Engineering Research and Development Services Market by End-user and Geography - Forecast and Analysis 2022-2026

The engineering research and development services market share is expected to increase to USD 513.86 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 12.75%

This engineering research and development services market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers engineering research and development services market segmentation by:

• End-user - IT and telecom, automotive, semiconductor, aerospace, and others 
• Geography - North America, APAC, Europe, South America, and Middle East and Africa

The engineering research and development services market report also offers information on several market vendors, including ABB Ltd., Accenture Plc, AECOM, ALTEN Group, Cognizant Technology Solutions Corp., Happiest Minds Technologies Ltd., HCL Technologies Ltd., iNCAETEK Solutions Pvt. Ltd., Infosys Ltd., Magnasoft Consulting India Pvt. Ltd., QuEST Global Services Pte. Ltd., Tata Consultancy Services Ltd., Tech Mahindra Ltd., Virtusa Corp., Wipro Ltd., Capgemini Service SAS, and Tata Sons Pvt. Ltd. among others.

What will the Engineering Research and Development Services Market Size be During the Forecast Period?

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Engineering Research and Development Services Market: Key Drivers, Trends, and Challenges

The need for technological innovation is notably driving the engineering research and development services market growth, although factors such as lack of quality control may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the engineering research and development services industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Engineering Research and Development Services Market Driver

One of the key factors driving growth in the engineering research and development services market is the need for technological innovation. Consumers desire a superior product and service experience. The advent of technologies such as AI, ML, deep learning, blockchain, and quantum computing has increased the focus of organizations on mitigating disruption due to technological innovation to remain competitive. Traditional banks may not be able to provide such innovative services due to the slow pace of innovation, late adoption of technologies, and bureaucratic pressure. Hence, they adopt ER and D services for activities related to innovation. The incorporation of innovation and the digitalization of business processes allow organizations to gain a competitive advantage, and ER and D services help such organizations to overcome their R and D limitations and develop superior products and services. In the rapidly evolving technology landscape, ER and D services enable clients to pioneer and architect next-generation solutions to gain a competitive advantage. Therefore, the need for technological innovation will drive the growth of the global ER and D services market.

Key Engineering Research and Development Services Market Trend

The advent of Industry 4.0 is an engineering research and development services market trend that is expected to have a positive impact in the coming years. Industry 4.0 refers to the use of emerging digital technologies and smart manufacturing and the automation of business and production processes to create connected, automated, and smart production systems. The advent of advanced technologies such as 3D printing, additive manufacturing, AR, VR, and Big Data analytics is a positive pointer for Industry 4.0. The ongoing digital transformation of industries is increasing the adoption of innovative technologies to gain a strategic and operational advantage. Hence, the utilization of ER&D services is increasing. The integration of hardware and software in traditional processes enables connectivity in systems to create a feedback loop, which provides an opportunity to gather data and generate insights to improve efficiency and productivity.

Key Engineering Research and Development Services Market Challenge

The lack of quality control will be a major challenge for the engineering research and development services market during the forecast period. ER and D services are associated with a lack of quality control and loss of process visibility due to outsourcing. Some reasons for the lack of quality control are inexperience and lack of in-depth knowledge among ER and D vendors, miscommunication between clients and the service providers, and language and cultural differences. The lack of effective communication can lead to the misunderstanding of instructions. ER and D service organizations may also not have the same standards of quality or lack technical adequacy. The outsourcing of ER and D services also causes concern among organizations due to the fear of losing control of IP. Therefore, a lack of quality control is a challenge to the growth of the global ER and D services market.

This engineering research and development services market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global engineering research and development services market as a part of the global diversified support services market within the global commercial services and supplies market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the engineering research and development services market during the forecast period.

Who are the Major Engineering Research and Development Services Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• ABB Ltd.
• Accenture Plc
• AECOM
• ALTEN Group
• Cognizant Technology Solutions Corp.
• Happiest Minds Technologies Ltd.
• HCL Technologies Ltd.
• iNCAETEK Solutions Pvt. Ltd.
• Infosys Ltd.
• Magnasoft Consulting India Pvt. Ltd.
• QuEST Global Services Pte. Ltd.
• Tata Consultancy Services Ltd.
• Tech Mahindra Ltd.
• Virtusa Corp.
• Wipro Ltd.
• Capgemini Service SAS
• Tata Sons Pvt. Ltd.

 

This statistical study of the engineering research and development services market encompasses successful business strategies deployed by the key vendors. The engineering research and development services market is fragmented and the vendors are deploying growth strategies such as focusing on R&D to compete in the market.

Product Insights and News

• abb.com - Under the unified segment, the company conducts research and development, manufacturing, commercialization and sale of innovative medicines and therapies to allocate resources and assess business performance on a global basis in order to achieve established long term strategic goals.

To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The engineering research and development services market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Engineering Research and Development Services Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the engineering research and development services market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Engineering Research and Development Services Market?

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42% of the market's growth will originate from North America during the forecast period. The US is the key market for engineering research and development services in North America. Market growth in this region will be faster than the growth of the market in the European, MEA and South American regions.

The high number of agreements between US-based companies such as Amazon.com, Microsoft, Intel, and Alphabet with ER and D service vendors across the world will facilitate the engineering research and development services market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of COVID-19 negatively impacted the regional market in 2020, as the demand for outsourced engineering research and development services declined in the region. The US was the most severely hit economy in the region. However, in 2021, owing to mass vaccination drives in this region, various industries resumed their operations. This factor, in turn, is expected to drive the growth of the regional market during the forecast period.

What are the Revenue-generating End-user Segments in the Engineering Research and Development Services Market?

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The engineering research and development services market share growth in the IT and telecom segment will be significant during the forecast period. The digitalization of the critical systems and processes of organizations encourages them to implement cloud computing. Therefore, the adoption of ER and D services by IT organizations is increasing. The rising demand for high-quality consumer experience increases the need for flawless software implementation with the right brand, technology, and product strategy. The technology stack of applications and platforms is rapidly changing due to the advent of advanced technology-based startups. The growing demand for the deployment of secure software solutions that can accommodate modern heterogeneous IT infrastructure, which comprises multiple form factors and operating systems (OS), to provide a seamless consumer experience increases the demand for ER and D services.

This report provides an accurate prediction of the contribution of all the segments to the growth of the engineering research and development services market size and actionable market insights on the post-COVID-19 impact on each segment.

 

Engineering Research and Development Services Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 12.75%
Market growth 2022-2026	$513.86 billion
Market structure	Fragmented
YoY growth (%)	11.67
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	North America at 42%
Key consumer countries	US, India, China, Germany, and UK
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	ABB Ltd., Accenture Plc, AECOM, ALTEN Group, Cognizant Technology Solutions Corp., Happiest Minds Technologies Ltd., HCL Technologies Ltd., iNCAETEK Solutions Pvt. Ltd., Infosys Ltd., Magnasoft Consulting India Pvt. Ltd., QuEST Global Services Pte. Ltd., Tata Consultancy Services Ltd., Tech Mahindra Ltd., Virtusa Corp., Wipro Ltd., Capgemini Service SAS, and Tata Sons Pvt. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Engineering Research and Development Services Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive engineering research and development services market growth during the next five years
• Precise estimation of the engineering research and development services market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the engineering research and development services industry across North America, APAC, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of engineering research and development services market vendors

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