Engineering Services Outsourcing Market by Service, Location, Application

Description

List of Tables

[183 Pages Report] The Engineering Services Outsourcing Market size was estimated at USD 1.63 trillion in 2023 and expected to reach USD 1.88 trillion in 2024, at a CAGR 15.52% to reach USD 4.50 trillion by 2030.

Global Engineering Services Outsourcing Market

KEY MARKET STATISTICS
Base Year [2023]	USD 1.63 trillion
Estimated Year [2024]	USD 1.88 trillion
Forecast Year [2030]	USD 4.50 trillion
CAGR (%)	15.52%

Engineering Services Outsourcing Market - IMG1

Engineering services outsourcing (ESO) is a business practice where companies subcontract various engineering functions and tasks to external service providers. These service providers, often in different geographic regions or countries, offer engineering services and expertise to support a company's design, development, and engineering processes. ESO is particularly prevalent in industries where engineering is crucial, such as aerospace, automotive, electronics, and manufacturing. The heightened need for cost-effective and efficient operations, increased demand for product innovation and development, rapid technological advancements, and the evolving global regulatory landscape drive market growth. However, communication gaps and the complexities of managing offshore engagements pose challenging factors impacting market growth. The rise of Industry 4.0, emphasizing automation, machine learning, and data exchange, offers possibilities for ESO providers to establish niche areas of expertise and accelerate digital transformation to outsource more of their engineering needs, thus broadening the market scope for ESO.

Regional Insights

The Americas has a significant landscape in engineering services outsourcing (ESO) owing to increased demand for precision engineering services underpinned by advancements in the aerospace and defense sectors. The increasing focus on automation, the advent of Industry 4.0 trends, the surge in green energy projects, propelling the need for specialized engineering services in this sector, and high R&D spending and government incentives significantly fueled the market demand. In the European Union (EU) countries, the automotive industry plays a pivotal role, driving the need for engineering services outsourcing as the demand for electric vehicles has mainly sparked innovative designs requiring specialized engineering skills, which further enhanced the market landscape in the region. Asia Pacific nations showcase developing landscapes due to the constant need for high-quality engineering services across various sectors, prominently manufacturing and electronics. Countries sustain a continuous demand for engineering services due to technological advancement and significant investments in research.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Engineering Services Outsourcing Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Engineering Services Outsourcing Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Engineering Services Outsourcing Market, highlighting leading vendors and their innovative profiles. These include Accenture plc, AFRY AB, Airbus SE, Akkodis Group AG, Alten Group, Barton Malow Holdings LLC, Bechtel Corporation, Brasfield & Gorrie, LLC, Capgemini Engineering, Detroit Engineered Products, Entelect Software (Pty) Ltd., EPAM Systems, Inc., Globallogic Inc., HCL Technologies Limited, Infosys Limited, International Business Machines Corporation, Kiewit Corporation, KPIT Technologies Limited, New York Engineers, Quest Global Services Pte. Ltd., RLE International Inc., Strabag SE, Tata Consultancy Services Limited, Tech Mahindra Limited, Wipro Limited, and WPG Consulting LLC.

Market Segmentation & Coverage

This research report categorizes the Engineering Services Outsourcing Market to forecast the revenues and analyze trends in each of the following sub-markets:

Service
- Designing
- Prototyping
- System Integration
- Testing
Location
- Off-Shore
- On-Shore
Application
- Aerospace
- Automotive
- Consumer Electronics
- Healthcare
- Industrial
- Semiconductors
- Telecom
Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam
- Europe, Middle East & Africa
  - Denmark
  - Egypt
  - Finland
  - France
  - Germany
  - Israel
  - Italy
  - Netherlands
  - Nigeria
  - Norway
  - Poland
  - Qatar
  - Russia
  - Saudi Arabia
  - South Africa
  - Spain
  - Sweden
  - Switzerland
  - Turkey
  - United Arab Emirates
  - United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Engineering Services Outsourcing Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Engineering Services Outsourcing Market?

3. What are the technology trends and regulatory frameworks in the Engineering Services Outsourcing Market?

4. What is the market share of the leading vendors in the Engineering Services Outsourcing Market?

5. Which modes and strategic moves are suitable for entering the Engineering Services Outsourcing Market?

Product Code: MRR-FC36D0BA9898

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Limitations
1.7. Assumptions
1.8. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

