Global Engineering Services Outsourcing Market Size

Global Engineering Services Outsourcing Market Analysis

The Global Engineering Services Outsourcing Market size is estimated at USD 2.91 trillion in 2024, and is expected to reach USD 5.34 trillion by 2029, growing at a CAGR of 12.89% during the forecast period (2024-2029).

• The globalization of R&D activities, the rising demand for integrating the latest technologies in product offerings, and the growing need to shorten the product lifecycles and cut costs are expected to contribute to the growth of the market.
• The impact of the outbreak of the COVID-19 pandemic and the subsequent lockdowns in various countries across the world varied depending on the end-use industries and industry verticals. Industrial facilities, manufacturing plants, and public transport were shut down temporarily as part of the efforts to arrest the spread of the disease.
• Due to the ease of lockdown restrictions, the reopening of industrial firms, and increased foreign trade, the Engineering Services Outsourcing sector began progressively recovering from the first quarter of 2021.
• One of the primary drivers of the expanding popularity of engineering services outsourcing (ESO) is expected to be the growing cooperation between Original Equipment Manufacturers (OEM) and Engineering Service Providers (ESP).
• The increasing need to shorten product lifecycles and cost-cutting and the rising desire for product options that incorporate the most outdated technology are all expected to support market expansion.
• The increasing desire among consumers to outsource various services as a part of cost-cutting initiatives has led to continuous growth in the ESO market.
• Due to increased automation, a move toward digitalization, and the adoption of Industry 4.0, the need for automated Engineering Service Providers has risen dramatically in recent years. The market for CNC machines, which currently accounts for more than 60% of the market, is expected to grow significantly over the forecast period.
• Computer-aided design (CAD) and drafting are among the most outsourced engineering services. Tasks such as assembling drawings, drafting electronic blueprints, and creating detailed illustrations using software and converting to 3D or 2D formats, are included in these services.