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    US Automotive Engineering Service Provider Market

    ID: MRFR/AM/13608-HCR
    128 Pages
    Priya Nagrale
    October 2025

    US Automotive Engineering Service Provider Market Research Report By Service (Engine, Chassis, Transmission, Car And BIW, Seating Systems, Cooling And HVAC, Interior And Exterior Trims, Others), By Application (Mechanical, Electrical & Electronics, Software, Safety) and By Vehicle Type (Passenger Car, Commercial Vehicle, Two-Wheeler) - Forecast to 2035

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    US Automotive Engineering Service Provider Market Infographic
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    US Automotive Engineering Service Provider Market Summary

    The US Automotive Engineering Service Provider market is projected to grow from 30 USD billion in 2024 to 65 USD billion by 2035.

    Key Market Trends & Highlights

    US Automotive Engineering Service Provider Key Trends and Highlights

    • The market is expected to witness a compound annual growth rate of 7.28 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 65 USD billion, reflecting robust growth opportunities.
    • In 2024, the market is valued at 30 USD billion, indicating a strong foundation for future expansion.
    • Growing adoption of advanced automotive technologies due to increasing consumer demand for safety features is a major market driver.

    Market Size & Forecast

    2024 Market Size 30 (USD Billion)
    2035 Market Size 65 (USD Billion)
    CAGR (2025-2035) 7.28%

    Major Players

    Capgemini, Cognizant, Infosys, Aptiv, Wipro, HCL Technologies, L and T Technology Services, Tata Consultancy Services, Fujitsu, Valmet Automotive, Altair Engineering, Accenture, Roush Industries, Birlasoft, Siemens

    US Automotive Engineering Service Provider Market Trends

    The US Automotive Engineering Service Provider Market is witnessing significant trends shaped by various drivers. One of the primary market drivers is the increasing demand for vehicle electrification, driven by new regulations promoting energy efficiency and reducing carbon emissions. The US government has set ambitious goals to transition to electric vehicles (EVs), leading manufacturers to seek engineering services that can enhance their EV development efforts. This transition provides opportunities for service providers to specialize in battery technology and electric drivetrains, thereby capturing a larger share of the evolving market.

    In addition, advanced technologies such as autonomous driving are emerging in the US automotive sector.

    The push for innovation and safety in self-driving vehicles has led automotive companies to rely more on engineering service providers, unlocking potential for collaboration on software development, simulation, and testing. This trend aligns with the broader market movements towards integrating artificial intelligence and machine learning into vehicle systems, enhancing their capabilities. Moreover, with shifting consumer preferences towards connected vehicles, there is an increased focus on in-car connectivity and infotainment systems. As more consumers in the US seek smart features in vehicles, automotive engineering service providers are also offered opportunities to capitalize on developing solutions that enhance user experience.

    The convergence of these trends suggests a dynamic landscape for the US automotive engineering sector, where companies are more likely to partner with specialized service providers to meet rigorous market demands and ensure compliance with safety regulations.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Market Segment Insights

    US Automotive Engineering Service Provider Market Segment Insights

    US Automotive Engineering Service Provider Market Segment Insights:

    Automotive Engineering Service Provider Market Service Insights  

    Automotive Engineering Service Provider Market Service Insights  

    The US Automotive Engineering Service Provider Market focuses significantly on the Service segment, which encompasses various essential components that facilitate vehicle design, development, and manufacturing. This market is driven by innovation in automotive technologies and rapidly changing consumer preferences, with players emphasizing enhanced safety, fuel efficiency, and sustainability. The Engine segment holds a pivotal position as it involves complex engineering efforts to meet stringent emission regulations and optimize performance. The Chassis segment also plays a crucial role in ensuring vehicle stability and safety, with ongoing advancements aimed at reducing weight and enhancing durability.

    Transmission development is vital as it directly impacts vehicle efficiency, and advancements in this area reflect the industry's shift towards electric and hybrid vehicles. In parallel, the Car and Body in White (BIW) category is fundamental for structural integrity, influencing safety ratings and manufacturability. Seating Systems have gained prominence due to comfort and ergonomic design considerations, which are increasingly important for consumer satisfaction. The Cooling and HVAC systems are also critical, especially with growing concerns about climate control and comfort in vehicles.

    Additionally, Interior and Exterior Trims offer opportunities for aesthetic enhancements as well as functionality, and innovations in materials and designs contribute to consumer appeal. Collectively, these components underline the importance of the Service segment in the overall strategy of automotive engineering service providers, as they adapt to evolving market trends and technological advancements while ensuring compliance with regulatory standards and meeting the changing demands of consumers in the US automotive landscape.

