Automotive ESO Market Worth $293.74 Billion by 2025 | CAGR 28.4%: Grand View Research, Inc.

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06 Jun, 2019, 10:05 GMT

SAN FRANCISCO, June 6, 2019 /PRNewswire/ -- The global automotive engineering services outsourcing (ESO) market size is expected to reach USD 293.74 billion by 2025, according to a new report by Grand View Research, Inc. The market is estimated to expand at a CAGR of 28.4% over the forecast period. Original Equipment Manufacturers (OEMs) outsource core engineering, as well as allied, tasks to obtain highly-skilled and specialized services at a much cheaper cost. Earlier, automobile innovation was limited to R&D centers of OEMs.

Key suggestions from the report:

The prototyping application segment is projected to grow at a CAGR of 27.3% over the forecast period
By 2025, the on-shore segment is anticipated to account for around 50.0% of the total revenue generated by the automotive ESO market
The Asia Pacific region led the market in 2017 and is projected to account for the largest revenue share over the forecast period
Key companies in the market include AVL, AKKA, ATIPL Altran Technologies Ltd., ARRK Product Development Group Ltd., ASAP Holding GmbH, Bertrandt AG, EDAG Engineering GmbH, Horiba Ltd., ITK Engineering GmbH, M Plan GmbH, and RLE International Group
These companies are working toward providing a more comprehensive solution that caters to different requirements of their clients. For instance, recently, FEV Group developed a suite of services, making it a "one-stop shop" for the development, design, testing, and deployment of cybersecurity solutions and other connected vehicle technologies

Read 145 page research report with TOC on "Automotive Engineering Services Outsourcing (ESO) Market Analysis Report By Application (Designing, Prototyping), By Location (On-shore, Off-shore), By Region, And Segment Forecasts, 2018 - 2025" at: https://www.grandviewresearch.com/industry-analysis/automotive-engineering-services-outsourcing-eso-market

However, the demand for automotive ESO services is rising significantly with growing technical capabilities of Engineering Service Providers (ESPs) to offer product innovation and automotive R&D in vehicle positioning, guidance systems, connected cars, and autonomous driving. The Asia Pacific region accounted for the largest market share in 2017 and is anticipated to continue this trend over the forecast period.

Owing to the availability of cost-effective labor in countries, such as Philippines, India, and China, major automobile OEMs are outsourcing manufacturing and allied activities to these destinations. Japan is one of the most prominent car manufacturers worldwide due to the presence of major auto manufacturers, such as Honda Motor Co., Ltd., Nissan Motor Corp., and Toyota Motor Corp. This has triggered the demand for automotive engineering services in the country, which is supporting the APAC regional growth.

Grand View Research has segmented the global automotive engineering services outsourcing market on the basis of application, location, and region:

Automotive ESO Application Outlook (Revenue, USD Billion, 2014 - 2025)

Designing
Prototyping
System Integration
Testing

Automotive ESO Location Outlook (Revenue, USD Billion, 2014 - 2025)

On-shore
Off-shore

Automotive ESO Regional Outlook (Revenue, USD Billion, 2014 - 2025)

North America

U.S.
Canada
Mexico

Europe

Germany
France
U.K.

Asia Pacific

China
India
Japan

South America

Brazil

Middle East & Africa (MEA)

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About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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