New opportunities for development service providers

Necessary expenditure on new technologies, zero-emission powertrains, or digital and networked services is leading to long-term growth in manufacturers' research and development spending. Established automotive manufacturers and their direct suppliers still represent the strongest pillar of revenue for development service providers, but these customers are showing below-average growth, such that these providers are well advised to actively develop new target groups. The distinctive automotive competencies of development service providers enable them to quickly become competitive with their products, and this applies to new players on the market in particular.

To date, the close interaction between manufacturers, direct suppliers, and development service providers has been an invaluable competitive advantage for Germany as an automotive location thus far. The intensive division of labor has resulted in the development of highly innovative and efficient value creation. Of course, companies remain responsible for the development of innovations and marketable products, yet it is the task of politicians to level out international imbalances in research funding.

The VDA Working Group of Development Service Providers, to which the managing directors of more than 20 renowned development service providers belong, deals with current challenges and issues within the industry. At the same time, the outlook for the industry as well as constantly adapting customer relationships are monitored and discussed.