North America Engineering Research And Development (ER&D) Services Market Size & Share Analysis - Growth Trends & Forecast (2025 - 2030)

The Report Covers North America Engineering Research and Development (ER&D) Services Companies and the Market is Segmented by Service Provider Type (Global Capability Centers (GCCs), Engineering Service Providers (ESPs)), by Industry Vertical (Automotive, Industrial, Aerospace, and Defense, Consumer Electronics, Semiconductor, BFSI, Others), by Service Line (Mechanical and Electrical Engineering Services, Embedded Engineering Services, Software Engineering Services), by Geography (United States, Canada). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

North America Engineering Research And Development (ER&D) Services Market Size & Share Analysis - Growth Trends & Forecast (2025 - 2030)

North America Engineering Research And Development (ER&D) Services Market Size

North America Engineering Research And Development (ER&D) Services Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Size (2025) USD 1.09 Trillion
Market Size (2030) USD 1.69 Trillion
CAGR (2025 - 2030) 9.16 %
Market Concentration Low

Major Players

North America Engineering Research And Development (ER&D) Services Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of North America Engineering Research And Development (ER&D) Services Market with other markets in Technology, Media and Telecom Industry

Automation

Digital Commerce

Electronics

Information Technology

Media and Entertainment

Security & Surveillance

North America Engineering Research And Development (ER&D) Services Market Analysis

The North America Engineering Research And Development Services Market size is estimated at USD 1.09 trillion in 2025, and is expected to reach USD 1.69 trillion by 2030, at a CAGR of 9.16% during the forecast period (2025-2030).

The Engineering Research and Development (ER&D) services market in North America is a dynamic sector characterized by a growing appetite for innovation, advanced technologies, and cost-effective solutions spanning multiple industries.

  • Technological advancements, including artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT), and 5G connectivity, are pivotal drivers in North America's ER&D services market. Companies harness these technologies to drive innovation and craft cutting-edge products, bolstering their competitive edge. For instance, the automotive sector is embracing AI and IoT for autonomous vehicles and smart mobility solutions.
  • Businesses face mounting pressure to cut costs without compromising quality. By outsourcing ER&D services to specialized firms, companies can realize substantial cost savings. This approach grants access to skilled engineers and advanced tools, all without hefty in-house investments. Notably, this trend is prominent in sectors like manufacturing and healthcare, where cost-effectiveness is paramount.
  • The North American market is increasingly prioritizing sustainability and environmental responsibility. Companies are integrating sustainable practices into their engineering, from creating energy-efficient products to curbing carbon footprints. This shift is fueling the demand for ER&D services that specialize in sustainable design and development.
  • The proliferation of the Internet of Things (IoT) stands out as a key driver in North America's ER&D services market. IoT interconnects devices, enabling seamless data sharing over the internet. This connectivity facilitates real-time monitoring, data collection, and automation, offering a host of benefits across industries and propelling the need for ER&D services.
  • However, a notable challenge looms over the North American ER&D services market: a shortage of skilled professionals. The rapid tech evolution has spiked demand for engineers with specialized expertise in AI, cybersecurity, and advanced manufacturing. Yet, the talent supply falls short, intensifying the competition among companies vying to attract and retain these qualified professionals.

North America Engineering Research And Development (ER&D) Services Industry Overview

The North America Engineering Research And Development (ER&D) Services Market is fragmented, with the presence of major players and numerous regional companies. Key players in the market are adopting strategies such as partnerships, agreements, innovations, and acquisitions to enhance their service offerings and gain a sustainable competitive advantage.

  • April 2024 - The US Army Engineer Research and Development Center (ERDC) in Vicksburg, Mississippi, and the University of Louisiana Monroe have formalized an Education Partnership Agreement (EPA). This agreement lays the groundwork for collaborative educational initiatives, encompassing shared laboratory resources and joint research endeavors. The primary aim of this partnership is to bolster and promote studies in STEM fields - Science, Technology, Engineering, and Mathematics. ULM's existing programs, such as Unmanned Aircraft Systems Management, Strategic Communications, and others, are poised to benefit from this collaboration.
  • April 2024 - The University of West Alabama has forged a strategic partnership with the United States Army Engineer Research and Development Center (ERDC). This collaboration aims to bolster and promote studies in the STEM fields—science, technology, engineering, and mathematics.

North America Engineering Research And Development (ER&D) Services Market Leaders

  1. Tata Technologies Inc.

  2. Infosys Limited

  3. Wipro Limited

  4. Tech Mahindra Limited

  5. HCL Technologies Limited

  6. *Disclaimer: Major Players sorted in no particular order
North America Engineering Research And Development (ER&D) Services Market Concentration
Need More Details on Market Players and Competiters?
Download PDF

North America Engineering Research And Development (ER&D) Services Market News

  • July 2024: Mitacs and the Natural Sciences and Engineering Research Council (NSERC) have inked a memorandum of understanding, cementing their collaboration in research programs. This partnership not only formalizes their existing relationship but also enhances flexibility for university researchers and industry partners. By aligning efforts, these stakeholders can now craft more robust research and training strategies, ultimately driving innovation in Canada.
  • January 2024: The U.S. National Science Foundation, in collaboration with NVIDIA, has initiated the National Artificial Intelligence Research Resource pilot program. This program, supported by a coalition of 10 federal agencies, private-sector entities, and nonprofits, seeks to democratize access to essential AI tools, fostering responsible innovation and discovery.

