Integrated Solutions Aiding Expansion of Engineering Services Outsourcing Industry, says Market.us

Ketan Mahajan
Ketan Mahajan

Updated · Jan 30, 2023

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In order to produce cutting-edge engineering products at a reasonable price and with a competitive edge, engineering services outsourcing is adopted. It refers to utilizing the best technology and services related to the business core engineering process, such as auto designing, computer-aided manufacturing, and designing.

Industries like aerospace, automotive, construction, consumer electronics, semiconductor, pharmaceuticals, and telecom are just a few that could benefit from outsourcing engineering services.

According to a report by Market.us, “The size of the global engineering services outsourcing market was predicted at USD 1.4 Million in 2021. By 2032, it is anticipated to have grown at a compound annual growth rate (CAGR) of 23.3% between 2023 and 2032, reaching USD 14.02 Million.”

Engineering Services Outsourcing Market Size

One of the main factors propelling the market’s expansion is the rise in industrial automation combined with the increasing use of integrated solutions for engineering system analysis and design.

Other growth-promoting aspects include various technological developments and the introduction of digital transformational services.

Additionally, the industry is expanding due to the extensive use of engineering systems, including CAD, CAE, CAM, and EDA software. The user can use this program on laptops, smartphones, and tablets to improve the overall productivity of production operations.

The development of 3D printing technologies and other factors, such as the growing use of strategic outsourcing services by the marine, automotive, and offshore sectors, are anticipated to fuel market growth.

Small and medium-sized engineering service providers are increasingly favoring engineering services outsourcing. These services include process engineering, automation, the introduction of new products from abstract design to final product development and validation, enterprise asset management, and general business process improvement. This explains why the market for outsourcing engineering services worldwide is expected to grow profitably.

Anurag Sharma, a senior research analyst at Market.us, said, “Reduced time to market, easier access to emerging markets and cost savings from lower labor costs are what drive the market. Additionally, it is projected that cost savings from lower labor costs will accelerate market expansion.”

One of the main factors driving the expansion of the worldwide engineering services outsourcing market is the growing requirement for various businesses to lower total operating cost expenditure.

The increasing need to shorten product lifecycles and cut costs, as well as the rising desire for product options that incorporate the most outdated technology, are all expected to support market expansion.

The expanding partnerships between original equipment manufacturers and engineering service providers are one of the main factors influencing the adoption of engineering services outsourcing.

To support the SOVICO Group’s digital transformation, Tech Mahindra and the SOVICO Group, a significant investor in Vietnam, formed a strategic partnership in December 2021. The cooperation was revealed during H.E. Vuong Dinh Hue’s formal visit to India as the head of Vietnam’s National Assembly.

Rolls-Royce, a major auto and aerospace company with headquarters in the UK, selected Infosys as a key long-term assistant to deliver designing and advanced administrations in May 2020. It will provide Rolls-Royce with developing automated solutions to resolve its clients’ problems.

The increasing need to shorten product lifecycles and cut costs, as well as the rising desire for product options that incorporate the most outdated technology, are all expected to support market expansion.

With the US, Japan, and Germany being the top three markets, it is anticipated that the service that is outsourced for research and development will rise. A growing interest in ESO can be attributed to the booming businesses in countries like China, Brazil, and India, which are the key centers for manufacturing automobiles, buildings, and machines.

South America is anticipated to develop at the quickest rate over the projection period, with a CAGR of approximately 30%. The region has become one of the many top off-shore outsourcing locations for American manufacturers and suppliers.

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Ketan Mahajan

Ketan Mahajan

Hey! I am Ketan, working as a DME/SEO having 5+ Years of experience in this field leads to building new strategies and creating better results. I am always ready to contribute knowledge and that sounds more interesting when it comes to positive/negative outcomes.