The global engineering services outsourcing market is expected to grow from USD 316 Billion in 2019 to USD 2,450 Billion by 2027, at a CAGR of 29.2% during the forecast period 2020-2027.
Engineering services outsourcing market is the integration of information technology with various other industries. It is a very high growth potential industry. It now emphasizes on offering services to the end-customers with integrated digital technologies, such as analytics, cloud, internet of things (IoT) and automation. This industry has now done advancements in services, including robotics, smart manufacturing, automation and artificial intelligence (AI). These are positively impacting the market. The automotive and manufacturing sector, incorporating digital transformational services emerged as the essential buyers of the engineering services outsourcing market globally. However, security threats and Intellectual Property (IP) confidentiality are critical factors restraining the growth of this market. The end-use industry participants transfer large volumes of data, compromising data monitoring, and load management, quality assurance between OEMs, service providers, and consumers.
The global engineering services outsourcing market is segmented by services into designing, system integration, prototyping, testing, and others. The testing segment accounts for the highest revenue. The OEMs outsource software testing component from ESPs with IT professionals to have an efficient and bug-free software in their systems coupled with the increasing demand for procuring software solutions to reduce manual intervention and time significantly is driving the testing segments growing demand. Also, the designing segment is anticipated to witness rapid growth. The increasing popularity of graphic design, visual design, architectural design, and industrial design has led to the deployment of design tools, such as CAE, CAD, and CAM. Location outlook wise the onshore segment dominates over offshore services segment. Onshore services refer to the services offered to the OEMs by the ESO operating in the country. OEMs prefer outsourcing from onshore services due to the lower costs incurred, and concerns regarding the information security and privacy of their data involved in the procurement. The onshore ESO activities are gaining popularity in the similar time zones. Application wise segments are aerospace, automotive, telecom, consumer electronics, construction, pharmaceuticals, and semiconductors. The automotive sector hold the highest share owing to the increasing demand of innovative features in vehicles. The construction sector is expected to grow at a fast pace because of the proliferation of digital transformation technologies for the smart city projects worldwide. Also, the upsurge of intelligent buildings powered by AI, which can carry self-optimized operations and building management systems are anticipated to fuel the growth of this segment.
The global engineering services outsourcing market has been divided into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Asia-Pacific holds the largest market share and is expected to be on the top during the forecast period. This is because countries such as India, and China emerged as low-cost destinations offering technologically upgraded services, and with the help availability of highly skilled professionals. These countries are hubs of manufacturing, construction and automotive OEMs industries. These factors will help Asia-Pacific to hold the largest market share. North America is expected to show substantial growth over the forecast period. This is primarily because the U.S. is a major automotive, construction and aerospace hub for OEMs.
The key players in the global engineering services outsourcing market are M Group, Deaton Engineering, Aricent Group, Fareva, GlobalLogic, EPAM Systems, Cyient, and Pactera Technology International Ltd, HCL Technologies Limited, Infosys, IAV GmbH, Tata Consulting Services, P+Z Engineering GmbH, Wipro, ASAP Holdings GmbH, EDAG Engineering GmbH, FEV Group, Cybage software, Kistler Instruments AG, and others.
The leading and emerging players are focusing on introducing advanced services in to strengthen their position and expand their customer base. Companies are infusing vast amounts in R&D to concentrate on providing customized services to their customers. The companies are using tie-ups and collaborations with key OEMs from different verticals as the strategy to grow and grab the market share and to offer the best solutions within the client budget.
For instance, In December 2018, Wirepas and Altran collaborated for the expansion of their range of localization solutions, to help Wirepas to reduce the inventory wastage and money, along with increased security and safety of workers by leveraging Wirepas’s location-based service solutions.
