Global Engineering Services Outsourcing Market Size, Share, Forecast Report, 2020-2027

The report provides rational insights along with historical and forecast data to aid in better understanding of the Global Engineering Services Outsourcing Market. The report provides a comprehensive analysis of key factors that are expected to drive the growth of the Engineering Services Outsourcing market. This study also provides a detailed overview of the opportunities along with the current trends observed in the target market.

The global engineering services outsourcing market size was estimated at USD 316.78 billion in 2019 and anticipated to witness a CAGR of 29.2% over the forecast period. Increased tie-ups between automotive Original Equipment Manufacturers (OEMs) and engineering services outsourcing (ESO) providers is the key factor driving the market. Various benefits of outsourced engineering services, such as the globalization of R&D and engineering by major industrial groups, avalanche of technological disruptions, talent scarcity, lower incurred costs, and growth in high technology-enabled industries especially in the developed economies, are anticipated to significantly contribute to the ESO market growth.

The market evolved abruptly over the last two decades, from offering engineering services through its headquarters to now launching centers of excellence and key operations in developing countries. Globalization has compelled the key participants to include global delivery systems in their business strategies. The industry, which traditionally catered the OEMs with core engineering services across the entire product lifecycle, now emphasizes on serving the end-customers with offerings integrated with digital technologies, such as internet of things (IoT), analytics, cloud, and automation. Furthermore, the engineering service providers (ESPs) are continually upgrading their digital capabilities so as to cope up with the continuously changing consumer demands.

The end-use industries witnessed a drastic shift, where earlier the products were largely designed for mass consumption, to now being consumer-driven and customized based on the user’s needs and traits. OEMs procure engineering services that are beyond their core competencies to ensure delivering technologically upgraded customized products to their consumers. OEMs emphasize on certain factors, including the quality of service, domain expertise, market value, and previous projects, while selecting an ESP. New entrants may find it difficult to enter the market and establish their presence owing to the lack of business network, project expertise, and familiarity with client requirements.The fourth industrial revolution is primarily characterized by the advancements in services, including smart manufacturing, robotics, artificial intelligence (AI), and automation are positively impacting the market. Industries, including the manufacturing and automotive sector, incorporating digital transformational services have emerged to be the essential buyers of the upgraded capabilities of engineering offerings globally. ESPs are subjected to gain more opportunities with the consistent integration of automation components in the open system architectures that will help in offering invariable data management, uniform software and hardware interfaces, and match global standards.

However, Intellectual Property (IP) confidentiality and security threats are two critical factors restraining the growth of the Engineering Services Outsourcing (ESO) market. The end-use industry participants transfer large volumes of data, which comprise data monitoring, quality assurance, and load management between OEMs, service providers, and consumers. The OEMs, suppliers, and service providers routinely exchange confidential data on technology, specifications, and performance of equipment to enhance collaboration on design, development and support. OEMs who wish to outsource from specialized ESO firms ought to undertake several measures, such as examining the functioning of networks, protecting critical data with access codes, maintaining an original copy of the source code or design of the IP

The report covers major players operating in the market along with the key strategies implemented to achieve a competitive edge against a majority of the vendors which provides a competitive outlook of the industry. The competitive landscape further includes details about different players and their position on a global and a local level is also explained in detail in this compiled study. These insights were prepared through mapping business strategies and products that offer high revenue generation capacities. Key players of the global Engineering Services Outsourcing market are included as given below:

The key players operating in the ESO market include Altran Technologies S.A., Alten GmbH, Infosys Ltd., HCL Technologies Limited, Tata Consultancy Services Limited, Tech Mahindra Limited, Infosys Limited, and Wipro Limited. The companies are engage in tie-ups and collaborations with key OEMs from different verticals to offer state-of-the-art-solutions within the client budgets.

For instance, In December 2018, Altran announced its collaboration with Wirepas for expansion of its range of localization solutions intending to help the former to reduce the wastage of inventories and money, along with increasing safety and security of workers by leveraging Wirepas’s location-based service solutions. Also, In November 2017, Bertrandt collaborated with SGL and developed an integrated concept for innovative interior structures based on composite materials-the Carbon Carrier-which combines lightweight fiber compounds and built-in functionality. The carbon carrier is used for material mix in the automotive industry

The global Engineering Services Outsourcing market has been segmented as below:

• Services 

  • Designing

  • Prototyping

  • System Integration

  • Testing

  • Others

• Location

  • Onshore

  • Offshore

• Application

  • Aerospace

  • Automotive

  • Construction

  • Consumer Electronics

  • Semiconductors

  • Pharmaceuticals

  • Telecom

  • Others

• Global Engineering Services Outsourcing Market by Region
• North America
• Europe
• Asia Pacific
• Rest of the World

Reasons to Purchase this Report:

Estimates Engineering Services Outsourcing development trends with SWOT analysis

• Detailed business profiles including product offerings, recent developments, key financial information, and strategies employed by main market players
• Analysis of various regions and countries that includes the demand and supply based actions, which consequently have a major influence on the market’s expansion
• Market dynamics scenario, along with growth opportunities for players in the years to come
• Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the mentioned forecast period

Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects