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Global Automotive Engineering Services Market Overview: Trends Shaping Growth to 2029

November 13, 2025 by The Business Research Company

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What Is The Global Market Value Of The Automotive Engineering Services Industry In 2025?

The automotive engineering services market size has seen swift expansion in recent years. It is anticipated to expand from $266.62 billion in 2024 to $295.47 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 10.8%. The growth observed in prior periods can be attributed to the globalization of the automotive industry, the growing intricacy of vehicle systems, a strong focus on fuel efficiency and the reduction of emissions, the proliferation of automotive electronics and software, and the consumer demand for inventive vehicle designs and features.

The automotive engineering services market is projected to experience substantial expansion over the upcoming years. By 2029, its size is anticipated to reach $441.98 billion, demonstrating a compound annual growth rate (CAGR) of 10.6%. This growth during the forecast period is fueled by factors such as the emergence of electric and autonomous vehicles, the faster integration of connected car technologies, a heightened emphasis on sustainability and environmentally friendly engineering practices, the incorporation of advanced driver-assistance systems (ADAS), and a strong demand for customized and user-focused automotive experiences. Key trends anticipated for the forecast period encompass the utilization of cutting-edge technology, the adoption of digital twin technology for simulation and testing purposes, collaborative efforts in research and development for autonomous driving, the escalating significance of cybersecurity within automotive engineering, and the application of artificial intelligence in optimizing design and manufacturing processes.

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Which Major Market Drivers Are Shaping The Future Of The Automotive Engineering Services Market?

The increasing need for transportation without emissions is set to drive the growth of the automotive engineering services market. The burning of fossil fuels like diesel and gasoline releases greenhouse gases, such as carbon dioxide, methane, hydrofluorocarbons, and nitrous oxide, into the atmosphere, contributing to climate change and thereby escalating the requirement for zero-emission modes of transport like electric vehicles. For example, in January 2024, the Department for Transport, a UK-based government department, disclosed that 80% of new cars and 70% of new vans sold in Great Britain would be zero emission by 2030, increasing to 100% by 2035. This amplified demand for and enhanced awareness of emission-less transportation are expected to further propel the automotive engineering services market.

What Are The Major Segment Types Covered In The Automotive Engineering Services Market?

The automotive engineering servicesmarket covered in this report is segmented –

1) By Vehicle Type: Passenger Cars, Commercial Vehicles

2) By Service Type: Concept Or Research, Designing, Prototyping, System Integration, Testing

3) By Location Type: On-Shore, Off-Shore

4) By Application: Electrical, Electronics and Body Controls, ADAS and Safety, Chassis, Connectivity Services, Powertrain and Exhaust, Interior, Exterior, and Body Engineering, Simulation

Subsegments:

1) By Passenger Cars: Compact Cars, Sedans, SUVs (Sport Utility Vehicles), Hatchbacks, Luxury Cars

2) By Commercial Vehicles: Light Commercial Vehicles (LCVs), Heavy Commercial Vehicles (HCVs), Buses, Trucks, Vans

What Trends Are Redefining The Automotive Engineering Services Market Dynamics?

Leading companies within the automotive engineering services market are innovating technologically advanced solutions, including parking development solutions, to elevate efficiency, maximize space utilization, and refine the user experience. A parking development solution represents a comprehensive framework built to optimize the planning, construction, and oversight of parking facilities, consequently boosting space utilization, traffic flow, and user convenience in urban or commercial areas. As an illustration, in March 2024, Applied Intuition, a US-based software company, introduced an automated parking development solution tailored for advanced driver-assistance systems (ADAS) and automated driving (AD). This solution is designed to empower ADAS and AD development teams to create, test, and deploy ML-based or classical automated parking systems (APS) up to 12 times faster while also improving safety and reliability.

Which Key Players Are Driving Competition In The Automotive Engineering Services Market?

Major companies operating in the automotive engineering services market include Capgemini SE, IAV GmbH, Tech Mahindra Limited, AKKA Technologies Group, Bertrandt AG, Harman International Industries Inc., ALTEN Cresttek Engineering Solutions Pvt Ltd., L&T Technology Services Ltd., Fev Europe GmbH, AVL List GmbH, Ricardo plc, EDAG Engineering GmbH, Valmet Automotive Oyj, Onward Technologies Ltd., T-Net Japan Co. Ltd., Kistler Holding AG, Continental AG, semcon engineering uk limited, Robert Bosch GmbH, Altran India Pvt. Ltd., Tata Technologies Ltd., Altair Engineering Inc., HORIBA Ltd, MBtech Group GmbH, P3 Automotive GmbH, ASAP Holding GmbH, Link Engineering Company, Ansys Inc., EPAM Systems Inc., GlobalLogic, Hunter Engineering Company

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What Regional Growth Trends Are Shaping The Automotive Engineering Services Market Outlook?

Asia-Pacific was the largest region in the automotive engineering services market in 2024. The regions covered in the automotive engineering services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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