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 US$ 1,718.94 million in 2024 to a resounding US$ 9,544.84 million by 2034.
| Attributes | Details |
|---|---|
| Engineering Service Outsourcing Market Size, 2024 | US$ 1,718.94 million |
| Market Size, 2034 | US$ 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) | US$ 1,718.94 million |
| Projected Market Size (2034) | US$ 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 | US$ 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 |
|
| 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 US$ 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 US$ 9,544.84 million by 2034.
The market can be divided into the following segments: service, location, application, and region.
1. Executive Summary
1.1. Global Market Outlook
1.2. Demand-side Trends
1.3. Supply-side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Market Background
3.1. Market Dynamics
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunity
3.1.4. Trends
3.2. Scenario Forecast
3.2.1. Demand in Optimistic Scenario
3.2.2. Demand in Likely Scenario
3.2.3. Demand in Conservative Scenario
3.3. Opportunity Map Analysis
3.4. Investment Feasibility Matrix
3.5. PESTLE and Porter’s Analysis
3.6. Regulatory Landscape
3.6.1. By Key Regions
3.6.2. By Key Countries
3.7. Regional Parent Market Outlook
4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
4.1. Historical Market Size Value (US$ Million) Analysis, 2019 to 2023
4.2. Current and Future Market Size Value (US$ Million) Projections, 2024 to 2034
4.2.1. Y-o-Y Growth Trend Analysis
4.2.2. Absolute $ Opportunity Analysis
5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Service
5.1. Introduction / Key Findings
5.2. Historical Market Size Value (US$ Million) Analysis By Service, 2019 to 2023
5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Service, 2024 to 2034
5.3.1. Engineering Designing Outsourcing
5.3.2. Prototyping Services Outsourcing
5.3.3. System Integration Services Outsourcing
5.3.4. Testing E Services Outsourcing
5.3.5. Others
5.4. Y-o-Y Growth Trend Analysis By Service, 2019 to 2023
5.5. Absolute $ Opportunity Analysis By Service, 2024 to 2034
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Location
6.1. Introduction / Key Findings
6.2. Historical Market Size Value (US$ Million) Analysis By Location, 2019 to 2023
6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Location, 2024 to 2034
6.3.1. Onshore
6.3.2. Offshore
6.4. Y-o-Y Growth Trend Analysis By Location, 2019 to 2023
6.5. Absolute $ Opportunity Analysis By Location, 2024 to 2034
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
7.1. Introduction / Key Findings
7.2. Historical Market Size Value (US$ Million) Analysis By Application, 2019 to 2023
7.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Application, 2024 to 2034
7.3.1. Aerospace
7.3.2. Automotive
7.3.3. Industrial
7.3.4. Consumer Electronics
7.3.5. Semiconductors
7.3.6. Healthcare
7.3.7. Telecom
7.4. Y-o-Y Growth Trend Analysis By Application, 2019 to 2023
7.5. Absolute $ Opportunity Analysis By Application, 2024 to 2034
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
8.1. Introduction
8.2. Historical Market Size Value (US$ Million) Analysis By Region, 2019 to 2023
8.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2024 to 2034
8.3.1. North America
8.3.2. Latin America
8.3.3. Western Europe
8.3.4. Eastern Europe
8.3.5. South Asia and Pacific
8.3.6. East Asia
8.3.7. Middle East and Africa
8.4. Market Attractiveness Analysis By Region
9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
9.2.1. By Country
9.2.1.1. USA
9.2.1.2. Canada
9.2.2. By Service
9.2.3. By Location
9.2.4. By Application
9.3. Market Attractiveness Analysis
9.3.1. By Country
9.3.2. By Service
9.3.3. By Location
9.3.4. By Application
9.4. Key Takeaways
10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
10.2.1. By Country
10.2.1.1. Brazil
10.2.1.2. Mexico
10.2.1.3. Rest of Latin America
