IMARC Group’s latest report, titled “Aerospace Engineering Services Outsourcing Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” finds that the global aerospace engineering services outsourcing market size reached US$ 61.8 Billion in 2021. Aerospace engineering, also known as aeronautical or astronautical engineering, is a field of engineering that deals with the design, development, testing, and production of aircraft, spacecraft, satellites, missiles, and related systems and equipment. It utilizes computer-aided design (CAD) systems for 3D visualization of completed parts and assemblies and quick drafting and modification of designs. It aids in developing and integrating advanced technologies into aerospace vehicle systems employed for defense, transportation, communications, and exploration applications. In recent years, aerospace engineering services outsourcing (ESO) has gained immense popularity as it assists manufacturers in reducing operating expenses, improving component quality, minimizing errors, and speeding up production time.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Aerospace Engineering Services Outsourcing Market Trends:
The rapid expansion of the military and civil aviation sectors represents the primary factor driving the market growth. Moreover, the growing need for specialized engineering skills and expertise that can be challenging to obtain, retain, and develop internally is positively influencing the demand for aerospace ESO. This is further supported by the rising challenges faced by the aerospace industry, such as an aging workforce, a shortage of skilled resources, and cost pressures. Consequently, there has been widespread adoption of an increasing number and volume of designing- and manufacturing-related services to cut operational costs. Additionally, there has been a significant rise in collaborations between original equipment manufacturers (OEMs) and engineering service providers (ESPs) to leverage cost-effective access to domain-specific technical expertise and higher production capacities. In line with this, the escalating demand for aerospace ESO for after-market services, including maintenance, repair, and overhaul services (MROs), asset tracking and management, and augmented reality (AR)-based or virtual reality (VR)-based training, has propelled the market growth. Furthermore, the implementation of supportive government policies, such as stringent safety regulations and airworthiness norms, has accelerated the adoption of aerospace ESO. Other factors, including the surging demand for aircraft, increasing air travel, shifting focus toward green aviation, and heavy investments in research and development (R&D) activities, are also creating a favorable market outlook. Looking forward, IMARC Group expects the market value to reach US$ 229.15 Billion by 2027, growing at a CAGR of 23.20% during 2022-2027.
- Based on the component, the market has been bifurcated into hardware and software, wherein hardware accounts for the majority of the market share.
- The market has been divided based on the service into design and engineering, manufacturing support, security and certification, and after-market services. Amongst these, manufacturing support represents the largest market segment.
- On the basis of the location, the market has been classified as on- and off-shore. Currently, on-shore exhibits a clear dominance in the market.
- Region-wise, North America (the United States and Canada) holds the leading position in the market. Other major regions include Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and the Middle East and Africa.
- The competitive landscape of the market has also been examined, with some of the key players being Akka Technologies SE (Adecco Group), Altair Engineering Inc., ALTEN Group, Bertrandt AG, Capgemini Engineering (Capgemini SE), Edison Welding Institute, Honeywell International Inc., L&T Technology Services Limited (Larsen & Toubro Limited), and Lisi SA.
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