NEW DELHI, Jan. 19, 2022 /PRNewswire/ — Global engineering services outsourcing (ESO) market is expected to grow at a compounded annual growth rate of 17.7% and record an opportunity of US$ 2,372.5 Billion during the forecast period of 2021 to 2027.
The increasing trend of digitalization, automation, and robotics with use of AI and big data analysis in various industries with the integration of Industry 4.0. Further, the government investments encouraging the adoption of Industrial Internet of Things (IIoT) solutions along with rising penetration of machine learning technology in industrial sector with the help of industry 4.0 is creating a lucrative opportunistic growth for the ESO market. According to the International Data Corporation (IDC), the Canada projects spending on IoT will achieve as high as US$ 6.5 billion and European region will surpass US$ 241 billion by 2022, as in 2019 Germany spent US$ 35 billion in IoT followed by France and UK.
Request a Sample Report of Engineering Services Outsourcing Market: https://www.astuteanalytica.com/request-sample/engineering-services-outsourcing-market
Despite of expected covid-19 impact and other hinderance such as loss of managerial control over connected outsourcing companies, the ESO market is projected to grow with a CAGR of 17.7% during the forecast period.
Global Engineering Services Outsourcing Market by Location
The global engineering services outsourcing market is segmented into various categories such as by type, by location, by pricing module, and by industry.
On the basis of location, the market is further segmented into onsite, on shore, and offshore locations. As per the research report by Astute Analytica, Offshore segment holds the highest market share of 49% in 2021 and is expected to generate a revenue of up to US$ 1,870.83 Bn by the end of the year 2027. The reason behind highest market share is major engineering outsourcing demand comes from offshore segment. Labor cost is very high in developed countries; hence companies prefer outsourcing segments to offshore destinations. The increasing demand from the automotive sector will be a significant factor that will contribute to engineering services outsourcing market growth in this region.
As per the study of ESO market, on-site segment has the highest annual growth rate of 20.1% during forecast period, as companies are increasingly focusing on the continuous upgradation of their engineering capabilities to reduce its time and improve efficiency. Furthermore, it helps in business engineering or project management team will work with company and according to its need to find best solution for the company.
Global Engineering Services Outsourcing Market by Region
As per the research analysis, the global engineering services outsourcing market size was valued at US$ 1,430.7 Bn in the year 2021. The market is expected to grow at a compounded annual growth rate (CAGR) of 17.7% during forecast period 2021-2027.
Geographically, North America and Europe hold the highest share in the global engineering services and outsourcing market of 33% each in 2021. As adoption of cloud services and R&D investment on new technology are the major factor for its future growth. The Europe engineering services and outsourcing market for software development services is growing owing to shortage of skilled software developers and increasing demand for digital transformation in the region.
As per the research analysis, Asia Pacific engineering services and outsourcing market is projected to growth at a fast annual growth rate of 19.9% as the region have emerging local outsourcing demand, strong manufacturing base, and cost arbitrage in developing countries such as China and India are the major growth drivers of the APAC engineering services outsourcing market.
Request Customized Copy of Report @ https://www.astuteanalytica.com/ask-for-customization/engineering-services-outsourcing-market
Covid – 19 Impact on Global Engineering Services Outsourcing Market
The impact of the COVID-19 pandemic and the subsequent lockdowns in various countries across the world on the engineering services and outsourcing market varied depending on the end-use industries and industry verticals, resulting incumbents of industries and industry verticals, such as automotive and construction, had to confront a downturn in demand.
The impact of the pandemic was moderate on the automotive engineering services market but most automakers have resumed vehicle manufacturing with limited capacity and the safety measures in place. However, the global marketplace is expected to grow positively during the forecast period as economies are slowly recovering from the post-pandemic period.
Competitors Landscape
The threat of entering new players in the global marketplace ranges between low to moderate considering the initial capital investment to build the infrastructure, to process high volumes of transactions effectively and efficiently. Hence, the global ESO market is projected to shift towards high/perfect competition nature in the forecast period, however, the market is currently observed to be monopolistic in nature.
Top companies in the global marketplace hold around 90% of the market share. These top players include Capgemini, Alten, HCL Technologies, AVL. The cumulative ratio of four players is around 28.7%. Rest market share is captured by other local players.
Segmentation Overview on the Global Engineering Services Outsourcing Market
The production designing segment, categorized under type of outsourcing is estimated to have the highest market share of 22% in 2021. The Production Designing segment was valued at US$ 311.8 billion in 2021 and is expected to reach a market size of US$ 779.2 billion by the end of the year 2027, by exhibiting the growth at a CAGR of 16.5% during the forecast period. As new technologies and creative methods together is transforming product design. Small business and new age startups with limited expertise strongly rely on outsourcing product development in emerging sectors like automotive, electronics which is key factor for the growth of the particular segment in the future.
The global engineering services outsourcing market is segmented into following categories:
By Type
By Location
By Pricing Module
By Industry
-
Aerospace
-
Automotive
-
Computing Systems
-
Construction
-
Consumer Electronics
-
Energy
-
Heavy Machinery
-
Healthcare
-
Industrial
-
Medical Devices
-
Semiconductors
-
Telecom
-
Others
By Region
Directly Purchase a copy of report with TOC @ https://www.astuteanalytica.com/request-sample/engineering-services-outsourcing-market
For Additional Information OR Media Enquiry, Please Mail Us At: sales@astuteanalytica.com
About Astute Analytica
Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost effective, value added package from us, should you decide to engage with us.
Contact us:
Aamir Beg
BSI Business Park, H-15,Sector-63, Noida- 201301- India
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4251598 (Rest of the World)
Email: sales@astuteanalytica.com
Website: www.astuteanalytica.com
Follow US: LinkedIn | Twitter
View original content:https://www.prnewswire.com/news-releases/engineering-services-outsourcing-market-size-worth-us-3-803-21-bn-by-2027–cagr-17-7–astute-analytica-301463690.html
SOURCE Astute Analytica
Read More:Engineering Services Outsourcing Market Size Worth US$ 3,803.21 Bn by 2027 | CAGR: 17.7%
2022-01-19 11:30:00
