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Automotive Engineering Services Outsourcing Market by Services (Design and engineering, Prototyping, Testing and validation, Manufacturing engineering, Others), by Application (Body and exterior, Powertrain and drivetrain, Infotainment and telematics, ADAS and autonomous driving, Other), by Location (Onshore outsourcing, Offshore outsourcing), by End-user (OEMs, Tier 1, Tier 2 and Tier 3 Suppliers, Aftermarket companies), by North America (U.S., Canada), by Europe (UK, Germany, France, Italy, Spain, Rest of Europe), by Asia Pacific (China, India, Japan, South Korea, ANZ, Rest of Asia Pacific), by Latin America (Brazil, Mexico, Argentina, Rest of Latin America), by MEA (South Africa, UAE, Saudi Arabia, Rest of MEA) Forecast 2025-2033
The size of the Automotive Engineering Services Outsourcing Market was valued at USD 59.1 Billion in 2023 and is projected to reach USD 88.86 Billion by 2032, with an expected CAGR of 6% during the forecast period. Outsourcing automotive engineering services (ESO) involves assigning engineering tasks to external providers, allowing car companies to benefit from specialized knowledge and cut costs. This market consists of various services such as design, prototyping, testing, and production engineering, focusing on improving vehicle performance, safety, and compliance with regulations. The automotive industry is experiencing fast technological advancements like EVs, autonomous driving, and connectivity, leading OEMs to depend more on ESO for access to advanced skills and resources. The main factors influencing this market are the increasing complexity of vehicle systems, the necessity for innovation to satisfy consumer needs, and the urgency to shorten the time-to-market for new products. Automotive companies can concentrate on their essential skills by subcontracting engineering services, guaranteeing top-notch results in vehicle design and system integration. Consequently, there is expected to be substantial growth in the automotive ESO market due to changing industry requirements and a growing focus on sustainability and efficiency.
The market is moderately concentrated with a few major players holding a significant share. Innovation is a key differentiator, with companies focusing on developing and integrating advanced technologies such as IoT, AI, and ML into their services. Regulations and standards play a crucial role in shaping the market, ensuring quality and safety. End-user concentration is high, with OEMs and Tier 1 suppliers being the primary customers. M&A activity has been on the rise as companies seek to expand their capabilities and global reach.
The North American market accounts for the largest share, followed by Europe and Asia Pacific. The automotive industry in these regions is well-established, with a strong presence of OEMs and Tier 1 suppliers. The market is highly competitive, with both established players and emerging companies vying for market share.
Aspects | Details |
---|---|
Study Period | 2019-2033 |
Base Year | 2024 |
Estimated Year | 2025 |
Forecast Period | 2025-2033 |
Historical Period | 2019-2024 |
Growth Rate | CAGR of 6% from 2019-2033 |
Segmentation |
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Note* : In applicable scenarios
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