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The global Engineering Services and Outsourcing market was valued at USD 1,430.75 Billion in 2021 and is forecasted to reach USD 3,803.21 Billion by the year 2027. The market is anticipated to register a CAGR of 17.7% over the projected period.
The “Engineering Services and Outsourcing Market” is a specialized and in-depth study of the respective industry with a particular focus on the global market trend analysis. The report aims to provide an overview of the market with detailed market segmentation by type. The market is expected to witness high growth during the forecast period. The report provides key statistics on the market status of the leading market players and offers key trends and opportunities in the market.
Engineering Services and Outsourcing is a process of assigning certain engineering tasks and functions to an organization or a team outside of the organization. Reduction in overhead cost is expected to boost the market growth. Furthermore, implementation of Industry 4.0 is also expected to fuel the market growth.
Despite the driving factors, loss of managerial control over connected outsourcing companies are expected to hinder the market growth during the forecast period. The market was negatively influenced during the COVID-19 pandemic, since manufacturing facilities were shut down temporarily.
key player
Accenture, AKKA Technologies, Altair Engineering, Inc., ALTEN SA, ASAP Holding GmbH, Assystem, AVL List GmbH, Bertrandt, Capgemini SE, Cognizant, 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, and Other Prominent Players.
MARKET OVERVIEW
The Engineering Services and Outsourcing Market has witnessed robust growth, driven by the increasing demand for specialized engineering expertise and cost-effective solutions across various industries. This market caters to sectors like aerospace, automotive, manufacturing, healthcare, and construction, offering services such as design, simulation, prototyping, and product development.
Industries often outsource engineering services to gain access to specialized skills, reduce operational costs, and accelerate product development cycles, thereby improving competitiveness.
Technological advancements like CAD/CAM software, 3D printing, and virtual reality have revolutionized engineering services, enabling more efficient and accurate design processes and fostering innovation.
The COVID-19 pandemic accelerated the adoption of remote engineering services, emphasizing the importance of flexibility and adaptability in outsourcing models to ensure business continuity.
Challenges in the engineering services and outsourcing market include maintaining data security, ensuring intellectual property protection, and managing global supply chain disruptions. Addressing these challenges will be vital for sustained market growth and meeting evolving industry demands.
Segments Overview:
The global Engineering Services and Outsourcing market is segmented the type, location, pricing model, and industry.
By Type,
Product Designing
Prototyping
Process Designing
System Integration
Testing
Quality Control
Product Lifecycle Management
Plant Automation & Enterprise Asset Management
The product designing segment is expected to hold the largest market share of around 22% owing to rising design complexities and need to cut costs by outsourcing designing. The plant automation and enterprise asset management segment is anticipated to witness the fastest growth rate of 19.8% during the forecast period.
By Location,
On-Site
Onshore
Offshore
The market size of Onshore segment is around 94% of Offshore market size in 2021 and will be around 91% in 2027. This market share is owing to growing demand for onshore services.
By Pricing Model,
Staff Augmentation
Time and Materia
Fixed Price Projects
Services
Risk/Rewards
The services segment is expected to grow at the second fastest growth rate of around 20% owing to increasing adoption of services based pricing model. The fixed price projects segment is anticipated to surpass market value of USD 300 billion by 2024.
By Industry,
Aerospace
Automotive
Computing Systems
Construction
Consumer Electronics
Energy
Heavy Machinery
Healthcare
Industrial
Medical Devices
Semiconductors
Telecom
Others
The medical devices segment is expected to grow at the fastest growth rate owing to increasing adoption of outsourcing services in the medical device industry. The computing systems segment is anticipated to surpass a market size of USD 50 billion by 2024 and USD 83.14 billion by 2027.
REASION TO BUY
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- In-depth Market Analysis: By scrutinizing regional market trends and drivers, the report provides a comprehensive understanding of the market landscape. It also highlights factors that might impede growth, allowing for informed decision-making.
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