Automotive Industry Consulting Services Market Size & Share, by Enterprise Size (Large Enterprise, SME); Service; End user - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

  • Report ID: 6625
  • Published Date: Oct 30, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2025-2037

Automotive Industry Consulting Services Market size was valued at USD 33.6 billion in 2024 and is anticipated to surpass USD 61.8 billion by 2037, registering a CAGR of 5.2% during the forecast timeline i.e. 2025-2037. In 2025, the industry size of automotive industry consulting services is estimated at USD 35.4 billion. Rapid developments pertaining to EVs and autonomous driving is increasingly pushing manufacturers towards consulting firms to navigate diverse market dynamics. For instance, in September 2024, Hyundai Motor and GM announced a partnership centered on clean energy technologies and supply chain efficiency. A non-binding MoU was signed to investigate cooperative initiatives to lower costs and hasten the delivery of new technologies to consumers.

Moreover, the increasing interest in digital transformation and connected vehicles underlines the need for specialized consulting services, turning this market into a crucial part of evolution in the auto-industry. For automakers, software-defined vehicles provide substantial advantages over distributed vehicle architecture. Software-defined vehicles are opening up opportunities in foreseeable future, setting the stage for the future of mobility. For instance, in February 2024, according to McKinsey & Company, the automotive software business is expected to grow from USD 31 billion in 2018 to USD 80 billion in 2030, more than doubling in size.


Automotive Industry Consulting Services Market Overview
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Automotive Industry Consulting Services Sector: Growth Drivers and Challenges

Growth Drivers

  • Expansion of automotive sector: The foremost driving force for growth in the automotive industry consulting services market is its expansion. By analysis of emerging trends, penetration into such markets necessitates expert consulting for automotive producers. It helps them adapt to regional regulatory environments, consumer preferences, and competitive landscapes. Moreover, consultancy companies are receiving increasing interest from clients in their services on devising strategies and optimizing their businesses. For instance, in May 2022, Bain & Company expanded its capacity to counsel clients on global supply chain challenges by acquiring procurement powerhouse Proxima.
  • Rising inclination towards innovation and R&D: There seems to be growing interest in automobile manufacturers, which seek support in embedding new technologies into their portfolios. To cope with these advancements within the automobile sector, manufacturers are now investing more in R&D activities to diversify their expertise. For instance, in September 2021, Ford and SK Innovation intended to invest USD 11.4 billion in electric vehicles and cutting-edge lithium-ion batteries with two technologically and environmentally advanced campuses in Tennessee and Kentucky. It will manufacture the next generation of electric F-Series trucks as well as the batteries.

Challenges

  • Skilled workforce shortage: Lack of proper skills to deliver effective solution design resulted in the failure of firms to provide services effectively. All the rapid technological advancements have led to an increase in the demand for specialized skills. For instance, in May 2023, according to 60% of companies polled for the Future of Jobs Report 2023, the biggest obstacle to revolutionizing their business is the inability to find the right skills locally. In addition, when a challenge strikes consulting firms, including McKinsey and Deloitte, skilled professionals are needed to overcome complexities in modern automotive projects. Thus, it reduces their competitiveness and reputation in the automotive industry consulting services market.
  • Coping economic volatility: The global economy's inflation, consumer demand shifts, and geopolitical tensions can lead to business uncertainty, making automotive companies change their consulting needs. When an economy falls into recession, most companies reduce their budgets allocated to external consulting services while using internal cost-cutting measures instead. Owing to the economic pressures, companies experience a short-term drop in demand for consulting services.

Automotive Industry Consulting Services Market: Key Insights

Base Year

2024

Forecast Year

2025-2037

CAGR

5.2%

Base Year Market Size (2024)

USD 33.6 billion

Forecast Year Market Size (2037)

USD 61.8 billion

Regional Scope

  • North America (U.S., and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Automotive Industry Consulting Services Segmentation

Enterprise size (Large enterprise, SME)

Based on enterprise size, large enterprise segment is anticipated to capture over 66.5% automotive industry consulting services market share by 2037. To handle their intricate requirements and wide-ranging operations, large automotive companies need specialized consulting services. In order to improve efficiency, stay competitive, and streamline operations, they are putting more emphasis on complete digital transformation.

 Moreover, incorporating cutting-edge technologies such as artificial intelligence (AI), the Internet of Things (IoT), cloud computing, and data analytics assist in upscaling large enterprises. For instance, in June 2024, IBM AI assistants helped enterprises adopt AI, in order to modernize business operations. By enabling self-service actions, offloading repetitive tasks, changing the way IBM works, and offering guidance on completing end-to-end processes, this integration helped increase productivity.

Service (Operations & strategy, Mergers & acquisitions, Supply chain strategy, ESG Technology, Customer strategy)

The supply chain strategy segment is anticipated to capture a significant share in the automotive industry consulting services market by 2037. Through supply chain optimization, companies can increase resilience, cut costs, and improve efficiency with the assistance of consulting firms. For instance, in August 2024, Capgemini introduced a new approach named the Connected Enterprise approach to provide businesses with the flexibility and data insights to adjust to market changes. It served as the key to achieving resilient, long-lasting, and sustainable business outcomes.

Organizations are focusing on the development and implementation of smart, future-ready supply chain networks. This motivates them to establish connections with partners in order to improve ecosystems, expand growth opportunities, and promote greater cooperation and customer insights. Hence, these interconnected ecosystems give supply chains additional security layers, displacing single-source supplier models and creating more robust, end-to-end resilience throughout the supply chain network.

