Press release
United States Automotive Engineering Services Market Outlook 2025 | Key Trends & Opportunities - IAV Automotive Engineering, Tech Mahindra, AKKA Technologies, Harman International and Altran Technologies
Automotive Engineering Services Market
According to DataM Intelligence has published a new research report on "Automotive Engineering Services Market Size 2025". The report explores comprehensive and insightful Information about various key factors like Regional Growth, Segmentation, CAGR, Business Revenue Status of Top Key Players and Drivers. The purpose of this report is to provide a telescopic view of the current market size by value and volume, opportunities, and development status.
United States: Recent Industry Developments
✅ October 2025: Bertrandt AG expanded engineering support for electric vehicle powertrain development.
✅ September 2025: Tech Mahindra launched AI-driven vehicle design services enhancing product lifecycle management.
✅ August 2025: L&T Technology Services Limited partnered with U.S. OEMs to provide embedded software solutions for autonomous vehicles.
Japan: Recent Industry Developments
✅ October 2025: IAV Automotive Engineering collaborated on next-gen hybrid vehicle engineering projects.
✅ September 2025: Capgemini developed smart manufacturing and digital twin services for Japanese automotive suppliers.
✅ August 2025: AKKA Technologies introduced advanced testing and validation services tailored for Japan's automotive sector.
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Recent M&A Activity
Linamar Corporation signed a definitive agreement to acquire select assets of Aludyne's North American operations for $300 million. Aludyne is a Tier 1 supplier specializing in lightweight aluminum chassis and structural technologies, bolstering Linamar's manufacturing footprint in key North American markets.
Autoliv is forming a joint venture with Hangsheng Electric to develop safety electronics for China's automotive market, expected to start operations in 2026, focusing on next-generation automotive safety.
The automotive sector is undergoing structural realignment with OEMs and suppliers divesting non-core businesses and increasing capital focused on electrification and digital transformation, fueling M&A
Top Industry Players:
✅ Bertrandt AG: Holds a strong position in outsourced automotive R&D (~11% global share per one market report), especially in EV integration and prototyping.
✅ IAV Automotive Engineering: A German engineering leader, with revenues of €900 million (2023) and ~7,600+ employees, specializing in powertrain, electronics, and complete vehicle development.
✅ Tech Mahindra: Emerging as a global engineering‐IT player, particularly in software-defined vehicle projects and digital engineering, cited among leading AES providers.
✅ AKKA Technologies: Recognized by MarketsandMarkets as a key player in offering powertrain, chassis, infotainment, and validation engineering services.
✅ Capgemini (Engineering / Altran): Positioned as a market leader in engineering services (PEAK Matrix "Leader"), especially strong in connected vehicles and digital twin engineering.
✅ L&T Technology Services (LTTS): A major Indian ER&D services firm, with a large global delivery footprint and significant focus on automotive engineering.
✅ Alten Cresttek: Listed frequently among top AES providers, serving OEMs with design, integration, and validation across mobility segments.
✅ FEV Group GmbH: Known for its powertrain and EV engineering expertise; part of most major market‐player lists in AES reports.
✅ Harman International: Featured as a key player in engineering services, particularly for in‐car infotainment, connected audio systems, and software-enabled vehicle experiences.
✅ Altran Technologies: Now part of Capgemini Engineering, Altran contributes significantly to the engineering services portfolio, especially in R&D, embedded software, and system integration.
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Latest Industry News
Advances in software-defined vehicles (SDVs), electric vehicle (EV) systems, and autonomous driving technologies are reshaping automotive engineering services. L&T Technology Services used AWS and generative AI to accelerate SDV product launches by 25% while upskilling engineers globally.
Integrations of connected vehicle technologies, vehicle-to-everything (V2X) communications, and cybersecurity services are gaining traction as automakers aim to enhance driver safety and infotainment experiences.
Lightweight materials such as advanced composites and titanium alloys are driving innovation in vehicle design for better fuel efficiency and safety, with collaborations like Suzuki-Tata Elxsi Offshore Development Center focusing on sustainable mobility.
Autonomous vehicle pilot projects, such as Ush and Poppy Mobility's commercial remote-driving service in Belgium, mark milestones in ADAS and autonomous driving engineering.
Key Segments:
By Vehicle Type: (Passenger Cars, Commercial Vehicles)
By Service Type: (Concept/Research, Designing, Prototyping, System Integration, Testing, Others)
By Location: (In-house, Outsource)
By Application: (ADAS and Safety, Body and Chassis Electronics, Infotainment, Telematics and Connectivity, Advanced Driver Assistance Systems, Powertrain and Exhaust, Body Engineering, Others)
Regional Analysis for Market:
✅ North America - 35% share
✅ Europe - 30% share
✅ Asia Pacific - 32% share
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Product Launches and Innovations
1. Magna announced a contract to engineer and manufacture INEOS Automotive's new electric off-road vehicle with production starting in 2026, expanding its multi-OEM manufacturing capabilities.
2. Elektrobit launched the industry's first open-source safety-compliant system solution for ADAS applications in China and introduced automotive ethernet switch firmware for secure, high-performance in-vehicle communications, supporting EVs and autonomous vehicles.
3. Industry players focus on integrating AI-driven safety modules, over-the-air software updates, and real-time data analytics to enhance vehicle performance and maintenance.
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