Europe holds the highest share in the global engineering services and outsourcing market in 2021. This is because the software development services market in Europe is growing. Further, the shortage of skilled software developers and increasing demand for digital transformation is also propelling the market growth
New Delhi, June 09, 2022 (GLOBE NEWSWIRE) — The study undertaken by Astute Analytica forecasts a tremendous growth in revenue of the Global Engineering Services Outsourcing Market from US$ 1430.75 Bn in 2021 to US$ 3803.21 Bn by 2027. The market is registering a CAGR of 17.7% during the forecast period. Companies nowadays are strategically looking for new ways to reduce operating expenses to boost revenue and enhance growth. Outsourcing services help to reduce labor costs, machines, additional space, skill training, and other technology-related costs. These services prove beneficial for the company as they can invest the saved overhead cost to finance development projects and make other investments for the growth of their business. Outsourcing of business activities has become a major tool for offering productive and necessary services at other locations in a cost-effective way. Outsourcing of engineering services ensures that both knowledge and risk are substantially distributed among a network of connected companies.
Download Free Sample Report Now @ https://www.astuteanalytica.com/request-sample/engineering-services-outsourcing-market
Market Dynamics
The increasing trend of digitalization, automation, and robotics with use of AI and big data analysis in various industries with the integration of Industry 4.0. Further, the government investments encouraging the adoption of Industrial Internet of Things (IIoT) solutions along with rising penetration of machine learning technology in industrial sector with the help of industry 4.0 is creating a lucrative opportunistic growth for the ESO market. According to the International Data Corporation (IDC), IoT spending in the European region will surpass US$ 241 Bn by 2022. Further, Germany spends US$ 35 Bn in IoT followed by France and UK with a spending of US$ 25 Bn in IoT sector. Further, the cost of labor is often very high in developed countries, such as the US, Japan, and Germany. Hence, they prefer outsourcing their engineering services to offshore destinations, such as India, Indonesia, China, Malaysia, which can provide a favorable environment and skilled workers at a low cost. However, the loss of managerial control over connected outsourcing companies may hinder the market growth over the projection period.
Segmental Analysis
Type Insights:
Based on type, the market is segmented into product designing, prototyping, process designing, system integration, testing, quality control, product lifecycle management and plant automation & enterprise asset management. The product designing segment holds the highest market share in 2021. This is because small businesses and new age startups with limited expertise strongly rely on outsourcing product development in emerging sectors like automotive and electronics which is a key factor for the growth of segment.
Location Insights:
Based on location, the market is segmented into onsite, on shore, and offshore locations. Among these, the offshore segment holds the highest market share of 49% in 2021. Labor cost is very high in developed countries; hence companies prefer outsourcing segments to offshore destinations. Further, the rising demand of engineering services from the automotive sector will fuel the market growth during the forecast period. However, the on-site segment has the highest annual growth rate during forecast period, as companies are increasingly focusing on the continuous upgradation of their engineering capabilities to reduce time and improve efficiency.
Pricing Model Insights:
Based on pricing model, the Global Engineering Services Outsourcing Market is categorized into staff augmentation, time and material, fixed price projects, services, and risk/rewards. Staff augmentation segment dominates the market in 2021. However, the risk/reward segment holds the highest CAGR over the forecast period. This is because the client and service provider generally share funding development of new products allowing partner to share rewards. Assigning responsibilities to the partner mitigates some risks associated with new processes, technology, or models.
Industrial Insights:
In terms of industry, the market is segmented into aerospace, automotive, computing systems, construction, consumer electronics, energy, machinery, healthcare, industrial, medical devices, semiconductors, telecom, and others. Among these, the telecom industry holds the highest market share in 2021. Increase in wireless communication, which is a fast-growing sector, and using mobile with cloud-based technology is driving the segmental growth. However, the medical devices segment holds the highest CAGR during the forecast period.
Regional Insights:
Europe holds the highest share in the global engineering services and outsourcing market in 2021. This is because the software development services market in Europe is growing. Further, the shortage of skilled software developers and increasing demand for digital transformation is also propelling the market growth. However, the Asia Pacific engineering services and outsourcing market is projected to growth at the highest annual growth rate of 19.9% owing to the emerging local outsourcing demand, strong manufacturing base, and cost arbitrage in developing countries such as China and India.
