In vehicle development, automotive electrical, electronics, and body controls have a significant value-added proportion.
FREMONT CA: From USD 153.3 billion in 2021 to USD 253.9 billion in 2027, the automotive engineering services market is anticipated to increase at an annual rate of 8.8 percent. The rise in electric vehicle sales, increased R&D (Research and Development) spending in the automotive sector, the arrival of autonomous vehicles, and the extensive use of connectivity services are driving the automotive engineering services market expansion.
In the coming years, Europe is likely to be the greatest market for automotive engineering services. Europe is expected to account for 43 percent of the worldwide automotive engineering services market by the end of 2021, and the market in this region is expected to grow at an annual rate of 8.9 percent over the projection period. The presence of OEMs (Original Equipment Manufacturer) in the region provides growth potential for the automotive engineering services market.
Increasingly rigorous environmental rules are incentivizing industry participants to test and develop innovative automobiles, expanding the market for automotive engineering services. L&T Technology Services, for example, opened a new distribution facility in Munich for a German OEM in March 2017. The center would provide engineering and R&D services for the company's infotainment consoles and its hybrid electric car lineup.
A Market Led by Electrical, Electronics, And Body Controls
In vehicle development, automotive electrical, electronics, and body controls have a significant value-added proportion. Electronics and electrical systems handle all tasks dedicated to passenger comfort and convenience. In addition, power management, climate control, power window, body control, and smart mirror and wipers are examples of automobile electrical and electronics services. The adoption of electric vehicles and complicated technological components for a safer and more functional driving experience will likely fuel this trend. Automotive engineering service providers have committed significant resources in developing electrical, electronics, and body control systems.
Designing Category: Fastest Growing Service Type
The design process is applied to the product's final sketching. The 2D rendering process is critical for determining whether or not the design is practical. A 3D model is created using computer-aided design (CAD) if the design appears to be practical and practicable. After that, clay modeling aids in the creation of a physical replica of the design. The design of the car might be done in-house by the automotive manufacturer's team or outsourced.