United States Engineering Services Market Analysis by Mordor Intelligence
The U.S. engineering services market size reached USD 175.21 billion in 2025 and is projected to advance to USD 271.01 billion by 2030, reflecting a firm 9.12% CAGR. Accelerated federal infrastructure outlays under the Infrastructure Investment and Jobs Act, the CHIPS and Science Act’s semiconductor incentives, and persistent defense-modernization budgets are sustaining a multi-year pipeline of complex projects that require deeper engineering expertise. Demand patterns are also being reshaped by manufacturing reshoring, grid-modernization imperatives, and the rapid commercialization of digital-twin workflows that cut rework and expand lifetime asset-management revenues. Competitive behavior is shifting toward acquisitions aimed at specialty capabilities—especially in clean-energy systems, advanced manufacturing, and AI-enabled design—while clients’ cost pressures are encouraging integrated EPCM models. Regional demand is clustering around California, Texas, the Great Lakes corridor, and fast-growing Southeast metros where fiscal incentives, lower land costs, and pro-business regulation encourage sustained capital deployment.
Key Report Takeaways
- By application, civil engineering led with 34% of the U.S. engineering services market share in 2024, while mechanical engineering disciplines tied to semiconductor and battery facilities are forecast to expand at the overall 9.12% CAGR through 2030.
- By service type, consulting and design held 40% share of the U.S. engineering services market in 2024; automation-and-digital engineering services are expected to outpace the broader market through 2030 at a high-single-digit CAGR.
- By end-user industry, construction and infrastructure commanded 38% share in 2024, whereas semiconductor and battery manufacturing is projected to register the fastest CAGR through 2030 in line with major fab announcements.
- By engagement model, in-house teams retained 60% of market value in 2024, but outsourced and EPCM services are tracking a robust mid-single-digit CAGR as clients seek specialty talent and risk-sharing structures.
- By geography, California captured 15% of national revenue in 2024, while the Southeast corridor from the Carolinas to Florida is anticipated to post a double-digit CAGR through 2030 as manufacturing relocates to lower-cost states.
United States Engineering Services Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Federal infrastructure-funding boom under 2021 IIJA | +2.10% | National; strongest in CA, TX, NY, FL | Long term (≥ 4 years) |
Accelerating chip-fab and battery-gigafactory build-outs | +1.80% | Southwest, Midwest, Southeast | Medium term (2–4 years) |
Near-shoring of manufacturing lines to the U.S. | +1.40% | Southeast corridor, TX Gulf Coast, Great Lakes | Medium term (2–4 years) |
Record-high utility-scale solar & wind interconnection queues | +1.20% | TX, CA, Midwest wind belt, Southeast solar belt | Long term (≥ 4 years) |
Defense modernization (AUKUS, NGAD) driving specialized design | +0.90% | CA, VA, CT, AL defense clusters | Long term (≥ 4 years) |
AI-enabled digital-twin adoption cutting rework | +0.70% | Major metros nationwide | Short term (≤ 2 years) |
Source: Mordor Intelligence
Federal Infrastructure-Funding Boom Under 2021 IIJA
The USD 1.2 trillion IIJA marks the most aggressive federal commitment to physical assets since the Interstate Highway era, forcing agencies to hire external specialists for multi-disciplinary tasks that span geotechnical studies, resilient water systems, and intelligent-transportation networks. [1]U.S. Department of Transportation, “Infrastructure Investment and Jobs Act Guidance,” transportation.gov State DOTs have lifted consulting outlays by 35% since 2022, and Buy America clauses are compelling redesigns of supply chains, validation of domestic inputs, and extensive documentation, which add incremental fee layers for engineering consultants. Climate-resilience mandates embedded in funding guidelines are intensifying demand for risk-modeling, life-cycle cost analysis, and digital-twins that support asset hardening. These new compliance steps elongate schedules but expand revenue-per-project, expanding the U.S. engineering services market across all 50 states.
Accelerating Chip-Fab and Battery-Gigafactory Build-outs
Mega-fabs average USD 15–40 billion each, require ultra-pure utilities, class-10 to class-1 cleanrooms, and incorporate vibration isolation tolerances below two microns, driving premium bill rates that exceed traditional industrial projects by 20-30%. [2] Intel Corporation, “Ohio Semiconductor Manufacturing Campus Investment Overview,” intel.com Intel’s Ohio campus and TSMC’s Arizona complex embed three-to-five-year engineering engagements, followed by long-term operations support contracts. Federal CHIPS incentives worth USD 52 billion de-risk these capital projects and underpin a multi-cycle orderbook for electrical, mechanical, process, and contamination-control specialists. Parallel battery-cell facilities from Tesla, GM, and Ford elevate opportunities in thermal-management, high-voltage design, and fire-suppression engineering, broadening total addressable revenues inside the U.S. engineering services market.
