PUBLISHER: The Business Research Company | PRODUCT CODE: 1702696
PUBLISHER: The Business Research Company | PRODUCT CODE: 1702696
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 $93.08 billion in 2024 to $112.23 billion in 2025 at a compound annual growth rate (CAGR) of 20.6%. The growth in the historic period can be attributed to the growth of commercial aviation, the evolution of radar technology in aviation, the globalization of air travel, the expansion of international routes, and increased 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 $234.14 billion in 2029 at a compound annual growth rate (CAGR) of 20.2%. The growth in the forecast period can be attributed to growing passenger expectations for high-speed internet access, rising aircraft deliveries, stringent regulations mandating the installation of safety systems, growing use of unmanned aerial vehicles (UAVs), and developing fuel-efficient aircraft designs. Major trends in the forecast period include increasing demand for on-shore outsourcing, rising demand for software-based services, growing partnerships between original equipment manufacturers (OEMs) and service providers, and increasing 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 June 2024, Cognizant Technology Solutions Corporation, a US-based technology company specializing in banking, healthcare, and manufacturing, acquired Belcan LLC for $1.29 billion. This acquisition allows Cognizant to enhance its engineering and manufacturing capabilities by integrating Belcan's extensive expertise in engineering services and solutions. It strengthens Cognizant's position in key sectors such as aerospace and automotive, while further enabling the company to offer comprehensive digital transformation services to its clients. Belcan LLC, a US-based company, provides engineering services and workforce solutions.
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 2024. 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 2025 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 forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.