Automotive Engineering Service Providers (ESP) Market by Service and Geography - Forecast and Analysis 2020-2024
Global Automotive Engineering Service Providers (ESP) Market: About this market
Technavio’s automotive engineering service providers (ESP)market analysis considers sales from the powertrain, complete vehicle, electrical/electronics, and other services. Our study also finds the sales of ESP in APAC, Europe, MEA, North America, and South America. In 2019, the powertrain segment had a significant market share, and this trend is expected to continue over the forecast period. Factors such as increasing need for rigorous testing and validation methodologies of engines and their components for compliance with stringent emission standards will play a significant role in the powertrain segment to maintain its market position. Also, our global ESP market report looks at factors such as increasing vehicle digitization and electrification, rising demand for vehicle connectivity solutions, and development of alternative powertrains. However, increasing cost pressure on OEMs, frequent changes in market dynamics lead to increase in order backlog, and rising cybersecurity threats may hamper the growth of the ESP industry over the forecast period.
Global Automotive Engineering Service Providers (ESP) Market: Overview
Increasing vehicle digitization and electrification
Manufacturers are incorporating advanced features in cars for product differentiation and sustaining the competitive market. In addition, the growing focus of OEMs on ADAS, such as lane assist system, blind-spot detection, electronic stability control, speed assist system, and adaptive cruise control has increased the number of electronic components in vehicles. Furthermore, OEMs are forming partnerships or entering into agreements with electronics, energy, and telecommunication companies to offer digitization and electrification of mechanical components. These developments. Increasing vehicle digitization and electrification will lead to the expansion of the global ESP market at a CAGR of over 6% during the forecast period.
Development of autonomous vehicles
There has been an increasing focus on the development of autonomous vehicles in recent years. Companies and OEMs are pooling their R&D resources for designing and developing successful prototypes of autonomous vehicles. In addition, automakers are partnering with technology companies for integrating vehicles with artificial intelligence to create technologically advanced vehicles. Furthermore, the growth in the development of autonomous vehicles can be attributed to the shifting perception of consumers toward car ownership. This has further encouraged the OEMs to develop more driverless and autonomous vehicles for adapting to the consumers’ behavioral changes. This development is expected to have a positive impact on the overall market growth.
For the detailed list of factors that will drive the global automotive engineering service providers (ESP)market during the forecast period 2020-2024, click here.
With the presence of several major players, the global automotive engineering service providers (ESP)market is fragmented. Technavio’s robust vendor analysis is designed to help clients improve their market position, and in line with this, this report provides a detailed analysis of several leading automotive engineering service providers (ESP) manufacturers, that include AKKA Technologies SE, AVL List GmbH, Bertrandt AG, Capgemini Service SAS, EDAG Engineering Group AG, HCL Technologies Ltd., IAV GmbH Ingenieurgesellschaft Auto und Verkehr, Larsen & Toubro Ltd., Ricardo Plc, and Tech Mahindra Ltd.
Also, the automotive engineering service providers (ESP)market analysis report includes information on upcoming trends and challenges that will influence market growth. This is to help companies strategize and leverage on all forthcoming growth opportunities.
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