Automotive ESO Market is Expected to Grow at a Substantial Rate by 2025

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.

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.

Browse Details of Report @ https://www.grandviewresearch.com/industry-analysis/automotive-engineering-services-outsourcing-eso-market

Further key findings from the study suggest:

• 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

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
  • S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • K.
• Asia Pacific
  • China
  • India
  • Japan
• South America
  • Brazil
• Middle East & Africa (MEA)

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