Automotive Transmission Engineering Services Outsourcing Market Report 2025

This Automotive Transmission Engineering Services Outsourcing market report covers market characteristics, size & growth, segmentation, regional & country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The automotive transmission engineering services outsourcing market size has grown steadily in recent years. It will grow from $12.64 billion in 2024 to $13.17 billion in 2025 at a compound annual growth rate (CAGR) of 4.2%. The growth in the historic period can be attributed to globalization of automotive industry, demand for cost-effective engineering solutions, complexity of modern transmission systems, focus on core competencies by automotive companies, increasing demand for fuel-efficient vehicles.

The automotive transmission engineering services outsourcing market size is expected to see strong growth in the next few years. It will grow to $16.41 billion in 2029 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to growing demand for hybrid and electric vehicles, increasing demand for advanced driver assistance systems (ADAS), growing demand for connected cars and autonomous vehicles, increasing focus on reducing carbon emissions, growing demand for advanced materials in automotive manufacturing. Major trends in the forecast period include advancements in transmission technology, outsourcing of transmission software development, collaboration between automotive manufacturers and engineering service providers, adoption of digital twin technology in transmission engineering services, shift towards virtual testing and simulation in transmission design.

The rising production of hybrid vehicles is expected to drive the growth of the automotive transmission engineering services outsourcing market during the forecast period. A hybrid automobile is characterized by having two or more engines, including an electric motor and a traditional engine that runs on petrol or diesel. The advantages of hybrid cars over gasoline-powered vehicles are contributing to the overall increase in automotive production, thereby boosting the demand for automotive transmission engineering services outsourcing worldwide. For instance, in January 2023, a report from the US Department of Energy, a US-based agency responsible for managing nuclear infrastructure and energy policies, indicated that the monthly sales of new plug-in electric vehicles (PEV), which encompass both all-electric vehicles (EV) and plug-in hybrid electric vehicles (PHEV), reached 7.4%, surpassing 7% for the first time in September 2022, with 1.2% of these being PHEVs. The environmentally friendly attributes of hybrid vehicles have led to heightened demand, further propelling the automotive transmission engineering services outsourcing market.

Anticipated growth in the electric vehicle sector is projected to be a key driver propelling the automotive transmission engineering services outsourcing market. The burgeoning demand for electric vehicles, characterized by automobiles powered by electric motors and rechargeable through external sources, is driving manufacturers to seek specialized expertise through outsourcing. Leveraging external expertise for automotive transmission engineering services enables manufacturers to optimize powertrains, reduce costs, and accelerate the development of efficient and high-performance electric vehicles. In May 2022, globally, electric vehicle sales nearly doubled to 6. 6 million in 2021, as reported by the International Energy Agency, bringing the total number of electric vehicles on roads worldwide to 16. 5 million. Consequently, the increasing popularity of electric vehicles is a significant catalyst driving growth in the outsourcing landscape for automotive transmission engineering services.

Major companies in the automotive transmission engineering services outsourcing market are implementing a strategic partnership approach to deliver propulsion solutions. Strategic partnerships involve companies utilizing each other's strengths and resources to achieve shared benefits and success. For example, in July 2024, Allison Transmission, a US-based firm that designs, develops, manufactures, and distributes transmissions and hybrid propulsion systems, formed a partnership with BAE Systems Hägglunds, a Swedish company specializing in the development, provision, and upgrade of vehicle systems. This recent collaboration highlights the continuation of a long-standing relationship between BAE Systems Hägglunds and Allison. It offers Allison the chance to further expand its presence in the Defense end market, with several programs expected to generate an additional $100 million in annual revenue.

Major players in the automotive transmission engineering services outsourcing market are forging strategic partnerships and collaborations to establish joint ventures, aiming to secure a competitive advantage in the industry. These alliances are designed to harness the collective expertise and capabilities of partnering entities, focusing on the design, development, testing, and optimization of automotive transmission systems. Their primary goal is to deliver innovative and cost-effective solutions to automotive manufacturers and suppliers. An example of this strategy is seen in the partnership formed in September 2022 between TATA AutoComp Systems Limited, an India-based provider of automotive OEM products and services, and Punch Powertrain, a Belgium-based transmission systems provider. Through this joint venture, both entities intend to introduce sustainable mobility solutions with a focus on affordability in the Indian market. Their collaboration will result in the creation, marketing, and global distribution of advanced products like the compact dual-clutch transmission design (DT1) to cater to Indian consumers and beyond. Additionally, Punch Powertrain's portfolio of products, including EV reducers and continuously variable transmissions (CVTs), will be made available to the Indian market through the collaborative efforts of the joint venture.

In December 2022, Hinduja Tech, an India-based digital technology company, acquired Drive System Design for an undisclosed amount. This acquisition enables Hinduja Tech to expand its eMobility services, ranging from development to production, while Drive System Design will function as an independent entity within both Hinduja Tech and the Hinduja Group. Drive System Design is a UK-based provider of automotive transmission engineering services outsourcing.

Major companies operating in the automotive transmission engineering services outsourcing market include AVL List GmbH, FEV Group GmbH, IAV GmbH, Ricardo plc, Intertek Group plc, Bertrandt AG, EDAG Engineering GmbH, Tata Consultancy Services Limited, Marelli Europe SpA, Horiba Ltd., Porsche Engineering Group GmbH, Alten SA, P3 Automotive GmbH, Altair Engineering Inc., RLE International Group, ASAP Holding GmbH, Kistler Holding AG, M Plan GmbH, P+Z Engineering GmbH, Magna International Inc., Robert Bosch GmbH, Akka Technologies India Private Limited, ESG Group Pty Ltd., ITK Engineering GmbH, ZF Friedrichshafen AG, Jatco Ltd., Aisin Seiki Co. Ltd., Infosys Limited, Wipro Limited, HCL Technologies Limited, Tech Mahindra Limited, Capgemini SE.

Automotive transmission engineering services outsourcing refers to the provision of outsourced development assistance for advanced powertrain systems. This critical aspect of automotive manufacturing ensures the seamless flow of power from the engine to the wheels, facilitating the vehicle's movement.

The primary service categories within automotive transmission engineering services outsourcing encompass designing, prototyping, testing, system engineering and integration, and simulation. Designing services involve leveraging expert knowledge and modeling components, conceptualizing and assessing ideas, and utilizing automatically proportioned components. This also includes the provision of a new set of driveline components or systems as a starting point for the final design. The two main types of powertrains, conventional and hybrid, support both automatic and manual transmission types. Automotive transmission engineering services outsourcing is applicable across commercial automotive, industrial automotive, and passenger automotive sectors.

The automotive transmission engineering services outsourcing market research report is one of a series of new reports that provides automotive transmission engineering services outsourcing market statistics, including automotive transmission engineering services outsourcing industry global market size, regional shares, competitors with an automotive transmission engineering services outsourcing market share, detailed automotive transmission engineering services outsourcing market segments, market trends and opportunities, and any further data you may need to thrive in the automotive transmission engineering services outsourcing industry. This automotive transmission engineering services outsourcing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Asia-Pacific was the largest region in the automotive transmission engineering services outsourcing market share in 2024. The regions covered in the automotive transmission engineering services outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the automotive transmission engineering services outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The automotive transmission engineering services outsourcing market includes revenues earned by entities by providing services such as backward vertical integration, conglomerate integration, forward vertical integration, horizontal integration. 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.

This product will be delivered within 3-5 business days.