Automotive Transmission Engineering Services Outsourcing Market Size, Share, Competitive Landscape and Analysis Report

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The Business Research Company's Automotive Transmission Engineering Services Outsourcing Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, September 23, 2025 /EINPresswire.com/ -- "Get 30% Off All Global Market Reports With Code ONLINE30 – Stay Ahead Of Trade Shifts, Macroeconomic Trends, And Industry Disruptors

How Large Will The Automotive Transmission Engineering Services Outsourcing Market Be By 2025?
There has been a consistent expansion in the automotive transmission engineering services outsourcing market size over the past few years. It's projected to escalate from $12.64 billion in 2024 to $13.21 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 4.5%. The surge during the historic phase could be the result of the automotive industry's globalization, the need for cost-efficient engineering solutions, the intricacy of contemporary transmission systems, automotive firms' emphasis on core competencies, and the escalating demand for fuel-efficient vehicles.

The market size for automotive transmission engineering services outsourcing is anticipated to undergo significant expansion in the following years. It is projected to reach a value of $16.51 billion by 2029, with a compound annual growth rate (CAGR) of 5.7%. This projected growth during the forecast period can be credited to an increased demand for hybrid and electric vehicles, a boost in demand for advanced driver assistance systems (ADAS), a rising interest in connected cars and autonomous vehicles, an intensified focus on carbon emission reduction, and an amplified requirement for cutting-edge materials in automotive manufacturing. Future major trends include the advancement in transmission technology, the outsourcing of transmission software development, cooperation between automotive manufacturers and engineering service providers, the adoption of digital twin technology in transmission engineering services, and a shift towards virtual testing and simulation in transmission design.

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What Are The Major Driving Forces Influencing The Automotive Transmission Engineering Services Outsourcing Market Landscape?
The automotive transmission engineering services outsourcing market is set to expand due to the rising production of hybrid automobiles during the predicted timeframe. Hybrid cars, equipped with two or more engines - an electric motor and a conventional engine (either gasoline or diesel) - offer superior fuel efficiency compared to vehicles powered solely by gasoline. This advantage has boosted the production of automotive vehicles globally, thus spurring the growth of the automotive transmission engineering services outsourcing sector. For example, a report by the US Department of Energy in January 2023 highlighted that the monthly sales of new plug-in electric cars, such as all-electric vehicles and plug-in hybrid electric vehicles, had breached the 7% barrier for the first time in September 2022, reaching 7.4%. Of this percentage, 1.2% were plug-in hybrid electric vehicles. The eco-friendly characteristics of hybrid automobiles have surged their demand and this trend is propelling the automotive transmission engineering services outsourcing market forward.

Who Are The Top Players In The Automotive Transmission Engineering Services Outsourcing Market?
Major players in the Automotive Transmission Engineering Services Outsourcing include:
• AVL List GmbH
• FEV Group GmbH
• IAV GmbH
• Ricardo plc
• Intertek Group plc
• Bertrandt AG
• EDAG Engineering GmbH
• Tata Consultancy Services Limited
• Marelli Europe SpA
• Horiba Ltd.

What Are The Key Trends Shaping The Automotive Transmission Engineering Services Outsourcing Industry?
Key enterprises in the automotive transmission engineering services outsourcing market are turning to strategic partnerships to offer propulsion solutions. A strategic partnership involves companies tapping into each other's strengths and resources to mutual advantage. As an example, Allison Transmission, a company from the US renowned for designing, developing, manufacturing, and distributing transmissions and hybrid propulsion systems, came into a partnership with BAE Systems Hägglunds, a Sweden-based company dedicated to developing, providing, and upgrading vehicle systems, in July 2024. This recent alliance represents the prolongation of a long-held relationship between BAE Systems Hägglunds and Allison. It furnishes Allison with an avenue for further growth in its Defense end market, with multiple programs expected to contribute an added $100 million to its annual revenue.

Market Share And Forecast By Segment In The Global Automotive Transmission Engineering Services Outsourcing Market
The automotive transmission engineering services outsourcingmarket covered in this report is segmented –
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

Subsegments:
1) By Designing: Transmission System Design, Gear Design, Component Design, CAD Modeling And Simulation
2) By Prototyping: Prototype Development, Rapid Prototyping, Functional Prototyping, Prototype Testing
3) By Testing: Performance Testing, Durability Testing, Noise, Vibration, And Harshness (NVH) Testing, Reliability Testing
4) By System Engineering And Integration: Requirements Analysis, System Architecture Development, Integration Of Transmission Systems, Software And Hardware Integration
5) By Simulation: Multi-Body Dynamics Simulation, Finite Element Analysis (FEA), Computational Fluid Dynamics (CFD), Virtual Prototyping And Testing

View the full automotive transmission engineering services outsourcing market report:
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Automotive Transmission Engineering Services Outsourcing Market Regional Insights
In 2024, the Asia-Pacific region held dominance in the automotive transmission engineering services outsourcing market and is expected to sustain its growth. The market report encompasses regions such as Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

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