Latest News- Automotive Engineering Service Providers (ESP) Market in Japan: In-house is expected to lead the Application segment during 2024-2028

The Automotive Engineering Service Providers (ESP) Market in Japan is being driven by Technological innovations

The Automotive Engineering Service Providers (ESP) Market in Japan is expected to grow at a CAGR of 11% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 356 million. The Japanese automotive engineering service providers (ESP) market is witnessing a surge in inorganic growth strategies, with companies pursuing mergers, acquisitions, and strategic partnerships to bolster capabilities, expand market reach, and foster innovation. A notable instance of this trend is the recently signed Memorandum of Understanding (MoU) between SCSK Corporation and FEV Japan Co., Ltd., a subsidiary of the renowned FEV Group. This collaboration aims to strengthen their partnership and enhance their engineering services offerings in Japan, with both parties working diligently to finalize the agreement details by the first half of FY2023. Inorganic growth strategies enable companies to leverage each other's strengths and resources, positioning them for long-term success in the competitive ESP market. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Application
  • In-house
  • Out-source
• Product Type
  • Electrical and electronics
  • Powertrain
  • Complete vehicle
  • Others
• Vehicle Type
  • Passenger cars
  • Commercial vehicles
• End-User
  • OEMs
  • Tier-1 Suppliers
  • Aftermarket
• Geography
  • Japan

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Technological innovations
• Progress in autonomous vehicle technology
• Growing emphasis on electric vehicles

However, the market also witnesses some limitations, which are as follows:

• Cybersecurity concerns
• Supply chain challenges
• Labor shortages

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Market Scope in Automotive Engineering Service Providers (ESP) Market in Japan Research Report

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Research Analysis Overview

The Automotive Engineering Service Providers (ESP) Market in Japan focuses on enhancing vehicle performance, fuel efficiency, and safety through innovative solutions. ESPs provide vehicle reliability assessments, customization services, and aftermarket repairs and maintenance. They also offer vehicle lifecycle management, telematics, cybersecurity, and advanced manufacturing solutions. Sustainable mobility, electrification strategies, connected car infrastructure, data privacy, and supply chain management are key areas of expertise. Quality control, cost optimization, product lifecycle management, intellectual property protection, patent licensing, and technology innovation are essential components of their offerings.

Market Research Overview

The Automotive Engineering Services Providers (ESP) market in Japan is a significant segment of the global automotive parts and equipment industry. This market encompasses companies offering vehicle engineering, design services, testing services, simulation services, and analysis services for the production of automotive components and equipment. The market's growth is driven by the increasing demand for electronic components in automobiles, particularly in the sales of electric vehicles, motorcycles, and passenger cars. As a result, there is a significant need for ECUs and other electrical components, leading to increased revenue for ESPs in Japan and globally. Technavio's market analysis forecasts continued growth in the global automotive components and equipment market, driven by this trend, as well as advancements in vehicle technology and the increasing popularity of electric and autonomous vehicles.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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