This study predicts revenue growth at global, national, and country levels from 2020 to 2027. This report has segmented the global engineering services outsourcing market based on below-mentioned segments:
Based on Services:
Based on Location Outlook:
Based on Applications:
Based on Regions:
1. Introduction
1.1. Objectives of the Study
1.2. Market Definition
1.3. Research Scope
1.4. Currency
1.5. Key Target Audience
2. Research Methodology and Assumptions
3. Executive Summary
4. Premium Insights
4.1. Porter’s Five Forces Analysis
4.2. Value Chain Analysis
4.3. Top Investment Pockets
4.3.1. Market Attractiveness Analysis By Services
4.3.2. Market Attractiveness Analysis By Location Outlook
4.3.3. Market Attractiveness Analysis By Applications
4.3.4. Market Attractiveness Analysis By Region
4.4. Industry Trends
5. Market Dynamics
5.1. Market Evaluation
5.2. Drivers
5.3. Restraints
5.4. Opportunities
5.5. Challenges
6. Global Engineering Services Outsourcing Market Analysis and Forecast, By Services
6.1. Segment Overview
6.2. Designing
6.3. System Integration
6.4. Prototyping
6.5. Testing
6.6. Others
7. Global Engineering Services Outsourcing Market Analysis and Forecast, By Location Outlook
7.1. Segment Overview
7.2. Onshore
7.3. Offshore
8. Global Engineering Services Outsourcing Market Analysis and Forecast, By Applications
8.1. Segment Overview
8.2. Aerospace
8.3. Automotive
8.4. Telecom
8.5. Consumer Electronics
8.6. Construction
8.7. Pharmaceuticals
8.8. Semiconductors
8.9. Others
9. Global Engineering Services Outsourcing Market Analysis and Forecast, By Regional Analysis
9.1. Segment Overview
9.2. North America
9.2.1. U.S.
9.2.2. Canada
9.2.3. Mexico
9.3. Europe
9.3.1. Germany
9.3.2. France
9.3.3. U.K.
9.3.4. Italy
9.3.5. Spain
9.4. Asia-Pacific
9.4.1. Japan
9.4.2. China
9.4.3. India
9.5. South America
9.5.1. Brazil
9.6. Middle East and Africa
9.6.1. UAE
9.6.2. South Africa
10. Global Engineering Services Outsourcing Market-Competitive Landscape
10.1. Overview
10.2. Market Share of Key Players in Global Engineering Services Outsourcing Market
10.2.1. Global Company Market Share
10.2.2. North America Company Market Share
10.2.3. Europe Company Market Share
10.2.4. APAC Company Market Share
10.3. Competitive Situations and Trends
10.3.1. Product Launches and Developments
10.3.2. Partnerships, Collaborations, and Agreements
10.3.3. Mergers & Acquisitions
10.3.4. Expansions
11. Company Profiles
11.1. M Group
11.1.1. Business Overview
11.1.2. Company Snapshot
11.1.3. Company Market Share Analysis
11.1.4. Company Product Portfolio
11.1.5. Recent Developments
11.1.6. SWOT Analysis
11.2. Deaton Engineering
11.2.1. Business Overview
11.2.2. Company Snapshot
11.2.3. Company Market Share Analysis
11.2.4. Company Product Portfolio
11.2.5. Recent Developments
11.2.6. SWOT Analysis
11.3. Aricent Group
11.3.1. Business Overview
11.3.2. Company Snapshot
11.3.3. Company Market Share Analysis
11.3.4. Company Product Portfolio
11.3.5. Recent Developments
11.3.6. SWOT Analysis
11.4. Aricent Group
11.5. GlobalLogic
11.5.1. Business Overview
11.5.2. Company Snapshot
11.5.3. Company Market Share Analysis
11.5.4. Company Product Portfolio
11.5.5. Recent Developments
11.5.6. SWOT Analysis
11.6. EPAM Systems
11.6.1. Business Overview
11.6.2. Company Snapshot
11.6.3. Company Market Share Analysis
11.6.4. Company Product Portfolio
11.6.5. Recent Developments
11.6.6. SWOT Analysis
11.7. Cyient
11.7.1. Business Overview
11.7.2. Company Snapshot
11.7.3. Company Market Share Analysis
11.7.4. Company Product Portfolio
11.7.5. Recent Developments
11.7.6. SWOT Analysis
11.8. Pactera Technology International Ltd
11.8.1. Business Overview
11.8.2. Company Snapshot
11.8.3. Company Market Share Analysis
11.8.4. Company Product Portfolio
11.8.5. Recent Developments
11.8.6. SWOT Analysis
11.9. HCL Technologies Limited
11.9.1. Business Overview
11.9.2. Company Snapshot
11.9.3. Company Market Share Analysis
11.9.4. Company Product Portfolio
11.9.5. Recent Developments
11.9.6. SWOT Analysis
11.10. Infosys
11.10.1. Business Overview
11.10.2. Company Snapshot
11.10.3. Company Market Share Analysis
11.10.4. Company Product Portfolio
11.10.5. Recent Developments
11.10.6. SWOT Analysis
List of Table
1. Global Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
2. Global Designing In Engineering Services Outsourcing Market, By Region, 2017–2027(USD Billion)
3. Global System Integration In Engineering Services Outsourcing Market, By Region, 2017–2027(USD Billion)
4. Global Prototyping In Engineering Services Outsourcing Market, By Region, 2017–2027(USD Billion)
5. Global Testing Engineering Services Outsourcing Market, By Region, 2017–2027(USD Billion)
6. Global Others Engineering Services Outsourcing Market, By Region, 2017–2027(USD Billion)
7. Global Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
8. Global Onshore, Engineering Services Outsourcing Market, By Region, 2017–2027(USD Billion)
9. Global Offshore, Engineering Services Outsourcing Market, By Region, 2017–2027(USD Billion)
10. Global Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
11. Global Aerospace, Engineering Services Outsourcing Market, By Region, 2017–2027(USD Billion)
12. Global Automotive, Engineering Services Outsourcing Market, By Region, 2017–2027 (USD Billion)
13. Global Telecom, Engineering Services Outsourcing Market, By Region, 2017–2027 (USD Billion)
14. Global Consumer Electronics, Engineering Services Outsourcing Market, By Region, 2017–2027 (USD Billion)
15. Global Construction, Engineering Services Outsourcing Market, By Region, 2017–2027 (USD Billion)
