PUBLISHER: Polaris Market Research | PRODUCT CODE: 1424045
PUBLISHER: Polaris Market Research | PRODUCT CODE: 1424045
The global Engineering Services Outsourcing (ESO) market size is expected to reach USD 19,490.67 million by 2032, according to a new study by Polaris Market Research. The report "Engineering Services Outsourcing (ESO) Market Share, Size, Trends, Industry Analysis Report, By Application; By Location (On Shore, Off Shore); By Region; Segment Forecast, 2024 - 2032" gives a detailed insight into current market dynamics and provides analysis on future market growth.
Engineering Services Outsourcing (ESO) offers technical, mechanical, and application software support throughout the product development lifecycle, including innovative products, plant setup, and other processes. ESO has been embraced by original equipment manufacturers (OEMs) and application developers to reduce operational costs by eliminating labor and R&D expenses. The global ESO market is primarily driven by companies' growing desire to lower total operating costs. The industry is further boosted by adopting intelligent manufacturing technologies, robots, and artificial intelligence (AI) solutions, which enhance product design and details.
Additionally, the increasing use of strategic outsourcing solutions by industries like manufacturing, marine, and offshore, along with advancements in 3D printing technologies, are expected to contribute to the continued expansion of the Engineering Services Outsourcing market.
Cost efficiency plays a significant role, as companies can access a global talent pool and leverage lower labor costs in outsourcing destinations. This enables them to achieve cost savings and optimize resource allocation. ESO provides access to specialized expertise that may only be available in some places. Outsourcing partners have industry-specific knowledge, advanced technologies, and best practices, which can accelerate product development, enhance quality, and drive innovation.
Additionally, ESO offers scalability and flexibility, allowing companies to adjust their engineering capabilities based on project requirements easily. This agility helps businesses respond quickly to market demands. Companies can focus on their core competencies and strategic activities by outsourcing non-core engineering functions. Technological advancements drive the ESO market, as outsourcing providers offer access to cutting-edge engineering tools, software, and methodologies. Globalization and the need for faster time-to-market advantage contribute to the growth of ESO, enabling companies to expand their global reach, navigate diverse markets, and accelerate product development cycles.
Industrial segment accounted for the largest revenue shares of the market. Exploration facilities are digitizing, while industrial product manufacturers modernize IT infrastructure, adopt hybrid platforms, drive automation, and streamline processes for competitiveness.
On shore segment dominated the market with the largest revenue share due to emerging nations' automotive outsourcing vendors specialize in serving OEMs for modeling, development, and specialized processes.
Asia Pacific region holds the largest market share in 2022, Major automobile OEMs leverage the low-cost workforce in countries like India, the Philippines, and China by outsourcing manufacturing and related activities.
The global key market players include ALTEN, Microsoft Azure, Altran, Boston Engineering Corporation, Wipro Limited, Capgemini SE, EPAM Systems Inc., HCL Technologies Limited, Accenture Plc, Cybage Software Pvt. Ltd., AVL List GmbH and others.
Polaris Market Research has segmented the engineering services outsourcing (ESO) market report based on application, location, and region: