Market overview
The global automotive engineering services market is worth USD 72.8 bn in 2026 and is forecast to reach USD 143 bn by 2036, growing at a 7.0% CAGR. Germany is the largest country market and Software and electronics engineering is the largest by service segment.
| Scope | Outsourced vehicle design, engineering, testing and software development services bought by automakers and suppliers from engineering service providers. |
|---|---|
| Industry | Automotive |
| Value 2025 | USD 68.0 bn |
| Value 2026 | USD 72.8 bn |
| Value 2036 | USD 143 bn |
| CAGR 2026-2036 | 7.0% |
| Volume 2026 | 1,558 million hours |
| Volume 2036 | 2,281 million hours |
| Average price 2026 | USD 46.7 per hour |
| Report price | Starts from USD 1,999 |
| Published | November 2026 |
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Automotive Engineering Services market size and forecast, 2026-2036
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Year | Market value |
|---|---|
| 2026 | USD 72.8 bn |
| 2027 | USD 77.9 bn |
| 2028 | USD 83.3 bn |
| 2029 | USD 89.1 bn |
| 2030 | USD 95.4 bn |
| 2031 | USD 102 bn |
| 2032 | USD 109 bn |
| 2033 | USD 117 bn |
| 2034 | USD 125 bn |
| 2035 | USD 134 bn |
| 2036 | USD 143 bn |
Automotive Engineering Services market segmentation
By service
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Software and electronics engineering | 34.0% | 42.1% | USD 24.7 bn | 9.3% |
| Powertrain and electrification | 22.0% | 22.7% | USD 16.0 bn | 7.3% |
| Body, chassis and design | 20.0% | 14.8% | USD 14.6 bn | 3.9% |
| Testing and validation | 14.0% | 12.6% | USD 10.2 bn | 5.8% |
| Manufacturing engineering | 10.0% | 7.8% | USD 7.3 bn | 4.3% |
By vehicle type
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Passenger cars | 64.0% | 57.3% | USD 46.6 bn | 5.8% |
| Commercial vehicles | 18.0% | 16.1% | USD 13.1 bn | 5.8% |
| Electric and autonomous vehicles | 18.0% | 26.6% | USD 13.1 bn | 11.3% |
By engagement model
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Project-based outsourcing | 44.0% | 40.0% | USD 32.0 bn | 6.0% |
| Staff augmentation | 28.0% | 26.0% | USD 20.4 bn | 6.2% |
| Long-term development partnership | 28.0% | 34.0% | USD 20.4 bn | 9.1% |
By customer type
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Vehicle OEMs | 58.0% | 52.0% | USD 42.2 bn | 5.8% |
| Tier-1 suppliers | 28.0% | 28.0% | USD 20.4 bn | 7.0% |
| EV startups and mobility firms | 14.0% | 20.0% | USD 10.2 bn | 10.9% |
By delivery location
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Onshore | 56.0% | 48.0% | USD 40.7 bn | 5.4% |
| Nearshore | 20.0% | 22.0% | USD 14.6 bn | 8.0% |
| Offshore | 24.0% | 30.0% | USD 17.5 bn | 9.4% |
Top 25 countries for automotive engineering services by revenue
Countries are ranked by revenue earned from sales in the country, not by where the product is made. The ten largest hold 87.0% of 2026 revenue and the 25 countries below together hold 97.0%.