16. Global Pharmaceuticals, Engineering Services Outsourcing Market, By Region, 2017–2027 (USD Billion)
17. Global Semiconductors, Engineering Services Outsourcing Market, By Region, 2017–2027 (USD Billion)
18. Global Others, Engineering Services Outsourcing Market, By Region, 2017–2027 (USD Billion)
19. Global Engineering Services Outsourcing Market, By Region, 2017–2027(USD Billion)
20. Global Engineering Services Outsourcing Market, By North America, 2017–2027(USD Billion)
21. North America Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
22. North America Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
23. North America Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
24. U.S. Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
25. U.S. Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
26. U.S. Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
27. Canada Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
28. Canada Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
29. Canada Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
30. Mexico Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
31. Mexico Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
32. Mexico Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
33. Europe Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
34. Europe Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
35. Europe Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
36. Germany Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
37. Germany Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
38. Germany Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
39. France Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
40. France Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
41. France Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
42. U.K. Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
43. U.K. Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
44. U.K. Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
45. Italy Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
46. Italy Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
47. Italy Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
48. Spain Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
49. Spain Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
50. Spain Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
51. Asia Pacific Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
52. Asia Pacific Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
53. Asia Pacific Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
54. Japan Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
55. Japan Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
56. Japan Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
57. China Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
58. China Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
59. China Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
60. India Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
61. India Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
62. India Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
63. South America Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
64. South America Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
65. South America Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
66. Brazil Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
67. Brazil Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
68. Brazil Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
69. Middle East and Africa Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
70. Middle East and Africa Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
71. Middle East Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
72. UAE Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
73. UAE Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
74. UAE Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
75. South Africa Engineering Services Outsourcing Market, By Services, 2017–2027(USD Billion)
76. South Africa Engineering Services Outsourcing Market, By Location Outlook, 2017–2027(USD Billion)
77. South Africa Engineering Services Outsourcing Market, By Applications, 2017–2027(USD Billion)
List of Figures
1. Global Engineering Services Outsourcing Market Segmentation
2. Engineering Services Outsourcing Market: Research Methodology
3. Market Size Estimation Methodology: Bottom-Up Approach
4. Market Size Estimation Methodology: Top-Down Approach
5. Data Triangulation
6. Porter’s Five Forces Analysis
7. Value Chain Analysis
8. Global Engineering Services Outsourcing Market Attractiveness Analysis By Services
9. Global Engineering Services Outsourcing Market Attractiveness Analysis By Location Outlook
10. Global Engineering Services Outsourcing Market Attractiveness Analysis By Applications
11. Global Engineering Services Outsourcing Market Attractiveness Analysis By Region
12. Global Engineering Services Outsourcing Market: Dynamics
13. Global Engineering Services Outsourcing Market Share By Services (2019 & 2027)
14. Global Engineering Services Outsourcing Market Share By Location Outlook (2019 & 2027)
15. Global Engineering Services Outsourcing Market Share By Applications (2019 & 2027)
16. Global Engineering Services Outsourcing Market Share by Regions (2019 & 2027)
17. Global Engineering Services Outsourcing Market Share by Company (2019)
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