30-July-2019: The global automotive engineering
services outsourcing (ESO) market size is expected to
reach USD 293.74 billion by 2025, according to a new report by Grand View
Research, Inc. The market is estimated to expand at a CAGR of 28.4% over the
forecast period. Original Equipment Manufacturers (OEMs) outsource core
engineering, as well as allied, tasks to obtain highly-skilled and specialized
services at a much cheaper cost. Earlier, automobile innovation was limited to
R&D centers of OEMs.
However, the demand
for automotive ESO services is rising significantly with growing technical
capabilities of Engineering Service Providers (ESPs) to offer product
innovation and automotive R&D in vehicle positioning, guidance systems,
connected cars, and autonomous driving. The Asia Pacific region accounted for
the largest market share in 2017 and is anticipated to continue this trend over
the forecast period.
Owing to the
availability of cost-effective labor in countries, such as Philippines, India,
and China, major automobile OEMs are outsourcing manufacturing and allied
activities to these destinations. Japan is one of the most prominent car
manufacturers worldwide due to the presence of major auto manufacturers, such
as Honda Motor Co., Ltd., Nissan Motor Corp., and Toyota Motor Corp. This has
triggered the demand for automotive engineering services in the country, which
is supporting the APAC regional growth.
In
depth research report on Automotive Engineering Services Outsourcing (ESO)
Market
Further key findings from the study suggest:
·
The prototyping application segment is projected to grow at a
CAGR of 27.3% over the forecast period
·
By 2025, the on-shore segment is anticipated to account for
around 50.0% of the total revenue generated by the automotive ESO market
·
The Asia Pacific region led the market in 2017 and is
projected to account for the largest revenue share over the forecast period
·
Key companies in the market include AVL, AKKA, ATIPL Altran
Technologies Ltd., ARRK Product Development Group Ltd., ASAP Holding GmbH,
Bertrandt AG, EDAG Engineering GmbH, Horiba Ltd., ITK Engineering GmbH, M Plan
GmbH, and RLE International Group
·
These companies are working toward providing a more
comprehensive solution that caters to different requirements of their clients.
For instance, recently, FEV Group developed a suite of services, making it a
“one-stop shop” for the development, design, testing, and deployment of cybersecurity
solutions and other connected vehicle technologies
Grand View Research
has segmented the global automotive engineering services outsourcing market on
the basis of application, location, and region:
Automotive ESO Application Outlook (Revenue, USD Billion,
2014 - 2025)
·
Designing
·
Prototyping
·
System Integration
·
Testing
Automotive ESO Location Outlook (Revenue, USD Billion, 2014 -
2025)
·
On-shore
·
Off-shore
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About
Grand View Research
Grand View Research, Inc. is a U.S.
based market research and consulting company, registered in the State of
California and headquartered in San Francisco. The company provides syndicated
research reports, customized research reports, and consulting services. To help
clients make informed business decisions, the company offers market
intelligence studies ensuring relevant and fact-based research across a range
of industries including technology, chemicals, materials, healthcare and
energy.
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