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Global Automotive Engineering Services Outsourcing (ESO) Market Report By Application (Designing, Prototyping, System Integration, And Testing), Location (On-Shore And Off-Shore) And By Regions - Industry Trends, Size, Share, Growth, Estimation And Forecast, 2021-2028
ID:VMR11210480
August 2021
Report Formats: Electronic (PDF), MS EXCEL
Global Automotive Engineering Services Outsourcing (ESO) Market Overview
Automotive manufacturer outsources their engineering operations to focus on core activities and to leverage external technological expertise. The use of external assembly service providers means outsourcing providers is widespread in the automotive industry and is embraced in the build-to-order concept. With a rise in challenges of meeting environmental & emission norms while dealing with rising capital costs, stringent economic factors, increased competition due to globalization and liberalization, and customer relationship management, outsourcing appears to be trending upward. Many activities that once were performed in-house are now outsourced to external suppliers. Demand for automotive engineering services outsourcing is set to rise owing to intense competitive pressures: rising labour costs, shorter product cycles, dropping profitability, and rapid growth in emerging markets, and heightened focus on emission standards, safety, and comfort.
Substantial growth is attributed to growing localized production and noteworthy venture by a significant OEM in Brazil and Argentina, and Middle East countries. Automakers are using outsourcing services to cut fixed costs and to shift component and subassembly production to suppliers. This simplifies final assembly by cutting down on the number of operations involved. Favorable government support for automotive growth and a wave of OEM investment in new manufacturing facilities, simultaneously creating and capitalizing on growing demand. Although OEMs usually do not outsource designing solutions that are key to vehicle performance, such as mechanical design services, electronics, and vehicle engine design. Rising concerns around the disclosure of intricate automobile and intellectual property rights designs add to a significant hindrance.
The global automotive engineering services outsourcing (ESO) market is highly fragmented. The market consists of well-established vendors with strong brand value and expertise in large-scale handling projects. The market is dominated by players such as Bertrandt, Altran, EDAG, Tata Technologies, TCS, Alten, Akka Technologies, Assystem, KPIT, and L&T TS.
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In this research report, the automotive engineering services outsourcing (ESO) market is segmented by location, application, vehicle type, propulsion, and region.
Analysis, By Application
By application, the market is segmented into designing, prototyping, system integration, testing, and others. The prototyping segment dominated the market. The development of numerous prototypes before finalizing designs and processing mass production incurs exorbitant costs. Thus, OEMs outsource prototyping. By outsourcing prototyping, manufacturers experience many advantages such as shorter production times and lower production costs, more accessible product innovation, and more significant supply chain transformation. The designing segment is estimated to register the highest CAGR during the forecasted timeframe. The rising demand for lightweight body materials and automobiles with electric and refined aerodynamics is projected to propel the designing segment's growth. Manufacturers are emphasizing creating automobiles with elongated and spacious interiors to balance the power-to-weight ratios. The automotive manufacturers are robustly investing in designing R & D and collaborating with the engineering services outsourcing companies to assemble intricate automobile features for their end customers. Outsourcing design gives access to a massive pool of talented designers with different artistic accomplishments.
Analysis, By Location
By location, the market is categorized into onshore and offshore. The onshore segment held the majority share in the global automotive engineering services outsourcing (ESO) market. Both offshore and onshore outsourcing have their own set of merits and demerits, onshore outsourcing accomplishes many of the drawbacks of offshoring tasks such as ease of communication, a greater level of control, responsiveness, and reliability, locally appropriate skill sets, costs less, political and financial stability. The offshore segment is anticipated to grow at a substantial rate during the forecast period. Offshore outsourcing is recognized as a viable way to remain competitive in an increasingly aggressive global environment. Offshore outsourcing offers many benefits, including cheaper labor costs and improved output, availability of highly educated offshore business specialists.
