NEW
YORK, May 14, 2024 /PRNewswire/ -- The
global automotive engineering service providers (esp)
market size is estimated to grow by USD
10.91 bn from 2024-2028, according to Technavio. The market
is estimated to grow at a CAGR of over 9.64% during the
forecast period.
For more insights on the forecast market size and
historic data (2018 - 2022) - Download
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Application (In-house
and Out-source), Product Type (Powertrain, Complete vehicle,
Electrical/electronics, and Others), and Geography (Europe, APAC,
North America, South America, and Middle East and
Africa)
|
Region
Covered
|
Europe, APAC, North
America, South America, and Middle East and Africa
|
Key companies
profiled
|
Adecco Group AG, Altair
Engineering Inc., ASM Technologies Ltd., AVL List GmbH, Belcan LLC,
Bertrandt AG, Capgemini Service SAS, Contechs Group Holdings Ltd.,
EDAG Group, EPAM Systems Inc., FEV Group GmbH, HCL Technologies
Ltd., Hitachi Ltd., IAV GmbH, KPIT Technologies Ltd., L and T
Technology Services Ltd., Magna International Inc., Mahindra and
Mahindra Ltd., Onward Technologies Ltd., and Ricardo Plc
|
Key Market Trends Fueling Growth
- Connected cars rely on Vehicle-to-Everything (V2X)
communication for real-time data exchange.
- ESPs develop communication protocols, sensor integration, and
connectivity solutions to enable V2X communication, enhancing
transportation safety and efficiency.
- With increased connectivity comes higher cyber threat risks;
ESPs focus on developing robust cybersecurity solutions to protect
connected cars from vulnerabilities and unauthorized access.
- Connected cars generate extensive data on driving habits,
preferences, and performance, which ESPs analyze to personalize
driving experiences, predict maintenance needs, and offer tailored
insurance and roadside assistance services.
- ESPs develop diagnostic tools, remote software updates, and
Over-The-Air (OTA) upgrades for connected cars, creating ongoing
revenue opportunities.
- Companies like Bertrandt AG and EDAG Group offer innovative
aftermarket solutions for connected vehicles.
- As demand for connected car technologies rises, automotive ESPs
remain essential partners in driving innovation and addressing
evolving automotive ecosystem needs, consequently boosting market
growth.
Market Challenges
• Autonomous vehicles and connected cars bring new regulations,
posing uncertainties for Automotive Engineering Service Providers
(ESPs). Strict safety regulations, such as data privacy and
autonomous driving standards, necessitate substantial investments
in understanding, interpreting, and complying. Fear of
non-compliance and potential liability may hinder innovation, with
ESPs hesitant to develop cutting-edge technologies due to
regulatory risks. High barriers to entry, created by stringent
safety testing and certification, favor larger, established
providers, potentially limiting competition and market dynamism.
Key areas of focus include 5G networks, electric vehicles, vehicle
efficiency, collision avoidance sensors, connection sensors,
lightweight vehicles, fuel efficient vehicles, electric motors,
battery management systems, sensor fusion, cybersecurity, data
analytics, and vehicle safety.
Research report provides comprehensive data on
impact of trend, driver and challenges - Buy
Report
Segment Overview
This automotive engineering service providers (esp) market
report extensively covers market segmentation by
- Application
- 1.1 In-house
- 1.2 Out-source
- Product Type
- 2.1 Powertrain
- 2.2 Complete vehicle
- 2.3 Electrical/electronics
- 2.4 Others
- Geography
- 3.1 Europe
- 3.2 APAC
- 3.3 North America
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 In-house- The Automotive Engineering Service
Providers (ESP) Market encompasses mechanical and electrical
engineering, leveraging lightweight materials and digital vehicles
to enhance connectedness and software development. ESPs address
cybersecurity and data analytics concerns, ensuring vehicle safety
and fuel efficiency through expertise in electric motors and
battery management systems. Sensor fusion engineering solutions
facilitate designing, developing, fabricating, and assembling
mechanical, electrical, electronics, and software elements for
automobiles. ESPs cater to stringent safety regulations in the
automotive engineering field, delivering improved quality, safe
structured vehicles, and convenient driving experiences for models
and vehicles, including commercial ones. With the advent of 5G
networks, ESPs are poised to revolutionize the industry through
engineering solutions for autonomous and electric vehicles.
Investment pockets lie in the areas of safety elements, luxury
vehicles, and the integration of advanced technologies, such as 5G
networks and autonomous driving systems.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Research Analysis
The Automotive Engineering Service Providers (ESP) market
encompasses the design, development, fabrication, and integration
of mechanical, electrical, and electronics elements for commercial
vehicles. This includes the implementation of 5G networks and
advanced technologies such as autonomous and electric vehicles.
ESPs focus on enhancing vehicle efficiency through the use of
lightweight materials and fuel-efficient components. Collision
avoidance sensors and connection sensors are essential mechanical
and electrical features that ESPs incorporate into digital and
connected vehicles. Software engineering and cybersecurity are
critical aspects of ESP services, ensuring data analytics and
secure communication between vehicles and infrastructure. The ESP
market continues to evolve, offering innovative solutions to meet
the demands of the automotive industry.
Market Research Overview
The Automotive Engineering Services Market encompasses a diverse
range of offerings, including vehicle design, development, testing,
and consulting services. These solutions cater to various sectors,
such as body and chassis, powertrain, electronics, and software.
ESPs employ cutting-edge technologies like CAD, CAE, and CAM to
create efficient, safe, and eco-friendly vehicles. They also focus
on regulatory compliance, ensuring that vehicles meet stringent
safety and emissions standards. Additionally, ESPs provide services
related to vehicle connectivity, autonomous driving, and electric
powertrains, reflecting the industry's ongoing evolution. The
market is driven by factors like increasing vehicle production,
growing demand for advanced technologies, and stringent
regulations.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
-
- Product Type
-
- Powertrain
- Complete Vehicle
- Electrical/electronics
- Others
- Geography
-
- Europe
- APAC
- North America
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
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/
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SOURCE Technavio