Global Product Engineering Services Market Size, Share & Industry Trends Analysis Report By Service Type (Product & Component Design, Process Engineering, Maintenance, Repair & Operations), By Organization Size, By Vertical, By Regional Outlook and Foreca

Global Product Engineering Services Market Size, Share & Industry Trends Analysis Report By Service Type (Product & Component Design, Process Engineering, Maintenance, Repair & Operations), By Organization Size, By Vertical, By Regional Outlook and Forecast, 2022 – 2028

The Global Product Engineering Services Market size is expected to reach $2041.4 billion by 2028, rising at a market growth of 8.5% CAGR during the forecast period.

Product engineering is a type of engineering consultancy that involves using different types of hardware, embedded software, and IT services to design and develop products. From the beginning of a product's lifecycle through its conclusion, there are several phases of product engineering. Businesses seek improved quality and cost advantages from product makers as consumers continue to demand the most recent features and capabilities with quick turnaround times.

Vendors have responded by developing an entirely new engineering service aimed at bringing products to market more quickly. Product engineering is the discipline of organizing product development activities to adhere to a set strategy while taking into account the whole realization cycle, beginning with the product's idea and ending with a marketable product.

Simply said, product engineering is the process of creating, designing, and testing software, apps, or business systems with a specific purpose. It gives a project the necessary edge to constantly increase its quality, functionality, dependability, and durability. Product engineering is the process of creating an assembly, a device, or a system in order for it to be manufactured as a product through a product manufacturing process.

Cost, quality, producibility, performance, dependability, serviceability, planned lifespan, and user features are typically dealt with in product engineering services. All of these product qualities are typically sought in an effort to make the final product appealing to the market for whom it is intended as well as a successful contributor to the organization's business. It comprises product development, design, and the switch to manufacture.

COVID-19 Impact Analysis

The COVID-19 outbreak has significantly affected a number of economic sectors, particularly those concerned with software and product development. However, the product engineering services market was positively impacted by the pandemic. Utilizing cutting-edge technologies to boost operational effectiveness and reduce costs during the pandemic has been advantageous for the industry for procurement outsourcing. To automate the procurement process, organizations are integrating machine learning and artificial intelligence.

Market Growth Factors

Increasing Deployment Of Product Engineering Services Due To Their Attribute Of Minimizing Ttm

One of the major factors that are boosting the growth of the product engineering services market is the rising demand of businesses and companies to reduce the TTM. TTM is the amount of time it takes for a product to go from being planned to being made available for purchase. For businesses where products and services are swiftly deployed, TTM is a very crucial element. Product engineering services help businesses reduce costs, deliver products on time, and employ fewer resources.

Rising Reliability Of Consumers Over Technology And Technological Devices

Businesses strive for improved cost and quality benefits from product makers as consumers always look for the newest features and functions with quick turnaround times. Businesses committed to launching products quicker into the product engineering services industry have created an altogether new engineering service in response to the increased demand for swift product delivery. An engineering consulting firm that uses embedded software, diverse hardware, and IT services solutions for the design and development of products is known as a product engineering service.

Market Restraining Factors

Lack Of Technical Knowledge And Expertise

Technology has been advancing throughout the world over a very long period of time. The way a number of processes in several industries used to be conducted have now been transformed drastically. However, there is a dearth of expertise and knowledge about all of these technologies. Product engineering is also one of such advancement. Lack of technological know-how, lack of awareness, and a lack of expert knowledge would be obstacles to the market's steady rise in value.

Service Type Outlook

On the basis of Service Type, the Product Engineering Services Market is segmented into Product & Component Design, Process Engineering, Maintenance, Repair & Operations, and Others. In 2021, the product and component design segment acquired the largest revenue share of the product engineering services market. The rising growth of the segment is primarily attributed to an expansion in the efforts of various market players in numerous industries in accelerating the development of new solutions and components while also reducing the time-to-market.

Vertical Outlook

By the Vertical, the Product Engineering Services Market is segregated into Automotive & Transportation, Aerospace & Defense, Healthcare, IT & Telecom, Industrial Manufacturing, Energy & Utilities, Media & Entertainment, BFSI, and Others. In 2021, the industrial manufacturing segment acquired a promising revenue share of the product engineering services market. The rise in the growth of the segment is majorly owing to the rapid expansion of the industrial manufacturing sector. A significant number of countries all over the world are also working on becoming independent nations, which is propelling the demand for product engineering services.

Organization Size Outlook

Based on the Organization Size, the Product Engineering Services Market is bifurcated into Small & Medium-sized Enterprises and Large Enterprises. In 2021, the SMBs segment recorded a substantial revenue share of the product engineering services market. The rise in the growth of the segment is ascribed to the rising demand within SMBs for growing their businesses. In order to better serve their customers, small and medium-sized businesses are rapidly adopting product engineering services. Therefore, the growth of the segment is increasing at a very rapid pace.

