The Global Automotive Transmission Engineering Services Outsourcing Market has been steadily growing in recent years, with a projected increase from $12.19 billion in 2023 to $12.7 billion in 2024 at a compound annual growth rate (CAGR) of 4.2%. This growth can be attributed to various factors such as the globalization of the automotive industry, the demand for cost-effective engineering solutions, the complexity of modern transmission systems, and the focus on core competencies by automotive companies. Additionally, there is an increasing demand for fuel-efficient vehicles, which further contributes to the growth of this market.
Looking ahead, the market is expected to continue its growth trajectory, reaching $15.41 billion in 2028 at a CAGR of 4.9%. This growth will be driven by the increasing demand for hybrid and electric vehicles, the rising need for advanced driver assistance systems (ADAS), the growing demand for connected cars and autonomous vehicles, the focus on reducing carbon emissions, and the demand for advanced materials in automotive manufacturing.
Key trends in the forecast period include advancements in transmission technology, the outsourcing of transmission software development, collaboration between automotive manufacturers and engineering service providers, the adoption of digital twin technology in transmission engineering services, and a shift towards virtual testing and simulation in transmission design.
One of the major drivers of market growth is the increasing production of hybrid vehicles. Hybrid vehicles, which have both electric and traditional engines, are becoming increasingly popular due to their environmental benefits. As a result, there is a growing demand for automotive transmission engineering services outsourcing to support the development of these vehicles.
Moreover, product innovations are also playing a significant role in driving market growth. Major players in the market are developing innovative products to cater to the growing demand for advanced technologies. For example, Samsung Electronics recently developed 3GPP Rel.16 compliant chipsets that deliver cutting-edge 5G technologies, increasing power efficiency, performance, and reducing the size of 5G solutions.
Stakeholders in the automotive transmission engineering services outsourcing market can benefit from comprehensive market insights, informed decision-making, competitive advantage, tailored solutions, and a global perspective. Companies such as AVL List GmbH, FEV Group GmbH, IAV GmbH, Ricardo plc, and Tata Consultancy Services Limited are some of the key players in this market, driving innovation and growth.
In conclusion, the automotive transmission engineering services outsourcing market is poised for continued growth in the coming years, driven by technological advancements, increasing demand for hybrid vehicles, and a focus on sustainability. Stakeholders in the industry should stay informed about market trends and developments to capitalize on the opportunities presented by this growing market.
