What you are experiencing is commonly referred to as "Limp-Home Mode" or just Limp Mode. If a fault occurs in the engine/gearbox, sometimes the computer will prevent further damage by limiting the revs and power. The "Engine Service Required" message will show when this occurs. Often, it will self-clear for a while if the problem is intermittent.
There are many possible causes and the only way to diagnose this is to read the DTCs (Diagnostic Trouble Codes) preferably using a Volvo-compatible scanner such as VIDA/DiCE. Then you can fix the problem
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Greg
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