Technavio, a leading provider of market research reports, has released its latest study on Automotive Engineering Services Outsourcing Market. This report offers a comprehensive analysis of the current market trends, emerging opportunities, and key challenges.
According to Technavio, the global Automotive Engineering Services Outsourcing Market is classified under the IT Consulting and Other Services sector within the broader Global IT Services Market. This market encompasses organizations providing IT consulting and information management services. The IT Consulting and Other Services Market's size is determined by the consolidated revenue generated by companies engaged in all IT consulting and information management services, including IT consulting, application services, electronic data processing, business process outsourcing, infrastructure services, and Internet services. The Automotive Engineering Services Outsourcing Market, therefore, contributes to the IT Consulting and Other Services Market's growth and development. - The Automotive Engineering Services Outsourcing Market is experiencing significant growth, fueled by the Outsourcing engineering services being cost-effective solution. Businesses are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
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The market size is estimated to grow by USD 67.71 billion, at a CAGR of 11.3% during the forecast period. Implementation of new technologies and systems | Increase in M and A activities in the automotive industry | Advent of IoT
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The Asia Pacific (APAC) region is the fastest-growing market for automotive engineering services outsourcing, driven by the significant cost savings and improved customer service it offers to numerous automotive companies. Global enterprises from North America and Europe have outsourced their automotive engineering services to APAC to reduce infrastructure costs and tap into the region's abundant, cost-effective talent pool. This strategic move enables businesses to focus on their core competencies while ensuring excellent service delivery, multilingual proficiency, strong infrastructure, and competitive pricing. The increasing demand for cost reduction continues to fuel market growth in APAC.
The Automotive Engineering Services Outsourcing Market is experiencing significant growth due to the increasing demand for vehicle customization and innovation in various engineering subsystems. This market caters to the engineering needs of automobiles, trucks, and motorcycles, encompassing safety engineering, software engineering, electronic engineering, electrical engineering, and mechanical engineering. Methane combustion, hybridization, electrification, and hydrogen are key areas of focus in the automotive industry, leading to the outsourcing of virtual battery development and electric vehicle sales. Lightweight vehicles and electric vehicles are gaining popularity, driving the need for advanced engineering solutions. Automotive manufacturers are outsourcing vehicle positioning, product innovation, remote diagnostics, passenger safety, smart infotainment, navigation, connectivity solutions, and more to specialized engineering service providers. The market is expected to continue growing as the demand for advanced technology integration in vehicles increases. Engineering services for trucks and commercial vehicles are also in high demand due to the need for improved fuel efficiency, safety features, and connectivity solutions. The outsourcing of engineering services enables automotive manufacturers to focus on their core competencies while reducing costs and improving time-to-market for new vehicles.
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