Get our updated market research report on the Global Product Engineering Services Market 2018-2022
Market overview of product engineering services
Time-to-market remains an important benchmark that helps to improve business agility. Enterprises can gain significant benefits in terms of pricing and brand name by introducing products faster than competitors. Product-engineering solutions contribute to reducing development time and accelerate time-to-market. For instance, software product development firms find it difficult to reduce the time required to develop products with tighter budget constraints, limited workforce, and compliance issues. Vendors in this market are providing product engineering solutions to help independent software vendor (ISVs) and other clients to maintain product standards and service quality while accelerating time-to-market. Technavio’s market research analyst predicts the global product engineering services market to grow at a CAGR of around 10% during the forecast period.
The rising adoption of IoT solutions is anticipated to aid the market growth over the next four years. It is estimated that by 2020, there would be approximately 25 billion connected devices across the globe. Advanced sensor technologies can enhance M2M communications and provide better connectivity to improve IT systems. IoT solutions help end-users to enhance the customer experience and reduce costs through automated sensors, devices, and application services. For instance, leading vendors, such as TCS and Wipro, are providing end-to-end engineering services and solutions to implement IoT for various industry verticals such as automobiles, high-tech retail, aerospace, consumer packaged goods, energy, utilities, healthcare, and telecommunications.
End-user segmentation of the product engineering services market
- Automotive
- Independent software vendors
- Telecom
- Semiconductor
- Healthcare
- Consumer electronics
- Others (aerospace, defense, and construction)
The automotive sector was the largest end user of product engineering services during 2015, accounting for a market share of 26%. The rise in competition in the automotive industry has led to the adoption of integrated engineering solutions that can help reduce production costs and reduce production cycle time of automobiles. Product engineering service solutions are also helping automobile OEMs tackle uncertain economic conditions and in the management of the demand and supply equilibrium.
Geographical segmentation of the product engineering services market
- Americas
- APAC
- EMEA
During 2015, the Americas were the largest contributor to the market, accounting for more than 39% of the market share. R&D spending in different industry verticals in the Americas is higher than in other regions. The financial and telecom sectors in the region are adopting advanced IT solutions such as virtualization and software-defined technology that has driven the demand for advanced product engineering services. Moreover, manufacturers in the automobile, telecom, healthcare, and ISV sectors use product engineering services to manage the product development lifecycle.
Competitive landscape and key vendors
The competition among the vendors in the product engineering services market is intense. Numerous vendors are providing similar solutions to their clients. The market being a strategic priority to OEMs, several niche players and IT service providers are foraying into this space with sector-specific offerings, and also through inorganic means.
The leading vendors in the market are -
- Accenture
- Cognizant
- HCL
- TCS
- Wipro
Other prominent vendors in the market include Alten Calsoft Labs, Aricent, Capgemini, EPAM, Genpact, Happiest Mind, HARMAN, iGATE, Nexient, Pactera, and Tech Mahindra.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global product engineering services market?
- What are the key market trends impacting the growth of the product engineering services market?
- What are the challenges to market growth?
- Who are the key vendors in this market space?
- What are the market opportunities and threats faced by the vendors in the global product engineering services market?
- What are the trending factors influencing the market shares of the Americas, APAC, and EMEA?
- What are the key outcomes of the five forces analysis of the product engineering services market?
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