U.S. Automotive Engineering Services Market - Databook 2025 to 2034

The U.S. automotive engineering services market size surpassed USD 23.78 billion in 2024 and is predicted to reach around USD 58.14 billion by 2034, registering a CAGR of 9.35% from 2025 to 2034.

Highlights of the U.S. Automotive Engineering Services Market

• By location insight, the in-house segment held a dominant presence in the market in 2024.
• By material type insight, the outsource segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
• By service insight, the prototyping segment accounted for a considerable share of the market in 2024.
• By service insight, the designing segment is projected to experience the highest growth rate in the market between 2025 and 2034.
• By application insight, the powertrain and after-treatment segment held a significant CAGR in the market.
• By application insight, the body and cassis segment is expected to see remarkable growth in the market.

Industry Valuation and Growth Rate Projection

The automotive engineering services market is important to the automotive industry, service engineering in software, electronics, mechanical, and electrical disciplines, and a host of other engineering areas. It receives emphasis with the development, design, production, and operation of commercial vehicle systems and vehicle systems. For the increasing technology integration, such as autonomous vehicles, driver assistance systems, and electric mobility, there has been a period of growth for the market. Safety and the concept of connectivity have encouraged the use of collision avoidance systems and connectivity sensors. The push to lightweight vehicle design to ensure fuel efficiency and reduction in emissions is another factor fueling this market. Manufacturers are opting for newer engineering solutions due to government regulations and customer demands for highly engineered, safe, and efficient vehicles. The automotive engineering services market will keep climbing upward.

Market Trends:

• Smart Grid & Digital Substations: Smart metering, SCADA, and Internet-enabled appliances.
• Renewable Integration: Upgrading the system to deal with highly variable energy flows from solar and wind power sources.
• Grid Modernization: Enhancements due to the replacement of ageing infrastructure amid increasing demand for electricity.
• Decentralized Generation: The growth of distributed energy resources helps to increase the flexibility of the grid and end-user electrification at a distance.
• HVDC Implementation: It is possible to transmit electricity over long distances at high efficiency.

Restraints:

• Capital Expenditure: Very high upfront investments are required for transmission lines, substations, and new-age smart systems.
• Prerequisite Delays: Permit delays, policy fragmentation, and standardization issues will hinder project implementations.
• Cybersecurity Risk: Being increasingly vulnerable to cyberattacks due to its digitization.
• Integration Issues: Advanced grid control and storage solutions are needed for stable operations.
• Legacy System Incompatibility: Interferes with interoperability upon combining modern technology with legacy infrastructure.

Opportunity:

• Smart Grid Expansion: Enhances performance and resilience through real-time monitoring and automated responses by the grid.
• AI-Driven Optimization: For maintenance prediction, grid stability, and renewable energy forecast.
• Surge in Power Demand: Related to urban expansion, EV adoption, and industrial expansion.
• Microgrids & Distributed Energy Resources: Serves as a resilient and scalable alternative to the central grid.
• EV Charging Infrastructure: Growth areas corresponding to transportation electrification.

Recent Developments in the Automotive Engineering Services Market:

• In October 2024, Mitsubishi Electric Power Products and Mitsubishi Electric Corporation announced a $86 million investment in advanced switchgear production and power electronics in the U.S.
• In February 2024, the US DOE announced a $1.2bn investment to expedite the construction of large-scale transmission lines, aiming to overcome financial barriers.