PUBLISHER: The Business Research Company | PRODUCT CODE: 1436245
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436245
Engineering research and development (ER&D) outsourcing involves contracting research projects to specialized development companies proficient in cutting-edge technology. This practice utilizes knowledgeable engineers to create profitable outsourcing partnerships, allowing corporations to delegate tasks and manage activities efficiently.
The primary categories within the Engineering Research and Development (ER&D) outsourcing market include mechanical, embedded IT, and software. Mechanical outsourcing is employed for Product Lifecycle Management (PLM) implementation and customization services. This involves outsourcing the responsibility for the product to the individuals managing Computer-Aided Design (CAD) drawings, which convey measurements, tolerances, and critical specifications for designs. Location options encompass onsite and offshore. End users of ER&D outsourcing services span across various industries such as automotive, consumer electronics, telecom, heavy machinery, semiconductor, computing systems, aerospace, energy, medical devices, and others.
The engineering research and development (ER&D) outsourcing market research report is one of a series of new reports from The Business Research Company that provides engineering research and development (ER&D) outsourcing market statistics, including engineering research and development (ER&D) outsourcing industry global market size, regional shares, competitors with an engineering research and development (ER&D) outsourcing market share, detailed engineering research and development (ER&D) outsourcing market segments, market trends and opportunities, and any further data you may need to thrive in the engineering research and development (ER&D) outsourcing industry. This engineering research and development (ER&D) outsourcing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The engineering research and development (er&d) outsourcing market size has grown exponentially in recent years. It will grow from $433.91 billion in 2023 to $537.67 billion in 2024 at a compound annual growth rate (CAGR) of 23.9%. The growth observed in the historical period can be attributed to the need for niche skills and expertise, the increase in globalization, the emergence of startups, the rise of multinational corporations, and shifts in global economic conditions.
The engineering research and development (er&d) outsourcing market size is expected to see exponential growth in the next few years. It will grow to $1288.8 billion in 2028 at a compound annual growth rate (CAGR) of 24.4%. The anticipated growth in the forecast period can be attributed to global talent shortages, increased regulatory complexity, the need for flexibility, a growing emphasis on sustainability, and increased adoption of 5G. Major trends in the forecast period include artificial intelligence (AI) and machine learning (ML) integration, the proliferation of IoT technologies, and augmented reality (AR) and virtual reality (VR) implementation, along with the use of remote collaboration tools.
The anticipated surge in outsourcing demand is poised to drive the expansion of the Engineering Research and Development (ER&D) outsourcing market in the future. Outsourcing involves entrusting a research project to a specialized development company proficient in cutting-edge technology and staffed with knowledgeable engineers capable of fostering lucrative outsourcing collaborations. Opting for outsourcing engineering services enables businesses to curtail labor costs and diminish expenses related to additional office space, infrastructure, and operations. As an illustration, NASSCOM, the India-based National Association of Software and Service Companies, predicts that global spending on Engineering R&D (ER&D) is expected to surpass the $1.5 trillion mark by 2025-2026, with $200 billion allocated to outsourced services. Consequently, the escalating demand for outsourcing is a key driver behind the growth of the Engineering Research and Development (ER&D) outsourcing market.
The anticipated rise in cybersecurity threats is poised to fuel the expansion of the Engineering Research and Development (ER&D) outsourcing market in the future. A cybersecurity threat encompasses a malicious and potential act or occurrence intended to compromise the confidentiality, integrity, or availability of information systems, networks, and data. Outsourcing ER&D activities to specialized cybersecurity firms or experts provides access to a skilled professional pool, ensuring that security features are developed and implemented by experts with specific knowledge of cybersecurity. For instance, in September 2023, AAG, a provider of IT support services, reported that 39% of UK companies stated they had experienced a cyberattack in 2022. Additionally, in the first half of 2022, cybercrime had an impact on 53.35 million individuals in the US. Therefore, the increasing cybersecurity threat is a driving force behind the growth of the Engineering Research and Development (ER&D) outsourcing market.
