Automotive Engineering Service Providers (ESP) Market Size to Grow by USD 8381.88 Million From 2022 to 2027: A Descriptive Analysis of Customer Landscape, Vendor Assessment, & Market Dynamics - Technavio
NEW YORK, Nov. 26, 2022 /PRNewswire/ -- Technavio categorizes the global automotive engineering service providers (ESP) market as a part of the research and consulting services market, the parent market. The research and consulting services market covers companies engaged in research and consulting services, including business management, accounting, engineering, legal, and sales and marketing services for a wide range of industries. The global automotive engineering service providers (ESP) market size is estimated to increase by USD 8381.88 million from 2022 to 2027. The market's growth momentum will accelerate at a CAGR of 8.2%.
Global Automotive Engineering Service Providers (ESP) Market - Customer Landscape
To help companies evaluate and develop growth strategies, the report outlines ?
Key purchase criteria
Adoption rates
Adoption lifecycle
Drivers of price sensitivity
Global Automotive Engineering Service Providers (ESP) Market? Vendor Analysis
Vendor Landscape - The global automotive engineering service providers (ESP) market is fragmented due to the presence of many vendors. The market is characterized by the presence of well-diversified international and regional players. International vendors occupy a significantly large share of the global automotive ESP market. They are focusing on increasing their presence in many regions.
The competitive market environment is moderately intense. The market share of key vendors is expected to increase during the forecast period as the preference of OEMs is shifting to ESP for R&D activities. These players are focusing more on powertrains and electrical/electronics for vehicles. They are also focusing on expanding their consumer base to gain a significant share of the market.
Vendor Offerings -
AKKA Technologies SE: The company offers automotive engineering service providers for powertrains.
Altair Engineering Inc.: The company offers automotive engineering service providers for electric vehicles.
AVL List GmbH: The company offers automotive engineering service providers such as design and value engineering, electronic hardware design and development, and reverse engineering.
Capgemini Service SAS: The company offers automotive engineering service providers such as electrical system design and integration.
For Details on vendor and its offerings ?Buy report!
Global Automotive engineering service providers (ESP) Market - Segmentation Assessment
Geography Overview
By geography, the global automotive engineering service providers (ESP) market is segmented into Europe, APAC, North America, South America, and the Middle East and Africa. The report provides actionable insights and an accurate estimation of the contribution of all regions to the growth of the global automotive engineering service providers (ESP) market.
Europe held 30% of the global automotive engineering service providers (ESP) market in 2022. The market in the region is estimated to grow at the fastest pace during the forecast period. Europe is home to some leading global automakers, such as Mercedes-Benz AG (Mercedes-Benz), Volkswagen AG(Volkswagen), BMW AG(BMW), and AB Volvo (Volvo), which are pioneers in the automotive industry for the introduction of advanced technologies. The region has seen an increase in the penetration of passenger cars. Automakers operating in the region are adopting advanced technologies to comply with various stringent emission norms. Also, the increasing demand for safety features is driving automotive OEMs to invest heavily in R&D. Many such factors are improving the growth prospects of the automotive engineering service providers (ESP) market in Europe.
Segment Overview
By service, the global automotive engineering service providers (ESP) market is segmented into powertrain, complete vehicle, electrical/electronics, and others.
The market share growth of the powertrain segment will be higher than the other segments during the forecast period. The need to reduce the overall weight of the vehicle is driving many OEMs to focus on the development of lightweight engines. In addition, the need to achieve vehicle fuel economy standards is forcing OEMs to develop alternative powertrains that can help in reducing pollution and the emission of greenhouse gases from automobiles. These factors are driving the growth of the powertrain segment.
Global Automotive Engineering Service Providers (ESP) Market? Market Dynamics
Impactful Driver - The increasing vehicle digitization and electrification is driving the growth of the market. The advent of the latest technologies in the automobile industry has considerably replaced a number of mechanical components with electronic systems. The electrification of mechanical components is primarily driven by the need to achieve greater fuel economy as well as product differentiation in the market. This is increasing the reliance of automobile manufacturers on providers of batteries and advanced electronic systems. Automakers are also partnering with consumer electronics, energy, and telecommunication companies to drive the trend of digitization and electrification of mechanical components. Such developments among automakers are creating immense opportunities for automotive engineering service providers, which is driving the growth of the market in focus.
Key Trend - The development of autonomous vehicles is the key trend in the market. The concept of autonomous vehicles is still at a nascent stage. However, major vehicle manufacturers, Tier-1 suppliers, and ESP are launching projects to commercialize autonomous vehicles. Major car makers are partnering with technology companies to integrate vehicles with a certain level of artificial intelligence to create successful autonomous vehicles. Major OEMs such as Audi, Daimler, Ford, Continental, Bosch, and Aptiv currently dominate this space. The market is also witnessing increased investments in autonomous vehicle technologies by non-automotive companies, such as Apple and Google that are leveraging their expertise in communication technology. This trend is expected to have a positive impact on the growth of the global automotive engineering service providers market (ESP) during the forecast period.
Major Challenge ? The increasing cost pressure on OEMs is the major challenge in the market. The dynamic nature of the regulatory environment and evolving demands of consumers put heavy cost pressure on automotive OEMs as it requires them to make changes to the design and technologies used in the vehicles. In addition, the increasing adoption of new and advanced vehicle technologies is reducing the bargaining power of OEMs for certain equipment, technologies, and services. All these factors are incurring costs to automakers. However, these costs cannot be transferred to customers as it will result in costlier vehicles and drastically reduce their demand, thereby impacting sales. Such challenges are threatening the growth of the market in focus.
