According to the latest report by IMARC Group, titled "Engineering Services Outsourcing Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027," the global engineering services outsourcing market size reached US$ 1,030 Billion in 2021. Engineering services refer to multiple processes, including conceptualization, product design and development, that are essential for each stage of a product lifecycle. These services widely leverage information technology (IT)-based tools and databases to assist in various processes. Numerous players are now preferring to outsource these services on account of the various advantages offered by them. Engineering services outsourcing (ESO) involves a third-party source that offers technical, mechanical and software application support for crucial functions, including designing, prototyping, testing, product innovation and system integration. They are widely deployed by organizations for improving the efficiency of the firm, minimizing operation costs and enhancing various processes. They are also utilized to reduce the time taken to complete a particular task while enabling the employees to focus on more important commitments at hand that will ultimately ensure their business expansion.
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 Engineering Services Outsourcing Market Trends:
The market is primarily driven by the increasing automation across numerous industry verticals, along with the rising adoption of integrated solutions for designing engineering systems. This has led to the escalating deployment of numerous engineering software, including computer-aided design (CAD), computer-aided engineering (CAE) and computer-aided manufacturing (CAM), on the global level. This, along with the rising need to reduce overall operational cost expenditure across numerous organizations, is providing a thrust to the market growth. Moreover, since the deployment of outsourcing services assists in executing a particular project within a reduced time frame while ensuring high profit margins, they are extensively gaining prominence across the globe. The market is further driven by the considerable rise in the adoption of cloud computing and the internet of things (IoT) across several workplaces. Furthermore, numerous third-party engineering service providers are now integrating robotics, smart manufacturing systems and artificial intelligence (AI)-based solutions for enhanced modeling and detailing of the products. They are continually upgrading their digital capabilities in an effort to cater to the ever-evolving consumer demands, which is creating a positive outlook for the market. Some of the other factors contributing to the market growth include the advancements in 3D printing solutions and growing applications across the automotive and marine sectors. On account of the aforementioned factors, the market is anticipated to grow at a CAGR of 18.8% during 2022-2027.
- On the basis of the service, the market has been divided into designing, prototyping, system integration, testing, and others.
- Based on the location, the market has been bifurcated into onshore and offshore.
- On the basis of the application, the market has been classified into aerospace, automotive, construction, consumer electronics, semiconductors, pharmaceuticals, telecom and others.
- On the geographical front, the market has been segregated into North America (the United States and Canada), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia and others), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia and others), Latin America (Brazil, Mexico and others), and Middle East and Africa.
- The competitive landscape of the market has been studied in the report with the detailed profiles of the key players. Some of these players include Accenture Plc, Altair Engineering Inc., ALTEN, Cybage Software Pvt. Ltd., EPAM Systems Inc., HCL Technologies Limited, Infosys Ltd., QuEST Global Services Pte. Ltd., Sonata Software Limited, Tata Consultancy Services Limited, Tech Mahindra Limited (Mahindra Group) and Wipro Limited.
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