Engineering Services Outsourcing Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The report covers Global Engineering Services Outsourcing Companies and the market is Segmented By Services (Designing, Prototyping, System Integration, Testing, and Others), By End User (Automotive, Consumer Electronics And Semiconductors, Telecom and Others), and By Geography (North America, Europe, Asia-Pacific, and Rest of the World). The report offers the Global Engineering Services Outsourcing Market size and forecast in value (USD billion) for all the above segments.

Engineering Services Outsourcing Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Engineering Services Outsourcing Market Size

Global Engineering Services Outsourcing Market Summary
Study Period 2020 - 2030
Market Size (2025) USD 3.29 Trillion
Market Size (2030) USD 6.02 Trillion
CAGR (2025 - 2030) 12.89 %
Fastest Growing Market North America
Largest Market Asia Pacific
Market Concentration Medium

Major Players

Global Engineering Services Outsourcing Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Global Engineering Services Outsourcing Market with other markets in Manufacturing Products and Services Industry

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Engineering Services Outsourcing Market Analysis

The Global Engineering Services Outsourcing Market size is estimated at USD 3.29 trillion in 2025, and is expected to reach USD 6.02 trillion by 2030, at a CAGR of 12.89% during the forecast period (2025-2030).

The engineering services outsourcing industry is experiencing a significant transformation driven by the widespread adoption of Industry 4.0 technologies and digital innovation. According to industry analysis, over 75% of automotive industry suppliers are medium-sized companies, contributing up to 70% of the total value added within the domestic auto sector, highlighting the crucial role of specialized engineering professional services. The integration of advanced technologies such as cloud computing, robotic process automation (RPA), and artificial intelligence (AI) is reshaping traditional engineering processes. This digital revolution has particularly impacted sectors like manufacturing, automotive, and telecommunications, where companies are increasingly seeking specialized expertise to maintain competitive advantages.


The landscape of engineering services outsourcing is evolving with the emergence of Global Capability Centers (GCCs) as key delivery models. NASSCOM's recent study reveals that 85% of surveyed companies utilize GCCs for engineering research and development, while nearly half employ Engineering Service Providers, demonstrating the industry's shift towards specialized service delivery models. These centers are becoming increasingly sophisticated, offering end-to-end product development capabilities and advanced digital solutions. The trend is particularly evident in sectors like healthcare, where engineering support services now account for approximately 35-40% of capital costs in constructing healthcare facilities, highlighting the growing importance of specialized engineering expertise.


Sustainability and green engineering have emerged as critical focus areas within the engineering services outsourcing industry. Major engineering service providers are developing innovative engineering solutions for renewable energy projects, electric vehicle infrastructure, and sustainable manufacturing processes. This shift is particularly evident in the automotive sector, where engineering service providers are playing a crucial role in developing electric vehicle technologies and sustainable manufacturing practices. The trend extends to infrastructure development, where engineering firms are increasingly incorporating environmental considerations into their design and implementation processes.


The industry is witnessing a surge in digital transformation initiatives across various sectors. In Thailand alone, digital advertising spending grew by 9% to reach 27 billion baht in 2022, indicating the growing importance of digital engineering solutions. This transformation is particularly evident in the financial services sector, where engineering service providers are helping institutions modernize their infrastructure and implement advanced technologies. The trend is also visible in the manufacturing sector, where companies are increasingly outsourcing their digital engineering needs to specialized providers who can help them implement smart manufacturing solutions and optimize their operations through data analytics and automation.

Segment Analysis: By Services

Designing Segment in Engineering Services Outsourcing Market

The designing segment has emerged as both the largest and fastest-growing segment in the engineering services outsourcing market, commanding approximately 29% market share in 2024. This dominance is driven by increasing demand for more complex designs and organizations' growing preference to outsource design work to professional service providers. The segment's growth is fueled by the combination of science and creativity in design engineering, where multiple solutions exist for product development. Engineering design services are leveraging modern design software like CAD services, CAM services, CAE services, BIM services, and digitalization services to deliver innovative solutions. The rising popularity of industrial, visual, and architectural designing for next-generation logistics solutions and tools is creating substantial demand for innovative engineering solutions. Additionally, as CAD and CAE tools become increasingly sophisticated, the need for specialized expertise to properly utilize and maximize their potential has led to increased demand for engineering design firms.

Market Analysis of Global Engineering Services Outsourcing Market: Chart for By Services

Remaining Segments in Engineering Services Outsourcing Market

The testing segment holds significant importance in the market, focusing on evaluating products in simulated real-world environments to identify flaws and ensure optimal functionality. System integration services play a crucial role in bringing together component sub-systems and ensuring their seamless operation as a unified system, particularly important in today's interconnected technological landscape. The prototyping segment enables companies to validate product functionality, fit, form, and ergonomics before full-scale production, contributing to improved product design performance. The remaining services category encompasses various specialized engineering support services such as digital transformation services, smart manufacturing systems, artificial intelligence integration, and robotics solutions, all of which are becoming increasingly important in modern engineering processes. Each of these segments contributes uniquely to the overall market ecosystem, addressing different aspects of the product engineering services market value chain.

Segment Analysis: By End User

Industrial Segment in Engineering Services Outsourcing Market

The industrial segment maintains its dominant position in the global engineering services outsourcing market, commanding approximately 35% of the total market share in 2024. This substantial market presence is primarily driven by the implementation of Industry 4.0 initiatives and the increasing adoption of smart manufacturing systems across various industrial sectors. The segment's growth is further bolstered by the rising demand for contract engineering services in aerospace manufacturing, construction manufacturing, and pharmaceutical manufacturing industries. The integration of artificial intelligence, robotics solutions, and advanced automation technologies in manufacturing processes has created a significant demand for specialized engineering solutions. Additionally, the increasing number of infrastructure and capital projects worldwide, coupled with the need for cost-effective solutions in plant maintenance and operations, continues to drive the demand for engineering services outsourcing in the industrial sector.

Consumer Electronics & Semiconductors Segment in Engineering Services Outsourcing Market

The consumer electronics and semiconductors segment is emerging as the fastest-growing segment in the product engineering services market, with a projected growth rate of approximately 18% from 2024 to 2029. This remarkable growth is primarily attributed to the ever-increasing popularity of smartphones, smart TVs, laptops, and other consumer electronic devices, coupled with the rising need for faster and more efficient production processes. The segment's growth is further accelerated by the increasing miniaturization and adoption of emerging technologies in the Industrial Internet of Things (IIoT) and enhanced communication provided by 5G networks. The trend of producing greener electronic devices, along with the incorporation of recyclable parts and non-toxic chemicals, is creating additional opportunities for engineering design services providers. Furthermore, the semiconductor industry's continuous innovation in areas such as 3D IC technology, TSV implementation, and advanced packaging solutions is driving the demand for specialized engineering services.

Remaining Segments in Engineering Services Outsourcing Market

The automotive and telecom segments, along with other miscellaneous sectors, constitute significant portions of the engineering services outsourcing market. The automotive segment is particularly notable for its focus on electric vehicle development, autonomous driving technologies, and connected vehicle solutions. The telecom sector emphasizes network planning, 5G implementation, and system integration services. The remaining segments encompass various industries such as healthcare, media and entertainment, and energy sectors, each contributing uniquely to the market's diversity. These segments are characterized by their specific requirements for specialized engineering services, ranging from product design and development to testing and system integration, reflecting the broad scope and adaptability of engineering services outsourcing across different industry verticals.