Regional Outlook

Region-Wise, the Product Engineering Services Market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In 2021, Asia-pacific accounted for the biggest revenue share of the product engineering services market. The expansion in the growth of the segment is contributed by the flourishing IT & telecom sector of regional countries, such as the India. Due to the increasing demand for enhanced solutions to address the diverse set of demands of customers, the growth of the regional product engineering services market is estimated to rise rapidly.

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Accenture PLC and IBM Corporation are the forerunners in the Product Engineering Services Market. Companies such as Tata Consultancy Services Ltd., Capgemini SE and HCL Technologies Ltd. are some of the key innovators in Product Engineering Services Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Wipro Limited, Tata Consultancy Services Ltd., Accenture PLC, HCL Technologies Ltd., Capgemini SE, ALTEN, Happiest Minds Technologies Limited, AVL List GmbH, and AKKA Technologies SE.

Recent Strategies deployed in Product Engineering Services Market

Partnerships, Collaborations and Agreements:

May-2022: Wipro came into a partnership with HFCL, a leader in telecom equipment and technology. Under this partnership, the companies would develop a range of 5G transport products encompassing DU Aggregation Router, Cell Site Router, and CU Aggregation Router. Moreover, the new portfolio would strengthen businesses to realize their 5G-enabled vision and accelerate the introduction of their high-quality 5G solutions to the market.

May-2022: AVL collaborated with the Clemson University International Center for Automotive Research. With this collaboration, the companies aimed to expand methods for autonomous driving research to allow students as well as researchers to conduct complex ADAS/AD validation as well as identification tasks in the safety of a laboratory environment.

Mar-2022: HCL teamed up with NEORIS, a leader in digital acceleration. Through this collaboration, the companies aimed to develop diverse capabilities for customers across global markets. This offering would also include the ability to expand application usage time, integrated IT services, and business management operations.

Mar-2022: Happiest Minds Technologies came into a partnership with OutSystems, a leading low-code application development company. This partnership aimed to bring a low-code platform into the offerings of Happiest Minds to allow businesses to develop, execute, and manage omnichannel enterprise applications operating in the cloud, on-premise, a s well as hybrid environments.

Feb-2022: AVL teamed up with Renesas, an advanced semiconductor solutions vendor. Under this collaboration, the companies aimed to provide seamless customer support in order to aid in the development of electronic control units while also meeting the ISO 26262 international standard for automotive functional safety.

Jan-2022: HCL came into a partnership with Husqvarna, an outdoor power products manufacturer. Through this partnership, the companies aimed to provide leading-edge hybrid cloud management, security services, and a digital workplace.

Dec-2021: HCL signed an agreement with SAP, a German multinational software company. this agreement aimed to enable HCL to integrate the state-of-the-art SAP Business Technology Platform of SAP into its own enterprise applications. This integration would offer seamless SAP functionalities powered by deep industry experience and knowledge of HCL.

Dec-2021: IBM came into an agreement with AIB, an Ireland-based commercial bank. Under this agreement, IBM would aid AIB in delivering its 2023 strategy by expediting its current digital transformation to comply with its customer-first commitment and also offering a clear pathway to an environment of hybrid cloud technology.

Dec-2021: AVL RACING entered into a partnership with STARD, an EV motorsport frontrunner. Through this partnership, the companies aimed to increase their focus on the development, manufacturing, simulation, and testing of motorsport EV high-performance powertrain vehicles and solutions.

Sep-2021: AVL partnered with Canoo, a company manufacturing breakthrough electric vehicles. With this partnership, the companies aimed to develop, test, and validate ADAS software for the Lifestyle Vehicle of Canoo. Moreover, AVL would utilize its expertise to help Canoo in developing fully harmonized ADAS features with its native and proprietary platform design as well as electrical architecture.

Jul-2021: Capgemini entered into a partnership with CONA Services, a core IT & Analytics services provider. Under this partnership, the companies would integrate their efforts in order to build and empower a novel range of CPRD digital solutions.

Jul-2021: Capgemini joined hands with Qualcomm, a leader in 5G and wireless communications. With this collaboration, the companies aimed to leverage the advantages of 5G private networks in order to support the digital transformation of their customers into the Intelligent Industry.

Jul-2021: Wipro partnered with Celonis, a leader in execution management. Following this partnership, Wipro would introduce the Global Celonis Center in order to accelerate operations transformation for customers by leveraging the Execution Management System of Celonis along with Wipro’s expertise.

Apr-2021: ALTEN partnered with Mobiveil, a leader in high-speed silicon IP. This partnership aimed to expedite growth while also offering value for both customers as well as companies within the United States, Asia Pacific, and Europe by integrating the semiconductor engineering capabilities of ACL into high-speed controller IP and value-added services of Mobiveil.