Analysis, By Vehicle Type
By vehicle type, the market is segmented into passenger vehicles and commercial vehicles. Among which passenger vehicles dominated the global market. Production of passenger vehicles is spurring due to the growing purchasing power of the middle class, launch of new car models, emerging trend of lightweight vehicle, vehicle electrification, and vehicle expiration and emission norms. Production of commercial vehicles is also projected to swell with the growing logistic and leasing market. All these will eventually contribute to the ever-increasing demand for automotive engineering services outsourcing (ESO).
Analysis, By Propulsion
By Propulsion, the market is fragmented into IC engine, electric vehicles, and hybrid vehicles. In 2020, IC engines dominated the global market, followed by electric and hybrid. An electric segment is projected to emerge as a potential segment to influence sustainability, government initiatives to reduce dependence on fossil fuels, and escalating carbon emission. Revised emission regulation, abundant availability of fossil fuels in some countries, and poor electricity infrastructure is steering the commercial vehicle segment.
Analysis, By Region
The global automotive engineering services outsourcing (ESO) market is analyzed across North America, Asia Pacific, Europe, Latin America, and Middle East & Africa. The Asia Pacific stands out as the largest in the global market and is the fastest-growing automotive engineering services outsourcing market. The rapid growth can be attributed to demand from developing countries such as China and India due to changing emission norms and vehicle electrification. Europe also offers a huge opportunity for market success with a large and growing population representing a vast consumer base and the capability of a diverse automotive maker. Heightened focus on emission standards, safety, and comfort are steering demand across the region. Countries, including Germany, UK, and France, are witnessing a surge in R&D spending.
Market Segmentation covered in the Report:
By Application
By Location
By Vehicle Type
By Propulsion Type
By Region
METHODOLOGY
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.
Automotive manufacturer outsources their engineering operations to focus on core activities and to leverage external technological expertise. The use of external assembly service providers means outsourcing providers is widespread in the automotive industry and is embraced in the build-to-order concept. With a rise in challenges of meeting environmental & emission norms while dealing with rising capital costs, stringent economic factors, increased competition due to globalization and liberalization, and customer relationship management, outsourcing appears to be trending upward. Many activities that once were performed in-house are now outsourced to external suppliers. Demand for automotive engineering services outsourcing is set to rise owing to intense competitive pressures: rising labour costs, shorter product cycles, dropping profitability, and rapid growth in emerging markets, and heightened focus on emission standards, safety, and comfort.
According to Value Market Research, the global Automotive Engineering Services Outsourcing (ESO) market size was valued at about USD XX billion in 2020 and is estimated to grow at a CAGR of around 28% during the forecast period 2021 to 2027.
Substantial growth is attributed to growing localized production and noteworthy venture by a significant OEM in Brazil and Argentina, and Middle East countries. Automakers are using outsourcing services to cut fixed costs and to shift component and subassembly production to suppliers. This simplifies final assembly by cutting down on the number of operations involved. Favorable government support for automotive growth and a wave of OEM investment in new manufacturing facilities, simultaneously creating and capitalizing on growing demand. Although OEMs usually do not outsource designing solutions that are key to vehicle performance, such as mechanical design services, electronics, and vehicle engine design. Rising concerns around the disclosure of intricate automobile and intellectual property rights designs add to a significant hindrance.
The global automotive engineering services outsourcing (ESO) market is highly fragmented. The market consists of well-established vendors with strong brand value and expertise in large-scale handling projects. The market is dominated by players such as Bertrandt, Altran, EDAG, Tata Technologies, TCS, Alten, Akka Technologies, Assystem, KPIT, and L&T TS.
In this research report, the automotive engineering services outsourcing (ESO) market is segmented by location, application, vehicle type, propulsion, and region.
