The global engineering services outsourcing market size was US$ 1430.7 billion in 2021. The global engineering services outsourcing market size is forecast to reach US$ 6202.07 billion by 2030, growing at a compound annual growth rate (CAGR) of 17.7% during the forecast period from 2022 to 2030.

Outsourcing services can help businesses save money on labor, machines, extra space, skill training, and other technology-related expenses. These services benefit businesses because they may use the money saved on overhead to fund development projects and other investments that will help them grow. Engineering services outsourcing guarantees that both expertise and risk spread throughout a network of connected enterprises. Additionally, the adoption of Global Business Service (GBS) integrates governance, locations, and business practices across the corporation for all shared services and outsourcing activities.

Factors Influencing Market Growth

The key factor driving the adoption of engineering services outsourcing is likely to be the growing collaboration between Engineering Service Providers (ESPs) and Original Equipment Manufacturers (OEMs) (ESO).
Globalization of R&D activities, increased demand for integrating the latest technologies into product offerings, and the growing need to shorten product lifecycles and minimize costs are boosting the global market expansion.
Factors fueling the global market growth include technological advances and the rising incorporation of the emerging digital transformational services.
Impact Analysis of COVID-19

The COVID-19 pandemic had a negative impact on the global market. Several governments imposed a lockdown in order to curb the spread of the virus. As a result, industrial facilities, manufacturing plants, and public transport had to shut down. In addition, incumbents of industries and industry verticals, such as automotive and construction, faced a decline in demand.

Regional Insights

The Asia Pacific region held dominant in the engineering services outsourcing market in 2021 and is forecast to notice substantial growth during the forecast period. The Asia Pacific region is a hub for industrial goods manufacture and cost-effective engineering services offered by highly experienced engineers. The region is also home to a number of well-known software outsourcing companies. The Asia Pacific regional market is predicted to develop because of the growing need for technological innovation and the continued integration of embedded software into existing models.

Leading Competitors

The leading prominent companies profiled in the global engineering services outsourcing market are:

Accenture
AKKA Technologies
Altair Engineering, Inc.
ALTEN SA
ASAP Holding GmbH,
AVL List GmbH
Cognizant
Bertrandt
Capgemini SE
Cyient
EDAG
ESI Group
Ferchau,
Genpact
Geometric
HCL Technologies Limited
Infosys
International Business Machines Corporation
ITC Infotech
L&T Technology Service
Neilsoft
QuEST Global
Ranal Inc.
Segula Technologies
Semcon
Tata Consultancy Services
Tata Elxsi
Tata Technologies
Tech Mahindra
Wipro
Other Prominent Players
Scope of the Report

The global engineering services outsourcing market segmentation focuses on Location Type, Service Type, Application, and Region.

Segmentation based on Location Type

On-shore
Off-shore
Segmentation based on Service Type

Designing
Prototyping
System Integration
Testing
Others
Segmentation based on Application

Aerospace
Automotive
Designing
Prototyping
System Integration
Testing
Construction
Consumer Electronics
Semiconductors
Pharmaceuticals
Telecom
Others
Segmentation based on Region

North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Eastern Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific
Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA
South America
Brazil
Argentina
Rest of South America