Advancement in Technology Promotes Automotive Engineering Services Outsourcing…Posted by Mrudula Karmarkar on December 28th, 2021 The global automotive engineering services outsourcing market size is expected to reach USD 469.6 billion by 2027 registering a CAGR of 27.8% from 2020 to 2027, according to a new report by Grand View Research, Inc. Growing collaboration activities between Original Equipment Manufacturers (OEMs) and Engineering Service Providers (ESPs) for leveraging state-of-the-art-technologies for performance enhancement, safety assurance, and self-driving adjustments are anticipated to drive the market. Furthermore, the introduction of stringent emission norms for effective utilization of fuels is forecasted to contribute to the demand for automotive ESO. Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor. The market has witnessed a technological shift owing to the increasing demand for electrification, shared mobility, and autonomous driving. Furthermore, growing need for software competence required in various domains due to the introduction of Advanced Driver-Assistance Systems (ADAS), powertrain engineering, in-vehicle infotainment, and connectivity are projected to create more opportunities for the automotive ESO companies. Leading companies have incorporated cloud computing into their product offerings to ensure real-time access to data and develop more autonomous products. To Request Sample Copy of this report, click the link: Cloud computing is particularly helping in enhancing process automation by transferring the process monitoring and control to end-users irrespective of the time and location. Also, the emergence of three fundamental technologies i.e. blockchain, digital reality, Virtual Reality (VR), Augmented Reality (AR), and Internet of things (IoT), and cognitive technologies are observed to reiterate the designing and simulation of core systems in automobiles, thereby fueling the market growth. Automotive Engineering Services Outsourcing Market Report Highlights
On the other hand, companies are majorly affected by the regulations that emphasize on reducing CO2 emission, improving testing procedures, and limiting noise pollution. Companies strive to enhance their product engineering in similar direction as mandated by government regulations. For instance, the United States Environmental Protection Agency (EPA), in collaboration with the National Highway Traffic Safety Administration (NHTSA), has established a standard in two phases, namely, Phase 1-model years 2012 to 2016 and Phase 2-model years 2018 to 2025. While Phase 1 standards aim at reducing the Greenhouse Gas (GHG) emissions and improving the fuel economy, Phase 2 standards focus on the establishment of a combined fleet-wide fuel economy of 40.3-41.0 mpg, by 2021. Increasing emphasis of the automotive industry on manufacturing automobiles with five significant trends, namely, Electrified, Autonomous, Shared, Connected, and Yearly updated (\'EASCY\') is anticipated to provide opportunities to the ESO market players. Engineering support providers are focused on offering solutions supporting these trends so as to provide a competitive edge to their clients. For instance, Altran announced the release of its fronthaul framework that is deployed on Intel Field Programmable Gate Arrays (FPGAs) and will assist network equipment as well as wireless carriers’ manufacturers for aggregating large-scale 5G fronthaul deployment. Grand View Research has segmented the global automotive Engineering Services Outsourcing (ESO) market on the basis of application, service, location, and region: Automotive ESO Application Outlook (Revenue, USD Billion, 2016 - 2027)
Automotive ESO Service Outlook (Revenue, USD Billion, 2016 - 2027)
Automotive ESO Location Outlook (Revenue, USD Billion, 2016 - 2027)
About Grand View Research Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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