Automotive Engineering Services Market Size Worth $28.4 Billion By 2034 | CAGR: 9.30%

The global automotive engineering services market size is expected to reach USD 28.4 Billion by 2034, according to a new study by Polaris Market Research. The report “Automotive Engineering Services Market Size, Share, Trends, Industry Analysis Report: By Vehicle Type (Passenger Cars and Commercial Cars), Application, Location, Service, Propulsion, Nature Type, and Region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America) – Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

The automotive engineering services market has experienced significant growth in recent years owing to the rapid evolution of automotive technologies, increasing consumer demands for advanced features, and the shift toward electric and autonomous vehicles. As manufacturers seek to stay competitive, they are investing heavily in engineering services that facilitate the development of innovative solutions. This includes services such as design, prototyping, testing, and regulatory compliance, all of which are essential for meeting stringent industry standards.

The demand for sustainable and energy-efficient vehicles is pushing automotive companies to adopt advanced engineering solutions. There is a corresponding increase in the need for specialized engineering services that focus on battery technology, energy management systems, and lightweight materials. These services enhance vehicle performance and also align with global environmental regulations, making them critical for manufacturers aiming to reduce their carbon footprint.

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The growing complexity of automotive systems, driven by advancements in software and electronics, also contributes to the expanding market. Companies are increasingly reliant on external engineering expertise to navigate these complexities, leading to collaborations with specialized firms. This trend underscores the importance of automotive engineering services in fostering innovation and ensuring the successful transition toward next-generation vehicles, thereby positioning the market for continued growth in the coming years. 

Automotive Engineering Services Market Report Highlights

• Based on vehicle type, the commercial vehicles segment witnesses significant growth, fueled by rising demand for advanced vehicles, fleet management solutions, compliance with regulations, and innovative technologies for sustainability.
• The market for the in-house segment, by location, is growing rapidly, driven by the increasing need for proprietary knowledge, control over innovation, and specialized teams for electric and autonomous vehicle development.
• Asia Pacific led the global automotive engineering services market in 2023, owing to the rising vehicle production, investments in EV advancements, and supportive government policies promoting sustainable transportation.
• A few global key market players are Capgemini, IAV, Bertrandt, L&T Technology Services Limited, FEV Group GmbH, Ricardo, Continental AG, EDAG Group, Semcon, Tech Mahindra Limited, Wipro Limited, HCL Technologies Ltd. (HCLTech), and RLE International Group.

Polaris Market Research has segmented the automotive engineering services market report on the basis of vehicle type, application, location, service, propulsion, nature type, and region:

By Vehicle Type Outlook (Revenue – USD Billion, 2020–2034)

• Passenger Cars
• Commercial Cars

By Application Outlook (Revenue – USD Billion, 2020–2034)

• ADAS and Safety
• Electrical, Electronics, and Body Controls
• Chassis
• Connectivity Services
• Interior, Exterior, and Body Engineering
• Powertrain and Exhaust
• Simulation
• Battery Development and Management
• Charger Testing
• Motor Controls
• Others

By Location Outlook (Revenue – USD Billion, 2020–2034)

• In-house
• Outsourcing

By Service Outlook (Revenue – USD Billion, 2020–2034)

• Concept/Research
• Designing
• Prototyping
• System Integration
• Testing

By Propulsion Outlook (Revenue – USD Billion, 2020–2034)

• ICE
• Electric

By Nature Type Outlook (Revenue – USD Billion, 2020–2034)

• Body Leasing
• Turnkey

By Regional Outlook (Revenue – USD Billion, 2020–2034)

• North America

• US
• Canada

• Europe

• Germany
• UK
• France
• Italy
• Spain
• Russia
• Netherlands
• Rest of Europe

• Asia Pacific

• China
• India
• Japan
• Indonesia
• South Korea
• Malaysia
• Rest of Asia Pacific

• Latin America

• Argentina
• Brazil
• Mexico
• Rest of Latin America

• Middle East & Africa

• UAE
• Saudi Arabia
• Israel
• South Africa
• Rest of Middle East & Africa

Automotive Engineering Services Report Scope