Global Engineering Services Outsourcing Market Size Study, By Services, By Location, By Application, And Regional Forecasts 2022-2032

Description

The Global Engineering Services Outsourcing (ESO) Market was valued at USD 2086.73 billion in 2023 and is projected to grow at an exceptional CAGR of 23.4% from 2024 to 2032. The increasing complexity of engineering projects and the need for specialized expertise have led companies across various industries to outsource their engineering requirements to external providers. Engineering services outsourcing enables organizations to leverage advanced technologies, reduce operational costs, and enhance productivity, driving significant market expansion.

Companies are increasingly adopting Industry 4.0 technologies, including AI, IoT, digital twins, and automation, to streamline engineering processes. ESO providers are at the forefront of these advancements, offering innovative solutions such as predictive maintenance, real-time monitoring, and simulation-based designs. By outsourcing engineering services, businesses can focus on their core competencies while accessing cutting-edge technologies without incurring high capital expenses.

The growing need for cost efficiency and operational agility has made engineering services outsourcing a strategic business decision, especially in automotive, aerospace, telecom, healthcare, and manufacturing sectors. The demand for rapid prototyping, digital transformation, and modular design solutions is propelling market growth. On-shore outsourcing remains dominant due to intellectual property protection and regulatory compliance concerns, whereas off-shore outsourcing is growing at a rapid pace due to labor cost advantages and access to specialized talent pools in countries like India, China, and the Philippines.

From a regional perspective, Asia Pacific dominates the global engineering services outsourcing market, accounting for over 40% of the total market share in 2023. The region benefits from a large pool of engineering talent, cost-effective outsourcing solutions, and a robust manufacturing base. North America and Europe are also significant markets, with businesses in these regions seeking outsourcing partnerships to drive innovation while optimizing costs.

Major Market Players Included in this Report:

AKKA Technologies (Akkodis)
Alten Group
Capgemini Engineering
Entelect
HCL Technologies Limited
Infosys Limited
Tata Elxsi
Tata Consultancy Services Limited
Tech Mahindra Limited
Wipro Limited
Emerson Electric Co.
Quest Global
Cyient
Luxoft
Accenture

The detailed segments and sub-segments of the market are explained below:

By Services:

Designing
Prototyping
System Integration
Testing
Others

By Location:

On-Shore
Off-Shore

By Application:

Aerospace
Automotive
Manufacturing
Consumer Electronics
Semiconductors
Healthcare
Telecom
Energy & Utilities
Construction & Infrastructure
Others

By Region:

North America
U.S.
Canada
Europe
UK
Germany
France
Italy
Spain
Asia Pacific
China
Japan
India
South Korea
Australia
Latin America
Brazil
Mexico
Middle East & Africa
Saudi Arabia
South Africa
UAE

Years Considered for the Study:

Historical Year - 2022
Base Year - 2023
Forecast Period - 2024 to 2032

Key Takeaways:

Market Estimates & Forecast for 10 years (2022-2032)
Annualized revenues and regional-level analysis for each market segment
Detailed analysis of the geographical landscape with country-level data
Competitive landscape with major players in the market
Analysis of key business strategies and recommendations for future market approaches
Evaluation of the competitive structure of the market
Demand-side and supply-side analysis of the market

Chapter 1. Global Engineering Services Outsourcing Market Executive Summary

1.1. Global Engineering Services Outsourcing Market Size & Forecast (2022-2032)
1.2. Regional Summary
1.3. Segmental Summary
- 1.3.1. By Services
- 1.3.2. By Location
- 1.3.3. By Application
1.4. Key Trends
1.5. Recession Impact
1.6. Analyst Recommendation & Conclusion

Chapter 2. Global Engineering Services Outsourcing Market Definition and Research Assumptions

2.1. Research Objective
2.2. Market Definition
2.3. Research Assumptions
- 2.3.1. Inclusion & Exclusion
- 2.3.2. Limitations
- 2.3.3. Supply Side Analysis
  - 2.3.3.1. Availability
  - 2.3.3.2. Infrastructure
  - 2.3.3.3. Regulatory Environment
  - 2.3.3.4. Market Competition
  - 2.3.3.5. Economic Viability (Consumer's Perspective)
- 2.3.4. Demand Side Analysis
  - 2.3.4.1. Regulatory Frameworks
  - 2.3.4.2. Technological Advancements
  - 2.3.4.3. Environmental Considerations
  - 2.3.4.4. Consumer Awareness & Acceptance
2.4. Estimation Methodology
2.5. Years Considered for the Study
2.6. Currency Conversion Rates

Chapter 3. Global Engineering Services Outsourcing Market Dynamics

3.1. Market Drivers
- 3.1.1. Rising Demand for Cost Reduction and Operational Efficiency
- 3.1.2. Growing Adoption of Industry 4.0 Technologies
- 3.1.3. Increasing Complexity of Engineering Projects Requiring Specialized Expertise
3.2. Market Challenges
- 3.2.1. Concerns Regarding Data Security and Intellectual Property Protection
- 3.2.2. Regulatory and Compliance Issues in Engineering Services Outsourcing
3.3. Market Opportunities
- 3.3.1. Expansion of Digital Twin Technology and AI-driven Engineering Services
- 3.3.2. Growth in Emerging Markets with a Skilled Engineering Workforce
- 3.3.3. Rising Demand for Engineering Services in the Healthcare and Energy Sectors

