Engineering Services Outsourcing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Global Engineering Services Outsourcing Companies and the market is Segmented By Services (Designing, Prototyping, System Integration, Testing, and Others), By End User (Automotive, Consumer Electronics And Semiconductors, Telecom and Others), and By Geography (North America, Europe, Asia-Pacific, and Rest of the World). The report offers the Global Engineering Services Outsourcing Market size and forecast in value (USD billion) for all the above segments.

Engineering Services Outsourcing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Engineering Services Outsourcing Market Size

Global Engineering Services Outsourcing Market Summary
Study Period 2020 - 2029
Market Size (2024) USD 2.91 Trillion
Market Size (2029) USD 5.34 Trillion
CAGR (2024 - 2029) 12.89 %
Fastest Growing Market North America
Largest Market Asia Pacific
Market Concentration Medium

Major Players

Global Engineering Services Outsourcing Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Global Engineering Services Outsourcing Market with other markets in Manufacturing Products and Services Industry

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Engineering Services Outsourcing Market Analysis

The Global Engineering Services Outsourcing Market size is estimated at USD 2.91 trillion in 2024, and is expected to reach USD 5.34 trillion by 2029, growing at a CAGR of 12.89% during the forecast period (2024-2029).

  • The globalization of R&D activities, the rising demand for integrating the latest technologies in product offerings, and the growing need to shorten the product lifecycles and cut costs are expected to contribute to the growth of the market.
  • The impact of the outbreak of the COVID-19 pandemic and the subsequent lockdowns in various countries across the world varied depending on the end-use industries and industry verticals. Industrial facilities, manufacturing plants, and public transport were shut down temporarily as part of the efforts to arrest the spread of the disease.
  • Due to the ease of lockdown restrictions, the reopening of industrial firms, and increased foreign trade, the Engineering Services Outsourcing sector began progressively recovering from the first quarter of 2021.
  • One of the primary drivers of the expanding popularity of engineering services outsourcing (ESO) is expected to be the growing cooperation between Original Equipment Manufacturers (OEM) and Engineering Service Providers (ESP).
  • The increasing need to shorten product lifecycles and cost-cutting and the rising desire for product options that incorporate the most outdated technology are all expected to support market expansion.
  • The increasing desire among consumers to outsource various services as a part of cost-cutting initiatives has led to continuous growth in the ESO market.
  • Due to increased automation, a move toward digitalization, and the adoption of Industry 4.0, the need for automated Engineering Service Providers has risen dramatically in recent years. The market for CNC machines, which currently accounts for more than 60% of the market, is expected to grow significantly over the forecast period.
  • Computer-aided design (CAD) and drafting are among the most outsourced engineering services. Tasks such as assembling drawings, drafting electronic blueprints, and creating detailed illustrations using software and converting to 3D or 2D formats, are included in these services.

Engineering Services Outsourcing Industry Overview

Global Engineering Services Outsourcing Market is fragmented and competitive. A significant trend of mergers and alliances of various global engineering firms has been seen over the past decade to increase foothold in the market. Partnerships with start-up companies including manufacturing start-ups and other industry ecosystem players are expected to provide new opportunities for the growth of the Engineering Services Outsourcing Market. Companies are extensively investing in R&D operations and are focusing on providing customized services to their customers.

Engineering Services Outsourcing Market Leaders

  1. Tech Mahindra Limited

  2. Tata Consultancy Services Limited

  3. Infosys Limited

  4. HCL Technologies Limited

  5. Wipro Ltd.

  6. *Disclaimer: Major Players sorted in no particular order
Global Engineering Services Outsourcing Market Concentration
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Engineering Services Outsourcing Market News

  • April 2023: The relationship between Marks and Spencer PLC (M&S) and Tata Consultancy Services (TCS) has been extended to change M&S's core technology stack, increase innovation speed and resilience, and promote sustainable growth. The modernization program will enhance speed to market, lower technological debt, and boost operating model efficiency and effectiveness for M&S. M&S' strategic aims of providing better customer experience, driving online growth, leading in omnichannel and sustainability, modernizing its supply chain, increasing its worldwide reach will be expedited by the transformation into a simple, agile, data-led business.
  • February 2023: A Memorandum of Understanding (MoU) has been signed by Tech Mahindra and the Ministry of Communication and Information Technology (MCIT) of Saudi Arabia to establish a Data & AI and a Cloud Centre of Excellence (CoE) in Riyadh. Tech Mahindra is a leading provider of digital transformation, consulting, and business re-engineering services and solutions. The CoE will combine academic and socioeconomic objectives to advance small and medium businesses, enhance the nation's capacity for high-tech expertise, and create high-quality jobs.