Near-shoring of Manufacturing Lines to the U.S.
Supply-chain fragility and tariff exposure are steering OEMs toward domestic footprints, triggering a wave of brownfield retrofits and greenfield campuses that must align with U.S. labor-productivity, environmental, and energy-pricing realities. Automotive OEMs alone unveiled USD 100 billion in new EV assembly and battery investments since 2021, each demanding 18–24 months of design effort across robotics, advanced materials handling, and renewable energy integration. Engineering firms are embedding within client organizations to optimize process flows, qualify tier-1 suppliers, and monitor compliance post-commissioning, converting what was once project-based work into annuity-style advisory revenues inside the U.S. engineering services market.
Record-High Utility-Scale Solar and Wind Interconnection Queues
FERC data show 2,600 GW of generation and storage in interconnection queues in 2024, up 30% year-over-year, accelerating grid-integration studies, new-line routing, and power-electronics design activity. [3]Federal Energy Regulatory Commission, “Electric Transmission Interconnection Queues Report,” ferc.gov The 30 GW offshore-wind target by 2030 compounds demand for marine-foundation design, high-voltage subsea cables, and floating-platform engineering. These specialties push firms into deeper joint-ventures with European EPCs possessing offshore experience, opening knowledge-transfer and advanced diagnostics opportunities. Grid modernization further boosts requirement for relay-protection schemes, advanced SCADA, and distributed-energy management, securing a resilient revenue channel for firms in the U.S. engineering services market.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Volatile steel and concrete input-cost pass-through risks | -1.10% | Nationwide; sharpest in high-cost metros | Short term (≤ 2 years) |
Lengthy NEPA environmental reviews delaying starts | -0.80% | Federal projects; ecologically sensitive zones | Medium term (2–4 years) |
Skilled-labor shortages inflating billing rates | -0.60% | National; critical in TX, CA, FL | Long term (≥ 4 years) |
State-by-state licensing variances hindering scale | -0.40% | Multi-state practices | Medium term (2–4 years) |
Source: Mordor Intelligence
Volatile Steel and Concrete Input-Cost Pass-Through Risks
Steel prices fluctuated 25–40% annually during 2023–2025, while cement and ready-mix concrete rose 15–20%, squeezing project budgets and elevating risk of scope reduction. Fixed-price contracts thus expose firms to margin erosion and cause public-sector owners to delay bids, suppressing near-term billable hours in the U.S. engineering services market. Cost-plus agreements mitigate exposure yet face procurement hurdles. Escalation clauses and material indexes are gaining traction, but uncertainty still dampens CAPEX confidence, trimming the CAGR projection.
Lengthy NEPA Environmental Reviews Delaying Starts
Major transmission lines and pipeline corridors now average 18–36 months in NEPA review, tying up engineering teams without revenue recognition and extending payback horizons for owners. Although new guidance on environmental justice adds service scope, the delays defer cash inflows, hitting smaller consultancies hardest. Lenders increasingly require evidence of expedited permitting strategies, compelling owners to engage specialized environmental consultants earlier, slightly offsetting the negative CAGR drag on the broader U.S. engineering services market.
Segment Analysis
By Application: Civil Engineering Anchors the Infrastructure Renaissance
Civil engineering captured 34% of 2024 revenue, underscoring its pivotal role in the bridge rehabilitation, highway expansion, and resilient water systems funded by the IIJA. Projects such as California’s high-speed rail and the Gateway Tunnel boosted demand for seismic retrofits, geotechnical modeling, and tunnel-boring oversight, ensuring a steady backlog that underpins the U.S. engineering services market. The segment benefits from increasing design-life requirements and climate-resilience standards that extend scoping phases and raise billable complexity.