    Each of these areas presents significant growth potential and is intertwined with the broader objectives of the US Automotive Engineering Service Provider Market industry, which seeks to enhance performance, reduce costs, and deliver value to both manufacturers and end-users while navigating challenges such as supply chain disruptions and technological integration.

    Automotive Engineering Service Provider Market Application Insights  

    Automotive Engineering Service Provider Market Application Insights  

    The US Automotive Engineering Service Provider Market is notably categorized by its Applications, which encompass various critical areas including Mechanical, Electrical and Electronics, Software, and Safety. Each of these areas plays a pivotal role in the automotive landscape, as the industry shifts towards increased automation and enhanced efficiency. The Mechanical domain tends to focus on vehicle dynamics and design optimization, driving innovations that improve overall vehicle performance and fuel efficiency. Meanwhile, Electrical and Electronics increasingly dominate, particularly with the rise of electric vehicles and advanced driver-assistance systems that rely heavily on sophisticated circuitry and software integration.

    In the Software realm, the demand for high-quality coding and systems integration is vital for ensuring smooth operations within vehicles, contributing to the growth of connected car technologies. Safety is another essential application, as regulatory bodies in the US continue to impose stringent safety standards, driving engineers to develop cutting-edge solutions that enhance vehicle safety features. Collectively, these applications are projected to significantly influence the future landscape of the US Automotive Engineering Service Provider Market, aligning with broader trends towards sustainability and innovation within the industry.

    Automotive Engineering Service Provider Market Vehicle Type Insights  

    Automotive Engineering Service Provider Market Vehicle Type Insights  

    The US Automotive Engineering Service Provider Market is significantly influenced by the Vehicle Type segment, which encompasses diverse categories such as Passenger Cars, Commercial Vehicles, and Two-Wheelers. Passenger Cars dominate the market due to their prevalence in daily commuting and family transportation, reflecting broader consumer preferences for convenience and comfort. The commercial vehicle segment plays a crucial role, driven by the increasing demand for freight transport and the expansion of e-commerce, which necessitates efficient logistics and supply chain solutions.

    Two-Wheelers, often popular in urban settings, are gaining traction with the increasing focus on sustainable mobility solutions and rising fuel prices, creating a shift towards more economical modes of transport. These segments contribute to shaping the automotive landscape in the US, providing various engineering services tailored to meet evolving regulatory standards and consumer expectations. As a result, the Vehicle Type segmentation represents a dynamic landscape filled with opportunities and challenges, necessitating constant innovation and adaptability from automotive engineering service providers.

    This market segment showcases the interplay of technology, consumer behavior, and regulatory pressures driving the automotive sector’s evolution in the US.

    Get more detailed insights about US Automotive Engineering Service Provider Market Research Report - Forecast to 2035

    Key Players and Competitive Insights

    The competitive landscape of the US Automotive Engineering Service Provider Market is characterized by rapid technological advancements and an increasing demand for innovative automotive solutions. As the industry continues to evolve with the rise of electric vehicles, autonomous driving, and connected car technologies, service providers are becoming critical in enabling automotive manufacturers to keep pace with these changes. The market landscape comprises a mix of established engineering firms, innovative startups, and global consulting companies, all vying for a share of the burgeoning automotive sector.

    This competitive environment requires service providers to differentiate themselves through advanced capabilities, strategic alliances, and specialized service offerings tailored to meet the dynamic needs of automotive clients.

    Capgemini stands out as a significant player within the US Automotive Engineering Service Provider Market, leveraging its extensive experience and innovative approaches to deliver tailored solutions for automotive companies. The firm is known for its strong presence across various engineering disciplines, including software development, systems integration, and vehicle design. Capgemini's strengths lie in its ability to blend engineering expertise with digital transformation capabilities, enabling automotive firms to achieve operational efficiencies while enhancing their product offerings.

    By maintaining a focus on emerging technologies, such as artificial intelligence and the Internet of Things, Capgemini positions itself as a partner to companies seeking to innovate and adapt in a highly competitive market.

    Cognizant has established a notable presence in the US Automotive Engineering Service Provider Market, providing a range of services designed to support automotive companies through their digital transformation journeys. The company offers key products and services including automotive engineering, software development, and data analytics to improve operational efficiencies and enhance customer experiences. Cognizant's strengths in integrating artificial intelligence and cloud services into automotive applications underscore its commitment to driving innovation in the sector. The company has been proactive in forging partnerships and engaging in mergers and acquisitions to bolster its capabilities and market reach within the United States.

    By focusing on delivering cutting-edge solutions and maintaining a robust portfolio that addresses the unique needs of automotive clients, Cognizant reinforces its position as a formidable contender in the US automotive engineering landscape.

    Key Companies in the US Automotive Engineering Service Provider Market market include

    Industry Developments

    Recent developments in the US Automotive Engineering Service Provider Market indicate a vibrant landscape impacted by mergers, acquisitions, and technological advancements. Capgemini and Cognizant are actively expanding their footprint, with both securing contracts that enhance their service capabilities. In July 2023, Aptiv completed the acquisition of an advanced driver-assistance systems company to bolster its offerings in automotive safety, signaling a strategic move to incorporate cutting-edge technologies into their services. Additionally, HCL Technologies partnered with major OEMs to provide tailored engineering solutions, further cementing its place in the market.

    The market valuation of major players like Tata Consultancy Services and Wipro has shown growth, leveraging new technologies such as artificial intelligence and machine learning to optimize vehicle design and manufacturing processes. Furthermore, in November 2022, Altair Engineering reported a key partnership with Roush Industries to enhance simulation and modeling capabilities, further driving innovation in the sector. The continuous investment in Research and Development by these companies is reshaping the automotive landscape in the US, reflecting a dynamic shift towards integrating technology in traditional automotive engineering practices.

    Market Segmentation

    Automotive Engineering Service Provider Market Service Outlook

    • Engine
    • Chassis
    • Transmission
    • Car And BIW
    • Seating Systems
    • Cooling And HVAC
    • Interior And Exterior Trims
    • Others

    Automotive Engineering Service Provider Market Application Outlook

    • Mechanical
    • Electrical & Electronics
    • Software
    • Safety

    Automotive Engineering Service Provider Market Vehicle Type Outlook

    • Passenger Car
    • Commercial Vehicle
    • Two-Wheeler

    Report Scope

    Report Attribute/Metric Details
    Market Size 2023 27.6(USD Billion)
    Market Size 2024 30.0(USD Billion)
    Market Size 2035 65.0(USD Billion)
    Compound Annual Growth Rate (CAGR) 7.282% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2024
    Market Forecast Units USD Billion
    Key Companies Profiled Capgemini, Cognizant, Infosys, Aptiv, Wipro, HCL Technologies, L and T Technology Services, Tata Consultancy Services, Fujitsu, Valmet Automotive, Altair Engineering, Accenture, Roush Industries, Birlasoft, Siemens
    Segments Covered Service, Application, Vehicle Type
    Key Market Opportunities Electric vehicle development services, Autonomous driving technology support, Advanced driver-assistance systems integration, Sustainable engineering solutions, Software and data analytics expertise
    Key Market Dynamics Technological advancements, Increasing automotive electrification, Focus on sustainability, Rising demand for automation, Skilled labor shortages
    Countries Covered US

    FAQs

    What is the projected market size of the US Automotive Engineering Service Provider Market in 2024?

    The US Automotive Engineering Service Provider Market is expected to be valued at 30.0 USD Billion in 2024.

    What is the expected market size of the US Automotive Engineering Service Provider Market by 2035?

    By 2035, the market is projected to reach a value of 65.0 USD Billion.

    What is the expected CAGR for the US Automotive Engineering Service Provider Market from 2025 to 2035?

    The market is anticipated to grow at a CAGR of 7.282% during the period from 2025 to 2035.

    Which segment of the US Automotive Engineering Service Provider Market has the largest valuation in 2024?

    In 2024, the Chassis segment holds the largest valuation at 7.0 USD Billion.

    Which segments of the US Automotive Engineering Service Provider Market are projected to see significant growth from 2024 to 2035?

    The Car and BIW segment is expected to grow to 18.0 USD Billion, while the Engine segment is expected to grow to 13.0 USD Billion by 2035.

    Who are the key players in the US Automotive Engineering Service Provider Market?

    Major players include Capgemini, Cognizant, Infosys, Aptiv, Wipro, and HCL Technologies.

    What is the valuation of the Transmission segment of the US Automotive Engineering Service Provider Market in 2024?

    The Transmission segment is valued at 5.0 USD Billion in 2024.

    What are the growth opportunities for the US Automotive Engineering Service Provider Market?

    Opportunities are driven by increasing demand for innovative automotive technologies and automation solutions.

    What challenges does the US Automotive Engineering Service Provider Market currently face?

    The market faces challenges related to global supply chain disruptions and increasing competition among service providers.

    How does the US Automotive Engineering Service Provider Market compare in size between different segments in 2035?

    By 2035, the Car and BIW segment is expected to be the largest at 18.0 USD Billion, followed by Chassis at 15.0 USD Billion.

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