The automotive engineering services market is expected to grow from $153.1 billion in 2019 to $384.6 billion by 2027, at a CAGR of 12.2%. According to the new market research report "Automotive Engineering Services Market by application (ADAS & Safety, electrical, electronics & body control, chassis, connectivity, interior/exterior & body, powertrain & exhaust, simulation), Service, location, vehicle, & Region - Global Forecast to 2027," published by MarketsandMarkets, the growth of the market is driven by the rising sales of electric vehicles, increasing R&D investments in the automotive industry, advent of autonomous vehicles, and high implementation of connectivity services.
The passenger car segment is expected to be the largest market during the forecast period. The adoption of sensors and use of vehicle data for autonomous driving and predictive maintenance have created wider scope for automotive engineering services providers in passenger cars. In addition, increasing customer demand for safer and comfortable passenger vehicles has compelled OEMs to invest more in vehicle safety, advanced connectivity features, and smart infotainment systems. The growing demand for digital connectivity features is supported by a wide network coverage of 5G connectivity and implementation of IoT devices in premium sedans and SUVs. In the present scenario, customers want ecofriendly mobility combined with communication. Because this provides an opportunity for OEMs to offer connectivity features in their upcoming vehicles, the demand for various automotive engineering services is expected to increase.