According to a new market research report published by Credence Research, “Automotive Engineering Services Outsourcing (ESO) Market (by Application (Design & Prototype, Development & Integration, Testing, and Body Leasing), by Service Model (On-shore & Off-shore), by Vehicle Type (Internal Combustion Engine Vehicles, Electric Vehicles, and Hybrid Vehicles), by Geography (North America, Europe, Asia Pacific, and Rest of the World)) - Growth, Future Prospects, and Competitive Landscape, 2018 -2026”, the global automotive engineering services outsourcing market was valued at US$ 43.13 Bn in 2018 and is expected to expand at a CAGR of 8.3% during the forecast from 2019 to 2027.
Download Free PDF Sample Request: https://www.credenceresearch.com/sample-request/59698
Market Insight
After a period of lull during unstable economic conditions, the automotive industry has regained momentum and is poised to exhibit steady growth in the coming years. The gradual technology shift towards electrification, autonomous driving, and connected services is driving R & D activities and attracting investment in the automotive industry. In 2016-17, the automotive industry worldwide invested over US$ 126 Bn in R & D globally, with Europe leading the spend share (47%). In addition, stringent regulations have put severe strain on small businesses of automotive engineering such as testing, powertrain calibration, and homologation among others. With internal engineering capacity of OEMs inflexible and strained to capacity, outsourcing of R & D activities have become increasingly important medium to execute technology integration in a timely manner, while also managing the workload of internal engineering resources. Many automotive manufacturers worldwide are working in association with engineering service providers for designing, prototyping, developing, and testing new components. For instance, in February last year, Jaguar Land Rover Ltd. joined forces with ALTEN Group for designing & developing new engines. Similar trend can be observed across the industry.
In terms of vehicle type, contribution of engineering services was highest for internal combustion engine vehicles. The trend shall extend and value contribution from internal combustion engine vehicles will remain highest throughout the forecast period. However, engineering services outsourcing for electric vehicles are presumed to increase at superior growth rate. Growing need to limit the dependence on fossil fuels and government support in form of subsidies and incentives will drive the uptake of electric vehicles and along with it the complementary engineering services. In addition, since development process of new electric drives is cost intensive and time consuming, manufacturers prefer outsourcing it to third party sources.
Do Inquiry before buying research report: https://www.credenceresearch.com/inquiry-before-buying/59698
Some of the leading companies profiled in the research study include Onward Technologies Ltd., Alten SA, Altran Technologies Limited, AVL, ESG Elektroniksystem- und Logistik-GmbH, P3 Automotive GmbH, ITK Engineering GmbH, Kistler Instrumente AG, M Plan GmbH, EDAG Engineering GmbH, Bertrandt, and MBtech Group GmbH among others. Although the automotive industry is on steady path of recovery and offering favorable market environment for automotive engineering service providers, their profitability has declined over the last few years in spite of taking over bigger chunks of work from clients. A trend towards increased consolidation/mergers & acquisitions in a bid to build up necessary competences and capacity can be observed in the market.
By Application Segment (2017–2027; US$ Bn)
- Designing & Prototyping
- Development & Integration
- Testing
- Body Leasing
By Service Model Segment (2017–2027; US$ Bn)
- On-shore Automotive Engineering Services Outsourcing
- Off-shore Automotive Engineering Services Outsourcing
By Vehicle Type Vertical Segment (2017–2027; US$ Bn)
- Internal Combustion Engine (ICE) Vehicles
- Electric Vehicles
- Hybrid Vehicles
By Geography Segment (2017–2027; US$ Bn)
- North America
- Europe
- Asia Pacific
- Latin America (LATAM)
- Middle East and Africa (MEA)
Browse full report at https://www.credenceresearch.com/report/automotive-engineering-services-outsourcing-eso-market
About Us
Credence Research is a worldwide market research and counseling firm that serves driving organizations, governments, non legislative associations, and not-for-benefits. We offer our customers some assistance with making enduring enhancements to their execution and understand their most imperative objectives. Over almost a century, we've manufactured a firm extraordinarily prepared to this task.
Media Contact
Name: Chris Smith
Address: 105 N 1st ST #429,
SAN JOSE, CA 95103 US
Toll-Free (US/CANADA) Ph.: +1-800-361-8290
E-mail: sales@credenceresearch.com
Website: http://www.credenceresearch.com
No comments:
Post a Comment