Analysis, By Application
By application, the market is segmented into designing, prototyping, system integration, testing, and others. The prototyping segment dominated the market. The development of numerous prototypes before finalizing designs and processing mass production incurs exorbitant costs. Thus, OEMs outsource prototyping. By outsourcing prototyping, manufacturers experience many advantages such as shorter production times and lower production costs, more accessible product innovation, and more significant supply chain transformation. The designing segment is estimated to register the highest CAGR during the forecasted timeframe. The rising demand for lightweight body materials and automobiles with electric and refined aerodynamics is projected to propel the designing segment's growth. Manufacturers are emphasizing creating automobiles with elongated and spacious interiors to balance the power-to-weight ratios. The automotive manufacturers are robustly investing in designing R & D and collaborating with the engineering services outsourcing companies to assemble intricate automobile features for their end customers. Outsourcing design gives access to a massive pool of talented designers with different artistic accomplishments.
Analysis, By Location
By location, the market is categorized into onshore and offshore. The onshore segment held the majority share in the global automotive engineering services outsourcing (ESO) market. Both offshore and onshore outsourcing have their own set of merits and demerits, onshore outsourcing accomplishes many of the drawbacks of offshoring tasks such as ease of communication, a greater level of control, responsiveness, and reliability, locally appropriate skill sets, costs less, political and financial stability. The offshore segment is anticipated to grow at a substantial rate during the forecast period. Offshore outsourcing is recognized as a viable way to remain competitive in an increasingly aggressive global environment. Offshore outsourcing offers many benefits, including cheaper labor costs and improved output, availability of highly educated offshore business specialists.
Analysis, By Vehicle Type
By vehicle type, the market is segmented into passenger vehicles and commercial vehicles. Among which passenger vehicles dominated the global market. Production of passenger vehicles is spurring due to the growing purchasing power of the middle class, launch of new car models, emerging trend of lightweight vehicle, vehicle electrification, and vehicle expiration and emission norms. Production of commercial vehicles is also projected to swell with the growing logistic and leasing market. All these will eventually contribute to the ever-increasing demand for automotive engineering services outsourcing (ESO).
Analysis, By Propulsion
By Propulsion, the market is fragmented into IC engine, electric vehicles, and hybrid vehicles. In 2020, IC engines dominated the global market, followed by electric and hybrid. An electric segment is projected to emerge as a potential segment to influence sustainability, government initiatives to reduce dependence on fossil fuels, and escalating carbon emission. Revised emission regulation, abundant availability of fossil fuels in some countries, and poor electricity infrastructure is steering the commercial vehicle segment.
Analysis, By Region
The global automotive engineering services outsourcing (ESO) market is analyzed across North America, Asia Pacific, Europe, Latin America, and Middle East & Africa. The Asia Pacific stands out as the largest in the global market and is the fastest-growing automotive engineering services outsourcing market. The rapid growth can be attributed to demand from developing countries such as China and India due to changing emission norms and vehicle electrification. Europe also offers a huge opportunity for market success with a large and growing population representing a vast consumer base and the capability of a diverse automotive maker. Heightened focus on emission standards, safety, and comfort are steering demand across the region. Countries, including Germany, UK, and France, are witnessing a surge in R&D spending.
Market Segmentation covered in the Report:
By Application
- Designing
- Prototyping
- System Integration
- Testing
- Others
By Location
- On-Shore
- Off-Shore
By Vehicle Type
- Passenger Vehicles
- Commercial Vehicles
By Propulsion Type
- IC Engine
- Electric Vehicles
- Hybrid Vehicles
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
METHODOLOGY
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.
