Engineering Services Outsourcing Market Size, Share & Trends Report

Engineering Services Outsourcing Market Size, Share & Trends Analysis Report By Service (Designing, Prototyping, System Integration, Testing), By Location, By Application, By Region, And Segment Forecasts, 2024 - 2030

  • Report ID: 978-1-68038-236-5
  • Number of Pages: 300
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2023
  • Industry: Technology

Market Segmentation

  • ESO Service Outlook (Revenue, USD Billion, 2018 - 2030)
    • Designing
    • Prototyping
    • System Integration
    • Testing
    • Others
  • ESO Location Outlook (Revenue, USD Billion, 2018 - 2030)
    • On-shore
    • Off-shore
  • ESO Application Outlook (Revenue, USD Billion, 2018 - 2030)
    • Aerospace
    • Automotive
    • Manufacturing
    • Consumer Electronics
    • Semiconductors
    • Healthcare
    • Telecom
    • Energy & Utilities
    • Construction & Infrastructure
    • Others
  • ESO Regional Outlook (Revenue, USD Billion, 2018 - 2030)
    • North America
      • North America ESO Market, By Service
        • Designing
        • Prototyping
        • System Integration
        • Testing
        • Others
      • North America ESO Market, By Location
        • On-shore
        • Off-shore
      • North America ESO Market, By Application
        • Aerospace
        • Automotive
        • Manufacturing
        • Consumer Electronics
        • Semiconductors
        • Healthcare
        • Telecom
        • Energy & Utilities
        • Construction & Infrastructure
        • Others
      • U.S.
        • U.S. ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • U.S. ESO Market, By Location
          • On-shore
          • Off-shore
        • U.S. ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • Canada
        • Canada ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • Canada ESO Market, By Location
          • On-shore
          • Off-shore
        • Canada ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • Mexico
        • Mexico ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • Mexico ESO Market, By Location
          • On-shore
          • Off-shore
        • Mexico ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
    • Europe
      • Europe ESO Market, By Service
        • Designing
        • Prototyping
        • System Integration
        • Testing
        • Others
      • Europe ESO Market, By Location
        • On-shore
        • Off-shore
      • Europe ESO Market, By Application
        • Aerospace
        • Automotive
        • Manufacturing
        • Consumer Electronics
        • Semiconductors
        • Healthcare
        • Telecom
        • Energy & Utilities
        • Construction & Infrastructure
        • Others
      • U.K.
        • U.K. ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • U.K. ESO Market, By Location
          • On-shore
          • Off-shore
        • U.K. ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • Germany
        • Germany ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • Germany ESO Market, By Location
          • On-shore
          • Off-shore
        • Germany ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • France
        • France ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • France ESO Market, By Location
          • On-shore
          • Off-shore
        • France ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • Italy
        • Italy ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • Italy ESO Market, By Location
          • On-shore
          • Off-shore
        • Italy ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • Spain
        • Spain ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • Spain ESO Market, By Location
          • On-shore
          • Off-shore
        • Spain ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
    • Asia Pacific
      • Asia Pacific ESO Market, By Service
        • Designing
        • Prototyping
        • System Integration
        • Testing
        • Others
      • Asia Pacific ESO Market, By Location
        • On-shore
        • Off-shore
      • Asia Pacific ESO Market, By Application
        • Aerospace
        • Automotive
        • Manufacturing
        • Consumer Electronics
        • Semiconductors
        • Healthcare
        • Telecom
        • Energy & Utilities
        • Construction & Infrastructure
        • Others
      • China
        • China ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • China ESO Market, By Location
          • On-shore
          • Off-shore
        • China ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • India
        • India ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • India ESO Market, By Location
          • On-shore
          • Off-shore
        • India ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • Japan
        • Japan ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • Japan ESO Market, By Location
          • On-shore
          • Off-shore
        • Japan ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • South Korea
        • South Korea ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • South Korea ESO Market, By Location
          • On-shore
          • Off-shore
        • South Korea ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • Australia
        • Australia ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • Australia ESO Market, By Location
          • On-shore
          • Off-shore
        • Australia ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • Indonesia
        • Indonesia ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • Indonesia ESO Market, By Location
          • On-shore
          • Off-shore
        • Indonesia ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • Philippines
        • Philippines ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • Philippines ESO Market, By Location
          • On-shore
          • Off-shore
        • Philippines ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
    • South America
      • South America ESO Market, By Service
        • Designing
        • Prototyping
        • System Integration
        • Testing
        • Others
      • South America ESO Market, By Location
        • On-shore
        • Off-shore
      • South America ESO Market, By Application
        • Aerospace
        • Automotive
        • Manufacturing
        • Consumer Electronics
        • Semiconductors
        • Healthcare
        • Telecom
        • Energy & Utilities
        • Construction & Infrastructure
        • Others
      • Brazil
        • Brazil ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • Brazil ESO Market, By Location
          • On-shore
          • Off-shore
        • Brazil ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • Argentina
        • Argentina ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • Argentina ESO Market, By Location
          • On-shore
          • Off-shore
        • Argentina ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
    • Middle East and Africa (MEA)
      • MEA ESO Market, By Service
        • Designing
        • Prototyping
        • System Integration
        • Testing
        • Others
      • MEA ESO Market, By Location
        • On-shore
        • Off-shore
      • MEA ESO Market, By Application
        • Aerospace
        • Automotive
        • Manufacturing
        • Consumer Electronics
        • Semiconductors
        • Healthcare
        • Telecom
        • Energy & Utilities
        • Construction & Infrastructure
        • Others
      • UAE
        • UAE ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • UAE ESO Market, By Location
          • On-shore
          • Off-shore
        • UAE ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • Saudi Arabia
        • Saudi Arabia ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • Saudi Arabia ESO Market, By Location
          • On-shore
          • Off-shore
        • Saudi Arabia ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others
      • South Africa
        • South Africa ESO Market, By Service
          • Designing
          • Prototyping
          • System Integration
          • Testing
          • Others
        • South Africa ESO Market, By Location
          • On-shore
          • Off-shore
        • South Africa ESO Market, By Application
          • Aerospace
          • Automotive
          • Manufacturing
          • Consumer Electronics
          • Semiconductors
          • Healthcare
          • Telecom
          • Energy & Utilities
          • Construction & Infrastructure
          • Others