4.1. Introduction
4.2. Engineering Services Outsourcing Market, by Region

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Increasing prevalence of advanced IT solutions
  - 5.1.1.2. Ongoing execution of Industry 4.0 coupled with rising adoption of automated and integrated solutions
  - 5.1.1.3. Heightened need for cost-effective and efficient operations
- 5.1.2. Restraints
  - 5.1.2.1. Limited skilled professionals to manage engineering service outsourcing
- 5.1.3. Opportunities
  - 5.1.3.1. Introduction and development of technologically advanced outsourcing products
  - 5.1.3.2. Penetration of engineering services outsourcing in the healthcare and industrial sector
- 5.1.4. Challenges
  - 5.1.4.1. Data and cybersecurity issues with engineering services outsourcing
5.2. Market Segmentation Analysis
- 5.2.1. Service: Penetration of system integration services to synchronize multiple subsystems
- 5.2.2. Location: High adoption of offshore engineering services outsourcing
- 5.2.3. Application: Poleferating use in telecom applications providing net design and optimization
5.3. Market Trend Analysis
5.4. Cumulative Impact of High Inflation
5.5. Porter's Five Forces Analysis
- 5.5.1. Threat of New Entrants
- 5.5.2. Threat of Substitutes
- 5.5.3. Bargaining Power of Customers
- 5.5.4. Bargaining Power of Suppliers
- 5.5.5. Industry Rivalry
5.6. Value Chain & Critical Path Analysis
5.7. Regulatory Framework

6. Engineering Services Outsourcing Market, by Service

6.1. Introduction
6.2. Designing
6.3. Prototyping
6.4. System Integration
6.5. Testing

7. Engineering Services Outsourcing Market, by Location

7.1. Introduction
7.2. Off-Shore
7.3. On-Shore

8. Engineering Services Outsourcing Market, by Application

8.1. Introduction
8.2. Aerospace
8.3. Automotive
8.4. Consumer Electronics
8.5. Healthcare
8.6. Industrial
8.7. Semiconductors
8.8. Telecom

9. Americas Engineering Services Outsourcing Market

9.1. Introduction
9.2. Argentina
9.3. Brazil
9.4. Canada
9.5. Mexico
9.6. United States

10. Asia-Pacific Engineering Services Outsourcing Market

10.1. Introduction
10.2. Australia
10.3. China
10.4. India
10.5. Indonesia
10.6. Japan
10.7. Malaysia
10.8. Philippines
10.9. Singapore
10.10. South Korea
10.11. Taiwan
10.12. Thailand
10.13. Vietnam

11. Europe, Middle East & Africa Engineering Services Outsourcing Market

11.1. Introduction
11.2. Denmark
11.3. Egypt
11.4. Finland
11.5. France
11.6. Germany
11.7. Israel
11.8. Italy
11.9. Netherlands
11.10. Nigeria
11.11. Norway
11.12. Poland
11.13. Qatar
11.14. Russia
11.15. Saudi Arabia
11.16. South Africa
11.17. Spain
11.18. Sweden
11.19. Switzerland
11.20. Turkey
11.21. United Arab Emirates
11.22. United Kingdom

12. Competitive Landscape

12.1. FPNV Positioning Matrix
12.2. Market Share Analysis, By Key Player
12.3. Competitive Scenario Analysis, By Key Player
- 12.3.1. Merger & Acquisition
  - 12.3.1.1. AFRY Acquires KSH - a Canadian Engineering Company Focused On The Process Industries Sector
- 12.3.2. New Product Launch & Enhancement
  - 12.3.2.1. Introducing DEP MeshWorks 2023: Unleashing the Future of Engineering Simulation
- 12.3.3. Award, Recognition, & Expansion
  - 12.3.3.1. Detroit Engineered Products to Expand R&D in Chennai, India

13. Competitive Portfolio

13.1. Key Company Profiles
- 13.1.1. Accenture plc
- 13.1.2. AFRY AB
- 13.1.3. Airbus SE
- 13.1.4. Akkodis Group AG
- 13.1.5. Alten Group
- 13.1.6. Barton Malow Holdings LLC
- 13.1.7. Bechtel Corporation
- 13.1.8. Brasfield & Gorrie, LLC
- 13.1.9. Capgemini Engineering
- 13.1.10. Detroit Engineered Products
- 13.1.11. Entelect Software (Pty) Ltd.
- 13.1.12. EPAM Systems, Inc.
- 13.1.13. Globallogic Inc.
- 13.1.14. HCL Technologies Limited
- 13.1.15. Infosys Limited
- 13.1.16. International Business Machines Corporation
- 13.1.17. Kiewit Corporation
- 13.1.18. KPIT Technologies Limited
- 13.1.19. New York Engineers
- 13.1.20. Quest Global Services Pte. Ltd.
- 13.1.21. RLE International Inc.
- 13.1.22. Strabag SE
- 13.1.23. Tata Consultancy Services Limited
- 13.1.24. Tech Mahindra Limited
- 13.1.25. Wipro Limited
- 13.1.26. WPG Consulting LLC
13.2. Key Product Portfolio

14. Appendix

14.1. Discussion Guide
14.2. License & Pricing