1 . PREFACE
1.1. Report Description
1.1.1. Objective
1.1.2. Target Audience
1.1.3. Unique Selling Proposition (USP) & offerings
1.2. Research Scope
1.3. Research Methodology
1.3.1. Market Research Process
1.3.2. Market Research Methodology
2 . EXECUTIVE SUMMARY
2.1. Highlights of Market
2.2. Global Market Snapshot
3 . AUTOMOTIVE ENGINEERING SERVICES OUTSOURCING (ESO) – INDUSTRY ANALYSIS
3.1. Introduction - Market Dynamics
3.2. Market Drivers
3.3. Market Restraints
3.4. Opportunities
3.5. Industry Trends
3.6. Porter’s Five Force Analysis
3.7. Market Attractiveness Analysis
3.7.1 By Application
3.7.2 By Location
3.7.3 By Vehicle Type
3.7.4 By Propulsion Type
3.7.5 By Region
4 . VALUE CHAIN ANALYSIS
4.1. Value Chain Analysis
4.2. Raw Material Analysis
4.2.1. List of Raw Materials
4.2.2. Raw Material Manufactures List
4.2.3. Price Trend of Key Raw Materials
4.3. List of Potential Buyers
4.4. Marketing Channel
4.4.1. Direct Marketing
4.4.2. Indirect Marketing
4.4.3. Marketing Channel Development Trend
5 . IMPACT ANALYSIS OF COVID-19 OUTBREAK
5.1. Impact Analysis of Covid-19 Outbreak
5.1.1. Direct Impact on Production
5.1.2. Supply Chain and Market Disruption
5.1.3. Financial Impact on Firms and Financial Markets
5.2. COVID-19 Impact Analysis by Production, Import, Export and Demand
5.3. Market: Pre V/S Post COVID-19
5.4. Estimated Impact of the Coronavirus (COVID-19) Epidemic
5.5. COVID-19: Micro and Macro Factor Analysis
6 . GLOBAL AUTOMOTIVE ENGINEERING SERVICES OUTSOURCING (ESO) MARKET ANALYSIS BY APPLICATION
6.1 Overview by Application
6.2 Historical and Forecast Data
6.3 Analysis by Application
6.4 Designing Market by Regions
6.5 Prototyping Market by Regions
6.6 System Integration Market by Regions
6.7 Testing Market by Regions
6.8 Others Market by Regions
7 . GLOBAL AUTOMOTIVE ENGINEERING SERVICES OUTSOURCING (ESO) MARKET ANALYSIS BY LOCATION
7.1 Overview by Location
7.2 Historical and Forecast Data
7.3 Analysis by Location
7.4 On-Shore Market by Regions
7.5 Off-Shore Market by Regions
8 . GLOBAL AUTOMOTIVE ENGINEERING SERVICES OUTSOURCING (ESO) MARKET ANALYSIS BY VEHICLE TYPE
8.1 Overview by Vehicle Type
8.2 Historical and Forecast Data
8.3 Analysis by Vehicle Type
8.4 Passenger Vehicles Market by Regions
8.5 Commercial Vehicles Market by Regions
9 . GLOBAL AUTOMOTIVE ENGINEERING SERVICES OUTSOURCING (ESO) MARKET ANALYSIS BY PROPULSION TYPE
9.1 Overview by Propulsion Type
9.2 Historical and Forecast Data
9.3 Analysis by Propulsion Type
9.4 IC Engine Market by Regions
9.5 Electric Vehicles Market by Regions
9.6 Hybrid Vehicles Market by Regions
10 . GLOBAL AUTOMOTIVE ENGINEERING SERVICES OUTSOURCING (ESO) MARKET ANALYSIS BY GEOGRAPHY
10.1. Regional Outlook
10.2. Introduction
10.3. North America
10.3.1. Overview, Historic and Forecast Data
10.3.2. North America By Segment
10.3.3. North America By Country
10.3.4. United State
10.3.5. Canada
10.3.6. Mexico
10.4. Europe
10.4.1. Overview, Historic and Forecast Data
10.4.2. Europe by Segment
10.4.3. Europe by Country
10.4.4. United Kingdom
10.4.5. France
10.4.6. Germany
10.4.7. Italy
10.4.8. Russia
10.4.9. Rest Of Europe
10.5. Asia Pacific
10.5.1. Overview, Historic and Forecast Data
10.5.2. Asia Pacific by Segment
10.5.3. Asia Pacific by Country
10.5.4. China
10.5.5. India
10.5.6. Japan
10.5.7. South Korea
10.5.8. Australia
10.5.9. Rest Of Asia Pacific
10.6. Latin America
10.6.1. Overview, Historic and Forecast Data
10.6.2. Latin America by Segment
10.6.3. Latin America by Country
10.6.4. Brazil
10.6.5. Argentina
10.6.6. Peru
10.6.7. Chile
10.6.8. Rest of Latin America
10.7. Middle East & Africa
10.7.1. Overview, Historic and Forecast Data
10.7.2. Middle East & Africa by Segment
10.7.3. Middle East & Africa by Country
10.7.4. Saudi Arabia
10.7.5. UAE
10.7.6. Israel
10.7.7. South Africa
10.7.8. Rest Of Middle East And Africa
11 . COMPETITIVE LANDSCAPE OF THE AUTOMOTIVE ENGINEERING SERVICES OUTSOURCING (ESO) COMPANIES
11.1. Automotive Engineering Services Outsourcing (Eso) Market Competition
11.2. Partnership/Collaboration/Agreement
11.3. Merger And Acquisitions
11.4. New Product Launch
11.5. Other Developments
12 . COMPANY PROFILES OF AUTOMOTIVE ENGINEERING SERVICES OUTSOURCING (ESO) INDUSTRY
12.1. Company Share Analysis
12.2. Market Concentration Rate
12.3. Bertrandt
12.3.1. Company Overview
12.3.2. Financials
12.3.3. Products
12.3.4. Recent Developments
12.4. Altran
12.4.1. Company Overview
12.4.2. Financials
12.4.3. Products
12.4.4. Recent Developments
12.5. EDAG
12.5.1. Company Overview
12.5.2. Financials
12.5.3. Products
12.5.4. Recent Developments
12.6. Tata Technologies
12.6.1. Company Overview
12.6.2. Financials
12.6.3. Products
12.6.4. Recent Developments
12.7. TCS
12.7.1. Company Overview
12.7.2. Financials
12.7.3. Products
12.7.4. Recent Developments
12.8. Alten
12.8.1. Company Overview
12.8.2. Financials
12.8.3. Products
12.8.4. Recent Developments
12.9. Akka Technologies
12.9.1. Company Overview
12.9.2. Financials
12.9.3. Products
12.9.4. Recent Developments
12.10. Assystem
12.10.1. Company Overview
12.10.2. Financials
12.10.3. Products
12.10.4. Recent Developments
12.11. KPIT
12.11.1. Company Overview
12.11.2. Financials
12.11.3. Products
12.11.4. Recent Developments
12.12. L&T TS
12.12.1. Company Overview
12.12.2. Financials
12.12.3. Products
12.12.4. Recent Developments
*Note - in company profiling, financial details and recent development are subject to availability or might not be covered in case of private companies
LIST OF TABLES
- Market Snapshot
- Drivers : Impact Analysis
- Restraints : Impact Analysis
- List of Raw Material
- List of Raw Material Manufactures
- List of Potential Buyers
- COVID-19 Impact Analysis by Production, Import, Export and Demand
- Pre V/S Post COVID-19
- Estimated Impact Of The Coronavirus (Covid-19) Epidemic
- COVID-19: Micro and Macro Factor Analysis
- Analysis by Application (USD MN)
- Designing Market by Geography (USD MN)
- Prototyping Market by Geography (USD MN)
- System Integration Market by Geography (USD MN)
- Testing Market by Geography (USD MN)
- Others Market by Geography (USD MN)
- Analysis Market by Location (USD MN)
- On-Shore Market by Geography (USD MN)
- Off-Shore Market by Geography (USD MN)
- Analysis by Vehicle Type (USD MN)
- Passenger Vehicles Market by Geography (USD MN)
- Commercial Vehicles Market by Geography (USD MN)
- Analysis by Propulsion Type (USD MN)
- IC Engine Market by Geography (USD MN)
- Electric Vehicles Market by Geography (USD MN)
- Hybrid Vehicles Market by Geography (USD MN)
- Global Automotive Engineering Services Outsourcing (Eso) Market by Geography (USD MN)
- North America Market Analysis (USD MN)
