According to a new market research report published by Acute Market Reports, “Automotive Engineering Services Outsourcing (ESO) Market (by Application (Design & Prototype, Development & Integration, Testing, and Body Leasing), by Service Model (On-shore & Off-shore), by Vehicle Type (Internal Combustion Engine Vehicles, Electric Vehicles, and Hybrid Vehicles), by Geography (North America, Europe, Asia Pacific, and Rest of the World)) - Growth, Future Prospects, and Competitive Landscape, 2021 -2029”, the global automotive engineering services outsourcing market was valued at US$ 50.28 Bn in 2020 and is expected to expand at a CAGR of 8.3% during the forecast from 2021 to 2029.

Market Insight

After a period of lull during unstable economic conditions, the automotive industry has regained momentum and is poised to exhibit steady growth in the coming years. The gradual technology shift towards electrification, autonomous driving, and connected services is driving R & D activities and attracting investment in the automotive industry. In 2018-17, the automotive industry worldwide invested over US$ 126 Bn in R & D globally, with Europe leading the spend share (47%). In addition, stringent regulations have put severe strain on small businesses of automotive engineering such as testing, powertrain calibration, and homologation among others. With internal engineering capacity of OEMs inflexible and strained to capacity, outsourcing of R & D activities have become increasingly important medium to execute technology integration in a timely manner, while also managing the workload of internal engineering resources. Many automotive manufacturers worldwide are working in association with engineering service providers for designing, prototyping, developing, and testing new components. For instance, in February last year, Jaguar Land Rover Ltd. joined forces with ALTEN Group for designing & developing new engines. Similar trend can be observed across the industry.

In terms of vehicle type, contribution of engineering services was highest for internal combustion engine vehicles. The trend shall extend and value contribution from internal combustion engine vehicles will remain highest throughout the forecast period. However, engineering services outsourcing for electric vehicles are presumed to increase at superior growth rate. Growing need to limit the dependence on fossil fuels and government support in form of subsidies and incentives will drive the uptake of electric vehicles and along with it the complementary engineering services. In addition, since development process of new electric drives is cost intensive and time consuming, manufacturers prefer outsourcing it to third party sources.

Some of the leading companies profiled in the research study include Onward Technologies Ltd., Alten SA, Altran Technologies Limited, AVL, ESG Elektroniksystem- und Logistik-GmbH, P3 Automotive GmbH, ITK Engineering GmbH, Kistler Instrumente AG, M Plan GmbH, EDAG Engineering GmbH, Bertrandt, and MBtech Group GmbH among others. Although the automotive industry is on steady path of recovery and offering favorable market environment for automotive engineering service providers, their profitability has declined over the last few years in spite of taking over bigger chunks of work from clients. A trend towards increased consolidation/mergers & acquisitions in a bid to build up necessary competences and capacity can be observed in the market.

Browse full report at https://www.acutemarketreports.com/report/automotive-engineering-services-outsourcing-eso-market

The Global Automotive Engineering Services Outsourcing (ESO) Market is Segmented into:

*Complete segmentation list is on report page