Engineering Services Outsourcing Market by Sourcing, End-user, and Geography - Forecast and Analysis 2021-2025

  • Published: Mar 2021
  • Pages: 120
  • SKU: IRTNTR40539
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The engineering services outsourcing (ESO) market has the potential to grow by USD 187.99 billion during 2021-2025, and the market’s growth momentum will accelerate at a CAGR of 22.50%.

This engineering services outsourcing 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 market segmentation by end-user (automotive, consumer electronics, telecom, semiconductor, and others), sourcing (offshore and onshore), and geography (North America, APAC, Europe, South America, and MEA). 

What will the Engineering Services Outsourcing Market Size be in 2021?

Engineering-Services-Outsourcing-Market-Market-Size-2020-2025

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Engineering Services Outsourcing Market: Key Drivers and Trends

Based on our research output, there has been a neutral impact on the market growth during and post COVID-19 era. The cost savings from lower labor wages is notably driving the engineering services outsourcing market growth, although factors such as the risk of intellectual property theft and misuse may impede market growth. To unlock information on the key market drivers and the COVID-19 pandemic impact on the engineering services outsourcing industry get your FREE report sample now.

  • The cost savings from lower labor wages will be a significant factor driving the engineering services outsourcing market growth.
  • The high labor cost in developed or industrialized countries is driving organizations in these countries to outsource their engineering operations to less-expensive locations.
  • The outsourcing of engineering services will enable organizations to delegate work to a low-cost workforce and minimize costs associated with the maintenance of additional infrastructure, office space, operations, and staffing.
  • Outsourcing allows companies to scale operations on-demand and minimize expenses related to employee hiring and retention.
  • These advantages are expected to boost the outsourcing of engineering services from high-cost labor countries, such as the US, Denmark, France, Germany, and the UK, to low-cost labor countries such as India, Malaysia, Thailand, and Bulgaria.
  • Companies are increasingly focusing on the continuous upgradation of their engineering capabilities to reduce the time to market and gain a significant advantage over their competitors in terms of pricing and brand name.
  • The significant time and resources required for product development are driving companies to adopt outsourced engineering services and solutions.
  • The engineering solutions provided by market vendors help clients to maintain product standards and service quality and accelerate time to market.
  • Engineering services outsourcing provides faster access to emerging markets and helps companies establish their presence ahead of their competitors.
  • The reduced time to market and improved access to emerging markets will positively impact engineering services outsourcing market growth during the forecast period.

This engineering services outsourcing market analysis report also provides detailed information on upcoming trends and challenges that will have a far-reaching effect on the market growth. Get detailed insights on the trends and challenges, which will help companies evaluate and develop growth strategies.

Who are the Major Engineering Services Outsourcing Market Vendors?

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

 

  • Accenture Plc
  • Altair Engineering Inc.
  • ALTEN Group
  • Capgemini Services SAS
  • HCL Technologies Ltd.
  • Infosys Ltd.
  • RLE INTERNATIONAL Produktentwicklungsgesellschaft mbH
  • Tata Consultancy Services Ltd.
  • Tech Mahindra Ltd.
  • Wipro Ltd.

 

The ESO market is fragmented and the vendors are deploying growth strategies such as adopting automation and machine learning algorithms to compete in the market. Click here to uncover other successful business strategies deployed by the vendors. 

To make the most of the opportunities and recover from 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.

Download a free sample of the engineering services outsourcing market forecast report for insights on complete key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies. 

Which are the Key Regions for Engineering Services Outsourcing Market?

Engineering-Services-Outsourcing-Market-Market-Share-by-Region-2020-2025

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41% of the market’s growth will originate from North America during the forecast period. The US is a key market for engineering services outsourcing in North America. Market growth in North America will be faster than the growth of the market in other regions.

The large number of ESO agreements signed by US-based companies with service providers in low-cost countries will facilitate the ESO market growth in North America over the forecast period. To garner further competitive intelligence and regional opportunities in store for vendors, view our sample report.

What are the Revenue-generating End-user Segments in the Engineering Services Outsourcing Market?

Engineering-Services-Outsourcing-Market-Market-Share-by-End-2020-2025

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The engineering services outsourcing market share growth by the automotive segment will be significant during the forecast period. The need for cost reduction, less time-to-market, and increasing competition are a few of the significant factors driving the demand for ESO in the automotive industry.

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

 

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What are the Key Factors Covered in this Engineering Services Outsourcing Market Report?