10.2.2. By Service
10.2.3. By Location
10.2.4. By Application
10.3. Market Attractiveness Analysis
10.3.1. By Country
10.3.2. By Service
10.3.3. By Location
10.3.4. By Application
10.4. Key Takeaways
11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
11.2.1. By Country
11.2.1.1. Germany
11.2.1.2. UK
11.2.1.3. France
11.2.1.4. Spain
11.2.1.5. Italy
11.2.1.6. Rest of Western Europe
11.2.2. By Service
11.2.3. By Location
11.2.4. By Application
11.3. Market Attractiveness Analysis
11.3.1. By Country
11.3.2. By Service
11.3.3. By Location
11.3.4. By Application
11.4. Key Takeaways
12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
12.2.1. By Country
12.2.1.1. Poland
12.2.1.2. Russia
12.2.1.3. Czech Republic
12.2.1.4. Romania
12.2.1.5. Rest of Eastern Europe
12.2.2. By Service
12.2.3. By Location
12.2.4. By Application
12.3. Market Attractiveness Analysis
12.3.1. By Country
12.3.2. By Service
12.3.3. By Location
12.3.4. By Application
12.4. Key Takeaways
13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
13.2.1. By Country
13.2.1.1. India
13.2.1.2. Bangladesh
13.2.1.3. Australia
13.2.1.4. New Zealand
13.2.1.5. Rest of South Asia and Pacific
13.2.2. By Service
13.2.3. By Location
13.2.4. By Application
13.3. Market Attractiveness Analysis
13.3.1. By Country
13.3.2. By Service
13.3.3. By Location
13.3.4. By Application
13.4. Key Takeaways
14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
14.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
14.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
14.2.1. By Country
14.2.1.1. China
14.2.1.2. Japan
14.2.1.3. South Korea
14.2.2. By Service
14.2.3. By Location
14.2.4. By Application
14.3. Market Attractiveness Analysis
14.3.1. By Country
14.3.2. By Service
14.3.3. By Location
14.3.4. By Application
14.4. Key Takeaways
15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
15.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
15.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
15.2.1. By Country
15.2.1.1. GCC Countries
15.2.1.2. South Africa
15.2.1.3. Israel
15.2.1.4. Rest of MEA
15.2.2. By Service
15.2.3. By Location
15.2.4. By Application
15.3. Market Attractiveness Analysis
15.3.1. By Country
15.3.2. By Service
15.3.3. By Location
15.3.4. By Application
15.4. Key Takeaways
16. Key Countries Market Analysis
16.1. USA
16.1.1. Pricing Analysis
16.1.2. Market Share Analysis, 2023
16.1.2.1. By Service
16.1.2.2. By Location
16.1.2.3. By Application
16.2. Canada
16.2.1. Pricing Analysis
16.2.2. Market Share Analysis, 2023
16.2.2.1. By Service
16.2.2.2. By Location
16.2.2.3. By Application
16.3. Brazil
16.3.1. Pricing Analysis
16.3.2. Market Share Analysis, 2023
16.3.2.1. By Service
16.3.2.2. By Location
16.3.2.3. By Application
16.4. Mexico
16.4.1. Pricing Analysis
16.4.2. Market Share Analysis, 2023
16.4.2.1. By Service
16.4.2.2. By Location
16.4.2.3. By Application
16.5. Germany
16.5.1. Pricing Analysis
16.5.2. Market Share Analysis, 2023
16.5.2.1. By Service
16.5.2.2. By Location
16.5.2.3. By Application
16.6. UK
16.6.1. Pricing Analysis
16.6.2. Market Share Analysis, 2023
16.6.2.1. By Service
16.6.2.2. By Location
16.6.2.3. By Application
16.7. France
16.7.1. Pricing Analysis
16.7.2. Market Share Analysis, 2023
16.7.2.1. By Service
16.7.2.2. By Location
16.7.2.3. By Application
16.8. Spain
16.8.1. Pricing Analysis
16.8.2. Market Share Analysis, 2023
16.8.2.1. By Service
16.8.2.2. By Location
16.8.2.3. By Application
16.9. Italy
16.9.1. Pricing Analysis
16.9.2. Market Share Analysis, 2023
16.9.2.1. By Service
16.9.2.2. By Location
16.9.2.3. By Application
16.10. Poland
16.10.1. Pricing Analysis
16.10.2. Market Share Analysis, 2023
16.10.2.1. By Service
16.10.2.2. By Location
16.10.2.3. By Application
16.11. Russia
16.11.1. Pricing Analysis
16.11.2. Market Share Analysis, 2023
16.11.2.1. By Service
16.11.2.2. By Location
16.11.2.3. By Application
16.12. Czech Republic
16.12.1. Pricing Analysis
16.12.2. Market Share Analysis, 2023