What are the key data covered in this automotive engineering service providers (ESP) market report?
CAGR of the market during the forecast period
Detailed information on factors that will drive the growth of the automotive engineering service providers (ESP) market between 2023 and 2027
Precise estimation of the size of the automotive engineering service providers (ESP) market and its contribution to the parent market
Accurate predictions about upcoming trends and changes in consumer behavior
Growth of the automotive engineering service providers (ESP) market industry across APAC, North America, Europe, Middle East and Africa, and South America
Thorough analysis of the market's competitive landscape and detailed information about vendors
Comprehensive analysis of factors that will challenge the growth of automotive engineering service providers (ESP) market vendors
The automotive powertrain testing services market is estimated to grow at a CAGR of 7.86% between 2022 and 2027. The size of the market is forecast to increase by USD 2,434.53 million. The market is segmented by type (ice powertrain and hybrid and electric powertrain) and geography (APAC, North America, Europe, South America, and Middle east and Africa).
The automotive refurbished turbochargers market share is expected to increase by USD 975.39 million from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 6.38%. The market is segmented by application (passenger cars, LCVs, and M&HCVs) and geography (APAC, Europe, North America, South America, and the Middle East and Africa).
Automotive Engineering Service Providers (ESP) Market Scope
Report Coverage
Details
Page number
175
Base year
2022
Historical year
2017-2021
Forecast period
2023-2027
Growth momentum & CAGR
Accelerate at a CAGR of 8.2%
Market growth 2023-2027
USD 8381.88 million
Market structure
Fragmented
YoY growth (%)
7.38
Regional analysis
Europe, APAC, North America, South America, and the Middle East and Africa
Performing market contribution
Europe at 30%
Key consumer countries
US, China, Germany, France, and UK
Competitive landscape
Leading companies, Competitive Strategies, Consumer engagement scope
Key companies profiled
AKKA Technologies SE, Altair Engineering Inc., AVL List GmbH, Bertrandt AG, Capgemini Service SAS, EDAG Group, EPAM Systems Inc., FEV Group GmbH, HCL Technologies Ltd., Hitachi Ltd., IAV GmbH, KPIT Technologies Ltd., L&T Technology Services Ltd., Mahindra & Mahindra Ltd., and Onward Technologies Ltd.
Market dynamics
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.
Customization purview
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.
Table of contents:
1 Executive Summary
1.1 Market overview
Exhibit 01: Executive Summary ? Chart on Market Overview
Exhibit 02: Executive Summary ? Data Table on Market Overview
Exhibit 03: Executive Summary ? Chart on Global Market Characteristics
Exhibit 04: Executive Summary ? Chart on Market by Geography
Exhibit 05: Executive Summary ? Chart on Market Segmentation by Service
Exhibit 06: Executive Summary ? Chart on Market Segmentation by Location
Exhibit 07: Executive Summary ? Chart on Incremental Growth
Exhibit 08: Executive Summary ? Data Table on Incremental Growth
Exhibit 09: Executive Summary ? Chart on Vendor Market Positioning
2 Market Landscape
2.1 Market ecosystem
Exhibit 10: Parent market
Exhibit 11: Market Characteristics
3 Market Sizing
3.1 Market definition
Exhibit 12: Offerings of vendors included in the market definition
3.2 Market segment analysis
Exhibit 13: Market segments
3.3 Market size 2022
3.4 Market outlook: Forecast for 2022-2027
Exhibit 14: Chart on Global - Market size and forecast 2022-2027 ($ million)
Exhibit 15: Data Table on Global - Market size and forecast 2022-2027 ($ million)
Exhibit 16: Chart on Global Market: Year-over-year growth 2022-2027 (%)
Exhibit 17: Data Table on Global Market: Year-over-year growth 2022-2027 (%)
4 Historic Market Size
4.1 Global automotive engineering service providers (ESP) market 2017 - 2021
Exhibit 18: Historic Market Size ? Data Table on Global automotive engineering service providers (ESP) market 2017 - 2021 ($ million)
Exhibit 159: L and T Technology Services Ltd. - Overview
Exhibit 160: L and T Technology Services Ltd. - Business segments
Exhibit 161: L and T Technology Services Ltd. - Key offerings
Exhibit 162: L and T Technology Services Ltd. - Segment focus
12.16 Mahindra and Mahindra Ltd.
Exhibit 163: Mahindra and Mahindra Ltd. - Overview
Exhibit 164: Mahindra and Mahindra Ltd. - Business segments
Exhibit 165: Mahindra and Mahindra Ltd. - Key news
Exhibit 166: Mahindra and Mahindra Ltd. - Key offerings
Exhibit 167: Mahindra and Mahindra Ltd. - Segment focus
12.17 Ricardo Plc
Exhibit 168: Ricardo Plc - Overview
Exhibit 169: Ricardo Plc - Business segments
Exhibit 170: Ricardo Plc - Key offerings
Exhibit 171: Ricardo Plc - Segment focus
13 Appendix
13.1 Scope of the report
13.2 Inclusions and exclusions checklist
Exhibit 172: Inclusions checklist
Exhibit 173: Exclusions checklist
13.3 Currency conversion rates for US$
Exhibit 174: Currency conversion rates for US$
13.4 Research methodology
Exhibit 175: Research methodology
Exhibit 176: Validation techniques employed for market sizing
Exhibit 177: Information sources
13.5 List of abbreviations
Exhibit 178: List of abbreviations
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