Automotive Engineering Services Market - Databook 2025 to 2034

The global automotive engineering services market size was estimated at USD 146.07 billion in 2024 and is projected to be worth around USD 337.2 billion by 2034, growing at a CAGR of 8.72% from 2025 to 2034.

Highlights of the Automotive Engineering Services Market

• Asia Pacific dominated the global market in 2024.
• North America is anticipated to grow at the fastest rate in the market during the forecast period.
• By location, the in-house segment held a dominant presence in the market in 2024.
• By location, the outsource segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
• By service, the prototyping segment accounted for a considerable share of the market in 2024.
• By service, the designing segment is projected to experience the highest growth rate in the automotive engineering services market between 2025 and 2034.
• By application, the powertrain & after-treatment segment held a significant CAGR in the market.
• By application, the body & chassis segment is expected to see remarkable growth in the market.
• By vehicle type, the passenger cars segment maintained a leading position in the market in 2024.
• By vehicle type, the commercial vehicles segment will gain a significant share of the market over the studied period of 2025 to 2034.
• By nature, the body-leasing segment enjoyed a prominent position in the automotive engineering services market during 2024.
• By nature, the turn-key segment is projected to expand rapidly in the market in the coming years.

Industry Valuation and Growth Rate Projection

In the automotive industry, the automotive engineering services market is an essential sector comprising software, electronics, mechanical, and electrical engineering. It's paramount in the evolution, planning, creation, and operation of commercial and passenger vehicles. The introduction of new technologies, such as autonomous vehicles, driver assistance systems, and electric mobility, fuels market growth. Safety and connectivity concerns have pushed the adoption of collision avoidance systems and connectivity sensor technologies. Another factor

for the market growth is the demand for making vehicles from lightweight materials to benefit fuel efficiency and reduce emissions. With many manufacturers taking engineering solutions as a serious alternative under pressure from governmental regulations and market demand for vehicles that are technologically advanced yet safe and efficient, the automotive engineering services market will continue its upward journey.

Automotive Engineering Services Market: Stats and Figures

• India Export data, India exported 40,616 shipments of Engineering Automobile from Oct 2023 to Sep 2024 (TTM).
• In Sep 2024 alone, 4,263 Engineering Automobile export shipments were made from India.
• India leads the world in Engineering Automobile exports with 251,885 shipments, followed by China with 85,345 shipments, and Vietnam taking the third spot with 64,029 shipments.

How AI Has Benefitted the Automotive Engineering Services Market?

• AI enhances the automotive engineering service market by improving operational handling, reducing costs, predicting equipment failure, etc.
• Improves operational handling by dealing with power flow and minimizing transmission losses.
• Cuts costs through the monitoring of maintenance activities and subsequent automation of processes.
• Predicts equipment failure and grid disturbances to pre-empt blackouts and guarantee an uninterruptible power supply.
• Increases safety by real-time identification of risks.
• Promotes sustainable grid management for the inclusion of renewable energy sources and load balancing.

Industry Leader Announcements

• Tricia Breeger, President and CEO of MEPPI, emphasized the strategic importance of these investments:

“By introducing process improvements, we will optimize operational efficiency and maintain our commitment to product quality, ensuring that we meet the growing energy needs of the U.S. while staying at the forefront of technological innovation.”

Geographical Insights

Asia-Pacific

Asia Pacific dominated the market because of rapid industrial growth, a rise in production volumes of vehicles, and government aid in research and development pertaining to automotive technologies. This region is undergoing such phases of increased disposable income, evolving automobile culture, and growing demand for electric and autonomous vehicles, including countries such as China and India. Cheap skilled labor, coupled with the presence of OEMs, helped this region consolidate its position.

North America

North America, though, is the fastest-growing market, witnessing major investments in R&D, smart mobility solutions, etc. Due to the outsourcing of several OEM operations to low-cost countries, North America currently concentrates on AI-driven technologies, smart infrastructure, and advanced vehicle systems. The well-established ecosystem of engineering companies and tech talent in the region further promotes its reputation as an automotive innovation hub.

Europe

Europe is an important player in the market regarding the technologically advanced solutions and the electrification, safety systems, and sustainability aspects.

Recent Developments in the Automotive Engineering Services Market

• In April 2025, Hitachi launched a Grid Forming Inverter (GFM) at its Narashino Works facility in Chiba Prefecture, aiming to stabilize electric power systems during the transition to renewable energy.
• In November 2024, India plans to launch a production-linked incentive scheme to boost transmission equipment manufacturing, aiming to reduce foreign exchange losses due to rising demand and supply.

Competitive Landscape

The market is moderately fragmented with local players like Tech Mahindra Limited, IAV Automotive Engineering, AltenCresttek Company, Fev Europe GmbH, HCL Technologies, L&T Technology Services, Akka Technologies, Harman International Industries Inc., Capgemini SE, Bertrandt AG, etc., wishing to take the time to edge their presence through investments, partnerships, acquisitions, and mergers. They also invest in product development and competitive pricing. These strategies will promote market growth and lucrative opportunities for market players

• Company Name: Tech Mahindra Limited
• Year of Incorporation: 1986
• Headquarters: Pune, India

Tech Mahindra's annual revenue for the financial year ending March 31, 2025 (FY25) was ₹51,996 crores, which is a decrease of 2.4% year-on-year.

• Company Name: Fev Europe GmbH
• Year of Incorporation: 1978
• Headquarters: Aachen, Germany

FEV Europe GmbH's annual revenue is a notable $5 billion, as of April 2025.

• Company Name: Harman International Industries Inc.
• Year of Incorporation: 1980
• Headquarters: Stamford, Connecticut, USA.

A quarterly revenue of around $2.65 billion for the final quarter of 2024.