- United State Market Analysis (USD MN)
- Canada Market Analysis (USD MN)
- Mexico Market Analysis (USD MN)
- Europe Market Analysis (USD MN)
- Europe Market Estimate by Country (USD MN)
- United Kingdom Market Analysis (USD MN)
- France Market Analysis (USD MN)
- Germany Market Analysis (USD MN)
- Italy Market Analysis (USD MN)
- Russia Market Analysis (USD MN)
- Spain Market Analysis (USD MN)
- Rest of Europe Market Analysis (USD MN)
- Asia Pacific Market Analysis (USD MN)
- China Market Analysis (USD MN)
- Japan Market Analysis (USD MN)
- India Market Analysis (USD MN)
- South Korea Market Analysis (USD MN)
- Australia Market Analysis (USD MN)
- Rest of Asia Pacific Market Analysis (USD MN)
- Latin America Market Analysis (USD MN)
- Brazil Market Analysis (USD MN)
- Argentina Market Analysis (USD MN)
- Peru Market Analysis (USD MN)
- Chile Market Analysis (USD MN)
- Rest of Latin America Market Analysis (USD MN)
- Middle East & Africa Market Analysis (USD MN)
- Saudi Arabia Market Analysis (USD MN)
- UAE Market Analysis (USD MN)
- Israel Market Analysis (USD MN)
- South Africa Market Analysis (USD MN)
- Rest of Middle East and Africa Market Analysis (USD MN)
- Partnership/Collaboration/Agreement
- Mergers And Acquisiton
LIST OF FIGURES
- Research Scope of Automotive Engineering Services Outsourcing (Eso) Report
- Market Research Process
- Market Research Methodology
- Global Automotive Engineering Services Outsourcing (Eso) Market Size, by Region (USD MN)
- Porters Five Forces Analysis
- Market Attractiveness Analysis by Application
- Market Attractiveness Analysis by Location
- Market Attractiveness Analysis by Vehicle Type
- Market Attractiveness Analysis by Propulsion Type
- Market Attractiveness Analysis by Region
- Value Chain Analysis
- Global Market Analysis by Application (USD MN)
- Designing Market by Geography (USD MN)
- Prototyping Market by Geography (USD MN)
- System Integration Market by Geography (USD MN)
- Testing Market by Geography (USD MN)
- Others Market by Geography (USD MN)
- Global Market Analysis by Location (USD MN)
- On-Shore Market by Geography (USD MN)
- Off-Shore Market by Geography (USD MN)
- Global Market Analysis by Vehicle Type (USD MN)
- Passenger Vehicles Market by Geography (USD MN)
- Commercial Vehicles Market by Geography (USD MN)
- Global Market Analysis by Propulsion Type (USD MN)
- IC Engine Market by Geography (USD MN)
- Electric Vehicles Market by Geography (USD MN)
- Hybrid Vehicles Market by Geography (USD MN)
- Global Market by Revenue
- North America Market by Revenue
- Europe Market by Revenue
- Asia Pacific Market by Revenue
- Latin America Market by Revenue
- Middle East & Africa Market by Revenue
- Recent Development in Industry
- Company Market Share Analysis
* Kindly note that the above listed are the basic tables and figures of the report and are not limited to the TOC.
Related Categories
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Objectives of Study
- Define and measure the global market
- Volume or revenue forecast of the global market and its various sub-segments with respect to main geographies
- Analyze and identify major market trends along with the factors driving or inhibiting the market growth
- Study the company profiles of the major market players with their market share
- Analyze competitive developments