Engineering Services Outsourcing Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

  • 2.1 Analysis Methodology
  • 2.2 Research Phases

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Current Market Scenario
  • 4.2 Technological Trends
  • 4.3 Industry Value Chain Analysis
  • 4.4 Government Regulations and Initiatives
  • 4.5 Insights on Costing
  • 4.6 Impact of COVID-19 on the Market

5. MARKET DYNAMICS

  • 5.1 Drivers
  • 5.2 Restraints
  • 5.3 Opportunities
  • 5.4 Industry Attractiveness - Porter's Five Forces Analysis
    • 5.4.1 Bargaining Power of Suppliers
    • 5.4.2 Bargaining Power of Consumers / Buyers
    • 5.4.3 Threat of New Entrants
    • 5.4.4 Threat of Substitute Products
    • 5.4.5 Intensity of Competitive Rivalry

6. MARKET SEGMENTATION (Market Size by value)

  • 6.1 By Services
    • 6.1.1 Designing
    • 6.1.2 Prototyping
    • 6.1.3 System Integration
    • 6.1.4 Testing
    • 6.1.5 Others
  • 6.2 By End User
    • 6.2.1 Automotive
    • 6.2.2 Industrial
    • 6.2.3 Consumer Electronics And Semiconductors
    • 6.2.4 Telecom
    • 6.2.5 Others
  • 6.3 By Geography
    • 6.3.1 North America
    • 6.3.1.1 United States
    • 6.3.1.2 Canada
    • 6.3.1.3 Mexico
    • 6.3.2 Europe
    • 6.3.2.1 United Kingdom
    • 6.3.2.2 Germany
    • 6.3.2.3 France
    • 6.3.2.4 Italy
    • 6.3.2.5 Spain
    • 6.3.2.6 Rest of Europe
    • 6.3.3 Asia-Pacific
    • 6.3.3.1 China
    • 6.3.3.2 India
    • 6.3.3.3 Japan
    • 6.3.3.4 South Korea
    • 6.3.3.5 Thailand
    • 6.3.3.6 Indonesia
    • 6.3.3.7 Rest of Asia-pacific
    • 6.3.4 Rest of the World

7. COMPETITIVE LANDSCAPE

  • 7.1 Overview (Market Concentration and Major Players)
  • 7.2 Company Profiles
    • 7.2.1 Tech Mahindra Limited
    • 7.2.2 Tata Consultancy Services Limited
    • 7.2.3 Infosys Limited
    • 7.2.4 HCL Technologies Limited
    • 7.2.5 Wipro Ltd.
    • 7.2.6 Capgemini Technology Services India Limited
    • 7.2.7 Globallogic Inc.
    • 7.2.8 Accenture
    • 7.2.9 RLE International Inc.
    • 7.2.10 ASAP Holding GmbH
    • 7.2.11 Tata Technologies*
  • *List Not Exhaustive

8. FUTURE OF THE MARKET

9. APPENDIX

**Subject to Availability
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Engineering Services Outsourcing Industry Segmentation

Engineering services outsourcing (ESO) refers to the process of hiring various non-physical engineering functions, such as designing, prototyping, system integration, and testing, from an external source.

Global Engineering Services Outsourcing Market is Segmented By Services (Designing, Prototyping, System Integration, Testing, and Others), By End User (Automotive, Consumer Electronics And Semiconductors, Telecom and Others), and By Geography (North America, Europe, Asia-Pacific, and Rest of the World).

By Services Designing
Prototyping
System Integration
Testing
Others
By End User Automotive
Industrial
Consumer Electronics And Semiconductors
Telecom
Others
By Geography North America United States
Canada
Mexico
By Geography Europe United Kingdom
Germany
France
Italy
Spain
Rest of Europe
By Geography Asia-Pacific China
India
Japan
South Korea
Thailand
Indonesia
Rest of Asia-pacific
By Geography Rest of the World
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Engineering Services Outsourcing Market Research FAQs

How big is the Global Engineering Services Outsourcing Market?

The Global Engineering Services Outsourcing Market size is expected to reach USD 2.91 trillion in 2024 and grow at a CAGR of 12.89% to reach USD 5.34 trillion by 2029.

What is the current Global Engineering Services Outsourcing Market size?

In 2024, the Global Engineering Services Outsourcing Market size is expected to reach USD 2.91 trillion.

Who are the key players in Global Engineering Services Outsourcing Market?

Tech Mahindra Limited, Tata Consultancy Services Limited, Infosys Limited, HCL Technologies Limited and Wipro Ltd. are the major companies operating in the Global Engineering Services Outsourcing Market.

Which is the fastest growing region in Global Engineering Services Outsourcing Market?

North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).

Which region has the biggest share in Global Engineering Services Outsourcing Market?

In 2024, the Asia Pacific accounts for the largest market share in Global Engineering Services Outsourcing Market.

What years does this Global Engineering Services Outsourcing Market cover, and what was the market size in 2023?

In 2023, the Global Engineering Services Outsourcing Market size was estimated at USD 2.58 trillion. The report covers the Global Engineering Services Outsourcing Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Global Engineering Services Outsourcing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

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