Impact of COVID-19
The impact of the outbreak of the COVID-19 pandemic and the subsequent lockdowns in various countries across the world on the engineering services and outsourcing market varied depending on the end-use industries and industry verticals. Various industrial facilities, manufacturing plants, and public transport were shut down temporarily as part of the efforts to control the spread of the disease. Further, the automotive and construction sectors witnessed a fall in demand, which further pulled the market backward. However, the market is expected to grow positively during the forecast period as economies are slowly recovering in the post-pandemic period.
Directly Purchase a copy of report with TOC @ https://www.astuteanalytica.com/request-sample/engineering-services-outsourcing-market
Report Attribute
Details
Market Size Value in 2021
US$ 1430.75 Billion
Market Outlook for 2027
US$ 3803.21 Billion
Expected CAGR Growth
17.7%
Base Year
2021
Forecast Period
2022-2027
Top Market Players
Accenture, AKKA Technologies, Altair Engineering, Inc., ALTEN SA, ASAP Holding GmbH, AVL List GmbH, Cognizant, Bertrandt, Capgemini SE, Cyient, EDAG, ESI Group, Ferchau, Genpact, Geometric, HCL Technologies Limited, IAV, IGate, Infosys, International Business Machines Corporation, ITC Infotech, KPIT, L&T Technology Service, Neilsoft, QuEST Global, Ranal Inc., Segula Technologies, Semcon, Tata Consultancy Services, Tata Elxsi, Tata Technologies, Tech Mahindra, Wipro among others
Segments Covered
By Type, By Location, By Pricing Module, By Industry, By Region
Geographies Covered
North America, Europe, Asia Pacific, South America, Middle East and Africa
Customization Options
Get your customized report as per your preference. Ask for customization
Competitors Landscape
Altair Engineering Inc. is a multinational information technology company that offers open-architecture solutions for data analytics & AI, computer-aided engineering, and high-performance computing (HPC) in various sectors like aerospace, architecture & construction, consumer goods, electronics, healthcare, automotive etc.
Cyient is an engineering & technology company based in India. It offers engineering, manufacturing, data analytics, and networks and operations.
AKKA is a European company engaged in engineering consulting and R&D services that offers engineering services in various sectors like automotive, architecture & life sciences, railway, energy, space, telecom, defense, digital and consulting.
ALTEN is a technology consulting and engineering provider. It provides its clients with the services to develop strategies in the areas of innovation, R&D and information systems.
Assystem, an independent engineering group based in France, operates in a variety of sectors like nuclear, transportation, conventional energy, health, and industry. The company provides services such as systems engineering, consultancy, security, safety, and digitalization.
Segmentation Overview
The following are the various segments of the Global Engineering Services Outsourcing (ESO) Market:
By Type segment of the Global Engineering Services Outsourcing (ESO) Market is sub-segmented into:
Product Designing
Prototyping
Process Designing
System Integration
Testing
Quality Control
Product Lifecycle Management
Plant Automation & Enterprise Asset Management
By Location segment of the Global Engineering Services Outsourcing (ESO) Market is sub-segmented into:
On-Site
Onshore
Offshore
By Pricing Module segment of the Global Engineering Services Outsourcing (ESO) Market is sub-segmented into:
Staff Augmentation (FTE based)
Time and Materia
Fixed Price Projects
Services
Risk/Rewards
By Industry segment of the Global Engineering Services Outsourcing (ESO) Market is sub-segmented into:
Aerospace
Automotive
Computing Systems
Construction
Consumer Electronics
Energy
Heavy Machinery
Healthcare
Industrial
Medical Devices
Semiconductors
Telecom
Others
By Region segment of the Global Engineering Services Outsourcing (ESO) Market is sub-segmented into:
North America
The U.S.
Canada
Mexico
Europe
The UK
Germany
France
Italy
Spain
Poland
Russia
Rest of Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific
Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA
South America
Brazil
Argentina
Rest of South America
To gain more insights into the market with a detailed table of content and figures, click here: https://www.astuteanalytica.com/industry-report/engineering-services-outsourcing-market
About Astute Analytica
Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.