Mechanical engineering is the fastest-advancing discipline due to semiconductor fabs, battery plants, and hyperscale data centers that require cleanroom HVAC, high-density thermal-management, and robotics integration. Electrical engineering demand is equally brisk, spurred by grid-modernization and EV charging corridors, pulling in relay-protection, medium-voltage design, and smart-meter analytics services. Environmental engineering has expanded beyond remediation into climate-risk modeling, carbon-capture systems, and ESG compliance, adding premium services that tack onto standard civil scopes. Chemical engineering remains a niche yet lucrative field for semiconductor etching processes, advanced pharmaceutical lines, and specialty materials, lifting average hourly rates across the U.S. engineering services market.
Note: Segment shares of all individual segments available upon report purchase
By Service Type: Consulting and Design Dominate as Digital Maturity Accelerates
Consulting and design captured 40% of market revenue in 2024, driven by owners’ desire for front-end expertise in BIM coordination, supply-chain localization, and resiliency planning. Digital-first delivery, including cloud-hosted common data environments and AI-assisted code checks, is reducing rework and shifting value upstream, reinforcing the segment’s lead position in the U.S. engineering services market.
Process-and-plant engineering recorded outsized growth through mega-fab and gigafactory projects, where ultra-pure water, inert-gas systems, and robotic line-balancing demand deep specialty knowledge. Automation and digital-engineering services represent the highest CAGR outlook in the segment, linking sensor integration, edge analytics, and digital-twins that monetize post-commissioning optimization. Asset-management services are evolving into performance-based, data-subscription models that generate recurring cash flows, stabilizing top-line trajectories across the U.S. engineering services industry.
By End-User Industry: Infrastructure Funding Keeps Construction at the Forefront
Construction and infrastructure owners drove 38% of 2024 demand as federal and state programs funded highways, bridges, and airports needing multi-disciplinary teams. Long-dated appropriations shield this revenue stream from broader economic cycles, cementing its primacy within the U.S. engineering services market.
Semiconductor and battery manufacturing investments are the fastest-expanding verticals as fabs require class-1 cleanrooms, fault-tolerant power, and continuous improvement engineering long after start-up. Utilities follow closely, propelled by transmission upgrades and renewable integration that necessitate power-systems and environmental-compliance support. The shift toward hydrogen, carbon capture, and offshore wind is pivoting oil-and-gas spend toward lower-carbon projects, sustaining process-engineering needs inside the U.S. engineering services market.

Note: Segment shares of all individual segments available upon report purchase
By Engagement Model: In-House Control Persists Despite Outsourcing Surge
In-house teams sustained 60% of total value in 2024, highlighting owners’ desire to guard intellectual property and maintain project oversight in defense, tech, and automotive sectors. Embedded engineers ensure alignment between design decisions and corporate strategy, preserving core know-how inside firms’ walls.
Outsourced and EPCM engagements absorb surge workloads, specialized skills, and multi-jurisdiction complexity. Mega-projects increasingly bundle design, procurement, and construction management into single contracts to manage interface risk and schedule compression, deepening external wallet share. Digital collaboration platforms now link owner, engineer, and constructor, shrinking change-order cycles and elevating transparency across the U.S. engineering services market.
Geography Analysis
California captured 15% of national revenue in 2024, buoyed by seismic retrofits, high-speed rail, and strong cleantech investment that require advanced civil and mechanical skills. Grid-hardening against wildfire risk and offshore wind-port upgrades further amplify opportunities. Texas followed at 12%, where petrochemical, renewable energy, and semiconductor projects combine with an accelerated highway program to keep engineering utilization high.
New York and Florida each accounted for roughly 8%, though their demand mixes differ: New York focuses on rail tunnels, transit upgrades, and offshore wind transmission; Florida channels spend into flood-control, airport expansion, and aerospace payload facilities. The Southeast corridor—from North Carolina through Georgia—benefits from auto-assembly plants, battery factories, and data centers, translating into double-digit CAGR potential for the U.S. engineering services market.
Mountain-West states such as Arizona, Colorado, and Utah are absorbing population inflows and hosting major semiconductor fabs, fueling specialty MEP and environmental scopes. The Midwest is attracting EV-related investments that rekindle its manufacturing base, while the Pacific Northwest leverages aerospace and hydropower expansion to sustain high-value engineering demand. These shifts point to a geographically broadening U.S. engineering services market over the forecast horizon.
