In the symphony of technological progress, the engineering service outsourcing market to crescendos at an exhilarating 18.70% CAGR. Its value is set to soar from a modest USD 1,718.94 million in 2024 to a resounding USD 9,544.84 million by 2034.
| Attributes | Details |
|---|---|
| Engineering Service Outsourcing Market Size, 2024 | USD 1,718.94 million |
| Market Size, 2034 | USD 9,544.84 million |
| Value CAGR (2024 to 2034) | 18.70% |
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The creation of a strong brand identity is intended to emerge as a significant investment opportunity for key players. The development of the brand identity includes the establishment of a unique visual identity and the development of clear value propositions. Furthermore, key players can gain maximum market share through leadership and content marketing to differentiate themselves from their competitors.
| Drivers | The increasing complexity of engineering projects is assessed to spark the demand for engineering service outsourcing in the coming years. Companies are finding a way to do this project in-house. Thus, the market has the potential to gain a significant share during the forecast period. |
|---|---|
| Challenges | Protecting intellectual property (IP) is a major concern for companies operating in this market. To cut to the chase, companies must ensure that their IP is protected throughout the outsourcing process. They should have the right agreements and legal protections in place to prevent any unauthorized use or disclosure of their IP. |
Principal Consultant
| Attributes | Details |
|---|---|
| Location | On Shore |
| Market share in 2024 | 53.80% |
The onshore segment is currently dominating the engineering service outsourcing market due to several factors, including
While the offshore segment continues to grow, the onshore segment is expected to remain dominant in the future due to these advantages
| Attributes | Details |
|---|---|
| Service Type | Testing Services |
| Market Share in 2024 | 28.80% |
The need to ensure the quality of projects in several companies is driving up the demand for testing engineering services. By providing specialized expertise to companies, testing services are gaining popularity over the years. Moreover, with the need for cost-saving services, testing services are anticipated to preserve maximum market share during the forecast period down to their cost-effective offerings.
| Countries | CAGR from 2024 to 2034 |
|---|---|
| United States | 18.70% |
| China | 20.80% |
| Germany | 14.40% |
| Japan | 15.10% |
| Australia | 18.20% |
The CAGR of the market in the United States during the forecast period is anticipated to be 18.70%. Some of the factors influencing market growth in the country are:
The market in China is expected to register a CAGR of 20.80% through 2034. The upsurge in technologies and industrialization is supposed to make a significant impact on market share over the predicted duration in China.
Companies here are aiming to expand their operations and improve production, and they are seeking out skilled engineers or workforce to achieve this. Moreover, companies are collaborating and creating partnerships with engineering companies internationally.
The market in Germany is expected to progress at a CAGR of 14.40% during the forecast period. Germany has gained popularity in the international market for having a large pool of highly skilled engineers with low labor costs.
As a result, Germany is becoming an attractive destination for outsourcing engineering services at present. Companies are actively building partnerships with Germany-based engineering companies to access their talent pools and capture the prime market share.
The market in Japan is expected to progress at a CAGR of 15.10% throughout the forecast period. The country's ambition to modernize its manufacturing capabilities is supporting the demand for engineering service outsourcing.
Companies in Japan are actively outsourcing their highly skilled engineering services to worldwide and offshore providers who can offer high-quality services at lower costs. Moreover, the entrance of new companies and the emergence of innovative technologies are bound to intensify the demand.
The market in Australia is expected to progress at a CAGR of 18.20% between 2024 and 2034. Leading in providing specialized engineering services such as product development and designing, testing, and prototyping, the ESO market is envisaged to garner the most significant market share through the forecast period. Moreover, the need for cost-effective services is driving up the engineering service outsourcing market in Australia.
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Apart from leading businesses, startups operating in multiple industries often choose to outsource their engineering groups to ensure the timely delivery of high-quality products or additional features, especially when operating on a limited budget.
To achieve this, they seek the expertise of engineering service outsourcing providers like IDSS Global, Chemionix, Microsourcing, Yempo Solutions, Sourcefit, DRC Systems, Pareekh Consulting, and Flatworld Solutions.
These providers employ various marketing strategies, such as launching new products, expanding their geographical reach, mergers and acquisitions, partnerships, and collaborations, to attract potential buyers and expand their customer base.
Recent Development
| Attribute | Details |
|---|---|
| Estimated Market Size (2024) | USD 1,718.94 million |
| Projected Market Size (2034) | USD 9,544.84 million |
| Anticipated Growth Rate (2024 to 2034) | 18.70% |
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Market Analysis | USD million or billion for Value and Units for Volume |
| Key Regions Covered | North America; Latin America; Europe; Middle East & Africa (MEA); East Asia; South Asia and Oceania |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, Spain, Italy, France, United Kingdom, Russia, China, India, Australia & New Zealand, GCC Countries, and South Africa |
| Key Segments Covered | By Service, By Location, By Applications |
| Key Companies Profiled | HCL Technologies; Tata Elxsi; Tata Consultancy Services Limited; Tech Mahindra Limited; Infosys Limited; Wipro Limited; Capgemini Engineering; Alten Group; AKKA; Entelect |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The CAGR of the market in the United States from 2024 to 2034 is estimated to be 18.70%.
The market is expected to develop at a CAGR of 18.70% from 2024 to 2034.
The market size is expected to be worth USD 1,718.94 million in 2024.
The CAGR of the market in China from 2024 to 2034 is estimated to be 20.80%.
The market is estimated to get as big as USD 9,544.84 million by 2034.
The market can be divided into the following segments: service, location, application, and region.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Service 5.1. Engineering Designing Outsourcing 5.2. Prototyping Services Outsourcing 5.3. System Integration Services Outsourcing 5.4. Testing Services Outsourcing 5.5. Others 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Location 6.1. Onshore 6.2. Offshore 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 7.1. Aerospace 7.2. Automotive 7.3. Industrial 7.4. Consumer Electronics 7.5. Semiconductors 7.6. Healthcare 7.7. Telecom 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. HCL Technologies 18.2. Tata Elxsi 18.3. Entelect 18.4. Tech Mahindra Limited 18.5. Infosys Limited 18.6. Wipro Limited 18.7. Capgemini Engineering 18.8. Alten Group 18.9. AKKA 19. Assumptions & Acronyms Used 20. Research Methodology
Technology
January 2024
REP-GB-18782
150 pages
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Engineering Service Outsourcing Market