Nov-2020: Wipro signed an agreement with ThoughtSpot, a technology company. Under this agreement, Wipro would improve a number of Search and Analytics platform components of ThoughtSpot with the aim to aid in scale feature development.

Product Launches and Product Expansions:

Jun-2022: HCL launched the Industry NeXT, a solution to aid in the digital reinvention of businesses. The new solution aimed to allow businesses globally to plan, prepare, and impeccably transform into a collaborative ecosystem by streamlining connected experiences, and delivery of blended digital and physical.

Mar-2021: Tata Consultancy Services rolled out the TCS Connected Consumer Home solution. The new product aimed to help communication and media service providers in providing connected as well as intuitive consumer experiences.

Acquisitions and Mergers:

May-2022: HCL took over Quest Informatics, a Bengaluru-based Industry 4.0 and IoT company. Following this acquisition, the company would leverage Quest's capabilities to expand its Industry 4.0 portfolio into the fast-growing aftermarket space.

Apr-2022: HCL acquired Starschema, a leader in providing data engineering services. This acquisition aimed to boost the capabilities of HCL within data engineering-driven digital engineering while also strengthening its footprint across Central and Eastern Europe.

Apr-2022: ALTEN formed a merger with Syncroness, a design engineering consulting. Following this merger, the companies aimed to integrate their project-based engineering and IT consulting expertise in order to offer a broader range of service offerings over a larger scale within the United States and the rest of the world.

Feb-2022: IBM completed its acquisition of Neudesic, a cloud services consultancy based in the US. Through this acquisition, the company aimed to expand the hybrid multi-cloud services offerings of IBM and also enhance the AI and hybrid cloud strategy of the company.

Dec-2021: IBM acquired Instana, a leader in application performance monitoring and enterprise observability platform. Through this acquisition, The company aimed to develop and deliver the best-in-class automation capabilities powered by AI in order to address modern application complexities spanning hybrid cloud landscapes.

Dec-2021: Accenture acquired Headspring, a cloud-native and platform engineering services company. This acquisition aimed to aid the company in scaling one of the most comprehensive platform engineering as well as cloud-native capabilities across the world.

Aug-2021: Accenture took over consulting capabilities of DI Square, a Provider of consulting services. Following this acquisition, DI Square’s capabilities would help Accenture in growing its engineering expertise to build solutions and systems with the ability to integrate and optimize the engineering processes of customers.

Jul-2021: IBM took over Bluetab Solutions, an enterprise software, and technical services company. Following this acquisition, the company aimed to expand its data and hybrid cloud consulting services offerings by making Bluetab a strategic part of its data services consulting practice.

Jun-2021: Accenture completed its acquisition of umlaut, an engineering consulting and services company. This acquisition aimed to expand the engineering capability of Accenture across emerging and digital technologies, such as AI, 5G, and cloud computing.

Feb-2021: Wipro completed its acquisition of Eximius Design, a leader in engineering services. under this acquisition, the company would integrate the solutions and offerings of Eximius into its EngineeringNXT framework to offer a platform to engineer and innovate advanced products and platforms at scale.

Expansions:

Jun-2022: IBM expanded its geographical footprint in Kerala with the launch of an Automation Innovation Centre at Brigade World Trade Centre. This geographical expansion would enable IBM as well as the IBM ecosystem partners to develop automation solutions over their lifecycle and would also aid customers within sectors, such as business automation, integration, and AIOps.

Jan-2022: HCL expanded its geographical footprint in Alberta with the opening of its Innovation Center in Edmonton. Following this geographical expansion, the company aimed to integrate academia's partners ecosystem, government institutions, startups, and technology providers in order to serve as a hub. It would enable the Engineering teams of HCL to co-innovate with customers to address complex business problems for customers across the world.

Apr-2021: Capgemini rolled out Capgemini Engineering. Through this launch, the company aimed to help businesses in engineering next-gen products and services and also allow them to comply as the physical and digital worlds converge.

Scope of the Study

Market Segments covered in the Report:

By Service Type

• Product & Component Design
• Process Engineering
• Maintenance, Repair & Operations
• Others

By Organization Size

• Large Enterprises
• Small & Medium-sized Enterprises

By Vertical

• Automotive & Transportation
• Industrial Manufacturing
• Healthcare
• IT & Telecom
• Energy & Utilities
• BFSI
• Aerospace & Defense
• Media & Entertainment
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• IBM Corporation
• Wipro Limited
• Tata Consultancy Services Ltd.
• Accenture PLC
• HCL Technologies Ltd.
• Capgemini SE
• ALTEN
• Happiest Minds Technologies Limited
• AVL List GmbH
• AKKA Technologies SE

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