Automotive Engineering Service Providers (ESP) Market to grow by USD 8.68 billion between 2022 to 2028, 8.2% CAGR- Technavio

NEW YORK, Feb. 19, 2024 /PRNewswire/ — The Automotive Engineering Service Providers (ESP) is anticipated to witness substantial growth and is projected to expand at a CAGR of 8.2% between 2022 and 2028. The market size is forecasted to increase by USD 8.68 billion during this period. Request Sample Report

The Automotive Engineering Service Providers (ESP) Market play a significant role in the automotive industry by offering a wide array of specialized services aimed at enhancing vehicle innovation, efficiency, and performance. These service providers cater to the evolving needs of the automotive sector, encompassing areas such as digital transformation, electrification, connectivity solutions, and the development of alternative powertrain technologies. Their expertise ranges from designing and testing vehicle components to providing comprehensive engineering solutions that contribute to the advancement of vehicles, ensuring they meet stringent safety, quality, and environmental standards. With a focus on innovation and technological advancements, Automotive Engineering Service Providers serve as crucial partners to automotive manufacturers, assisting in the development of cutting-edge vehicles that align with the dynamic demands of the modern automotive landscape.

Can you provide an overview of the Automotive Engineering Service Providers (ESP) Market?

Automotive Engineering Service Providers (ESP) cater to the automotive industry by offering various services related to engineering, including digitization, electrification, connectivity solutions, and alternative powertrain technologies. This market encompasses a wide range of services segmented by applications such as in-house and outsourced, and product types like powertrain, complete vehicle, electrical/electronics, and others across regions like Europe, APAC, North America, South America, and the Middle East and Africa.

What factors are driving the growth of the Automotive Engineering Service Providers (ESP) Market?

The growth of the Automotive Engineering Service Providers (ESP) Market is primarily driven by the increasing demand for advanced vehicle connectivity solutions. The increase in the need for vehicle connectivity is boosting the market, with automakers striving to equip vehicles with advanced solutions, ensuring high penetration of connected cars in the future. Additionally, the development of autonomous vehicles is a significant trend fueling market growth, with collaborative efforts between automotive companies and tech firms to integrate artificial intelligence into vehicles. Buy the report

• One of the key challenges hindering market growth is the increased order backlog due to frequent changes in market dynamics. 

The in-house segment is forecasted to witness substantial growth during the forecast period. In-house automotive engineering services involve conducting testing, inspection, and certification activities within companies, contributing to higher control levels and efficiency.

APAC is estimated to contribute around 30% of the global market growth. The region’s growth is driven by several factors, including the presence of leading global automakers, automotive R&D labs, and countries like China and India, which are significant contributors to the automotive engineering service providers (ESP) market in APAC.

Can you provide an overview of the major companies in the Automotive Engineering Service Providers (ESP) Market?

The Automotive Engineering Service Providers (ESP) Market is dominated by several major companies, including Adecco Group AG, Altair Engineering Inc., ASM Technologies Ltd., AVL List GmbH, and others. These companies employ diverse strategies like alliances, partnerships, mergers, acquisitions, and geographical expansion to strengthen their market presence. Download the sample report for more insights on the market report

In the Automotive Engineering Service Providers (ESP) Market, amidst a fragmented landscape, providers cater to the evolving needs of the automotive industry. Both historic and forecast periods reveal significant growth momentum, driven by vehicle innovation, efficiency, and performance enhancements. ESPs play a pivotal role in facilitating digital transformation, electrification, and the integration of connectivity solutions. With a focus on alternative powertrain technologies, they contribute to the industry’s sustainability goals. Year-over-year (YoY) growth reflects the dynamic nature of the market, while ensuring safety remains a top priority. As the automotive sector embraces technological advancements, ESPs continue to adapt and innovate, supporting manufacturers in meeting consumer demands and regulatory requirements effectively.

In the Automotive Engineering Service Providers (ESP) Market, companies emphasize quality and adhere to stringent environmental standards. Innovation and technological advancements drive progress, enabling ESPs to meet the evolving needs of automotive manufacturers. With a focus on in-house segment expertise, ESPs conduct rigorous testing, inspection, and certification activities to ensure compliance with industry regulations. Leveraging advanced technologies, they deliver high-quality engineering solutions that enhance automotive performance and efficiency. As automotive manufacturers seek reliable partners for engineering services, ESPs play a vital role in supporting their goals of innovation and sustainability. In a competitive landscape, ESPs differentiate themselves through their commitment to quality, environmental standards, and ongoing technological advancements, establishing themselves as trusted partners in the automotive engineering ecosystem.

Related Reports:

Engineering Services Market: The engineering services market size is estimated to grow at a CAGR of 4.2% between 2022 and 2027. The market size is forecast to increase by USD 365.9 billion.

Engineering Services Outsourcing Market: The engineering services outsourcing market size is estimated to grow at a CAGR of 18.75% between 2022 and 2027. The market size is forecast to increase by USD 203.04 million.

ToC

1. Executive Summary
2. Market Landscape
3. Market Sizing
4. Historic Market Size
5. Five Forces Analysis
6. Market Segmentation by Service
7. Customer Landscape
8. Geographic Landscape
9. Drivers, Challenges, and Trends
10. Company Landscape
11. Company Analysis
12. Appendix

About US

Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contact

Technavio Research

Jesse Maida

Media & Marketing Executive

US: +1 844 364 1100

UK: +44 203 893 3200

Email: [email protected]

Website: www.technavio.com/

SOURCE Technavio

Go to Source