16.12.2.1. By Service
16.12.2.2. By Location
16.12.2.3. By Application
16.13. Romania
16.13.1. Pricing Analysis
16.13.2. Market Share Analysis, 2023
16.13.2.1. By Service
16.13.2.2. By Location
16.13.2.3. By Application
16.14. India
16.14.1. Pricing Analysis
16.14.2. Market Share Analysis, 2023
16.14.2.1. By Service
16.14.2.2. By Location
16.14.2.3. By Application
16.15. Bangladesh
16.15.1. Pricing Analysis
16.15.2. Market Share Analysis, 2023
16.15.2.1. By Service
16.15.2.2. By Location
16.15.2.3. By Application
16.16. Australia
16.16.1. Pricing Analysis
16.16.2. Market Share Analysis, 2023
16.16.2.1. By Service
16.16.2.2. By Location
16.16.2.3. By Application
16.17. New Zealand
16.17.1. Pricing Analysis
16.17.2. Market Share Analysis, 2023
16.17.2.1. By Service
16.17.2.2. By Location
16.17.2.3. By Application
16.18. China
16.18.1. Pricing Analysis
16.18.2. Market Share Analysis, 2023
16.18.2.1. By Service
16.18.2.2. By Location
16.18.2.3. By Application
16.19. Japan
16.19.1. Pricing Analysis
16.19.2. Market Share Analysis, 2023
16.19.2.1. By Service
16.19.2.2. By Location
16.19.2.3. By Application
16.20. South Korea
16.20.1. Pricing Analysis
16.20.2. Market Share Analysis, 2023
16.20.2.1. By Service
16.20.2.2. By Location
16.20.2.3. By Application
16.21. GCC Countries
16.21.1. Pricing Analysis
16.21.2. Market Share Analysis, 2023
16.21.2.1. By Service
16.21.2.2. By Location
16.21.2.3. By Application
16.22. South Africa
16.22.1. Pricing Analysis
16.22.2. Market Share Analysis, 2023
16.22.2.1. By Service
16.22.2.2. By Location
16.22.2.3. By Application
16.23. Israel
16.23.1. Pricing Analysis
16.23.2. Market Share Analysis, 2023
16.23.2.1. By Service
16.23.2.2. By Location
16.23.2.3. By Application
17. Market Structure Analysis
17.1. Competition Dashboard
17.2. Competition Benchmarking
17.3. Market Share Analysis of Top Players
17.3.1. By Regional
17.3.2. By Service
17.3.3. By Location
17.3.4. By Application
18. Competition Analysis
18.1. Competition Deep Dive
18.1.1. HCL Technologies
18.1.1.1. Overview
18.1.1.2. Product Portfolio
18.1.1.3. Profitability by Market Segments
18.1.1.4. Sales Footprint
18.1.1.5. Strategy Overview
18.1.1.5.1. Marketing Strategy
18.1.2. Tata Elxsi
18.1.2.1. Overview
18.1.2.2. Product Portfolio
18.1.2.3. Profitability by Market Segments
18.1.2.4. Sales Footprint
18.1.2.5. Strategy Overview
18.1.2.5.1. Marketing Strategy
18.1.3. Entelect
18.1.3.1. Overview
18.1.3.2. Product Portfolio
18.1.3.3. Profitability by Market Segments
18.1.3.4. Sales Footprint
18.1.3.5. Strategy Overview
18.1.3.5.1. Marketing Strategy
18.1.4. Tech Mahindra Limited
18.1.4.1. Overview
18.1.4.2. Product Portfolio
18.1.4.3. Profitability by Market Segments
18.1.4.4. Sales Footprint
18.1.4.5. Strategy Overview
18.1.4.5.1. Marketing Strategy
18.1.5. Infosys Limited
18.1.5.1. Overview
18.1.5.2. Product Portfolio
18.1.5.3. Profitability by Market Segments
18.1.5.4. Sales Footprint
18.1.5.5. Strategy Overview
18.1.5.5.1. Marketing Strategy
18.1.6. Wipro Limited
18.1.6.1. Overview
18.1.6.2. Product Portfolio
18.1.6.3. Profitability by Market Segments
18.1.6.4. Sales Footprint
18.1.6.5. Strategy Overview
18.1.6.5.1. Marketing Strategy
18.1.7. Capgemini Engineering
18.1.7.1. Overview
18.1.7.2. Product Portfolio
18.1.7.3. Profitability by Market Segments
18.1.7.4. Sales Footprint
18.1.7.5. Strategy Overview
18.1.7.5.1. Marketing Strategy
18.1.8. Alten Group
18.1.8.1. Overview
18.1.8.2. Product Portfolio
18.1.8.3. Profitability by Market Segments
18.1.8.4. Sales Footprint
18.1.8.5. Strategy Overview
18.1.8.5.1. Marketing Strategy
18.1.9. AKKA
18.1.9.1. Overview
18.1.9.2. Product Portfolio
18.1.9.3. Profitability by Market Segments
18.1.9.4. Sales Footprint
18.1.9.5. Strategy Overview
18.1.9.5.1. Marketing Strategy
19. Assumptions & Acronyms Used
20. Research Methodology
Technology
January 2024
REP-GB-18782
150 pages
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Engineering Service Outsourcing Market
