The India engineering services outsourcing market size reached USD 54.40 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 194.92 Billion by 2033, exhibiting a growth rate (CAGR) of 15.20% during 2025-2033. The market is expanding due to the rising demand for digital engineering solutions, sustainable practices, and expertise in aerospace, automotive, and renewable energy sectors. Additionally, India’s skilled workforce and cost-effective services make it a global leader in providing advanced engineering solutions.
Report Attribute
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Key Statistics
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Base Year
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2024
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Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 54.40 Billion |
Market Forecast in 2033 | USD 194.92 Billion |
Market Growth Rate (2025-2033) | 15.20% |
Increased Adoption of Digital Engineering Solutions
The Indian engineering services outsourcing (ESO) market is witnessing an increased demand for digital engineering solutions. Organizations in a range of industries, such as automotive, aerospace, defense, and manufacturing, are increasingly utilizing digital technologies such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) to improve product design, development, and testing operations. For instance, in March 2025, Zoid Tech, a research and development startup based in Delhi, announced the successful creation of an AI-powered Foreign Object Debris (FOD) Detection System. This system has successfully completed the Single Stage Composite Trials and is slated for induction by the Indian Navy, representing a significant step forward in defense technology. In addition, these technologies enable greater accuracy, quicker time-to-market, and cost savings, leading companies to look for outsourcing partners capable of delivering specialized digital engineering expertise. India's immense talent pool of engineers, combined with leading-edge capabilities in fields such as simulation, product lifecycle management (PLM), and virtual prototyping, makes it a prime location for outsourcing such digital engineering services. As industries adopt digital transformation to remain competitive, the need for engineering services facilitating these developments will continue to increase, making India a global leader in delivering next-generation engineering services.
Growing Focus on Sustainability and Green Engineering
Sustainability is becoming an increasingly important factor in the India engineering services outsourcing market. As industries worldwide concentrate on minimizing their carbon footprint and complying with environmental standards, there is increasing need for green engineering solutions. This involves energy-efficient product design, sustainable materials use, and devising waste management, renewable energy, and carbon capture solutions. For instance, as per industry reports, the country's renewable energy capacity reached 209.44 GW by December 2024, a 15.84% increase from 180.80 GW in December 2023, representing the green engineering market growth. India’s engineering services sector is responding to this trend by offering expertise in sustainable product development and eco-friendly manufacturing processes. Many Indian engineering service providers are investing in capabilities to support green engineering practices, helping clients from industries such as automotive, construction, and energy to meet environmental sustainability goals. The Indian government’s initiatives to promote clean energy and green technologies are also driving this shift, making the country an attractive destination for outsourcing sustainable engineering services. The trend towards sustainability is expected to intensify, further expanding India’s role in global green engineering solutions.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on service, location, and application.
Service Insights:
The report has provided a detailed breakup and analysis of the market based on the service. This includes designing, prototyping, system integration, testing, and others.
Location Insights:
A detailed breakup and analysis of the market based on the location have also been provided in the report. This includes onshore and offshore.
Application Insights:
The report has provided a detailed breakup and analysis of the market based on the application. This includes aerospace, automotive, construction, consumer electronics, semiconductors, pharmaceuticals, telecom, and others.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Services Covered | Designing, Prototyping, System Integration, Testing, Others |
Locations Covered | Onshore, Offshore |
Applications Covered | Aerospace, Automotive, Construction, Consumer Electronics, Semiconductors, Pharmaceuticals, Telecom, Others |
Regions Covered | North India, South India, East India, and West India |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: