Engineering Services Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 1.67 Trillion |
| Market Size (2029) | USD 2.04 Trillion |
| CAGR (2024 - 2029) | 4.20 % |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Engineering Services Market Analysis
The Engineering Services Market size is estimated at USD 1.67 trillion in 2024, and is expected to reach USD 2.04 trillion by 2029, growing at a CAGR of 4.20% during the forecast period (2024-2029).
- The market size represents the revenue generated from various types of services, such as product engineering, process engineering, automation-related services, and asset management-related services, offered by market players.
- Infrastructure demand is a significant driver of the engineering services industry since it creates a need for specialized skills and encourages innovation. Infrastructure projects are often vast and complicated, necessitating the need for engineering service providers to design, plan, and execute these projects, thereby delivering value-added services to their customers. Furthermore, the need for infrastructure is pushing innovation in the engineering services sector as suppliers create new, more efficient methods of designing and building infrastructure.
- The value of all new infrastructure buildings in the United States reached USD 1844.10 billion in February 2023, up from USD 1808.34 billion in October 2022, according to the US Census Bureau. Growing infrastructure is increasing the need for engineering service providers to increase their skills and interact with other providers and stakeholders to satisfy the demands of clients.
- The use of digital technologies such as AI, iot, and cloud computing also drives the market. These technologies are used to gather, process, and analyze massive volumes of data in real-time to make better decisions. Architectural design and engineering services are being transformed by new technology. Engineering businesses must examine and adopt these relevant technological innovations to remain competitive. According to Deltek's research, 25% of architectural and engineering businesses perceive their firms to be digitally advanced now, while 76% anticipate it to be in five years.
- However, political insecurity, such as changes in government, laws, and regulations or geopolitical conflicts, can cause uncertainty for businesses and investors, lowering investment and demand for services related to engineering and stifling market growth.
- The COVID-19 pandemic highlighted the need for sustainability, with service providers assisting customers in implementing energy-efficient buildings, circular economy projects, and renewable energy. Despite obstacles, including growing labor costs and supply chain interruptions, the industry is expected to develop steadily in the post-pandemic era.
Engineering Services Market Statistics
Engineering Services Market growth is not evenly distributed across regions. The US, China, Germany, the UK, and Japan are the largest country markets for Engineering Services, however, many smaller country market segments are expected to register much higher growth compared to these giants. For example, Japan is one of the top five Engineering Services Markets but lags behind emerging economies such as India, South Africa, and Brazil in terms of future growth.
Japan Engineering Services Market Size
The engineering services market revenue in Japan was valued at USD 90.6 billion in 2023. It is expected to reach USD 114.57 billion by 2028, growing at a CAGR of 4.81% during the forecast period (2023-2028). The country's market is being driven by digital transformation, the expanding mining industry, and the construction sector.
| 2023 Market Size | 2028 Market Size | CAGR (2023-2028) | |
| Japan Engineering Services Market Size | USD 90.06 billion | USD 114.57 billion | 4.81% |
India Engineering Services Market Size
The engineering services market size in India was valued at USD 65.3 billion in 2023. It is expected to reach USD 88.77 billion by 2028, growing at a CAGR of 6.35% during the forecast period (2023-2028). The market is growing in the country due to the digital transformation and the growth of industries such as chemicals, petrochemicals, and pharmaceuticals.
| 2023 Market Size | 2028 Market Size | CAGR (2023-2028) | |
| India Engineering Services Market Size | USD 65.3 billion | USD 88.77 billion | 6.35% |
South Africa Engineering Services Market Size
The global engineering services market in South Africa was valued at USD 4.8 billion in 2023, and it is anticipated to reach a value of USD 7.06 billion by 2028, registering a CAGR of 7.91% during the forecasted period (2023-2028). South Africa's engineering services are expanding as the country proceeds to make investments in infrastructure development and modernization. The government has emphasized infrastructure development as an essential priority sector to assist economic growth and job creation, and engineering services play an important role in infrastructure design, building, and maintenance.
| 2023 Market Size | 2028 Market Size | CAGR (2023-2028) | |
| South Africa Engineering Services Market Size | USD 4.8 billion | USD 7.06 billion | 7.91% |
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Engineering Services Market Trends
Automotive Sector Holds Major Market Share
- With the rising demand for innovation in advanced connectivity features, automotive OEMs are regularly developing electronics and software for passenger and commercial vehicles to stay ahead of their competitors, which is driving the market study.
- Moreover, the increasing demand for ADAS for vehicle safety and government regulations for the mandatory use of ADAS in new vehicles are further boosting market growth. For instance, in July 2022, a new set of European rules were introduced, requiring new vehicles to be equipped with mandatory advanced driver-assist systems to improve road safety. The latest safety regulations are expected to help protect passengers, cyclists, and pedestrians across the European Union and are expected to save more than 25,000 lives and avoid at least 140,000 severe injuries by 2038.
