NEW YORK, Nov. 26, 2022 /PRNewswire/ — Technavio categorizes the global automotive engineering service providers (ESP) market as a part of the research and consulting services marketthe parent market. The research and consulting services market covers companies engaged in research and consulting services, including business management, accounting, engineering, legal, and sales and marketing services for a wide range of industries. The global automotive engineering service providers (ESP) market size is estimated to increase by USD 8381.88 million from 2022 to 2027. The market’s growth momentum will accelerate at a CAGRof 8.2%.
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Global Automotive Engineering Service Providers (ESP) Market – Customer Landscape
To help companies evaluate and develop growth strategies, the report outlines –
- Key purchase criteria
- Adoption rates
- Adoption lifecycle
- Drivers of price sensitivity
Global Automotive Engineering Service Providers (ESP) Market – Vendor Analysis
Vendor Landscape – The global automotive engineering service providers (ESP) market is fragmented due to the presence of many vendors. The market is characterized by the presence of well-diversified international and regional players. International vendors occupy a significantly large share of the global automotive ESP market. They are focusing on increasing their presence in many regions.
The competitive market environment is moderately intense. The market share of key vendors is expected to increase during the forecast period as the preference of OEMs is shifting to ESP for R&D activities. These players are focusing more on powertrains and electrical/electronics for vehicles. They are also focusing on expanding their consumer base to gain a significant share of the market.
Vendor Offerings –
- AKKA Technologies SE: The company offers automotive engineering service providers for powertrains.
- Altair Engineering Inc.: The company offers automotive engineering service providers for electric vehicles.
- AVL List GmbH: The company offers automotive engineering service providers such as design and value engineering, electronic hardware design and development, and reverse engineering.
- Capgemini Service SAS: The company offers automotive engineering service providers such as electrical system design and integration.
- For Details on vendor and its offerings – Buy report!
Global Automotive engineering service providers (ESP) Market – Segmentation Assessment
By geography, the global automotive engineering service providers (ESP) market is segmented into EuropeAPAC, North America, South Americaand the Middle East and Africa. The report provides actionable insights and an accurate estimation of the contribution of all regions to the growth of the global automotive engineering service providers (ESP) market.
- Europe held 30% of the global automotive engineering service providers (ESP) market in 2022. The market in the region is estimated to grow at the fastest pace during the forecast period. Europe is home to some leading global automakers, such as Mercedes-Benz AG (Mercedes-Benz), Volkswagen AG(Volkswagen), BMW AG(BMW), and AB Volvo (Volvo), which are pioneers in the automotive industry for the introduction of advanced technologies. The region has seen an increase in the penetration of passenger cars. Automakers operating in the region are adopting advanced technologies to comply with various stringent emission norms. Also, the increasing demand for safety features is driving automotive heavily OEMsavi to invest . Many such factors are improving the growth prospects of the automotive engineering service providers (ESP) market in Europe.
By service, the global automotive engineering service providers (ESP) market is segmented into powertrain, complete vehicle, electrical/electronics, and others.
- The market share growth of the powertrain segment will be higher than the other segments during the forecast period. The need to reduce the overall weight of the vehicle is driving many OEMs to focus on the development of lightweight engines. In addition, the need to achieve vehicle fuel economy standards is forcing OEMs to develop alternative powertrains that can help in reducing pollution and the emission of greenhouse gases from automobiles. These factors are driving the growth of the powertrain segment.
Global Automotive Engineering Service Providers (ESP) Market – Market Dynamics
- Impactful Driver – The increasing vehicle digitization and electrification is driving the growth of the market. The advent of the latest technologies in the automobile industry has considerably replaced a number of mechanical components with electronic systems. The electrification of mechanical components is primarily driven to fuel economy as well as product differentiation in the market. This is increasing the reliance of automobile manufacturers on providers of batteries and advanced electronic systems. Automakers are also partnering with consumer electronics, energy, and telecommunications of digitization companies to drive the electrification mechanical components. Such developments among automakers are creating enormous opportunities for automotive engineering service providers, which is driving the growth of the market in focus.
- Key Trend – The development of autonomous vehicles is the key trend in the market. The concept of autonomous vehicles is still at a nascent stage. However, major vehicle manufacturers, Tier-1 suppliers, and ESP are launching projects to commercialize autonomous vehicles. partnering with technology companies to integrate vehicles with a certain level of artificial intelligence to create successful autonomous vehicles. Major OEMs such as Audi, Daimler, Ford, Continental, Bosch, and Aptiv currently dominate this space. vehicle technologies by non-automotive companies, such as Apple and Google that are leveraging their expertise in communication technology. This trend is expected to have a positive impact on the growth of the global automotive engineering service providers market (ESP) during the forecast period.
- Major Challenge – The increasing cost pressure on OEMs is the major challenge in the market. The dynamic nature of the regulatory environment and evolving demands of consumers put heavy cost pressure on automotive OEMs as it requires them to make changes to the design and technologies used in the vehicles In addition, the increasing adoption of new and advanced vehicle technologies is reducing the bargaining power of OEMs for certain equipment, technologies, and services. All these factors are incurring costs to automakers. However, these costs cannot be transferred to customers as it will result in costlier vehicles and drastically reduce their demand, thereby impacting sales. Such challenges are threatening the growth of the market in focus.
What are the key data covered in this automotive engineering service providers (ESP) market report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the growth of the automotive engineering service providers (ESP) market between 2023 and 2027
- Precise estimation of the size of the automotive engineering service providers (ESP) market and its contribution to the parent market
- Accurate predictions about upcoming trends and changes in consumer behavior
- Growth of the automotive engineering service providers (ESP) market industry across APAC, North America, Europe, Middle East and Africaand South America
- Thorough analysis of the market’s competitive landscape and detailed information about vendors
- Comprehensive analysis of factors that will challenge the growth of automotive engineering service providers (ESP) market vendors
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