The global Engineering Services Outsourcing market size is expected to be worth around US$ 2.49 trillion by 2028, according to a new report by Vision Research Reports.
The global Engineering Services Outsourcing market size was valued at US$ 316.79 billion in 2020 and is anticipated to grow at a CAGR of 29.3% during forecast period 2021 to 2028.
Growth Factors
Multiple attributes of the outsourced service offerings including low costs, application of information technology in varied industries, and globalization of R&D and engineering are anticipated to fuel the growth.
Over the last decade, the engineering services outsourcing (ESO) industry has evolved abruptly, wherein the engineering service providers (ESPs) traditionally provided solutions required by the original equipment manufacturers (OEMs) at each of product lifecycle ranging from conceptualization to aftermarket support services. With the advent of technology advancements, ESPs are now leveraging analytics, automation and IT related services-largely been used in product design and development-in their portfolios to cater the expectations of their customers. Furthermore, the proliferation of wireless communications, distributed computing, big-data capabilities, and sensor technologies are rapidly transforming the technology landscape.
Report Highlights
The engineering services outsourcing market is segregated by services into designing, prototyping, system integration, testing, and others. The testing segment accounted for the highest revenue share in 2019 and is expected to continue dominating the market throughout the forecast period. The OEMs outsource software testing components from ESPs with highly skilled IT professionals to install bug-free and efficient software in their systems. Furthermore, the growing demand for procuring software solutions to reduce turnaround time and manual intervention significantly contribute to the revenue share of the testing segment.
The designing segment is expected to witness a significant CAGR of 31.5% over the next seven years. The growing popularity of visual design, graphic design, architectural design, and industrial design has led to the deployment of design tools, including CAD, CAE, and CAM tools. Furthermore, the growing demand for consumer-driven products is anticipated to contribute to the growth of designing services over the forecast period.
The onshore segment accounted for a considerable revenue share in 2019 and is expected to continue dominating over the forecast period. Onshore services refer to the offerings to the OEMs from the ESO vendor operating in its home country. OEMs prefer outsourcing onshore services owing to the lower costs incurred as well as various concerns regarding the information security and privacy of their data involved in the procurement. The onshore ESO activities are gaining prominence as similar time zones and communal customs aid in a better understanding between the OEM and service providers, yielding a better quality of product or service.
Offshore engineering services refer to the procurement of offerings from ESPs based in international locations. The offshore segment is forecasted to witness a significant CAGR of over 26% from 2020 to 2027, attributed to the availability of relatively highly skilled and less expensive workforce in countries, such as Romania, Russia, Philippines, India, Malaysia, and Brazil, which make them the most sought-after outsourcing destinations.
The construction segment is anticipated to grow at a significant pace over the forecast period. The proliferation of digital transformation technologies for the growth initiatives of smart city projects worldwide are expected to contribute to the growth of construction engineering services. Furthermore, the upsurge of intelligent buildings powered by AI that are able to self-optimize operations and building management systems are anticipated to drive the segment growth.
The aerospace segment has been witnessing a moderate growth trajectory across major developing countries owing to the increasing number of operational aircraft due with newer, technologically advanced, and fuel-efficient parts is likely to upsurge in the coming decade. The developing ecological concerns, which are resulting in new environmental norms and safety protocols, are upholding the OEMs to modify or completely change the aircraft components or aerostructure.
Asia Pacific held a dominant position in 2019 and is expected to retain the same over the forecast period. Countries, such as China and India, have emerged as low-cost locations offering technologically upgraded services with the help of highly skilled professionals. As these countries are major hubs of prominent manufacturing, automotive, and construction OEMs, the region is expected to continue dominating the ESO market throughout the forecast period.
Latin America is poised to register a significant CAGR of over 30% during the next seven years. Infrastructure development emerged as a key driving factor for engineering services outsourced in the region. With the immense potential in the lucrative industries, the key global companies are expanding their operations in Latin America. The ability of the regional ESO players to offer skill-intense and more knowledge-driven service offerings within the country is anticipated to drive the regional market growth.
Key Players
Altran Technologies S.A., Alten GmbH, Infosys Ltd., HCL Technologies Limited, Tata Consultancy Services Limited, Tech Mahindra Limited, Infosys Limited, and Wipro Limited.
Market Segmentation
Services Outlook
Designing
Prototyping
System Integration
Testing
Others
Location Outlook
Onshore
Offshore
Application Outlook
Aerospace
Automotive
Construction
Consumer Electronics
Semiconductors
Pharmaceuticals
Telecom
Others
Regional Outlook
North America
The U.S.
Canada
Mexico
Europe
Germany
The U.K.
France
Asia Pacific
China
India
Japan
Latin America
Brazil
Middle East & Africa
The Engineering Services Outsourcing market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Engineering Services Outsourcing market for the base year 2020 and the forecast between 2021 and 2028. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Engineering Services Outsourcing market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Engineering Services Outsourcing market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Engineering Services Outsourcing market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Engineering Services Outsourcing capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Engineering Services Outsourcing by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Engineering Services Outsourcing market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2028. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Engineering Services Outsourcing market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Engineering Services Outsourcing market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Engineering Services Outsourcing industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
The Engineering Services Outsourcing market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Engineering Services Outsourcing market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Engineering Services Outsourcing market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Engineering Services Outsourcing market. These factors have benefited the growth of the global market for Engineering Services Outsourcing. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Engineering Services Outsourcing. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Engineering Services Outsourcing are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
Research Methodology:
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
Primary Sources
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are:
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers