The automotive engineering services market involves engineering design and development activities related to automobiles. Automotive engineering services include product design and development, vehicle and engine testing, prototype modeling, and automotive consulting. The increasing adoption of electric and hybrid vehicles is driving the need for automotive engineering services to support vehicle electrification. Major automobile manufacturers rely on automotive engineering service providers to design electric powertrains, battery packs, vehicle control software, charging infrastructure, and other components.

Global Automotive Engineering Services Market is estimated to be valued at USD 270.21 Bn in 2024 and is expected to reach USD 450.44 Bn by 2031, growing at a compound annual growth rate (CAGR) of 7.6% from 2024 to 2031.

Key Takeaways
Key players operating in the automotive engineering services are Capgemini SE, IAV GmbH, Tech Mahindra Ltd, AKKA Technologies Group, Harman International Industries Inc, ALTEN Cresttek Engineering Solutions Pvt Ltd, Fev Europe GmbH, EDAG Engineering GmbH, Continental AG, Altair Engineering Inc, Tata Technologies Ltd. The growing demand for electric and autonomous vehicles is driving automotive OEMs to outsource engineering design and testing activities. Emerging technologies such as 3D printing, virtual and augmented reality, and artificial intelligence are enabling faster development and validation of automotive components and systems.

Market Trends
Customers' growing preference for personalized in-vehicle experiences is driving automotive OEMs to integrate more technology features and connected car solutions in vehicles. This is increasing the scope of engineering services required for digital cockpits, advanced driver assistance systems, telematics, and connectivity integration. Another major trend is the adoption of simulation, modeling, and virtual/augmented reality tools by Automotive Engineering Services Market Demand providers to accelerate product development cycles and reduce costs.

Market Opportunities
The rising electrification of mobility will open considerable opportunities for engineering services related to battery technologies, electric drivetrains, charging infrastructure, and software/controls for EVs. Connected mobility is another growth area requiring engineering solutions around V2X communication, cybersecurity, updating, and OTA services.

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