What is the global market size of Engineering Services Outsourcing Market?

Global Engineering Services Outsourcing Market was valued at USD 1.30 trillion in 2021, and the market size is estimated to reach USD 6.06 trillion by 2028, at a CAGR of 24.60% over the forecast period (2022-2028). Read More

Who are the key vendors in the Global Engineering Services Outsourcing Market?

As the number of nations offering engineering services outsourcing increases, service providers are creating service delivery models with far wider engagement portfolios and an authorization structure that fosters creativity and quickens top line and bottom-line growth. The leading engineering services outsourcing industry players now include worldwide systems of delivery in their business plans as a result of the global R&D operations. In order to build and increase customer commitment and maintain long-term partnerships, ESPs work to meet the needs of their clients and advance their core capabilities. OEM-supplier partnerships streamline work processes, encourage diversification, and cut total costs by integrating business operations and activities.'AKKA (Belgium)','Alten Group (France)','Capgemini Engineering (France)','Entelect (South Africa)','HCL Technologies Limited (India)','Infosys Limited (India)','Tata Elxsi (India)','Tata Consultancy Services Limited (India)','Tech Mahindra Limited (India)','Wipro Limited (India)' Read More

What is the key driver of Global Engineering Services Outsourcing Market?

Technological advancements Read More

What is the key market trend for Global Engineering Services Outsourcing Market?

One of the main factors propelling the market's expansion is the rise in industrial automation combined with the increasing use of integrated solutions for engineering system analysis and design. The industry is also expanding as a result of the growing use of engineering systems including computer-aided design (CAD), computer-aided engineering (CAE), computer-aided manufacturing (CAM), and electronic design automation (EDA) software. These programmes can be used by the user on smartphones, computers, and tablets and help to increase the overall productivity of the industrial operations. Other growth-promoting aspects include various technical developments and the introduction of digital transformational services. OEMs are integrating robotics, artificial intelligence (AI), and smart manufacturing systems to improve the modelling and detailing of the products, which is also fostering an optimistic outlook for the market. Read More

Which region accounted for the largest share in Global Engineering Services Outsourcing Market?

With a revenue share of over 41% in 2021, the Asia Pacific region is expected to experience significant growth between 2022 and 2028. Industrial items are manufactured in the region, and highly skilled engineering professionals provide cost-effective employment support. Additionally, the region serves as the hub of major software outsourcing service providers. The expansion of the Asia Pacific regional market is projected to be driven by the escalating need for technological advancement and the pervasive integration of embedded software into the existing models. Read More

Engineering Services Outsourcing Market Size, Share, Growth Analysis, By Service(Designing, Prototyping, System Integration, Testing), By Location(On-shore, Off-shore), By Application(Aerospace, Automotive, Manufacturing, Consumer Electronics), By Region - Industry Forecast 2024-2031

Report ID: SQMIG45B2095 | Region: Global | Published Date: September, 2024
Pages: 165 | Tables: 93 | Figures: 76

Engineering Services Outsourcing Market Insights

Global Engineering Services Outsourcing Market size was valued at USD 2.04 Trillion in 2022 and is poised to grow from USD 2.54 Trillion in 2023 to USD 14.74 Trillion by 2031, growing at a CAGR of 24.60% during the forecast period (2024-2031).

The increasing popularity of Engineering Services Outsourcing (ESO) is expected to drive the expanding partnership between Engineering Service Providers (ESP) and Original Equipment Manufacturers (OEM) among other direct reasons. It is projected that the market will rise because of advancements in worldwide R&D, growing need for products to include the most delinquent technologies, growing desire to shorten product lifecycles, and rising cost pressure. Due to the strong desire from clients to outsource various services as part of cost-cutting initiatives, the market for engineering services outsourcing has been expanding steadily.