Our in-depth analysis of the global market includes the following segments:

Enterprise Size

  • Large Enterprise
  • SME

Service

  • Operations & strategy
  • Mergers & acquisitions
  • Supply chain strategy
  • ESG
  • Technology
  • Customer strategy

End user

  • Automotive manufacturers
    • Operations & strategy
    • Mergers & acquisitions
    • Supply chain strategy
    • ESG
    • Technology
    • Customer strategy
  • Suppliers
    • Operations & strategy
    • Mergers & acquisitions
    • Supply chain strategy
    • ESG
    • Technology
    • Customer strategy
  • Automotive retailers
    • Operations & strategy
    • Mergers & acquisitions
    • Supply chain strategy
    • ESG
    • Technology
    • Customer strategy
  • Technology providers
    • Operations & strategy
    • Mergers & acquisitions
    • Supply chain strategy
    • ESG
    • Technology
    • Customer strategy

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Automotive Industry Consulting Services Industry - Regional Synopsis

Asia Pacific Market Statistics

Asia Pacific in automotive industry consulting services market is expected to hold over 42% revenue share by the end of 2037. The trend toward greener automotive solutions is being driven by growing consumer demand for sustainability and regulatory pressures. This includes the advancement of hydrogen fuel cells, electric vehicles, and sustainable manufacturing techniques, which has led automakers to seek professional consultation on coping with these developments. Moreover, the increasing interest in digital transformation and connected vehicles underlines the need for specialized consulting services, turning this market into a crucial part of the evolution of the auto industry.

The automotive industry consulting services market in India has high prospects of growth owing to the increasing demand for electric vehicles, advanced technologies in manufacturing process, and sustainability. For instance, in February 2021, Tata Consultancy Services established a neural automotive and industrial experience center in Troy, Michigan. It aimed to assist clients to evaluate their companies and boosting innovation. An automotive garage equipped with the newest technology which allows clients and partners to test ideas, collaborate on projects, create prototypes, and promptly introduce solutions.

In China, the market is surging as well as transforming at a steady pace, with a strong national push on electric vehicles and smart mobility. Companies in the country are collaborating and leveraging their competence in assisting businesses to flourish. For instance, in June 2024, a BYD united with Karamba Security to utilize cyber security software from Karamba. It helped in detecting supply chain security vulnerabilities to safeguard its networked automobiles.

North America Market Analysis

The growing innovation in autonomous vehicle technology in the automotive industry consulting services market has brought about a number of consultancies on regulatory compliance and innovation strategy. In the foregone years, there has been a surge in interest in making companies more environmentally friendly and carbon-responsive. Consultants in the region assist businesses in their transition into greener ventures. Thus, North America is a fast-moving market in which consultancy services are essential for automobile firms to keep abreast with faster technological changes and changed consumer behavior.

The U.S. automotive industry consulting services market is focused on engaging with traditional manufacturers as well as new entrants to seek strategies related to shifting consumer preferences and regulatory pressures. For instance, General Motors' (GM) multibillion-dollar investment in developing an electric vehicle (EV) battery supply chain relies heavily on its ability to quickly adapt to new technologies that lower the cost, improve sustainability, and increase battery efficiency. It is further projected to expand the battery manufacturing facility in the U.S. to boost the growth of automotive in the country.

In Canada, with renewed commitment by the local government to reduce carbon emissions, there's an ever-expanding demand for consulting services. For example, it was announced that in March 2022, the federal government's strategy to achieve a substantial reduction in emissions outlines the 2030 Emissions Reduction Plan. It provides a roadmap to pave a path towards achieving net zero emissions by 2050 by reducing emissions by 40–45% by 2030. This helps automotive companies get their approach together with new standards of the environment and those of society at large.

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Automotive Industry Consulting Services Market Share
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Companies Dominating the Automotive Industry Consulting Services Landscape

    Using the deep experience and skillsets, the companies in automotive industry consulting services are growing innovative in meeting the needs of market. The competitive landscape of automotive industry with consulting firms encourages synergized ecosystem. For instance, in March 2024, Accenture purchased Flo Group. Its IT specialists and consultants assist customers in putting Oracle-based supply chain systems, such as supply chain management, warehouse management, and transportation management, into place.

    Here’s the list of prominent companies in the market:

    • Accenture
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • BAIN & Company
    • BCG
    • Deloitte
    • EY
    • KPMG
    • L.E.K. Consulting
    • McKinsey & Co.
    • PwC

In the News

  • In May 2024, AlixPartners acquired Berylls. With this acquisition, the automotive practice of AlixPartners had grown significantly. It also aids in utilizing the advantages of Berylls’s strategy in sales and digital consulting experience for automakers and suppliers.
  • In July 2023, HCL Tech announced that it has finalized a deal to purchase a 100% equity stake in the automotive engineering services provider ASAP Group. This acquisition aimed at future-focused automotive technologies of ASAP such as connectivity, e-mobility, and autonomous driving.

Author Credits:  Abhishek Verma


  • Report ID: 6625
  • Published Date: Oct 30, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

In the year 2024, the industry size of automotive industry consulting services market was over USD 33.6 billion.

The market size for the automotive industry consulting services market is projected to reach USD 61.8 billion by the end of 2037 expanding at a CAGR of 5.2% during the forecast period i.e., between 2025-2037.

The major players in the market are BCG, Deloitte, EY, KPMG, L.E.K. Consulting, McKinsey & Co., PwC, and more.

In terms of enterprise size, the large enterprise segment is anticipated to garner the largest market share of 66.5% by 2037 and display lucrative growth opportunities during 2025-2037.

The market in Asia Pacific is projected to account for a prominent share of 42.0% by the end of 2037 and provide more business opportunities in the future.
Automotive Industry Consulting Services Market Report Scope
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