Automotive Engineering Service Outsourcing Market Worth $286.38 Billion By 2030

The global automotive engineering services outsourcing market size is anticipated to reach USD 286.38 billion by 2030 registering a CAGR of 20.8% during the forecast period, according to a new report by Grand View Research, Inc. Increasing collaborative activities between Original Equipment Manufacturers (OEMs) and Engineering Service Providers (ESPs) to achieve promising technologies for performance enhancement, self-driving, and safety assurance adjustments are the factors anticipated to propel the automotive ESO market growth.

Furthermore, the government’s introduction of strict emission norms for the effective utilization of fuels is predicted to contribute to the demand for the automotive ESO market. For instance, in January 2021, the U.S. President, Joe Biden, signed an executive order that addressed the climate crisis to protect the environment and public health. The order directed the Environmental Protection Agency (EPA) to propose revising, suspending, or rescinding the earlier set standard under the “The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021–2026 Passenger Cars and Light Trucks”.

The automotive ESO market has witnessed technological growth owing to the increasing demand for the shared mobility, electrification, and self-driving. Furthermore, key companies have incorporated cloud technologies into their product offerings to connect & access data and develop more autonomous products. For instance, in May 2018, Horiba, LTD’s Smart Emissions Measurement System (SEMS) used the combination of a cloud server and database to obtain emission data, as there was a need to develop solutions for the emission measurement to build a cleaner future.

On the other hand, key participants in the market are impacted by regulations stressing the elimination or limitation of CO2 emissions, enhancing testing procedures, and limiting noise pollution specific to certain regions or countries. For instance, in India, the automobile industry regulations are set by various committees, such as the Central Motor Vehicle Rules-Technical Standing Committee, Standing Committee on Implementation of Emission Legislation (SCOE), and Automotive Industry Standard Committee (AISC).

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Automotive Engineering Service Outsourcing Market Report

Automotive Engineering Service Outsourcing Market Report Highlights

• The infotainment & connectivity application part is anticipated to register the fastest CAGR for the next eight years. The availability of tethering to connect the vehicle with smartphones, built-in car Wi-Fi, corporate fleet management, and various other add-ons is expected to radically transform the user experience during the forecast period
• The prototyping services segment is anticipated to gain traction throughout the forecast period of eight years. The extensive deployment of prototypes by OEMs to evaluate designs, improve precision, and support in the completion of a successful production is driving the segment in the market
• The Asia Pacific regional market registered the highest revenue share in 2021, and it is anticipated to dominate the market during the forecast period. The region is poised to witness robust ESO market growth attributed to the reduced availability of skilled labor
• The automotive ESO market has evolved to incorporate a wide range of new product development, product support, and value engineering functions across numerous verticals, including automotive, aerospace, and industrial businesses