Automotive Transmission Engineering Services Outsourcing Industry Insights: Market Forecast to 2029
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How Is The Automotive Transmission Engineering Services Outsourcing Market Size Likely To Evolve From 2025 Through 2034?
The automotive transmission engineering services outsourcing market has experienced consistent growth in its size recently. This market is projected to expand from $12.64 billion in 2024 to $13.21 billion by 2025, demonstrating a compound annual growth rate (CAGR) of 4.5%. Historically, this expansion has been driven by factors such as the worldwide integration of the automotive sector, the need for economical engineering solutions, the intricate nature of contemporary transmission systems, automotive firms’ emphasis on their primary strengths, and the rising consumer desire for vehicles that are more fuel-efficient.
The automotive transmission engineering services outsourcing market size is expected to exhibit strong growth over the coming years, with projections indicating it will reach $16.51 billion by 2029, expanding at a compound annual growth rate (CAGR) of 5.7%. The expansion anticipated in this forecast period is primarily attributed to the increasing demand for hybrid and electric vehicles, the rising need for advanced driver assistance systems (ADAS), the growing market for connected cars and autonomous vehicles, a concentrated effort on reducing carbon emissions, and the escalating demand for advanced materials in automotive manufacturing. Significant trends during this period are expected to include continuous advancements in transmission technology, the outsourcing of transmission software development, strengthened collaboration between automotive manufacturers and engineering service providers, the adoption of digital twin technology in transmission engineering services, and a notable shift towards virtual testing and simulation in transmission design.
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Which Industry Drivers Are Expected To Accelerate The Automotive Transmission Engineering Services Outsourcing Market From 2025 To 2029?
The expanding production of hybrid vehicles is anticipated to drive growth in the automotive transmission engineering services outsourcing market throughout the forecast period. A hybrid automobile typically features two or more engines, usually comprising an electric motor and a traditional engine, either petrol or diesel. The benefits offered by hybrid cars compared to gasoline-powered vehicles are leading to an increase in automotive vehicle adoption, which is consequently fostering the worldwide growth of automotive transmission engineering services outsourcing. For example, in January 2023, a report from the US Department of Energy, a US-based agency overseeing nuclear infrastructure and energy policies, indicated that monthly sales of new plug-in electric cars (PEV), which include all-electric vehicles (EV) and plug-in hybrid electric vehicles (PHEV), reached 7.4%. This figure surpassed 7% for the first time in September 2022, with PHEVs accounting for 1.2% of these sales. The eco-friendly nature of hybrid vehicles has increased their demand, thereby propelling the automotive transmission engineering services outsourcing market.
What Are The Major Segments Identified In The Automotive Transmission Engineering Services Outsourcing Market?
The automotive transmission engineering services outsourcingmarket covered in this report is segmented –
1) By Service Type: Designing, Prototyping, Testing, System Engineering And Integration, Simulation
2) By Powertrain: Conventional, Hybrid
3) By Transmission Type: Automatic, Manual
4) By Application: Commercial Automotive, Industrial Automotive, Passenger Automotive
Subsegments:
1) By Designing: Transmission System Design, Gear Design, Component Design, CAD Modeling And Simulation
2) By Prototyping: Prototype Development, Rapid Prototyping, Functional Prototyping, Prototype Testing
3) By Testing: Performance Testing, Durability Testing, Noise, Vibration, And Harshness (NVH) Testing, Reliability Testing
4) By System Engineering And Integration: Requirements Analysis, System Architecture Development, Integration Of Transmission Systems, Software And Hardware Integration
5) By Simulation: Multi-Body Dynamics Simulation, Finite Element Analysis (FEA), Computational Fluid Dynamics (CFD), Virtual Prototyping And Testing
Which Competitive Trends Are Defining The Automotive Transmission Engineering Services Outsourcing Market Structure?
Leading companies in the automotive transmission engineering services outsourcing market are adopting strategic partnership approaches to deliver propulsion solutions. Strategic partnerships refer to a process where companies leverage each other’s strengths and resources to achieve mutual benefits and success. For instance, in July 2024, Allison Transmission, a US-based company focused on designing, developing, manufacturing, and distributing transmissions and hybrid propulsion systems, collaborated with BAE Systems Hägglunds, a Sweden-based company that develops, provides, and upgrades vehicle systems. This recent collaboration signifies the continuation of a long-standing relationship between BAE Systems Hägglunds and Allison. It offers an opportunity for Allison to achieve further growth in its Defense end market, with numerous programs anticipated to generate an additional $100 million in annual revenue.
Which Major Industry Participants Are Leading The Automotive Transmission Engineering Services Outsourcing Market Growth?
Major companies operating in the automotive transmission engineering services outsourcing market include AVL List GmbH, FEV Group GmbH, IAV GmbH, Ricardo plc, Intertek Group plc, Bertrandt AG, EDAG Engineering GmbH, Tata Consultancy Services Limited, Marelli Europe SpA, Horiba Ltd., Porsche Engineering Group GmbH, Alten SA, P3 Automotive GmbH, Altair Engineering Inc., RLE International Group, ASAP Holding GmbH, Kistler Holding AG, M Plan GmbH, P+Z Engineering GmbH, Magna International Inc., Robert Bosch GmbH, Akka Technologies India Private Limited, ESG Group Pty Ltd., ITK Engineering GmbH, ZF Friedrichshafen AG, Jatco Ltd., Aisin Seiki Co. Ltd., Infosys Limited, Wipro Limited, HCL Technologies Limited, Tech Mahindra Limited, Capgemini SE
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How Do Regional Market Performances Compare Within The Automotive Transmission Engineering Services Outsourcing Industry?
Asia-Pacific was the largest region in the automotive transmission engineering services outsourcing market share in 2024. The regions covered in the automotive transmission engineering services outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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