Ottawa, May 24, 2022 (GLOBE NEWSWIRE) -- The global engineering services outsourcing market size was estimated at US$ 1.5 trillion in 2021. One of the key drivers driving the adoption of the engineering services outsourcing is likely to be the growing collaborations between original equipment manufacturers and engineering service providers. The globalization of research and development activities, increased demand for utilizing the advanced and latest technologies into product offerings and the growing need to shorten product lifecycles and minimize costs are all likely to drive the engineering services outsourcing market expansion. The engineering services outsourcing market has been steadily developing in response to customer’s increasing emphasis on outsourcing various services as part of their cost-cutting efforts.
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The growing importance of engineering services providers in original equipment manufacturer supply chains is being boosted by evolving approaches to product lifecycle development. The engineering services providers are developing service delivery models that include far broader engagement portfolios and an authorization structure that promotes innovation and accelerates top line and bottom-line development as the engineering services outsourcing offering countries to expand.
Digitalization, on the other hand, brings with it concerns about cybersecurity. The engineering services providers, original equipment manufacturers and consumers communicate significant volumes of information with end user industries and industry verticals, including data related to monitoring, load management, and quality assurance. Similarly, engineering service providers and original equipment manufacturers frequently share secret information on technology and equipment in order to development and design of software and solutions. As a result, as part of their attempts to preserve intellectual property, the major market players are implementing preventative steps such as securing critical information with access codes, evaluating network operations, and maintaining original versions of the design of source code.
Scope of the Report
| Report Attributes | Details |
| Market Size in 2021 | USD 1.5 Trillion |
| Revenue Forecast By 2030 | USD 6.6 Trillion |
| Base Year | 2021 |
| Forecast Data | 2022 to 2030 |
| Companies Covered | Cybage Software Pvt. Ltd, Sonata Software Limited, Tata Consultancy Services Limited, Tech Mahindra Limited, Altair Engineering Inc., Wipro Limited, HCL Technologies Limited, QuEST Global Services Ltd, EPAM Systems Inc., Accenture Plc. |
Regional Snapshot
- North America is the largest segment for engineering services outsourcing market in terms of region. The North America region is home to long standing suppliers as well as end user sectors that are constantly adopting new and innovative technologies to improve business efficiency and productivity.
- Asia-Pacific region is the fastest growing region in the engineering services outsourcing market. For manufacturers and suppliers, the Asia-Pacific region has emerged as one of the most popular offshore outsourcing destinations.
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Report Highlights
- Based on the service, the testing segment is the fastest growing segment in the global engineering services outsourcing market. The increased desire for testing services to be outsourced in order to reduce manual intervention and turn round time is predicted to contribute to the segment growth.
- Based on the application, the industrial segment is the fastest growing segment in the global engineering services outsourcing market. The industrial internet of things is predicted to drive the industrial segment’s expansion by reducing downtimes, detecting and preventing errors, and lowering maintenance costs.
Market Dynamics
Drivers
Growing research and development activities
The development of new and innovative technologies and solutions require research and development initiatives and good number of investments. The globalization of research and development has prompted leading industry participants to incorporate global delivery systems into their separate company strategies. Thus, the growing research and development activities are driving the growth of the engineering services outsourcing market during the forecast period.
Restraints
Risk of exposing confidential information
The major drawback of engineering services outsourcing is the danger of losing sensitive data and confidentiality. When negotiating outsourced deals, having flawless procedures and checks regarding data loss and confidentiality contracts is a necessity. Thus, the risk of exposing confidential information is hindering the growth of the engineering services outsourcing market over the forecast period.
Opportunities
Technological advancements
In order to provide innovative solutions to customers or end users, the engineering services outsourcing has evolved as well. As a result, the engineering services outsourcing market has seen a transition away from core engineering services and toward embedded engineering solutions such as internet of things. Similarly, technological advancements have opened the way for products as a service that are designed with integrated information technology solutions capable of scheduling maintenance and anticipating disruptions in advance. As a result, technological advancements is creating lucrative opportunities for the growth of the engineering services outsourcing market during the forecast period.
Challenges
High service costs
The small and medium enterprises do not have enough funds for the outsourcing of engineering services. The underdeveloped countries’ firms also lack resources for outsourcing business processes. Thus, the reason to this is high cost of services which each and every organization cannot afford to pay the engineering services outsourcing firms. As a result, the high service costs are a major challenge for the growth of the engineering services outsourcing market.
Market Segmentation
By Service
- Designing
- Prototyping
- System Integration
- Testing
- Others
By Location
- Onshore
- Offshore
By Application
- Aerospace
- Automotive
- Industrial
- Consumer Electronics
- Semiconductors
- Healthcare
- Telecom
- Others
By Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa (MEA)
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