Contact us:
Aamir Beg
BSI Business Park, H-15,Sector-63, Noida- 201301- India
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
Email: sales@astuteanalytica.com
Website: www.astuteanalytica.com
Follow US: LinkedIn | Twitter
Investors are trying to make sense of the markets, in face of conflicting signals. Year-to-date, we’re facing deep losses – but more recently, a sharp rally despite this week’s confirmation that we’re in a recession. Government data released on Thursday showed a 0.9% GDP contraction in Q2, which came on the heels of a 1.6% contraction in Q1. That’s two quarters in a row, the definition of a recession. Jim Cramer, the well-known host of CNBC’s ‘Mad Money’ program, reminds us the ‘conventional wis
When his green credentials were challenged by a young activist on the election trail, Joe Biden had a simple answer.
Slaying the inflation dragon isn't done with baby steps. Expect much higher interest rates as a headwind for equities.
Looking to buy the dip? Start here.
How far off is The Boeing Company ( NYSE:BA ) from its intrinsic value? Using the most recent financial data, we'll…
We don’t advocate for theft. But stealing these strategies is a victimless crime.
Diversification isn't necessary if you know what you're doing, according to the Oracle of Omaha.
Shares of the Illinois-based drugmaker AbbVie (NYSE: ABBV) were down by a hefty 5% as of 2:32 p.m. ET Friday afternoon. As a result, the Dividend Aristocrat's market capitalization has slipped by a staggering $13.2 billion today. Ahead of the opening bell, AbbVie announced its 2022 second-quarter earnings.
Shares of Roku (NASDAQ: ROKU) opened sharply lower on Friday after a blistering financial update. Roku's plummet to close out the trading week is fair. The ad market has softened swiftly, even for Roku's connected TV stronghold that should've held up better than other marketing markets.
When Elon Musk decided to terminate his $44 billion deal to purchase Twitter the social-media company sued in the Delaware Court of Chancery. Twitter is suing for “specific performance,” a rare remedy that would require Musk to complete the merger. Unfortunately for Twitter, it isn’t Elon Musk Inc. but Elon Musk the individual who offered to buy the company.
These three intriguing companies may offer potential over the long haul, but could struggle in a recession.
We feel now is a pretty good time to analyse Tilray Brands, Inc.'s ( NASDAQ:TLRY ) business as it appears the company…
RCI Hospitality Holdings acquired the Cheetah Gentlemen’s Club in Hallandale Beach for $25 million. The Houston-based owner of 52 strip clubs (Nasdaq: RICK) said it acquired the Cheetah for $10 million in cash and $15 million in seller financing, which comes due in 10 years with 6% interest. The deal includes both the business assets and the 14,000-square-foot nightclub on 2.2 acres at 100 Ansin Blvd. According to property records, the seller was 100 Ansin Blvd Property LLC, managed by Jose Rodriguez in Hallandale Beach.
Warren Buffett energy favorite Occidental Petroleum is near a buy point, but earnings are due Tuesday. Check out this week's stocks to watch.
The U.S. Federal Aviation Administration (FAA) on Friday approved Boeing’s inspection and modification plan to resume deliveries of 787 Dreamliners, two people briefed on the matter told Reuters. The FAA approved Boeing’s proposal that requires specific inspections to verify the condition of the airplane meets requirements and that all work has been completed, a move […]It is now guiding for third-quarter revenue of $15 billion-$16 billion vs. the $18.67 billion consensus. As for full-year 2022, its EPS expectation is now $2.30, down from its prior forecast of $3.60 and the $3.39 consensus. In terms of revenue for the year, Intel now expects $65 billion-$68 billion, down from $76 billion and well below the $74.4 billion consensus.
This has been a year to remember for investors in seemingly all the wrong ways. Since the major U.S. indexes hit their respective all-time closing highs between mid-November and the first week of January, the timeless Dow Jones Industrial Average, broad-based S&P 500, and growth-driven Nasdaq Composite (NASDAQINDEX: ^IXIC) have shed as much as 19%, 24%, and 34% of their value. You'll note by the drop in the S&P 500 and Nasdaq that both indexes have entered a bear market.
What do you do when you’re concerned that your holdings are down? Cash out for some alternatives? Buy the dip? Stash your cash under a mattress?
Alibaba Group Holding has been added to a growing list of Chinese companies that face potential delisting from US stock exchanges, days after the e-commerce giant announced plans to seek a primary listing on Hong Kong's bourse with the aim to diversify its investor base. The US Securities and Exchange Commission (SEC) on Friday included Alibaba, owner of the South China Morning Post, to its watch list of US-listed Chinese firms that face removal from American exchanges under a 2020 law, the Hold
A slowing economy is slowing ad spending. Long-term investors should use this weakness to pick up winners while they're on sale.