North America Engineering Research And Development (ER&D) 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 Attractiveness - Porter's Five Forces Analysis
    • 4.2.1 Threat of New Entrants
    • 4.2.2 Bargaining Power of Buyers/Consumers
    • 4.2.3 Bargaining Power of Suppliers
    • 4.2.4 Threat of Substitute Products
    • 4.2.5 Intensity of Competitive Rivalry
  • 4.3 Regulatory Landscape and Policy Developments
  • 4.4 Assessment of Impact of Macroeconomic Trends
  • 4.5 Industry Ecosystem Analysis

5. MARKET DYNAMICS

  • 5.1 Market Drivers
  • 5.2 Market Restraints
  • 5.3 Key Base Indicator Analysis
    • 5.3.1 Current Available Talent Pool of Engineers
    • 5.3.2 Talent Upskill Initiatives (Government and Industry Collaborations)

6. MARKET SEGMENTATION

  • 6.1 By Service Provider Type
    • 6.1.1 Global Capability Centers (GCCs)
    • 6.1.2 Engineering Service Providers (ESPs)
  • 6.2 By Industry Vertical
    • 6.2.1 Automotive
    • 6.2.2 Industrial
    • 6.2.3 Aerospace and Defence
    • 6.2.4 Consumer Electronics
    • 6.2.5 Semiconductor
    • 6.2.6 BFSI
    • 6.2.7 Others (includes Retail, Healthcare, IT and Telecom)
  • 6.3 By Service Line
    • 6.3.1 Mechanical and Electrical Engineering Services
    • 6.3.2 Embedded Engineering Services
    • 6.3.3 Software Engineering Services
  • 6.4 By Geography
    • 6.4.1 United States
    • 6.4.2 Canada

7. COMPETITIVE LANDSCAPE

  • 7.1 Company Profiles
    • 7.1.1 Tata Technologies Inc.
    • 7.1.2 Infosys Limited
    • 7.1.3 Wipro Limited
    • 7.1.4 Tech Mahindra Limited
    • 7.1.5 HCL Technologies Limited
    • 7.1.6 L&T Technology Services Limited
    • 7.1.7 Cyient Limited
    • 7.1.8 QuEST Global Services Pte Ltd
    • 7.1.9 EPAM Systems, Inc.
    • 7.1.10 Altran Engineering Solutions
    • 7.1.11 Jacobs Engineering Group Inc.
    • 7.1.12 AECOM
    • 7.1.13 Fluor Corporation
    • 7.1.14 WSP Global Inc.
    • 7.1.15 Stantec Inc.
    • 7.1.16 HDR, Inc.
    • 7.1.17 Parsons Corporation
    • 7.1.18 Burns & McDonnell Engineering Company, Inc.
    • 7.1.19 Arcadis North America
    • 7.1.20 Black & Veatch Corporation
  • *List Not Exhaustive

8. VENDOR POSITIONING ANALYSIS OF ENGINEERING SERVICE PROVIDERS

9. FUTURE OUTLOOK OF THE MARKET

**Subject to Availability
*In the final report, the Company Profiles will be segmented by Pure-Play Engineering Service Providers (ESPs) and Multi-Disciplinary Engineering Service Providers (ESPs)
You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

North America Engineering Research And Development (ER&D) Services Industry Segmentation

Engineering research and development (R&D) embodies the systematic approach engineers employ to innovate and create new technologies, leading to product design and realization. R&D engineers craft and enhance products and technologies by researching, designing, and rigorously testing their creations.

The Report Covers North American engineering Research and Development (ER&D) Services Companies and the Market is Segmented by Service Provider Type (Global Capability Centers (GCCs), Engineering Service Providers (ESPs)), by Industry Vertical (Automotive, Industrial, Aerospace, and Defense, Consumer Electronics, Semiconductor, BFSI, Others), by Service Line (Mechanical and Electrical Engineering Services, Embedded Engineering Services, Software Engineering Services), by Geography (United States, Canada).

The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

By Service Provider Type Global Capability Centers (GCCs)
Engineering Service Providers (ESPs)
By Industry Vertical Automotive
Industrial
Aerospace and Defence
Consumer Electronics
Semiconductor
BFSI
Others (includes Retail, Healthcare, IT and Telecom)
By Service Line Mechanical and Electrical Engineering Services
Embedded Engineering Services
Software Engineering Services
By Geography United States
Canada
Need A Different Region or Segment?
Customize Now

North America Engineering Research And Development (ER&D) Services Market Research FAQs

How big is the North America Engineering Research And Development Services Market?

The North America Engineering Research And Development Services Market size is expected to reach USD 1.09 trillion in 2025 and grow at a CAGR of 9.16% to reach USD 1.69 trillion by 2030.

What is the current North America Engineering Research And Development Services Market size?

In 2025, the North America Engineering Research And Development Services Market size is expected to reach USD 1.09 trillion.

Who are the key players in North America Engineering Research And Development Services Market?

Tata Technologies Inc., Infosys Limited, Wipro Limited, Tech Mahindra Limited and HCL Technologies Limited are the major companies operating in the North America Engineering Research And Development Services Market.

What years does this North America Engineering Research And Development Services Market cover, and what was the market size in 2024?

In 2024, the North America Engineering Research And Development Services Market size was estimated at USD 0.99 trillion. The report covers the North America Engineering Research And Development Services Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the North America Engineering Research And Development Services Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

North America Engineering Research And Development (ER&D) Services Industry Report

Statistics for the 2025 North America Engineering Research And Development (ER&D) Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Engineering Research And Development (ER&D) Services analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.