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The global engineering services outsourcing (ESO) market is expected to record a revenue of US$ 3,803.21 Bn by the end of the year 2027. The market is growing at a compound annual growth rate (CAGR) of 17.7% during the forecast period of 2021 – 2027.
The research report of the global engineering services and outsourcing market provides a comprehensive and detailed study of the market over the forecast period of 2021 to 2027, highlighting the covid–19 impact on the market and its subsequent recovery. The report provides the overall study of the market within 13 chapters, totaling 190 pages, with 40 extensive data tables and 86 figures.
The global engineering services outsourcing market growth is attributed to several growth factors such as Implementation of Industry 4.0 and reduction in overhead cost. Outsourcing services help to reduce labor costs, machines, additional space, skill training, and other technology-related costs. These services prove beneficial for the companies as they can invest the saved overhead cost to finance development projects and make other investments for the growth of their business. Outsourcing of engineering services ensures that both knowledge and risk are substantially distributed among a network of connected companies. Furthermore, the implementation of Global Business Service (GBS) provides integration of governance, locations, and business practices to all shared services and outsourcing activities across the enterprise.
The research report on the global engineering services outsourcing market provides a detailed analysis of the market considering several growth factors and opportunities and includes the market challenges such as loss of managerial control over connected outsourcing companies. The regions tracked and analyzed in the research report include North America, Europe, and the Asia Pacific. As per the study, North America and Europe hold the highest market share by 33% across the globe. As adoption of cloud services and R&D investment in new technology is the major factor for its future growth. Europe's engineering services outsourcing market for software development services is growing owing to the shortage of skilled software developers and increasing demand for digital transformation.
As per the research study, the Asia Pacific engineering services outsourcing market is projected to grow with a faster growth rate of 20%, as the region has emerging local outsourcing demand, a strong manufacturing base, and cost arbitrage in developing countries, such as China and India. These factors cumulatively act as a major growth driver of the Asia-Pacific engineering services outsourcing industry.
Report Summary – Global Engineering Services Outsourcing Market
The report provides a detailed and comprehensive study of the global engineering services outsourcing market to give a 360-degree view of the market, including all the growth factors and opportunities related to the market, covering the impact of the covid – 19 pandemic and other challenges on the global marketplace.
The research report also provides a product price analysis where it compares the pricing between insourcing and outsourcing product development of different variables such as cost of hiring, overall team salary, IT expenses, and other variables.
Further, the research report provides our readers with a comprehensive study of the market share, market concentration rate, competitor mapping & benchmarking including covid – 19 impacts on the market.
COVID – 19 Impact on Global Engineering Services Outsourcing Market
The report highlights the impact of an outbreak of covid – 19 on the market and shows how the market is recovering from the pandemic. The impact of the COVID-19 pandemic and the subsequent lockdowns in various countries across the world on the engineering services and outsourcing market varied depending on the end-use industries and industry verticals. Various industrial facilities, manufacturing plants, and public transport were shut down temporarily as part of the efforts to stop the spread of the disease.
The research report also provides a graphical representation of covid-19 impact. It shows a V-shaped curve highlighting the decline in the market in late 2019. However, the global engineering services outsourcing market is expected to grow with a CAGR of 17.7% during the forecast period.
Global Engineering Services Outsourcing Market Key Players
The global engineering services outsourcing market report provides a detailed and comprehensive study of several company profiling.
The details included in the report for companies are business overview, key official, company financials, strategic outlook, recent developments, and product list. The companies included in the report are Accenture, AKKA Technologies, Altair Engineering, Inc., ALTEN SA, ASAP Holding GmbH, AVL List GmbH, Cognizant, Bertrandt, Capgemini SE, Cyient, EDAG, ESI Group, Ferchau, Genpact, Geometric, HCL Technologies Limited, IAV, IGate, Infosys, International Business Machines Corporation, ITC Infotech, KPIT, L&T Technology Service, Neilsoft, QuEST Global, Ranal Inc., Segula Technologies, Semcon, Tata Consultancy Services, Tata Elxsi, Tata Technologies, Tech Mahindra, Wipro.
The global engineering services market is observed to be monopolistic competition and is projected to shift towards a highly competitive nature in the forecast period.
Global Engineering Services Outsourcing Market - Segmental Overview
The global engineering services outsourcing market is segmented into the following categories:
Based on Type Segment, the market is segmented into:
Based on Location Segment, the market is segmented into:
Based on Pricing Module Segment, the market is segmented into:
Based on Industry Segment, the market is segmented into:
Based on Region, the market is segmented into:
|Market Size Value in 2021||US$ 1430.7 Bn|
|Expected Revenue in 2027||US$ 3,803.21 Bn|
|Unit||Value (USD Bn)|
|Segments covered||By Type, By Location, By Pricing module, By Industry, and By Region|
|Regional Scope||North America; Europe; Asia Pacific; Middle East & Africa; South America|
|Key Companies||Accenture, AKKA Technologies, Altair Engineering Inc., and other prominent players.|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
Engineering outsourcing is the transfer of responsibility for an engineering, organization's architecture, and construction functions to a third party.
The global engineering services and outsourcing market generated a revenue of US$ 1,430.7 Bn in 2021.
The global engineering services and outsourcing market is segmented by type (8 subsegments), by location (3 subsegments), by pricing module (5 subsegments), and by industry (13 subsegments)
Product Designing, Prototyping, Process Designing, System Integration, Testing, Quality Control, Product Lifecycle Management and Plant Automation & Enterprise Asset Management.
North America and Europe holds the highest share in the global engineering services of 33% each across the globe.
Industries like Aerospace, Automotive, Computing Systems, Construction, Consumer Electronics, Energy, Heavy Machinery, Healthcare, Industrial, Medical Devices, Semiconductors, Telecom and Others.
Accenture, AKKA Technologies, Altair Engineering, Inc., ALTEN SA, ASAP Holding GmbH, AVL List GmbH, Cognizant, and many other
Factors like reduction in overhead cost and implementation of Industry 4.0. are some major factors boosting the overall growth of the global engineering service and outsourcing market.
Loss of managerial control over connected outsourcing companies is a key hindering factor impacting the global engineering service and outsourcing market.
HCL Technologies, Altair Engineering Inc., Orthogone, Flatworld Solutions and QuEST Global are some companies leading in the global engineering service and outsourcing industry.
The market is estimated to grow at a CAGR of 17.7% during the forecast period 2021-2027.
The CR4 ratio of the global marketplace is ~28%.