Additionally, in order to provide consumers with clever solutions, the engineering services outsourcing model has been designed. The sector of engineering services outsourcing (ESO) has evolved from conventional engineering services to embedded engineering solutions which encompass automation, analytics and Internet of Things (IoT) and other aspects. Advancements in technology has also enabled integration of IT solutions in PaaS (platform as a service) plans. The main companies in the engineering services outsourcing sector now incorporate global delivery networks into their business plans as a result of worldwide research and development initiatives. The engineering services sector has seen a significant shift in needs, moving from mechanical and non-core needs to place-based competences.

US Engineering Services Outsourcing Market is poised to grow at a sustainable CAGR for the next forecast year.

Engineering Services Outsourcing Market Report Snapshots

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The competitive landscape of the global engineering services outsourcing market is characterized by a mix of established players and emerging firms. The market is ruled by the leading global corporations like Tata Consultancy Services, Wipro, Accenture, Capgemini which provide an array of engineering solutions to several industries. These service providers take advantage of technology, people, and geographical presence to come up with cutting edge services. The rise in competition comes as a result of a growing emphasis on digital transformation and sustainability which makes companies seek to improve their service offering and operational effectiveness. 'Alten Group (France) ', 'Capgemini Engineering (France) ', 'Entelect (South Africa) ', 'HCL Technologies Limited (India) ', 'Infosys Limited (India) ', 'Tata Elxsi (India) ', 'Tata Consultancy Services Limited (India) ', 'Tech Mahindra Limited (India) ', 'Wipro Limited (India) ', 'Cognizant Technology Solutions Corporation (US) ', 'LTTS (L&T Technology Services) (India) ', 'DXC Technology (US) ', 'KPIT Technologies (India) ', 'Mindtree Limited (India) ', 'NXP Semiconductors (Netherlands) ', 'Hexagon AB (Sweden) ', 'HCL Technologies (India) ', 'Zensar Technologies (India) ', 'Qualcomm Technologies Inc. (US) ', 'Siemens Digital Industries Services (Germany)'

The global engineering services outsourcing market is primarily driven by cost efficiency since every company will always seek ways to do business at the least operational costs possible. For instance, if engineering services are localized, organizations will employ specialized personnel, but the salary paid out to this pool of personnel will also be high. This serves the purpose of preventing unwise expenditure of resources. This monetary benefit allows them to increase their profit margins without losing relevant market rates.

Rise of Digital Transformation: The global engineering services outsourcing market is undergoing a major transition today with more and more companies embarking on Digital Transformation by embracing cutting-edge technologies like AI, IoT, and machine learning. This cements their internal processes, speeds up time-to-market for new products, and allows them to keep pace with the changing technology trends.

The global engineering services outsourcing market is largely dominated by the Asia-Pacific region owing to the presence of a well-developed infrastructure, availability of a greater number of skilled engineers as well as low labor costs. Countries such as India, China and the Philippines have emerged as the foremost engineering services centers due to their good education systems combined with the government’s encouragement of science, technology, and innovation. The region’s escalating investments in digital technologies particularly in AI and automation, therefore, enhances service delivery and efficiency. In addition, the increasing need for customized engineering solutions across industries, and the ability to provide round the clock support, positions Asia Pacific as the most suitable region for overseas engineering services outsourcing.

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Engineering Services Outsourcing Market Size, Share, Growth Analysis, By Service(Designing, Prototyping, System Integration, Testing), By Location(On-shore, Off-shore), By Application(Aerospace, Automotive, Manufacturing, Consumer Electronics), By Region - Industry Forecast 2024-2031

Engineering Services Outsourcing Market Insights

Engineering Services Outsourcing Market Report Snapshots

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What is the global market size of Engineering Services Outsourcing Market?

Who are the key vendors in the Engineering Services Outsourcing Market?

What is the key driver of Engineering Services Outsourcing Market?

What is the key market trend for Engineering Services Outsourcing Market?

Which region accounted for the largest share in Engineering Services Outsourcing Market?

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