- The demand for connected vehicles that offer smart features such as remote operation of vehicle functions, internet connectivity, and advanced security features is further anticipated to boost market growth. Automotive OEMs are collaborating with various firms to accelerate the advancement of connected vehicles. For instance, in December 2022, Porsche Engineering partnered with Vodafone Business to establish Europe's first 5G hybrid mobile private network (MPN) at Nardò Technical Center (NTC).
- Moreover, the increasing adoption of electric vehicles globally and the deployment of EV charging infrastructure are expected to further boost market growth. According to the International Energy Agency (IEA), the total EV fleet (excluding two- and three-wheelers) is anticipated to increase from over 30 million in 2022 to approximately 240 million by 2030, attaining an average growth rate of about 30%.
- Moreover, the market is witnessing various strategic investments by vendors to innovate their offerings. For instance, in January 2023, Cognizant agreed to acquire Mobica, an IoT software engineering services provider. The acquisition is expected to expand Cognizant's IoT-embedded software engineering capabilities across the technology and automotive industries.
Asia-Pacific is Expected to Hold Significant Market Share
- China has the largest construction sector in the world. Government rules and policies have had a significant influence on this sector. Due to the property market crisis, low development was expected in the residential and non-residential building sectors in 2022-2023. Infrastructure investment generated by the stimulus is likely to support the industry's overall development over the next few years.
- According to ITA, Japanese manufacturers have invested almost USD 890 million in digital infrastructure initiatives. These Japanese manufacturers are expected to have invested a total of USD 4.1 billion in digital infrastructure improvements by 2030. In Japan, value-added manufacturing has contributed over 20% of GDP over the last decade. Capital investments in Japan to update manufacturing facilities, particularly industrial machine tools, by adopting new manufacturing technologies have developed gradually and are expected to continue to expand steadily.
- Moreover, according to ITA, India has set determined renewable energy goals for the long and medium term. The nation expects to develop 175 GW of renewable power capacity in 2023 and 500 GW by 2030.
- Furthermore, the government assigned INR 173.45 crore (USD 20.93 million) to the Department of Chemicals and Petrochemicals in the Union Budget 2023-24. The Indian government's investment in the oil and gas industry is increasing the country's need for engineering services.
- Overall, the market for engineering services is expected to rise in the future as a result of several factors, including a robust and diverse economy, a trained workforce, a rise in government initiatives, infrastructure investment, and globalization.
Engineering Services Industry Overview
The global engineering services market is highly fragmented, with local and multinational firms having decades of business expertise and competing for market share. Some of the major players in the market are AECOM Engineering Company, Bechtel Corporation, Kiewit Corporation, WSP Global Inc., and STRABAG SE, among others. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their service offerings and gain a sustainable competitive advantage.
First Student, a provider of student transportation services in North America, chose Bechtel Corporation in March 2023 to continue its electrification efforts. The partnership is focused on more EV deployments in the future, with Bechtel providing engineering, procurement, and construction services. The company has been receiving various contracts to cater to its growing customer base.
May 2023: KSB and KSB SupremeServ North America announced the introduction of a new engineering services division strategically prepared to meet business growth demand. The new group contains product development, application engineering, automation and digitization, consultancy, spare parts, technical documentation, technical training, licenses, and warranty management.
Engineering Services Market Leaders
AECOM Engineering company
Bechtel Corporation
Kiewit Corporation
WSP Global Inc
STRABAG SE
*Disclaimer: Major Players sorted in no particular order
Engineering Services Market News
- February 2023: SCF Partners announced its investment in Global E&C, a differentiated engineering, maintenance, modification, and commissioning business mainly focused on servicing the offshore energy sector. The investment is expected to significantly bolster GEC's ability to assist the evolving energy markets and enhance the growth of its digital and decarbonization offerings.
- January 2023: L&T Technology Services Limited, a global provider of pure-play engineering services, announced that it had been selected as a strategic engineering partner to Airbus for providing advanced engineering capabilities and digital manufacturing services under a multi-year contract. Under this agreement, LTTS is expected to assist Airbus in key verticals and technology areas for its ongoing commercial and innovation programs.
- In January 2023, WSP Global announced the acquisition of Enstruct, a 75-employee structural engineering company renowned for designing and providing quality building projects across Australia.