  • CAGR of the market during the forecast period 2021-2025
  • Detailed information on factors that will drive engineering services outsourcing market growth during the next five years
  • Precise estimation of the ESO market size and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • The growth of the engineering services outsourcing industry across North America, APAC, Europe, South America, and MEA
  • 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 services outsourcing market vendors

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Engineering Services Outsourcing Market Scope

Report Coverage

Details

Page number

120

Base year

2020

Forecast period

2021-2025

Growth momentum & CAGR

Accelerate at a CAGR of 23%

Market growth 2021-2025

$ 187.99 billion

Market structure

Fragmented

YoY growth (%)

21.57

Regional analysis

North America, APAC, Europe, South America, and MEA

Performing market contribution

North America at 41%

Key consumer countries

US, China, India, Germany, and Poland

Competitive landscape

Leading companies, competitive strategies, consumer engagement scope

Companies profiled

Accenture Plc, Altair Engineering Inc., ALTEN Group, Capgemini Services SAS, HCL Technologies Ltd., Infosys Ltd., RLE INTERNATIONAL Produktentwicklungsgesellschaft mbH, Tata Consultancy Services Ltd., Tech Mahindra Ltd., and Wipro Ltd.

Market Dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and future consumer dynamics, market condition analysis for 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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Executive Summary

    Market Landscape

    • Market ecosystem
    • Value chain analysis

    Market Sizing

    • Market definition
    • Market segment analysis
    • Market size 2020
    • Market outlook: Forecast for 2020 - 2025

    Five Forces Analysis

    • Five Forces Summary
    • Bargaining power of buyers
    • Bargaining power of suppliers
    • Threat of new entrants
    • Threat of substitutes
    • Threat of rivalry
    • Market condition

    Market Segmentation by End-user

    • Market segments
    • Comparison by End-user
    • Automotive - Market size and forecast 2020-2025
    • Consumer electronics - Market size and forecast 2020-2025
    • Telecom - Market size and forecast 2020-2025
    • Semiconductor - Market size and forecast 2020-2025
    • Others - Market size and forecast 2020-2025
    • Market opportunity by End-user

    Market Segmentation by Sourcing

    • Market segments
    • Comparison by Sourcing
    • Offshore - Market size and forecast 2020-2025
    • Onshore - Market size and forecast 2020-2025
    • Market opportunity by Sourcing

    Customer landscape

      Geographic Landscape

      • Geographic segmentation
      • Geographic comparison
      • North America - Market size and forecast 2020-2025
      • APAC - Market size and forecast 2020-2025
      • Europe - Market size and forecast 2020-2025
      • South America - Market size and forecast 2020-2025
      • MEA - Market size and forecast 2020-2025
      • Key leading countries
      • Market opportunity by geography
      • Market drivers
      • Market challenges
      • Market trends

      Vendor Landscape

      • Overview
      • Vendor landscape
      • Landscape disruption

      Vendor Analysis

      • Vendors covered
      • Market positioning of vendors
      • Accenture Plc
      • Altair Engineering Inc.
      • ALTEN Group
      • Capgemini Services SAS
      • HCL Technologies Ltd.
      • Infosys Ltd.
      • RLE INTERNATIONAL Produktentwicklungsgesellschaft mbH
      • Tata Consultancy Services Ltd.
      • Tech Mahindra Ltd.
      • Wipro Ltd.

      Appendix

      • Scope of the report
      • Currency conversion rates for US$
      • Research methodology
      • List of abbreviations

      Research Framework

      Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

      TechnavioINFORMATION SOURCES

      Primary sources

      • Manufacturers and suppliers
      • Channel partners
      • Industry experts
      • Strategic decision makers

      Secondary sources

      • Industry journals and periodicals
      • Government data
      • Financial reports of key industry players
      • Historical data
      • Press releases
      Technavio

      TechnavioDATA ANALYSIS

      Data Synthesis

      • Collation of data
      • Estimation of key figures
      • Analysis of derived insights

      Data Validation

      • Triangulation with data models
      • Reference against proprietary databases
      • Corroboration with industry experts
      Technavio

      TechnavioREPORT WRITING

      Qualitative

      • Market drivers
      • Market challenges
      • Market trends
      • Five forces analysis

      Quantitative

      • Market size and forecast
      • Market segmentation
      • Geographical insights
      • Competitive landscape
      Interested in this report?
      Get your FREE sample now!
      The engineering services outsourcing market growth will increase by $207.85 billion during 2019-2024.
      The engineering services outsourcing market is expected to grow at a CAGR of 22.50% during 2019-2024.
      Technavio has segmented the engineering services outsourcing market by end user (Automotive, Consumer electronic, Telecom, Semiconductor, and Aerospace) and geographic (North America, APAC, Europe, South America, and MEA).
      Accenture, Altair Engineering, Inc., Alten GmbH, Aricent Group, HCL Technologies, Infosys, RLE International Group, TCS, Tech Mahindra Ltd., Wipro are a few of the key vendors in the engineering services outsourcing market.
      North America will register the highest growth rate of 41.27% among the other regions. Therefore, the engineering services outsourcing market in North America is expected to garner significant business opportunities for the vendors during the forecast period.
      The key factors driving the engineering services outsourcing market growth are:
      • Cost savings from lower labor wages
      • Collaborative co-innovation partnership with outsourcing firms
      The engineering services outsourcing market vendors should focus on grabbing business opportunities from the automotive segment as it accounted for the largest market share in the base year.
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