PUBLISHER: The Business Research Company | PRODUCT CODE: 1526872
PUBLISHER: The Business Research Company | PRODUCT CODE: 1526872
Aerospace engineering services outsourcing involves contracting specialized engineering tasks and projects to external service providers or third-party vendors, typically situated in regions with either lower labor costs or specialized expertise. This practice allows aerospace companies to tap into specialized skills, control expenses, expedite project schedules, and concentrate on core strengths, all while ensuring the delivery of secure, dependable, and innovative aerospace products and services.
The primary elements of aerospace engineering services outsourcing comprise software and hardware. Software encompasses a collection of instructions, programs, or data facilitating computers and other electronic devices to execute specific tasks or functions. These services encompass design and engineering, manufacturing support, security and certification, as well as after-market services, spanning various locations such as onshore and offshore. The functions cover the maintenance process, production process, design and simulation, and digital validation.
The aerospace engineering services outsourcing market research report is one of a series of new reports from The Business Research Company that provides aerospace engineering services outsourcing market statistics, including aerospace engineering services outsourcing industry global market size, regional shares, competitors with a aerospace engineering services outsourcing market share, detailed aerospace engineering services outsourcing market segments, market trends, and opportunities, and any further data you may need to thrive in the aerospace engineering services outsourcing industry. This procedure trays 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 aerospace engineering services outsourcing market size has grown exponentially in recent years. It will grow from $77.51 billion in 2023 to $93.08 billion in 2024 at a compound annual growth rate (CAGR) of 20.1%. The growth witnessed in the historic period can be credited to the advancement of commercial aviation, the progression of radar technology within aviation, the global expansion of air travel, the broadening of international flight routes, and the heightened emphasis on air traffic management.
The aerospace engineering services outsourcing market size is expected to see exponential growth in the next few years. It will grow to $195.0 billion in 2028 at a compound annual growth rate (CAGR) of 20.3%. The anticipated growth in the upcoming period can be ascribed to escalating passenger expectations for swift internet connectivity, the uptrend in aircraft deliveries, strict regulatory requirements mandating the incorporation of safety systems, the increasing utilization of unmanned aerial vehicles (UAVs), and the innovation of fuel-efficient aircraft designs. Key trends projected for the forecast period encompass the growing demand for onshore outsourcing, the surging need for software-based services, the burgeoning collaborations between original equipment manufacturers (OEMs) and service providers, and the amplified focus on specialized engineering services.
The aerospace engineering services outsourcing market is poised for growth, driven by the expanding travel and tourism industries. These sectors encompass a wide spectrum of businesses and services facilitating people's movement for leisure, business, or other purposes, as well as their accommodations at destinations. Factors contributing to the growth of these industries include the preferences of millennial travelers, the rise of experiential travel, health and wellness tourism, the presence of online travel agencies (OTAs), and various leisure activities. Aerospace engineering services outsourcing enables travel and tourism companies to harness specialized expertise, reduce costs, and concentrate on their core competencies. Additionally, it offers the flexibility and scalability required to adapt to evolving market conditions and ensure compliance with regulatory standards. For instance, as reported by the World Tourism Organization in May 2023, international tourism surpassed the $1 trillion milestone in 2022, demonstrating a real growth rate of 50% over 2021. Hence, the expanding travel and tourism industries are stimulating the growth of the aerospace engineering services outsourcing market.
Key players in the aerospace engineering services outsourcing market are focusing on developing innovative technologies, such as flight operation planning platforms, to gain a competitive edge. These platforms are comprehensive software solutions designed to assist airlines, aviation companies, and flight operations teams in efficiently planning, managing, and optimizing various aspects of flight operations. For example, in May 2022, Collins Aerospace, a US-based aerospace and defense company, launched the Izon technology platform in Europe. Izon integrates and streamlines business aviation services, encompassing flight planning, weather information, fleet operations, and more. The platform offers an intuitive, interconnected ecosystem that combines flight operation management, passenger services, and aircraft health monitoring. Leveraging advanced data analytics and artificial intelligence, Izon optimizes flight paths, enhances fuel efficiency, and predicts maintenance requirements, thereby reducing operational costs and improving safety.
In October 2021, Accenture plc, an Ireland-based professional services company, acquired umlaut's Engineering and Consulting Services, aiming to significantly strengthen its Industry X services. These services combine digital technologies with traditional engineering to enhance productivity, growth, and sustainability across various industries. umlaut, a Germany-based company providing engineering and consulting services, including outsourcing aerospace engineering services, aligns with Accenture's strategic goals and expertise.
Major companies operating in the aerospace engineering services outsourcing market are General Dynamics Mission Systems Inc., Honeywell International Inc., Collins Aerospace Inc., L3Harris Technologies Inc., Meggitt PLC, Ball Corporation, Kyocera Corporation, Hexagon AB, Carlisle Interconnect Technologies Inc., The Boeing Company, Rohde And Schwarz GmbH & Co. KG, Cobham plc, Esterline Technologies Corporation, R.A. Miller Industries Inc., Astronics Corporation, TECOM Industries, Inc., AeroVironment, Inc., CMC Electronics Inc., Dayton-Granger Inc., HR Smith Group, Chelton Limited, Haigh-Farr Inc., Antcom Corporation, PIDSO Propagation Ideas And Solutions GmbH, Advanced Aircraft Electronics Inc
North America was the largest region in the aerospace engineering services outsourcing market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the aerospace engineering services outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the aerospace engineering services outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The aerospace engineering services outsourcing market consists of revenues earned by entities by providing design and development outsourcing, testing and validation outsourcing, maintenance, repair, and overhaul (MRO) outsourcing, technical publications and training outsourcing, and research and development (R&D) outsourcing. encompassing a wide range of activities, including the design, analysis, testing, manufacturing, and maintenance of aircraft, spacecraft, and related systems and components. The market value includes the value of related goods sold by the service provider or included within the service offering. The aerospace engineering services outsourcing market also includes sales of structural components, propulsion systems, avionics, electromechanical components, and control surfaces. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
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.
Aerospace Engineering Services 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 aerospace engineering services 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 aerospace engineering services outsourcing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The aerospace engineering services 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.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
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.