Engineering Services Outsourcing Market to Gain Substantial Growth During the Forecast Period 2022-2028

Posted on 2022-05-11 by researchinsights in Industrial, Telecommunications // 0 Comments

San Francisco, California , USA, May 11, 2022 — /EPR Network/ —

Engineering Services Outsourcing Industry Overview

The global engineering services outsourcing market size was valued at USD 1.06 trillion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 22.9% from 2021 to 2028.

The increasing collaboration between Engineering Service Providers (ESPs) and Original Equipment Manufacturers (OEMs) is expected to emerge as one of the primary factors contributing to the growth in the adoption of engineering services outsourcing (ESO). The globalization of R&D activities, the rising demand for integrating the latest technologies in the product offerings, and the growing need to shorten the product lifecycles and cut costs are also expected to contribute to the growth of the market. The ESO market has been evolving continuously in line with the strong emphasis of the clients on outsourcing various services as part of the efforts to cut costs.

The ESO model has also been evolving accordingly to deliver smart solutions to the clients. As such, the market has witnessed a paradigm shift from core-engineering services to embedded engineering solutions, including automation, analytics, and the internet of things (IoT), among others. Meanwhile, advances in technology have paved the way for products-as-a-service engineered with integrated IT solutions capable of scheduling maintenance and preventing unexpected outages by predicting those in advance. At the same time, the globalization of R&D activities has compelled the key market players to include global systems of delivery in their respective business strategies.

Gather more insights about the market drivers, restrains and growth of the Global Engineering Services Outsourcing Market

The market has been witnessing a paradigm shift in engineering service requirements from mechanical and non-core requirements to core competencies in niche markets. The changing approaches toward product lifecycle development are cementing the position of ESPs in the OEMs’ supply chains. As the ESO delivery continues to evolve, ESPs are creating service delivery models, which integrate much broader engagement portfolios, and an authorization framework, which facilitates innovation and accelerates both bottom-line and top-line growth.

The implementation of Industry 4.0 is encouraging smart manufacturing and driving the demand for the latest industrial solutions based on robotics, AI, and machine learning, thereby opening opportunities for IT integration in the service offerings of ESPs. End-use industries and industry verticals, particularly automotive, and aerospace, among others, which require dedicated hardware manufacturing capabilities, are emerging as potential clients for providers of digital transformation services. As such, the rising demand for automation mechanisms in the open system architecture is expected to open immense opportunities for ESPs. On the contrary, new entrants may find it challenging to establish a foothold in the market owing to a looming lack of project expertise, technology expertise, and business operations.

However, digitization also leads to cybersecurity issues. Incumbents of various end-use industries and industry verticals exchange large volumes of information, including data related to monitoring, load management, and quality assurance, with service providers, OEMs, and consumers. Similarly, service providers, OEMs, and suppliers also often exchange confidential information on technology, performance, and specifications of services or equipment to enhance collaboration on design, development, and support. Hence, manufacturers are undertaking preventive measures, such as assessing the network operations, protecting crucial information with access codes, and retaining the original versions of the design or the source code, as part of the efforts to protect the Intellectual Property (IP).

The impact of the outbreak of the COVID-19 pandemic and the subsequent lockdowns in various countries across the world on the ESO market varied depending on the end-use industries and industry verticals. Industrial facilities, manufacturing plants, and public transport were shut down temporarily as part of the efforts to arrest the spread of the disease. As a result, incumbents of industries and industry verticals, such as automotive and construction, had to confront a downturn in demand. However, sales of personal vehicles are expected to increase in the near future as people prefer avoiding public transport in the wake of the COVID-19 pandemic.

Browse through Grand View Research’s Communication Services Industry Research Reports.

Customer Experience Management Market – The global customer experience management market size was valued at USD 8.79 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 18.1% from 2022 to 2030.
Enterprise Governance, Risk & Compliance Market – The global enterprise governance, risk & compliances market size was valued at USD 40.84 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 14.0% from 2022 to 2030. Governance Risk management regulates how an organization can achieve its targets by formulating preventive measures against the financial menace.

Engineering Services Outsourcing Market Segmentation

Grand View Research has segmented the global engineering services outsourcing market based on services, location, application, and region:

Engineering Services Outsourcing Services Outlook (Revenue, USD Billion, 2016 – 2028)
- Designing
- Prototyping
- System Integration
- Testing
- Others
Engineering Services Outsourcing Location Outlook (Revenue, USD Billion, 2016 – 2028)
- Onshore
- Offshore
Engineering Services Outsourcing Application Outlook (Revenue, USD Billion, 2016 – 2028)
- Aerospace
- Automotive
- Industrial
- Consumer Electronics
- Semiconductors
- Healthcare
- Telecom
- Others
Engineering Services Outsourcing Region Outlook (Revenue, USD Billion, 2016 – 2028)
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa

Market Share Insights

August 2020: PRA Health Sciences’ data solutions division, Symphony Health, expanded its data services worldwide by striking an alliance with Close-Up International, a provider of sales audits and medical prescriptions.
November 2020: Tata Consultancy Services Limited, global IT services, and business solutions provider based in India announced an agreement to acquire 100% of the shares of Postbank Systems AG, one of the prominent IT service providers based in Germany, from Deutsche Bank AG.

Key Companies profiled:

Some prominent players in the engineering services outsourcing market include

Infosys Limited
Tata Consultancy Services Limited
ALTEN Group
Altair Engineering, Inc.
Boston Engineering Corporation
Altran

Order a free sample PDF of the Engineering Services Outsourcing Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

Matched content

Editor’s pick