New York, Dec. 11, 2023 (GLOBE NEWSWIRE) -- Automotive Engineering Service Providers (ESP) 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. Request Sample Report
What is the projected growth rate and size of the Automotive Engineering Service Providers (ESP) Market from 2024 to 2028?
The Automotive Engineering Service Providers (ESP) Market 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.
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
What challenges are affecting the growth of the Automotive Engineering Service Providers (ESP) Market?
One of the key challenges hindering market growth is the increased order backlog due to frequent changes in market dynamics. The rapidly evolving technological landscape and shifting consumer expectations have shortened the average lifecycle of vehicles, thereby intensifying pressure on component suppliers and service providers to meet the demands of automotive OEMs.
Which segment is expected to exhibit significant growth in the Automotive Engineering Service Providers (ESP) Market by end-users?
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.
Which region is estimated to contribute significantly to the Automotive Engineering Service Providers (ESP) Market growth?
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
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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.
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