The global market for Automotive Engineering Services was valued at US$219.9 Billion in 2024 and is projected to reach US$355.3 Billion by 2030, growing at a CAGR of 8.3% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Automotive Engineering Services market.
The demand for automotive engineering services has been significantly influenced by the shift towards electric mobility and the pursuit of autonomous driving capabilities. Electric vehicle (EV) development requires expertise in battery technology, power electronics, and electric drivetrains. Autonomous vehicles (AVs) and ADAS demand advanced skills in sensor integration, machine learning algorithms, and vehicle-to-everything (V2X) communication. Additionally, the need for lighter, more fuel-efficient vehicles drives the demand for innovative materials and manufacturing processes. The collaboration between traditional automakers and tech companies is also shaping the future of automotive engineering.
The growth in the automotive engineering services market is driven by several factors. Firstly, the accelerating development and adoption of electric vehicles (EVs) and autonomous vehicles (AVs) are major drivers, necessitating advanced engineering expertise. Secondly, the continuous innovation in ADAS and vehicle safety technologies is boosting the demand for specialized engineering services. Thirdly, regulatory pressures to reduce emissions and enhance vehicle safety are encouraging automakers to seek external engineering support. Additionally, the rise of connected vehicles and the integration of IoT technologies are creating new opportunities for engineering services. Furthermore, the increasing complexity of automotive systems and the need for rapid prototyping and testing are driving the demand for comprehensive engineering solutions. Lastly, the trend towards digitalization and the use of simulation and virtual testing tools are enhancing the capabilities and efficiency of automotive engineering services.
Segments: Location (In-House, Outsource); Application (Electrical, Electronics & Body Controls, ADAS & Safety, Chassis, Connectivity Services, Other Applications); End-Use (Passenger Cars, Commercial Vehicles).
Geographic Regions/Countries: World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.
The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
Global Automotive Engineering Services Market - Key Trends & Drivers Summarized
Automotive engineering services encompass a broad range of design, development, and testing activities aimed at creating and improving vehicles and their components. These services are provided by specialized firms and include areas such as mechanical design, electrical engineering, software development, prototyping, and testing. The automotive industry relies heavily on these engineering services to innovate and stay competitive in a rapidly evolving market. Key areas of focus include the development of electric and autonomous vehicles, advanced driver-assistance systems (ADAS), and the integration of new technologies such as artificial intelligence (AI) and the Internet of Things (IoT) into vehicles.The demand for automotive engineering services has been significantly influenced by the shift towards electric mobility and the pursuit of autonomous driving capabilities. Electric vehicle (EV) development requires expertise in battery technology, power electronics, and electric drivetrains. Autonomous vehicles (AVs) and ADAS demand advanced skills in sensor integration, machine learning algorithms, and vehicle-to-everything (V2X) communication. Additionally, the need for lighter, more fuel-efficient vehicles drives the demand for innovative materials and manufacturing processes. The collaboration between traditional automakers and tech companies is also shaping the future of automotive engineering.
The growth in the automotive engineering services market is driven by several factors. Firstly, the accelerating development and adoption of electric vehicles (EVs) and autonomous vehicles (AVs) are major drivers, necessitating advanced engineering expertise. Secondly, the continuous innovation in ADAS and vehicle safety technologies is boosting the demand for specialized engineering services. Thirdly, regulatory pressures to reduce emissions and enhance vehicle safety are encouraging automakers to seek external engineering support. Additionally, the rise of connected vehicles and the integration of IoT technologies are creating new opportunities for engineering services. Furthermore, the increasing complexity of automotive systems and the need for rapid prototyping and testing are driving the demand for comprehensive engineering solutions. Lastly, the trend towards digitalization and the use of simulation and virtual testing tools are enhancing the capabilities and efficiency of automotive engineering services.
Report Scope
The report analyzes the Automotive Engineering Services market, presented in terms of units. The analysis covers the key segments and geographic regions outlined below.Segments: Location (In-House, Outsource); Application (Electrical, Electronics & Body Controls, ADAS & Safety, Chassis, Connectivity Services, Other Applications); End-Use (Passenger Cars, Commercial Vehicles).
Geographic Regions/Countries: World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the In-House segment, which is expected to reach US$235.3 Billion by 2030 with a CAGR of a 8.7%. The Outsource segment is also set to grow at 7.5% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, valued at $29.5 Billion in 2024, and China, forecasted to grow at an impressive 12.7% CAGR to reach $75.5 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Automotive Engineering Services Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Automotive Engineering Services Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Key Questions Answered:
- How is the Global Automotive Engineering Services Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of players such as AKKA Technologies, ALTEN Group, AVL List GmbH, Bertrandt AG, Continental AG and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Some of the 106 companies featured in this Automotive Engineering Services market report include:
- AKKA Technologies
- ALTEN Group
- AVL List GmbH
- Bertrandt AG
- Continental AG
- EDAG Engineering Group AG
- ESI Group
- FEV Europe GmbH
- HARMAN International
- HCL Technologies Limited
- IAV Automotive Engineering Inc.
- Kistler Group
- L&T Technology Services Limited
- Onward Technologies Ltd.
- Ricardo PLC
- Semcon
- SOLIZE Corporation
- Tech Mahindra Limited
- T-NET JAPAN Co., Ltd.
- Valmet Automotive
Tariff Impact Analysis: Key Insights for 2025
Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
What’s Included in This Edition:
- Tariff-adjusted market forecasts by region and segment
- Analysis of cost and supply chain implications by sourcing and trade exposure
- Strategic insights into geographic shifts
Buyers receive a free July 2025 update with:
- Finalized tariff impacts and new trade agreement effects
- Updated projections reflecting global sourcing and cost shifts
- Expanded country-specific coverage across the industry
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARYWORLD BRANDS2. FOCUS ON SELECT PLAYERSIII. MARKET ANALYSISCANADACHINAFRANCEGERMANYITALYUNITED KINGDOMSPAINRUSSIAREST OF EUROPESOUTH KOREAREST OF ASIA-PACIFICARGENTINABRAZILMEXICOREST OF LATIN AMERICAIV. COMPETITION
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
UNITED STATES
JAPAN
EUROPE
ASIA-PACIFIC
INDIA
LATIN AMERICA
MIDDLE EAST
AFRICA
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- AKKA Technologies
- ALTEN Group
- AVL List GmbH
- Bertrandt AG
- Continental AG
- EDAG Engineering Group AG
- ESI Group
- FEV Europe GmbH
- HARMAN International
- HCL Technologies Limited
- IAV Automotive Engineering Inc.
- Kistler Group
- L&T Technology Services Limited
- Onward Technologies Ltd.
- Ricardo PLC
- Semcon
- SOLIZE Corporation
- Tech Mahindra Limited
- T-NET JAPAN Co., Ltd.
- Valmet Automotive
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 549 |
| Published | April 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 219.9 Billion |
| Forecasted Market Value ( USD | $ 355.3 Billion |
| Compound Annual Growth Rate | 8.3% |
| Regions Covered | Global |