The projected shortage of skilled personnel is expected to drive the growth of the Engineering Research and Development (ER&D) outsourcing market in the future. Skilled personnel are individuals possessing specialized skills, training, and knowledge acquired through education in colleges, universities, or technical schools. Many manufacturing and IT organizations are resorting to outsourcing their technical work due to the scarcity of skilled personnel. This challenge could be mitigated by providing internal training within the organization. For instance, as reported by the Centre for Monitoring Indian Economy, an India-based government organization, in March 2022, the skilled labor force in India decreased by 3.8 million during that year, with employment decreasing by 1.4 million to reach 396 million in 2022. This decline resulted in a 36.7% decrease in the employment rate for the year. Furthermore, Fortune, a US-based online news daily, estimates that by 2030, approximately 85 million jobs globally will remain unfilled due to skills shortages, leading to about $8.5 trillion in unrealized annual revenues. Consequently, the lack of skilled personnel is a key factor propelling the growth of the Engineering Research and Development outsourcing market.
Major companies in this market are concentrating on expanding their facilities to drive the development of the mining sector and meet market demand. Facility expansion involves the process of increasing the capacity or capabilities of an existing facility. As an illustration, in May 2023, Applied Materials Inc., a US-based provider of engineering solutions, announced a facility expansion for collaborative research and development (R&D) in semiconductor process technology and manufacturing equipment. The extensive facility, backed by a multibillion-dollar investment, is strategically designed to provide a unique combination of capabilities within the industry. Covering over 180,000 square feet of cutting-edge cleanroom space-equivalent to more than three American football fields-it is dedicated to collaborative innovation with chipmakers, universities, and ecosystem partners. Purpose-built to accelerate the introduction of new manufacturing advancements, the EPIC Center is expected to significantly reduce the industry's timeline for transitioning technologies from concept to commercialization. This approach enhances the success rate of new innovations and maximizes the return on R&D investments across the semiconductor ecosystem.
In March 2022, HCL, an India-based software technology company, entered into a partnership with Novo Nordisk for an undisclosed amount. This collaboration aims to assist Novo Nordisk in transforming its IT operations, creating exceptional end-user experiences, and enhancing efficiency across its workforce. As part of the partnership, HCL will implement a diversified omni-channel digital workplace solution for Novo Nordisk. Utilizing the knowledge-centered service (KCS) methodology, HCL will contribute to the development of Novo Nordisk's next-generation automation and self-service capabilities. This initiative is expected to provide support to more than 48,000 end-users. Novo Nordisk, based in Denmark, is a pharmaceutical company.
Major companies operating in the engineering research and development (er&d) outsourcing market report are Accenture plc, International Business Machines Corporation, Tata Consultancy Services Limited, Capgemini SE, Cognizant Technology Solutions Corporation, DXC Technology Company, Harman International Industries, Wipro LTD., Tech Mahindra Limited, EPAM Systems lnc., Alten Group, HCL Technologies Limited, Altran Technologies SA, Horiba Ltd., Akka Technologies Group, Mindtree Limited, Bertrandt AG, L&T Technology Services Limited, GlobalLogic Inc., IAV Gmbh, Cyient Limited, Tata Technologies Limited, Assystem, Kistler Group, KPIT Technologies Limited, FEV Europe GmbH, Infosys Limited, Vikram Solar Pvt. Ltd., QuEST Global Services Pte. Ltd., Luxoft lnc., Wabtec Corporation, Siemens AG, Robert Bosch GmbH, ABB Ltd., Honeywell International Inc., NEC Corporation
Asia-Pacific was the largest region in the engineering research and development outsourcing market in 2023. The regions covered in the engineering research and development (er&d) outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the engineering research and development (er&d) outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The engineering research and development (ER&D) outsourcing market includes revenues earned by entities by providing outsourcing services such as service outsourcing, equipment outsourcing. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Engineering Research And Development (ER&D) Outsourcing Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on engineering research and development (er&d) outsourcing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for engineering research and development (er&d) outsourcing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The engineering research and development (er&d) outsourcing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.