Global Engineering Services Outsourcing Market Geography Segment Analysis

Engineering Services Outsourcing Market in North America

North America represents a mature market for the engineering services outsourcing market, characterized by high technological adoption and innovation across various industries. The region's market is primarily driven by the presence of major automotive, aerospace, and technology companies that regularly outsource their engineering requirements. The United States dominates the regional landscape, followed by Canada and Mexico, with each country offering unique advantages in terms of technical expertise, cost benefits, and proximity to major markets. The region benefits from strong intellectual property protection laws, advanced infrastructure, and a highly skilled workforce, making it attractive for complex engineering projects.

Market Analysis of Global Engineering Services Outsourcing Market: Forecasted Growth Rate by Region

Engineering Services Outsourcing Market in United States

The United States leads the North American engineering services outsourcing market with approximately 92% share of the regional market in 2024. The country's dominance is attributed to its robust technological infrastructure and the presence of major industry players across sectors like automotive, aerospace, and telecommunications. The US market is particularly strong in high-end engineering services, including product design, prototyping, and testing services. The country's focus on digital transformation and Industry 4.0 initiatives has created substantial opportunities for engineering service providers. The presence of leading technology hubs and research institutions further strengthens its position as a key market for the global engineering services market.

Engineering Services Outsourcing Market in Mexico

Mexico emerges as the fastest-growing market in North America with a projected growth rate of approximately 19% during 2024-2029. The country's growth is driven by its strategic location, competitive labor costs, and increasing investment in manufacturing capabilities. Mexico has developed significant expertise in automotive mechanical engineering services, supported by the presence of major automotive manufacturers and their supplier networks. The country's engineering talent pool continues to expand, particularly in areas such as mechanical design, electrical engineering services, and software engineering services. The implementation of favorable trade policies and continued industrial development has positioned Mexico as an attractive destination for offshore engineering services.

Engineering Services Outsourcing Market in Europe

Europe represents a sophisticated market for engineering services outsourcing, with a strong focus on innovation and technological advancement. The region's market is characterized by the presence of established automotive, aerospace, and industrial manufacturing sectors that drive demand for engineering services. The United Kingdom, Germany, and France lead the market, while Spain and Italy contribute significantly to the regional ecosystem. European countries particularly excel in high-value engineering services, supported by their strong tradition in engineering excellence and robust educational infrastructure.

Engineering Services Outsourcing Market in United Kingdom

The United Kingdom maintains its position as the largest engineering services outsourcing market in Europe, commanding approximately 26% of the regional market share in 2024. The country's leadership is built on its strong capabilities in advanced engineering services, particularly in aerospace, automotive, and defense sectors. The UK market benefits from its world-class research institutions, innovative startup ecosystem, and strong focus on digital transformation. The country's engineering service providers excel in areas such as design engineering, prototyping, and systems integration, supported by a highly skilled workforce and advanced technological infrastructure.

Engineering Services Outsourcing Market in Spain

Spain emerges as Europe's fastest-growing market with an expected growth rate of approximately 17% during 2024-2029. The country's growth is driven by its increasing focus on digital transformation and Industry 4.0 initiatives. Spain has developed particular strength in automotive engineering services and renewable energy technologies. The country's engineering service providers have built strong capabilities in areas such as product design, testing, and system integration. Spain's competitive cost structure combined with high-quality engineering talent has made it an attractive destination for offshore engineering services.

Engineering Services Outsourcing Market in Asia-Pacific

The Asia-Pacific region represents a dynamic and rapidly evolving market for engineering services outsourcing. The region benefits from a large talent pool, competitive cost structures, and strong government support for technological advancement. India and China lead the market, while Japan and South Korea contribute significant technological expertise. Countries like Thailand and Indonesia are emerging as promising destinations for engineering services outsourcing. The region's strength lies in its combination of established and emerging markets, each offering unique advantages in terms of capabilities and cost-effectiveness.

Engineering Services Outsourcing Market in India

India stands as the largest global engineering services market in the Asia-Pacific region, leveraging its vast pool of engineering talent and established IT infrastructure. The country has developed comprehensive capabilities across various engineering domains, including automotive, aerospace, and telecommunications. India's engineering service providers excel in areas such as product design, testing, and digital engineering services. The country's strong focus on digital transformation and continued investment in technical education further reinforces its position as a preferred destination for engineering services outsourcing.

Engineering Services Outsourcing Market in Indonesia

Indonesia emerges as the fastest-growing market in the Asia-Pacific region, demonstrating strong potential in engineering services outsourcing. The country's growth is driven by increasing investments in manufacturing capabilities and digital infrastructure. Indonesia has developed particular strengths in automotive and industrial engineering services. The country's large workforce, competitive cost structure, and growing technical capabilities make it an attractive destination for engineering services outsourcing. Government initiatives supporting digital transformation and technical education further enhance Indonesia's position in the market.

Engineering Services Outsourcing Market in Rest of the World

The Rest of the World region, encompassing the Middle East, Africa, and Latin America, represents an emerging market for engineering services outsourcing. These regions are experiencing growing demand for engineering services, particularly in sectors such as oil and gas, infrastructure development, and manufacturing. The market is characterized by increasing investments in digital transformation and infrastructure development. Countries in these regions are developing their technical capabilities and engineering talent pools to compete in the global market. The region offers significant growth potential, supported by government initiatives to promote technological advancement and industrial development.

Engineering Services Outsourcing Industry Overview

Top Companies in Engineering Services Outsourcing Market

The engineering services outsourcing market is led by prominent players including L&T, HCL, Cyient, Quest Global, and Tata Technologies. These companies are driving innovation through investments in emerging technologies like artificial intelligence, IoT, cloud computing, and blockchain to enhance their service offerings. Market leaders are forming strategic alliances with mid-sized and small companies to leverage regional capabilities and expand their geographic footprint. Companies are increasingly focusing on digital transformation initiatives, developing specialized industry-specific solutions, and building centers of excellence for advanced technologies. The competitive landscape is characterized by continuous product portfolio expansion, investments in research and development, and the establishment of innovation labs and accelerator programs. Players are also emphasizing sustainability and green engineering solutions while strengthening their consulting capabilities to provide end-to-end services.

Fragmented Market with High Regional Competition

The engineering services outsourcing market exhibits a highly fragmented structure with numerous players operating across different regions and specializations. Global conglomerates compete alongside specialized regional players, with Asia-Pacific emerging as a hub for new and emerging service providers. The market is characterized by intense competition, with companies strategically forming partnerships to reduce costs and leverage mutual competitive advantages. The fragmented nature of the market has led to a high volume of mergers and acquisitions, as larger players seek to expand their service offerings, enhance technological capabilities, and strengthen their presence in key markets.


The market demonstrates significant regional variations in terms of service provider concentration and capabilities. While established global players dominate large-scale contracts and complex projects, regional specialists have carved out niches in specific industries or technical domains. The competitive dynamics are further influenced by the increasing trend of nearshore outsourcing, particularly in regions like Latin America and Eastern Europe. Companies are actively pursuing strategic acquisitions to gain access to new technologies, talent pools, and market segments, leading to ongoing market consolidation efforts despite the overall fragmented nature of the industry.

Innovation and Specialization Drive Market Success

Success in the engineering services outsourcing market increasingly depends on providers' ability to deliver specialized, industry-specific solutions while maintaining technological leadership. Engineering service providers need to invest in developing deep domain expertise, building robust delivery capabilities, and creating innovative solution accelerators to differentiate themselves in the market. The ability to provide end-to-end services, from concept to implementation, while maintaining cost competitiveness and quality standards, is becoming crucial for market success. Providers must also focus on developing strong partnerships with technology platforms and maintaining flexibility in their delivery models to address varying client needs and preferences.


Market players need to address challenges related to talent acquisition and retention, particularly in emerging technologies and specialized domains. Success factors include the ability to maintain high service quality while managing costs, developing strong data security measures, and ensuring regulatory compliance across different regions. Companies must also focus on building long-term client relationships through value-added services and outcome-based engagement models. The increasing complexity of engineering projects and the growing demand for digital transformation services create opportunities for engineering service providers to differentiate themselves through specialized capabilities and innovative delivery models.

Engineering Services Outsourcing Market Leaders

  1. Tech Mahindra Limited

  2. Tata Consultancy Services Limited

  3. Infosys Limited

  4. HCL Technologies Limited

  5. Wipro Ltd.

  6. *Disclaimer: Major Players sorted in no particular order
Global Engineering Services Outsourcing Market Concentration
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Engineering Services Outsourcing Market News

  • April 2023: The relationship between Marks and Spencer PLC (M&S) and Tata Consultancy Services (TCS) has been extended to change M&S's core technology stack, increase innovation speed and resilience, and promote sustainable growth. The modernization program will enhance speed to market, lower technological debt, and boost operating model efficiency and effectiveness for M&S. M&S' strategic aims of providing better customer experience, driving online growth, leading in omnichannel and sustainability, modernizing its supply chain, increasing its worldwide reach will be expedited by the transformation into a simple, agile, data-led business.
  • February 2023: A Memorandum of Understanding (MoU) has been signed by Tech Mahindra and the Ministry of Communication and Information Technology (MCIT) of Saudi Arabia to establish a Data & AI and a Cloud Centre of Excellence (CoE) in Riyadh. Tech Mahindra is a leading provider of digital transformation, consulting, and business re-engineering services and solutions. The CoE will combine academic and socioeconomic objectives to advance small and medium businesses, enhance the nation's capacity for high-tech expertise, and create high-quality jobs.

Engineering Services Outsourcing Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

  • 2.1 Analysis Methodology
  • 2.2 Research Phases

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Current Market Scenario
  • 4.2 Technological Trends
  • 4.3 Industry Value Chain Analysis
  • 4.4 Government Regulations and Initiatives
  • 4.5 Insights on Costing
  • 4.6 Impact of COVID-19 on the Market

5. MARKET DYNAMICS

  • 5.1 Drivers
  • 5.2 Restraints
  • 5.3 Opportunities
  • 5.4 Industry Attractiveness - Porter's Five Forces Analysis
    • 5.4.1 Bargaining Power of Suppliers
    • 5.4.2 Bargaining Power of Consumers / Buyers
    • 5.4.3 Threat of New Entrants
    • 5.4.4 Threat of Substitute Products
    • 5.4.5 Intensity of Competitive Rivalry

6. MARKET SEGMENTATION (Market Size by value)

  • 6.1 By Services
    • 6.1.1 Designing
    • 6.1.2 Prototyping
    • 6.1.3 System Integration
    • 6.1.4 Testing
    • 6.1.5 Others
  • 6.2 By End User
    • 6.2.1 Automotive
    • 6.2.2 Industrial
    • 6.2.3 Consumer Electronics And Semiconductors
    • 6.2.4 Telecom
    • 6.2.5 Others
  • 6.3 By Geography
    • 6.3.1 North America
    • 6.3.1.1 United States
    • 6.3.1.2 Canada
    • 6.3.1.3 Mexico
    • 6.3.2 Europe
    • 6.3.2.1 United Kingdom
    • 6.3.2.2 Germany
    • 6.3.2.3 France
    • 6.3.2.4 Italy
    • 6.3.2.5 Spain
    • 6.3.2.6 Rest of Europe
    • 6.3.3 Asia-Pacific
    • 6.3.3.1 China
    • 6.3.3.2 India
    • 6.3.3.3 Japan
    • 6.3.3.4 South Korea
    • 6.3.3.5 Thailand
    • 6.3.3.6 Indonesia
    • 6.3.3.7 Rest of Asia-pacific
    • 6.3.4 Rest of the World

