About Automotive Engineering Services Outsourcing
Engineering services are tasks that include the nonphysical acts of engineering, like the preparation, design, as well as consulting work supportive to engineering. One example is the design of a jet engine, though, the actual building of the engine is measured as an engineering function. Engineering service providers exclusively focus on the services for engineering & rarely work on the engineering processes they establish, consult, & manage. Many Original Equipment Manufacturers (OEMs) outsource core engineering, & allied, tasks to get highly-skilled and specialized services at low cost. One of the key drivers for the growth of the global automotive engineering services outsourcing market is cost savings from lower labor wages that are likely to impel the growth of the market over the coming years.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
Many key companies are working toward offering a more comprehensive solution catering to diverse requirements of their clients. For instance, FEV Group established a suite of services, making it a “one-stop shop” for the development, design, testing, as well as deployment of cybersecurity solutions & other many connected vehicle technologies. Analyst at AMA Research estimates that German, France, Indian, and United States Vendors will contribute the maximum growth to Global Automotive Engineering Services Outsourcing market throughout the forecasted period. Established and emerging Vendors should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Ricardo Plc (United Kingdom), AVL (Austria), IAV GmbH (Germany), FEV GmbH (Germany), Intertek Group plc (United Kingdom), Magna International Inc. (Canada), Magneti Marelli S.p.A. (Italy), Altran Technologies, SA (France), ARRK Product Development Group USA, Inc.(United States) and Bertrandt AG (Germany) are some of the key players that are part of study coverage. Additionally, the Vendors which are also part of the research coverage are Aktis Engineering (India), Shiva Engineering Services (India), EDAG Engineering GmbH (Germany) and Neilsoft Limited (India).
Segmentation Overview
AMA Research has segmented the market of Global Automotive Engineering Services Outsourcing market by , Application (Designing, Prototyping, System Integration and Testing) and Region.
On the basis of application, Designing segment is dominating the market in the year 2023On the basis of geography, the market of Automotive Engineering Services Outsourcing has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). Asia-Pacific region held largest market share in the year 2023. If we see Market by Automotive ESO Location, the sub-segment i.e. On-shore will boost the Automotive Engineering Services Outsourcing market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Evolution Of Industrial IoT
Market Growth Drivers:
Growing Demand For Fuel-Efficient Vehicles, Availability Of Low-Cost Skilled Labor and Gradually Strict Government Regulations
Restraints:
High Cost Related To Engineering Services
Opportunities:
Technological Advancements In Automotive Engineering Services Outsourcing
Market Leaders and their expansionary development strategies
On 11 Sept 2017, Ricardo has announced the acquisition of Control Point Corporation. This acquisition will enhance deep engineering and software development capabilities, the new organization will be able to offer its customers in the United States defense sector an expanding portfolio of services and solutions.
In January 2023, Ricardo plc, a global strategy, environmental, and engineering consulting firm, acquired a 93% stake in E3-Modelling S.A., a specialist consulting firm providing advanced empirical modeling of the energy-economy-environment nexus.
Key Target Audience
Automotive OEMs, Automotive engineering service providers, Automotive manufacturers, Automotive engineering equipment manufacturers and Government and Industry Associations
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.