Competitive Landscape
The top 10 firms captured about 25% of revenue in 2024, leaving ample whitespace for regional specialists and niche technology vendors. Scale players such as AECOM, Jacobs, and Bechtel leverage global talent pools and integrated EPCM capabilities to win multi-billion-dollar programs, whereas mid-market firms defend share through local relationships and sector-specific depth. Digital investment is the battlefield: firms with cloud-based BIM, AI-assisted design, and twin-enabled asset monitoring win scope that once flowed strictly to construction managers.
M&A activity accelerated to 427 deals in 2024, mainly to acquire specialty environmental, power-systems, and data-analytics shops that accelerate digital transformation. Software vendors including Autodesk and Bentley are embedding deeper into owner workflows, potentially disintermediating traditional consultants on lower-complexity tasks, but also partnering with engineering houses for high-end model creation. Diversification into quantum-computing infrastructure, lunar-surface construction, and advanced biopharma plants hints at new frontiers for the U.S. engineering services market.
Firms seek resilience through balanced portfolios: infrastructure for recession-proof cash flows, industrial megaprojects for margin upside, and OandM digital services for recurring revenue. Labor scarcity is prompting heavy recruitment from adjacent industries and universities, raising competition for talent across the U.S. engineering services market.
United States Engineering Services Industry Leaders
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AECOM
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Jacobs Engineering Group
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Bechtel Corporation
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Fluor Corporation
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KBR Inc.
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- January 2025: The U.S. Army awarded 12 companies positions on a USD 249 million architect and engineering services contract GovCon Wire.
- December 2025: HDR and Mott MacDonald received the 2024 Going Digital Award for Enterprise Engineering for the CAD 27 billion (USD 19.78 billion) Ontario Line megaprogram HDR Inc.
- November 2024: HDR earned multiple 2024 ENR Regional Awards, including Atlantic Treatment Plant and Central Tri-State Tollway HDR Inc.
- September 2024: HDR ranked No. 7 in the 2024 MEP Giants list by Consulting-Specifying Engineer HDR Inc.
United States Engineering Services Market Report Scope
The market is structured to track the demand of engineering disciplines, including civil, mechanical, electrical, and environmental. Moreover, the study also covers the demand for engineering services across various regions, including the West, Mid-West, North-East, and South. The study captures demand for services across various industries, including construction, oil, gas, manufacturing, utilities, and transportation.
By Application | Civil |
Mechanical | |
Electrical | |
Environmental | |
Chemical | |
By Service Type | Consulting and Design |
Process and Plant Engineering | |
Product Engineering and Prototyping | |
Automation / Digital Engineering | |
Asset Management and OandM | |
By End-user Industry | Construction and Infrastructure |
Oil and Gas | |
Manufacturing | |
Utilities (Power, Water) | |
Transportation (Rail, Airports, Ports) | |
Telecommunications and Data Centers | |
Healthcare Facilities | |
By Engagement Model | In-house |
Outsourced / EPCM |
Civil |
Mechanical |
Electrical |
Environmental |
Chemical |
Consulting and Design |
Process and Plant Engineering |
Product Engineering and Prototyping |
Automation / Digital Engineering |
Asset Management and OandM |
Construction and Infrastructure |
Oil and Gas |
Manufacturing |
Utilities (Power, Water) |
Transportation (Rail, Airports, Ports) |
Telecommunications and Data Centers |
Healthcare Facilities |
In-house |
Outsourced / EPCM |
Key Questions Answered in the Report
What is the current size of the U.S. engineering services market?
The U.S. engineering services market size is USD 175.21 billion in 2025, with a forecast to reach USD 271.01 billion by 2030.
Which application area holds the largest share in the U.S. engineering services market?
Civil engineering holds the largest share at 34% of 2024 revenue, fueled by federal and state infrastructure programs.
How fast is demand for semiconductor-related engineering services growing?
Chip-fab and battery-plant projects represent the fastest-growing vertical, supported by a 9.12% overall market CAGR and sizable federal incentives.
Why are consulting and design services leading the market?
Consulting and design services command 40% of revenue because owners increasingly outsource complex front-end tasks such as BIM coordination, resiliency planning, and AI-driven optimization.
Which U.S. regions are expanding engineering services demand the most?
The Southeast corridor and Mountain-West states show double-digit CAGR potential due to manufacturing reshoring, semiconductor fabs, and population growth.
What are the main challenges facing engineering firms today?
Input-material volatility, prolonged environmental permitting, skilled-labor shortages, and fragmented state licensing regimes are restraining growth and squeezing margins within the U.S. engineering services market.
Page last updated on: July 4, 2025