Automotive engineering outsourcing market projected to reach $132.2 billion by 2032

The global automotive engineering services outsourcing (ESO) market is expected to grow from $59.43 billion in 2023 to $132.2 billion by 2032, according to a report by Astute Analytica. This represents a compound annual growth rate (CAGR) of 9.72% during the forecast period.

Growth is being driven by rapid technological shifts, including the transition to electric vehicles (EVs), advancements in autonomous driving, and the rise of software-defined vehicles (SDVs). Manufacturers are increasingly outsourcing specialized tasks such as battery management systems, powertrain development, and advanced driver-assistance systems (ADAS) to optimize costs and access specialized expertise.

In 2023, the design and engineering segment held over 35% of the market share, while the passenger car segment accounted for more than 50.71% of revenue. Geographically, Europe led the market in 2023 with a share of approximately 38.62%.