Pune, July 18, 2024 (GLOBE NEWSWIRE) -- Engineering Services Outsourcing Market Size & Growth Analysis:
“The Engineering Services Outsourcing Market size was valued at US$ 2.3 Trillion in 2023 & is projected to reach US$ 10.73 Trillion by 2032, reflecting a remarkable CAGR of 18.7% over the forecast period, according to a recent study by SNS Insider.”
This boom indicates the increasing reliance on specialized engineering offerings to optimize product development, lessen charges, and stay ahead of the innovation curve.
Growing Demand and Market Dynamics
The engineering process outsourcing market expansion is fuelled by the surge in virtual technology like AI, IoT, and virtual twins has converted engineering methods. In a period of the pandemic accelerating digital adoption throughout industries. Companies at the moment are leveraging digital enablers to optimize engineering strategies, main to faster product improvement, improved agency-huge connectivity, and operational excellence. The growing accessibility of generation and the emergence of 5G networks are in addition accelerating digital engineering abilities. For instance, digitalization in aerospace has led to a 95% reduction in fuselage splice times even as retaining excessive quality. Growing collaboration between ESPs and OEMs, coupled with the globalization of R&D activities, is driving outsourcing growth The Industry 4.0 principles implementation is fostering intelligent manufacturing. This necessitates cutting-edge industrial solutions based on robotics, AI, and ML. This convergence creates opportunities for ESPs to integrate their service offerings with IT solutions, catering to industries like automotive and aerospace. The growing need for automation tools within existing system architectures presents tremendous opportunities for ESPs. Cybersecurity concerns to the forefront, sharing large volumes of data between stakeholders necessitates robust security measures to protect intellectual property.
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Major Players Analysis Listed in this Report are:
- HCL Technologies Limited
- Alten Group
- Capgemini Engineering
- AKKA
- Entelect
- Pactera Technology International Ltd.
- M Group
- Aricent Group
- Infosys Limited
- Tata Elxsi
- Fareva
- Tata Consultancy Services Limited
- Tech Mahindra Limited
- Wipro Limited
- Other Players
Engineering Services Outsourcing Market Report Scope:
| Report Attributes | Details |
| Market Size in 2023 | US$ 2.3 Trillion |
| Market Size by 2032 | US$ 10.73 Trillion |
| CAGR | CAGR of 18.7% From 2024 to 2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2020-2022 |
| Key Regional Coverage | North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia, Rest of Latin America) |
| Key Growth Drivers | • Engineering firms can tap into a global pool of talent with specific skillsets not readily available locally. • Outsourcing allows companies to quickly scale their engineering workforce up or down based on project needs. |
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Recent Developments
- January 2024, Albertsons Media Collective partnered with Capgemini Engineering to leverage AI and robot method automation (RPA) for media planning, operations, and content material advent.
- April 2023, Marks and Spencer PLC extended its partnership with Tata Consultancy Services (TCS) to modernize its middle-generation stack, aiming for quicker innovation, improved resilience, and sustainable increase.
- The Alten Group acquired Accord Global Technology Solutions, an Indian engineering services company in September 2023, to bolster its digital innovation capabilities.
- August 2023, BrainChip and Tata Elxsi joined forces to expand intelligent, ultra-low-electricity solutions for the clinical device and business sectors.
Segmentation Analysis
By Application, the manufacturing industry reigns supreme, holding a 20% revenue share (USD 441 Bn in 2023). Digitalization is rapidly transforming manufacturing processes, with companies adopting cloud infrastructure and Industrial Internet of Things (IIoT) solutions to enhance automation and streamline operations, with rising demand to outsource testing services for faster and reduced manual intervention.
Based on Service, the 'testing' sub-segment led the market with a 36% revenue share in 2023. The increasing demand for high-quality, error-free products drives the need for robust testing services. OEMs are increasingly partnering with ESPs for software testing to ensure user-friendly interfaces and bug-free software.
Major Segments and Sub-Segments Listed in the Engineering Services Outsourcing Market are:
By Service
- Designing
- System Integration
- Prototyping
- Testing
- Others
By Application
- Aerospace
- Automotive
- Manufacturing
- Consumer Electronics
- Semiconductors
- Healthcare
- Telecom
- Energy & Utilities
- Construction & Infrastructure
- Others
By Location
- On-shore
- Off-shore
Regional Analysis
The Asia-Pacific region dominated the market with a 39% revenue share, driven by its established manufacturing sector, readily available skilled engineers, and a strong presence of software outsourcing providers. This region is further fueled by a growing focus on technological innovation and the integration of embedded software, solidifying its lead in the engineering services outsourcing market.
Europe follows closely with a promising CAGR, while South America emerges as a fast-growing market due to its cost-effectiveness compared to traditional offshore destinations. This shift highlights the global nature of engineering services outsourcing, with each region offering unique advantages for companies seeking specialized expertise.
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Key Takeaways
- The engineering services outsourcing market is undergoing a huge transformation due to rapid technological improvements and the growing adoption of digital tools.
- The market provides significant opportunities for ESPs that can leverage their information and adapt to the evolving industry landscape.
- Companies throughout diverse sectors are spotting the benefits of outsourcing engineering services to optimize costs, enhance performance, and accelerate innovation.
- The Asia-Pacific vicinity is predicted to maintain its dominance inside the engineering services outsourcing market, driven via its strong manufacturing base, skilled staff, and attention on technological innovation.
Table of Contents – Major Key Points
1. Introduction
2. Industry Flowchart
3. Research Methodology
4. Market Dynamics
5. Porter’s 5 Forces Model
6. Pest Analysis
7. Engineering Services Outsourcing Market Segmentation, By Service
8. Engineering Services Outsourcing Market Segmentation, By Application
9. Engineering Services Outsourcing Market Segmentation, By Location
10. Regional Analysis
11. Company Profiles
12. Competitive Landscape
13. Use Case and Best Practices
14. Conclusion
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