, the combined business will be a platform for growth in Germany and for further expansion into other key automotive markets in Europe, the Americas, and Japan. ASAP Group is a US-based automotive engineering services provider.

Major companies operating in the automotive engineering services market report are Capgemini SE, IAV GmbH, Tech Mahindra Limited, AKKA Technologies Group, Bertrandt AG, Harman International Industries Inc., ALTEN Cresttek Engineering Solutions Pvt Ltd., L&T Technology Services Ltd., Fev Europe GmbH, AVL List GmbH, Ricardo plc, EDAG Engineering GmbH, Valmet Automotive Oyj, Onward Technologies Ltd., T-Net Japan Co. Ltd., Kistler Holding AG, Continental AG, semcon engineering uk limited, Robert Bosch GmbH, Altran India Pvt. Ltd., Tata Technologies Ltd., Altair Engineering Inc., HORIBA Ltd, MBtech Group GmbH, P3 Automotive GmbH, ASAP Holding GmbH, Link Engineering Company, Ansys Inc., EPAM Systems Inc., GlobalLogic, Hunter Engineering Company.

Asia-Pacific was the largest region in the automotive engineering services market in 2025. The regions covered in the automotive engineering services market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive engineering services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive engineering services market consists of revenues earned by entities that are engaged in providing connectivity services, interior, exterior, and body engineering, powertrain and exhaust, simulation, battery development and management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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