Chapter 4. Global Engineering Services Outsourcing Market Industry Analysis

4.1. Porter's 5 Force Model
- 4.1.1. Bargaining Power of Suppliers
- 4.1.2. Bargaining Power of Buyers
- 4.1.3. Threat of New Entrants
- 4.1.4. Threat of Substitutes
- 4.1.5. Competitive Rivalry
- 4.1.6. Futuristic Approach to Porter's 5 Force Model
- 4.1.7. Porter's 5 Force Impact Analysis
4.2. PESTEL Analysis
- 4.2.1. Political
- 4.2.2. Economical
- 4.2.3. Social
- 4.2.4. Technological
- 4.2.5. Environmental
- 4.2.6. Legal
4.3. Top Investment Opportunity
4.4. Top Winning Strategies
4.5. Disruptive Trends
4.6. Industry Expert Perspective
4.7. Analyst Recommendation & Conclusion

Chapter 5. Global Engineering Services Outsourcing Market Size & Forecasts by Services 2022-2032

5.1. Segment Dashboard
5.2. Global Engineering Services Outsourcing Market: Services Revenue Trend Analysis, 2022 & 2032 (USD Billion)
- 5.2.1. Designing
- 5.2.2. Prototyping
- 5.2.3. System Integration
- 5.2.4. Testing
- 5.2.5. Others

Chapter 6. Global Engineering Services Outsourcing Market Size & Forecasts by Location 2022-2032

6.1. Segment Dashboard
6.2. Global Engineering Services Outsourcing Market: Location Revenue Trend Analysis, 2022 & 2032 (USD Billion)
- 6.2.1. On-Shore
- 6.2.2. Off-Shore

Chapter 7. Global Engineering Services Outsourcing Market Size & Forecasts by Application 2022-2032

7.1. Segment Dashboard
7.2. Global Engineering Services Outsourcing Market: Application Revenue Trend Analysis, 2022 & 2032 (USD Billion)
- 7.2.1. Aerospace
- 7.2.2. Automotive
- 7.2.3. Manufacturing
- 7.2.4. Consumer Electronics
- 7.2.5. Semiconductors
- 7.2.6. Healthcare
- 7.2.7. Telecom
- 7.2.8. Energy & Utilities
- 7.2.9. Construction & Infrastructure
- 7.2.10. Others

Chapter 8. Global Engineering Services Outsourcing Market Size & Forecasts by Region 2022-2032

8.1. North America Engineering Services Outsourcing Market
- 8.1.1. U.S. Engineering Services Outsourcing Market
  - 8.1.1.1. Services Breakdown Size & Forecasts, 2022-2032
  - 8.1.1.2. Application Breakdown Size & Forecasts, 2022-2032
- 8.1.2. Canada Engineering Services Outsourcing Market
8.2. Europe Engineering Services Outsourcing Market
- 8.2.1. U.K. Engineering Services Outsourcing Market
- 8.2.2. Germany Engineering Services Outsourcing Market
- 8.2.3. France Engineering Services Outsourcing Market
- 8.2.4. Italy Engineering Services Outsourcing Market
- 8.2.5. Spain Engineering Services Outsourcing Market
- 8.2.6. Rest of Europe Engineering Services Outsourcing Market
8.3. Asia-Pacific Engineering Services Outsourcing Market
- 8.3.1. China Engineering Services Outsourcing Market
- 8.3.2. Japan Engineering Services Outsourcing Market
- 8.3.3. India Engineering Services Outsourcing Market
- 8.3.4. South Korea Engineering Services Outsourcing Market
- 8.3.5. Australia Engineering Services Outsourcing Market
- 8.3.6. Rest of Asia-Pacific Engineering Services Outsourcing Market
8.4. Latin America Engineering Services Outsourcing Market
- 8.4.1. Brazil Engineering Services Outsourcing Market
- 8.4.2. Mexico Engineering Services Outsourcing Market
- 8.4.3. Rest of Latin America Engineering Services Outsourcing Market
8.5. Middle East & Africa Engineering Services Outsourcing Market
- 8.5.1. Saudi Arabia Engineering Services Outsourcing Market
- 8.5.2. South Africa Engineering Services Outsourcing Market
- 8.5.3. UAE Engineering Services Outsourcing Market
- 8.5.4. Rest of Middle East & Africa Engineering Services Outsourcing Market

Chapter 9. Competitive Intelligence

9.1. Key Company SWOT Analysis
- 9.1.1. AKKA Technologies (Akkodis)
- 9.1.2. Alten Group
- 9.1.3. Capgemini Engineering
9.2. Top Market Strategies
9.3. Company Profiles

Chapter 10. Research Process

10.1. Research Process
- 10.1.1. Data Mining
- 10.1.2. Analysis
- 10.1.3. Market Estimation
- 10.1.4. Validation
- 10.1.5. Publishing
10.2. Research Attributes