Automotive Transmission Engineering Services Outsourcing Market Pegged at $16.41 Billion By 2029 Due to Increased Demand for Hybrid and Electric Vehicles
21 Jan, 2025
What Has Been the Growth of Automotive Transmission Engineering Services Outsourcing Market Historically?
The Automotive Transmission Engineering Services Outsourcing Market has been growing steadily in recent years.
• The market size increased from $12.64 billion in 2024 to $13.17 billion in 2025 exhibiting a compound annual growth rate (CAGR) of 4.2%.
This growth can be attributed to the globalization of the automotive industry, increasing demand for cost-effective engineering solutions, the complexity of modern transmission systems, and the growing demand for fuel-efficient vehicles.
What Is The Projected Growth of the Automotive Transmission Engineering Services Outsourcing Market?
The automotive transmission engineering services outsourcing market is poised for robust growth in the coming years.
• The market is expected to swell to $16.41 billion by 2029, growing at a CAGR of 5.7%.
This promising forecast can be credited to the rising demand for hybrid and electric vehicles, heightened demand for advanced driver assistance systems (ADAS), the growing popularity of connected cars and autonomous vehicles, an increased emphasis on carbon emissions reduction, and growing demand for advanced materials in automotive manufacturing.
What are Key Factors Driving the Automotive Transmission Engineering Services Outsourcing Market Growth?
The uptick in the production of hybrid vehicles is a key factor propelling the growth of the automotive transmission engineering services outsourcing market. Hybrid vehicles, which boast dual engines of both electric and traditional types, are now favored over gasoline-powered vehicles. This shift in preference drives the growth of the automotive transmission engineering services outsourcing market globally.
What is the Market Segmentation of the Automotive Transmission Engineering Services Outsourcing Market?
The automotive transmission engineering services outsourcing market has been divided into these segments –
1) By Service Type: Designing, Prototyping, Testing, System Engineering And Integration, Simulation
2) By Powertrain: Conventional, Hybrid
3) By Transmission Type: Automatic, Manual
4) By Application: Commercial Automotive, Industrial Automotive, Passenger Automotive
What are the Trends Shaping the Automotive Transmission Engineering Services Outsourcing Market?
Companies in the automotive transmission engineering services outsourcing market have been engaging in strategic partnerships to provide enhanced propulsion solutions. For instance, in July 2024, Allison Transmission teamed up with BAE Systems Hägglunds to leverage each other's strengths and resources for mutual benefits.
Who are the Key Players in the Automotive Transmission Engineering Services Outsourcing Market?
The major participants driving innovation in the automotive transmission engineering services outsourcing market encompass:
• AVL List GmbH
• FEV Group GmbH
• IAV GmbH
• Ricardo plc
• Intertek Group plc
• Bertrandt AG
• And many more
What is the Regional Landscape of the Automotive Transmission Engineering Services Outsourcing Market?
Asia-Pacific dominated the automotive transmission engineering services outsourcing market in 2024. The report also includes insights into markets in Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.