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| # | Country | Value 2026 | Share 2026 | Value 2036 | CAGR 2026-36 |
|---|---|---|---|---|---|
| 1 | Germany | USD 14.6 bn | 20.0% | USD 24.8 bn | 5.5% |
| 2 | United States | USD 13.1 bn | 18.0% | USD 24.5 bn | 6.5% |
| 3 | China | USD 10.2 bn | 14.0% | USD 26.2 bn | 9.9% |
| 4 | Japan | USD 6.5 bn | 9.0% | USD 10.2 bn | 4.5% |
| 5 | India | USD 4.4 bn | 6.0% | USD 13.5 bn | 11.9% |
| 6 | France | USD 3.6 bn | 5.0% | USD 6.2 bn | 5.4% |
| 7 | South Korea | USD 3.6 bn | 5.0% | USD 7.2 bn | 7.0% |
| 8 | United Kingdom | USD 2.9 bn | 4.0% | USD 5.0 bn | 5.6% |
| 9 | Italy | USD 2.2 bn | 3.0% | USD 3.6 bn | 5.1% |
| 10 | Sweden | USD 2.2 bn | 3.0% | USD 3.9 bn | 5.9% |
| 11 | Canada | USD 786 mn | 1.1% | USD 1.5 bn | 6.8% |
| 12 | Netherlands | USD 618 mn | 0.8% | USD 1.2 bn | 6.6% |
| 13 | Brazil | USD 618 mn | 0.8% | USD 1.3 bn | 7.4% |
| 14 | Spain | USD 604 mn | 0.8% | USD 1.1 bn | 5.9% |
| 15 | Taiwan | USD 589 mn | 0.8% | USD 1.1 bn | 6.7% |
| 16 | Australia | USD 509 mn | 0.7% | USD 916 mn | 6.0% |
| 17 | Norway | USD 502 mn | 0.7% | USD 945 mn | 6.5% |
| 18 | Israel | USD 422 mn | 0.6% | USD 873 mn | 7.5% |
| 19 | Switzerland | USD 415 mn | 0.6% | USD 773 mn | 6.4% |
| 20 | Saudi Arabia | USD 393 mn | 0.5% | USD 859 mn | 8.1% |
| 21 | United Arab Emirates | USD 371 mn | 0.5% | USD 816 mn | 8.2% |
| 22 | Mexico | USD 364 mn | 0.5% | USD 816 mn | 8.4% |
| 23 | Singapore | USD 364 mn | 0.5% | USD 730 mn | 7.2% |
| 24 | Poland | USD 357 mn | 0.5% | USD 816 mn | 8.6% |
| 25 | Austria | USD 342 mn | 0.5% | USD 644 mn | 6.5% |
| Rest of world | USD 2.2 bn | 3.0% | USD 4.0 bn | 6.1% |
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
Competitive landscape
Group 1: Global leaders
- Capgemini Engineering
- AVL
- Akkodis
- Bertrandt
- FEV
- Magna
- Segula Technologies
- Porsche Engineering
- HCLTech
Group 2: Regional and specialist players
- EDAG
- IAV
- Ricardo
- Tata Elxsi
- Alten
- Horiba MIRA
- Tech Mahindra
- Tata Technologies
Group 3: Emerging and niche players
- KPIT Technologies
- Cyient
- L&T Technology Services
- Sasken Technologies
- Quest Global
Research methodology
Every figure on this page comes from the research framework that we apply to all of the markets we cover. The 2025 base for the automotive engineering services market is built from the volume sold and the price that buyers pay, and is cross-checked against the size of the wider industry the market belongs to. Where a market can be sized in more than one way, the routes are compared before a figure is set.
The forecast runs year by year from the 2025 base to 2036. Growth in each year reflects demand from the industries that buy the product, adoption of new technology, pricing, regulation and replacement cycles. Volume and price are modelled together, so revenue in each year equals volume multiplied by average price. The 2026 to 2036 compound annual growth rate of 7.0% is calculated from the resulting values.
The market is divided by service, by vehicle type, by engagement model, by customer type, by delivery location. The 25 largest countries are ranked by revenue earned from sales to buyers in each country, not by where the product is made. Segment values and country values add up to the market total in every year, and every report is checked for consistency before it is published.
Companies are placed in three groups: global leaders, regional and specialist players, and emerging and niche players. The groups describe how companies compete in the market. They are not a ranking and they are not market shares.
Our analysts also carry out primary research. Customized reports add interviews with key opinion leaders, such as senior executives, technical specialists and buyers, to test the assumptions behind the numbers for the question being asked.
Frequently asked questions
How big is the automotive engineering services market?
The global automotive engineering services market is estimated at USD 68.0 bn in 2025 and USD 72.8 bn in 2026.
How fast will the automotive engineering services market grow?
It is forecast to reach USD 143 bn by 2036, a compound annual growth rate of 7.0% from 2026, an increase of USD 70.4 bn.
Which country is the largest market for automotive engineering services?
Germany is the largest market by revenue at USD 14.6 bn in 2026, 20.0% of the global total. The three largest countries together hold 52.0%.
Which country is growing fastest?
Among the ten largest markets, India is growing fastest at 11.9% a year from 2026 to 2036.
Which automotive engineering services segment is largest?
In the by service split, Software and electronics engineering is the largest segment with 34.0% of 2026 revenue.
Who are the leading automotive engineering services companies?
Global leaders include Capgemini Engineering, AVL, Akkodis, Bertrandt.
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