7. COMPETITIVE LANDSCAPE

  • 7.1 Overview (Market Concentration and Major Players)
  • 7.2 Company Profiles
    • 7.2.1 Tech Mahindra Limited
    • 7.2.2 Tata Consultancy Services Limited
    • 7.2.3 Infosys Limited
    • 7.2.4 HCL Technologies Limited
    • 7.2.5 Wipro Ltd.
    • 7.2.6 Capgemini Technology Services India Limited
    • 7.2.7 Globallogic Inc.
    • 7.2.8 Accenture
    • 7.2.9 RLE International Inc.
    • 7.2.10 ASAP Holding GmbH
    • 7.2.11 Tata Technologies*
  • *List Not Exhaustive

8. FUTURE OF THE MARKET

9. APPENDIX

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Engineering Services Outsourcing Industry Segmentation

Engineering services outsourcing (ESO) refers to the process of hiring various non-physical engineering functions, such as designing, prototyping, system integration, and testing, from an external source.

Global Engineering Services Outsourcing Market is Segmented By Services (Designing, Prototyping, System Integration, Testing, and Others), By End User (Automotive, Consumer Electronics And Semiconductors, Telecom and Others), and By Geography (North America, Europe, Asia-Pacific, and Rest of the World).

By Services Designing
Prototyping
System Integration
Testing
Others
By End User Automotive
Industrial
Consumer Electronics And Semiconductors
Telecom
Others
By Geography North America United States
Canada
Mexico
Europe United Kingdom
Germany
France
Italy
Spain
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Thailand
Indonesia
Rest of Asia-pacific
Rest of the World
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Engineering Services Outsourcing Market Research FAQs

How big is the Global Engineering Services Outsourcing Market?

The Global Engineering Services Outsourcing Market size is expected to reach USD 3.29 trillion in 2025 and grow at a CAGR of 12.89% to reach USD 6.02 trillion by 2030.

What is the current Global Engineering Services Outsourcing Market size?

In 2025, the Global Engineering Services Outsourcing Market size is expected to reach USD 3.29 trillion.

Who are the key players in Global Engineering Services Outsourcing Market?

Tech Mahindra Limited, Tata Consultancy Services Limited, Infosys Limited, HCL Technologies Limited and Wipro Ltd. are the major companies operating in the Global Engineering Services Outsourcing Market.

Which is the fastest growing region in Global Engineering Services Outsourcing Market?

North America is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Global Engineering Services Outsourcing Market?

In 2025, the Asia Pacific accounts for the largest market share in Global Engineering Services Outsourcing Market.

What years does this Global Engineering Services Outsourcing Market cover, and what was the market size in 2024?

In 2024, the Global Engineering Services Outsourcing Market size was estimated at USD 2.87 trillion. The report covers the Global Engineering Services Outsourcing Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Global Engineering Services Outsourcing Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Global Engineering Services Outsourcing Market Research

Mordor Intelligence provides a comprehensive analysis of the global engineering services outsourcing market. We leverage extensive expertise in engineering research and development consulting. Our latest report examines the evolving landscape of engineering services outsourcing (ESO) and the knowledge process outsourcing industries. It covers various segments, including product engineering services, mechanical engineering services, electrical engineering services, and software engineering services. The report, available as an easy-to-download PDF, offers detailed insights into engineering solutions and engineering consulting services across global markets.

Stakeholders in the engineering outsourcing companies sector benefit from our thorough analysis of engineering R&D services and technical outsourcing trends. The report encompasses offshore engineering services, engineering support services, and contract engineering services. It provides valuable data on ESO market value and industry dynamics. Our research covers engineering professional services and product engineering services market developments. This offers actionable insights for decision-makers in the global engineering services industry. The comprehensive analysis includes ESO sales data and a detailed examination of engineering process outsourcing practices. This enables businesses to make informed strategic decisions in the evolving knowledge process outsourcing industry.