Originally published on Technavio:Automotive Engineering Service Providers (ESP) Market Analysis Europe, APAC, North America, South America, Middle East and Africa - US, China, Germany, France, UK - Size and Forecast 2024-2028**

Automotive Engineering Service Providers (ESP) Market Forecast 2024-2028

The projected growth of the Automotive Engineering Service Providers Market indicates an increase of USD 8.68 billion, with a Compound Annual Growth Rate (CAGR) of 8.2% from 2023 to 2028. The market's expansion is driven by factors such as the increasing digitization and electrification of automobiles, the rising demand for advanced vehicle connectivity solutions, and the development of alternative powertrain technology. The market growth and analysis report encompass size, historical data (2018-2022), and future projections, presented in terms of value (in USD billion) for all the mentioned segments.

Market Size:

For comprehensive insights, request a report sample

Market Segmentation By Application Insight:

The in-house segment is expected to witness substantial growth during the forecast period. In-house operations involve conducting testing, inspection, and certification (TIC) activities within companies rather than relying on outsourcing. In the automotive TIC sector, automotive manufacturers perform engineering services as part of quality control and assurance, along with public bodies and organizations such as customs, competition authorities, and industrial health and safety authorities.

Automotive Engineering Service Providers (ESP) Market Size

To understand the market contribution of various segments, download the PDF sample.

The in-house segment, valued at USD 7.97 billion in 2018, was the largest segment. Automotive manufacturers invest in necessary in-house infrastructure, such as test and measurement equipment and skilled personnel, to perform activities in their manufacturing facilities, including in-house testing of the ECU and other core components. This approach allows manufacturers to maintain a higher level of control by keeping services and personnel under direct control, driving segment growth during the forecast period.

Market Dynamics:

Our researchers analyzed data with 2023 as the base year, considering key drivers, trends, and challenges. A comprehensive analysis of drivers will assist companies in refining marketing strategies to gain a competitive advantage.

Key Market Driver:

The rising demand for advanced vehicle connectivity solutions is a key factor driving market growth. The increasing need for vehicle connectivity is expected to fuel the global market. Carmakers are actively equipping vehicles with advanced connectivity solutions, ensuring high penetration of connected cars in the future.

Moreover, vehicle telematics systems accumulate and transfer data regarding the vehicle's condition to service centers, fleet owners, and insurance providers. Real-time highway alerts and notifications will be easily provided to drivers over the next decade, enhancing navigation systems. Such factors positively impact the market, driving growth during the forecast period.

Key Market Trends:

The development of autonomous vehicles is a significant trend shaping market growth. Autonomous cars navigate without human intervention, sensing their environment using devices like radar, GPS, and Advanced Driver Assistance Systems (ADAS). The highly complex nature of autonomous cars has led automotive companies and OEMs to pool R&D resources, designing and developing successful prototypes to enhance performance.

Key Market Challenges:

Frequent changes in market dynamics leading to an increase in order backlog pose a key challenge hindering market growth. Rapid technological innovations and dynamic consumer expectations have reduced the average lifecycle of vehicles, adding pressure to component suppliers and service providers. The average shelf life of a vehicle model, which was 8-10 years in the past, has reduced to 4-6 years due to changes in propulsion technologies, electrification, and engine downsizing. This places pressure on the entire value chain of the automotive industry, negatively impacting global market growth during the forecast period.

Market Customer Landscape:

The market research report covers the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage, evaluating adoption rates in different regions based on penetration. Additionally, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Companies are adopting various strategies, including strategic alliances, partnerships, market growth and trends analysis, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their market presence.

Adecco Group AG: The company offers automotive engineering service providers supporting digital product development, the evolution of manufacturing processes, and the definition of new services for user behaviors.

The market growth analysis report includes detailed analyses of the competitive landscape, providing information about 20 market companies.

To Learn deeper into this report , View Sample PDF

For more insights on market share across various regions, download the PDF sample.

Europe presents significant growth opportunities for companies. The market growth in Europe is fueled by leading global automakers such as Mercedes-Benz AG, Volkswagen AG, BMW AG, and AB Volvo, pioneers in introducing advanced technologies. Key market players, including AVL List, EDAG, IAV GmbH, and Bertrandt, have their automotive R&D labs in Europe. Major contributors to the ESP market in Europe include countries like France, Germany, Spain, and the UK, where high-end luxury and premium vehicles are manufactured and marketed. These factors drive market growth in Europe during the forecast period.

The market report forecasts revenue growth globally, regionally, and at the country level, providing an analysis of the latest trends and growth opportunities from 2018 to 2028.

For more information please contact.

Technavio Research

Jesse Maida

Media & Marketing Executive

US: +1 844 364 1100

UK: +44 203 893 3200

Email: media@technavio.com

Website: www.technavio.com/