Engineering Services Outsourcing Market Dynamics

Increased tie-ups between automotive OEMs and suppliers

Automotive engineering services have undergone significant development due to the rapid orientation of original equipment manufacturers (OEMs) with global mega trends such as improved emphasis on superior performance, safety, fuel efficiency, and self-driving. There is also a greater need for innovation, adherence to high environmental sustainability and safety standards, and the design of automobiles for diverse market segments with shorter time-to-market. In response to these trends, automobile manufacturers worldwide have increased collaborations and partnerships with firms specializing in engineering services. Usually automotive innovation has been concerted around the R&D hubs of tier one suppliers and leading automobile manufacturers, including the largest OEMs making the substantial R&D investment. An automotive development where OEMs lacks the necessary skills set has been observed by the modern model which is not a cost effective to be invested in technologies with lack of relevant skills and abilities. Key ESO providers who invest in the developing technologies are involved in filling these gaps.

Cost reduction pressures

A survey conducted by Accenture found that aerospace and defense (A&D) companies are exploring the option of external engineering services to reduce costs due to growing global competition and post-recession pressure. Vendors are realizing that they can augment their capabilities with resources provided by IT services firms specializing in engineering design, instead of using expensive in-house resources.  Companies can get the most out of the limited budgets and surge concentration on more crucial matters due to outsourcing engineering services. In addition, the companies can be aided by outsourcing towards saving the employee training expenses that consume excess of trainer cost, material cost as well as the opportunity cost.

Market restraint analysis

Intellectual Property (IP) confidentiality and security threats

From a legal perspective, Intellectual Property (IP) encompasses patents, trademarks, copyrights, and trade secrets. When companies outsource their R&D to engineering firms, they must take several precautions to protect their IP, such as:

  • Inspecting security procedures,

  • Securing networks,

  • Understanding the legal system of involved countries,

  • Ensuring the contracted company is liable for its employees' actions.

Maintaining an original copy of the IP is also crucial to prevent theft, as prosecuting firms for IP misuse in some offshore locations can be challenging, potentially leading to significant losses.

What Does This Report Include?

This section will provide insights into the contents included in this engineering services outsourcing market report and help gain clarity on the structure of the report to assist readers in navigating smoothly.

Engineering services outsourcing market qualitative analysis

  • Industry overview

  • Industry trends

  • Market drivers and restraints

  • Market size

  • Growth prospects

  • Porter’s analysis

  • PESTEL analysis

  • Key market opportunities prioritized

  • Competitive landscape

    • Company overview

    • Financial performance

    • Product benchmarking

    • Latest strategic developments

Engineering services outsourcing market quantitative analysis

  • Market size, estimates, and forecast from 2018 to 2030

  • Market estimates and forecast for product segments up to 2030

  • Regional market size and forecast for product segments up to 2030

  • Market estimates and forecast for application segments up to 2030

  • Regional market size and forecast for application segments up to 2030

  • Company financial performance

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