Engineering Services Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Evolution of Industrial IoT
5.1.2 Increasing Civil Engineering Services Due to Rapid Urbanization Throughout the Region to Drive the Overall Market
5.2 Market Restraints
5.2.1 Political Problems and Lack of Skilled Professionals
5.3 Impact of COVID-19 in Supply Chain Distribution of Engineering Services
6. KEY TECHNOLOGY INVESTMENTS
6.1 Cloud Technology
6.2 Artificial Intelligence
6.3 Cyber Security
6.4 Digital Services
7. MARKET SEGMENTATION
7.1 By Engineering Disciplines
7.1.1 Civil
7.1.2 Mechanical
7.1.3 Electrical
7.1.4 Piping and Structural
7.2 By Delivery Model
7.2.1 Offshore
7.2.2 Onsite
7.3 By Services
7.3.1 Product Engineering
7.3.2 Process Engineering
7.3.3 Automation Related Services
7.3.4 Asset Management Related Services
7.4 By Industries
7.4.1 Aerospace and Defense
7.4.2 Automotive
7.4.3 Chemical and Petrochemical
7.4.4 Electric Power Generation
7.4.5 Municipal Utility Projects
7.4.6 Mining
7.4.7 Oil and Gas
7.4.8 Pharmaceuticals
7.4.9 Transportation
7.4.10 Telecommunications
7.4.11 Nuclear Projects
7.4.12 Other Industries
7.5 By Geography
7.5.1 North America
7.5.1.1 United States
7.5.1.2 Canada
7.5.2 Europe
7.5.2.1 Germany
7.5.2.2 United Kingdom
7.5.2.3 France
7.5.2.4 Spain
7.5.2.5 Rest of Europe
7.5.3 Asia-Pacific
7.5.3.1 China
7.5.3.2 Japan
7.5.3.3 India
7.5.3.4 Rest of Asia-Pacific
7.5.4 Latin America
7.5.4.1 Brazil
7.5.4.2 Argentina
7.5.4.3 Rest of Latin America
7.5.5 Middle East and Africa
7.5.5.1 United Arab Emirates
7.5.5.2 Saudi Arabia
7.5.5.3 South Africa
7.5.5.4 Rest of Middle East and Africa
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles*
8.1.1 AECOM Engineering company
8.1.2 Bechtel Corporation
8.1.3 Kiewit Corporation
8.1.4 WSP Global Inc
8.1.5 STRABAG SE
8.1.6 NV5 Global, Inc.
8.1.7 Barton Malow
8.1.8 Gilbane Building Company
8.1.9 Jones Lang LaSalle Incorporated
8.1.10 Balfour Beatty Inc.
8.1.11 Brasfield & Gorrie LLC
8.1.12 Nearby Engineers
8.1.13 RMF Engineering Inc.
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
Engineering Services Industry Segmentation
Engineering services are defined as any service that requires applying specific knowledge from the physical, mathematical, and engineering disciplines to services or works, including investigation, consultation, or evaluation. Mechanical, electrical, civil, piping, and structural engineering fields comprise engineering services.
The engineering services market is segmented by engineering disciplines (civil, mechanical, electrical, piping & structural), delivery mode (offshore, onsite), services (product engineering, process engineering, automation-related services, asset management-related services), industries (aerospace and defense, automotive, chemical and petrochemical, electric power generation, municipal utility projects, mining, oil and gas, pharmaceuticals, transportation, telecommunications, nuclear projects), by geography (North America (United States, Canada), Europe (Germany, United Kingdom, France, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Latin America (Brazil, Argentina, Rest of Latin America), Middle East and Africa (United Arab Emirates, Saudi Arabia, South Africa, and Rest of Middle East and Africa). The market sizes and forecasts are provided in terms of value in USD for all the segments.
| By Engineering Disciplines | |
| Civil | |
| Mechanical | |
| Electrical | |
| Piping and Structural |
| By Delivery Model | |
| Offshore | |
| Onsite |
| By Services | |
| Product Engineering | |
| Process Engineering | |
| Automation Related Services | |
| Asset Management Related Services |
| By Industries | |
| Aerospace and Defense | |
| Automotive | |
| Chemical and Petrochemical | |
| Electric Power Generation | |
| Municipal Utility Projects | |
| Mining | |
| Oil and Gas | |
| Pharmaceuticals | |
| Transportation | |
| Telecommunications | |
| Nuclear Projects | |
| Other Industries |
| By Geography | |||||||
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Engineering Services Market Research FAQs
How big is the Engineering Services Market?
The Engineering Services Market size is expected to reach USD 1.67 trillion in 2024 and grow at a CAGR of 4.20% to reach USD 2.04 trillion by 2029.
What is the current Engineering Services Market size?
In 2024, the Engineering Services Market size is expected to reach USD 1.67 trillion.
Who are the key players in Engineering Services Market?
AECOM Engineering company, Bechtel Corporation, Kiewit Corporation, WSP Global Inc and STRABAG SE are the major companies operating in the Engineering Services Market.
Which is the fastest growing region in Engineering Services Market?
Middle East and Africa is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Engineering Services Market?
In 2024, the Asia Pacific accounts for the largest market share in Engineering Services Market.
What years does this Engineering Services Market cover, and what was the market size in 2023?
In 2023, the Engineering Services Market size was estimated at USD 1.60 trillion. The report covers the Engineering Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Engineering Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Engineering Services Industry Report
Statistics for the 2024 Engineering Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Engineering Services analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
