Engineering Services

The engineering services market, a cornerstone of the Automotive & Transportation sector, drives global vehicle design, R&D, and industrial innovation, delivering CAD/CAE design, prototyping, simulation, consulting, project management, and technical expertise across diverse automotive and transport segments. Valued at USD 198.09 billion in 2024, the market is projected to reach USD 466.37 billion by 2034, expanding at a CAGR of 8.94%. Engineering services market growth encompasses a broad range of services, including vehicle electrification, autonomous vehicle R&D, digital transformation, connected car solutions, and sustainability-driven engineering services.

Engineering Services Market Global leaders such as AECOM, Jacobs Engineering, WSP Global, Arup, and Fluor Corporation compete by leveraging innovative automotive design, AI-driven vehicle engineering, cost optimization, regulatory compliance, and efficient project execution. Key Trends Reshaping the Automotive Engineering Services Industry:

- Digital Engineering & BIM for precision vehicle design and collaborative automotive projects.

- IoT-enabled solutions & AI-driven design for smart mobility, connected vehicles, and autonomous systems.

- Cloud-based project management enhancing efficiency, transparency, and automotive R&D workflows.

- Sustainable engineering practices supporting EVs, hybrid powertrains, and ESG-aligned mobility solutions.

The value chain spans mechanical, electrical, software, and powertrain engineering services, supported by CAD, advanced simulation tools, embedded systems, and technical consulting. Innovation focuses on AI-enhanced automotive design, workflow automation, digital twins, green engineering, and smart mobility systems.

Future opportunities lie in electric and hybrid vehicle R&D, autonomous mobility, connected car platforms, smart city transport projects, and industrial modernization, making the sector a critical enabler of global automotive competitiveness and sustainable growth. End-users span OEMs, Tier-1 suppliers, fleet operators, industrial corporations, and government transport agencies, with pricing dependent on project scale, complexity, technology integration, and sustainability requirements.

Engineering Services Dominating Region
North-America
Global Manufacturing Leader
AECOM
Engineering Services
Jacobs

Explore the key insight

Automotive
Advancement of vehicle technologies is reshaping the global automotive engineering services market, which reached an estimated USD 165 billion in 2024 and is projected to grow at a CAGR of 12% through 2034. Rising adoption of electric vehicle (EV) engineering services, autonomous vehicle development, connected car technologies, and sustainable mobility initiatives is fueling automotive engineering services industry expansion. Asia Pacific remains a pivotal hub, contributing 44% of the market share in 2024, with strong manufacturing ecosystems in China, Japan, and South Korea, while Europe and North America focus on AI-driven automotive design, powertrain optimization, lightweight materials, and advanced CAE/CAD simulation services. Current trends include battery-electric powertrain engineering, IoT-enabled connected car solutions, autonomous mobility design, and AI-assisted vehicle testing, which are transforming vehicle performance, safety, and efficiency.Trade regulations and government policies play a significant role in shaping automotive engineering services market dynamics. U.S. tariff reductions on European automotive imports and China’s EV export licensing rules are streamlining global collaboration while protecting brand integrity. The outsourcing segment is witnessing notable growth, expected to rise from USD 109 billion in 2024 to over USD 287 billion by 2032, driven by services such as vehicle testing and validation, chassis and body engineering, automotive software integration, and CAE/CAD simulation solutions. Moreover, government-led green mobility programs, EV infrastructure initiatives, and sustainability incentives are creating new opportunities for service providers.The competitive landscape is marked by leading firms including AVL, Ricardo, FEV, Altran, and Bosch Engineering, which are investing heavily in R&D, strategic acquisitions, and innovative vehicle design solutions. For example, TVS Motor Company’s acquisition of Engines Engineering demonstrates the trend of strengthening global engineering capabilities through strategic partnerships. Emerging focus areas include autonomous vehicle simulation, AI-driven vehicle design, connected car IoT integration, EV battery management systems, and lightweight materials innovation. The client base comprises automobile OEMs, EV startups, fleet operators, and automotive component suppliers, with pricing models determined by project complexity, service scope, and technology integration.

Industry definition

The Engineering Services industry delivers a comprehensive suite of technical and professional solutions that drive infrastructure, industrial, and technology development worldwide. Core services span civil engineering (roads, bridges, smart cities, and water systems), mechanical engineering (HVAC systems, machinery, and industrial equipment), and electrical engineering (power distribution, automation, and renewable energy integration).

Industrial engineering services streamline workflows, optimize production, and strengthen supply chains, enabling cost-efficiency and higher productivity. Organizations also leverage CAD and simulation tools, feasibility studies, project consulting, and risk assessment to ensure precision and compliance in execution.

To maintain reliability, technical support and maintenance services safeguard long-term system performance, making engineering services indispensable to construction, manufacturing, energy, transportation, and technology sectors. With sustainability, digital transformation, and regulatory alignment at the forefront, engineering services are a strategic enabler of innovation, efficiency, and future-ready infrastructure.

Automotive and Transportation