Engineering Services Outsourcing

Global Engineering Services Outsourcing Market to Reach US$4.4 Trillion by 2030

The global market for Engineering Services Outsourcing estimated at US$1.7 Trillion in the year 2024, is expected to reach US$4.4 Trillion by 2030, growing at a CAGR of 17.0% over the analysis period 2024-2030. Testing, one of the segments analyzed in the report, is expected to record a 17.8% CAGR and reach US$1.5 Trillion by the end of the analysis period. Growth in the Designing segment is estimated at 18.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$322.9 Billion While China is Forecast to Grow at 22.1% CAGR

The Engineering Services Outsourcing market in the U.S. is estimated at US$322.9 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$607.8 Billion by the year 2030 trailing a CAGR of 22.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 13.3% and 17.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 14.1% CAGR.

Global Engineering Services Outsourcing Market - Key Trends and Drivers Summarized

Engineering Services Outsourcing (ESO) refers to the practice of contracting various engineering tasks, such as design, prototyping, testing, and product development, to external specialists or firms. These services are commonly utilized in industries such as automotive, aerospace, electronics, and construction, which require high levels of expertise in specific engineering domains that may not be available in-house. By outsourcing these services, companies aim to leverage global talent, reduce costs, accelerate time to market for new products, and focus on their core competencies. ESO providers offer a range of solutions, from complete project management to specific engineering functions, using their expertise to ensure quality and innovation.

The ESO market has evolved significantly with advances in communication and project management technologies. These improvements have facilitated smoother collaboration between companies and their outsourcing partners, regardless of geographical distances. Integration of sophisticated software tools such as CAD (Computer-Aided Design), CAM (Computer-Aided Manufacturing), and CAE (Computer-Aided Engineering) within the outsourcing framework has further enhanced the ability of service providers to deliver precise and innovative solutions efficiently. Moreover, as industries increasingly adopt cutting-edge technologies like IoT (Internet of Things) and AI (Artificial Intelligence), ESO firms are also incorporating these tech trends into their offerings to provide more comprehensive, predictive, and adaptive engineering solutions. This shift not only improves the product development cycle but also enhances operational efficiencies and the overall quality of the output.

The growth in the engineering services outsourcing market is driven by several factors, including the increasing complexity of technology, cost pressures faced by businesses, and the need for rapid adaptability in the competitive market. Technological advancements, particularly in digital transformation and automation, necessitate specialized skills that are often more feasible to access through outsourcing than internal development. Economic factors such as cost optimization and access to a global talent pool also play crucial roles in this trend. Companies are keen to capitalize on the strategic advantages offered by outsourcing to mitigate risks associated with the rapidly changing technology landscape. Furthermore, changing consumer expectations demand faster innovation cycles, which outsourcing can help achieve by providing scalable resources and specialized expertise. These dynamics ensure that ESO remains a vital strategy for companies looking to maintain a competitive edge in their respective markets

SCOPE OF STUDY:

The report analyzes the Engineering Services Outsourcing market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Services (Testing, Designing, Prototyping, System Integration, Other Services); Application (Industrial, Healthcare, Telecom, Automotive, Aerospace, Other Applications)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Rest of Europe; Asia-Pacific; Rest of World.

Select Competitors (Total 55 Featured) -

• GlobalLogic, Inc.
• Altair Engineering, Inc.
• Edison Welding Institute, Inc.
• L&T Technology Services Ltd.
• EPAM Systems, Inc.
• Flatworld Solutions Pvt., Ltd.
• DXC Luxoft
• HARMAN Connected Services
• PM Group
• Alten SA
• Cybage Software Pvt. Ltd.
• Cyient Ltd.
• Backoffice Pro
• Capgemini Engineering (France)
• Kevin Technologies Pvt Ltd

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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