AUTOMOTIVE ENGINEERING SERVICES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Key Takeaways from Analyst

The automotive engineering services market is expected to witness steady growth in the coming years. The demand for fuel-efficient and eco-friendly vehicles is driving OEMs to outsource engineering work to specialist service providers. Stringent emission norms worldwide are prompting automakers to develop hybrid and electric vehicles, benefiting engineering consultancies. Reduction in vehicle development timelines is another key factor fueling adoption of engineering services.

However, the market also faces challenges from economic uncertainties and geopolitical tensions impacting automobile sales. Constant pressure on OEMs to lower costs acts as a restraint. Data security and privacy concerns related to connected vehicles could hamper market prospects. Nonetheless, emergence of self-driving cars represents a major long-term opportunity for engineering consultants to support development of autonomous driving technologies.