Product Engineering Services Market Size, Share & Trends Analysis Report By Service (Product Engineering, Maintenance, Repair & Operations), By Enterprise Size (Large Enterprises), By Industry (Automotive, BFSI), By Region, And Segment Forecasts, 2025 - 2030

Product Engineering Services Market Trends

The global product engineering services market size was estimated at USD 1,263.50 billion in 2024 and is expected to grow at a CAGR of 6.4% from 2025 to 2030. The market growth is primarily driven by the increasing demand for innovation and technological advancements across industries. Companies are seeking to accelerate product development cycles, reduce time-to-market, and enhance product quality, prompting the need for specialized engineering services, thereby driving the market demand. Additionally, the rise of digital transformation and Industry 4.0 is pushing businesses to adopt advanced technologies such as AI, IoT, and automation in product design and manufacturing, which is expected to drive the product engineering services industry expansion.

The increasing use of AI and automation is reshaping the way products are designed and manufactured as businesses look to integrate smarter, more efficient technologies into their products and manufacturing processes. Product engineering services are leveraging AI for smarter product design, predictive maintenance, and enhanced testing. Automation is improving manufacturing processes, reducing costs, and increasing efficiency in the production lifecycle. The growing adoption of these technologies is reshaping the product engineering services industry landscape.

Additionally, the ongoing digital transformation is playing a key role in boosting industry growth, as businesses across industries are increasingly integrating advanced technologies such as IoT, AI, and cloud computing into their products. This enables companies to develop smarter, more efficient products that meet evolving market demands and meet customer expectations. This growing need for digital innovation continues to fuel the growth of the product engineering services industry.

Furthermore, cloud-based engineering platforms are gaining traction as they provide scalable, collaborative, and efficient tools for product development. Cloud platforms enable teams to share data seamlessly and work together across geographies, reducing time and cost in product design, testing, and development. The widespread adoption of cloud technologies is transforming how product engineering services are delivered, thereby boosting the product engineering services industry growth.

Moreover, the need for customization and personalization is significantly growing as consumers increasingly expect products tailored to their unique preferences. Product engineering services are evolving to create highly customized solutions, leveraging data and insights to deliver personalized user experiences. This trend reflects the shift toward more individual-centric products and is accelerating market growth.

Service Insights

The product engineering segment dominated the market with a revenue share of over 47% in 2024, owing to the rising complexity of product designs, the need for rapid time-to-market, and the demand for innovation in features and functionality. As industries embrace digital transformation, companies are outsourcing product design, prototyping, testing, and development to specialized service providers who can deliver high-quality, cost-effective solutions, thereby solidifying the dominance of this segment.

The maintenance, repair & operations segment is expected to witness a significant CAGR of over 5.5% from 2025 to 2030. This growth is attributed to the increasing emphasis on the longevity and efficiency of products across industries such as aerospace, manufacturing, and energy. As businesses look to optimize operational costs, the demand for MRO services is expanding, driven by the need for preventative maintenance, equipment reliability, and the integration of advanced technologies like IoT and AI to monitor and maintain assets. Moreover, the rise of industrial automation and the focus on minimizing downtime is fueling the growth of the MRO segment.

Enterprise Size Insights

The large enterprises segment accounted for the largest market share in 2024, owing to the significant investments these organizations make in advanced product engineering and maintenance, repair, and operations (MRO) services. Large enterprises often require highly specialized solutions to manage their complex product development cycles, global supply chains, and large-scale operations. They are more likely to invest in comprehensive, end-to-end engineering services to maintain a competitive edge in their respective industries. Additionally, these organizations have the financial resources and a greater need for innovation, driving demand for more sophisticated engineering solutions, thus contributing to the dominance of the large enterprises segment in the market.

The small & medium enterprise (SME’s) segment is expected to witness the highest CAGR from 2025 to 2030. With limited in-house resources, SMEs are turning to cost-effective, scalable outsourcing solutions that provide access to the same high-quality services as larger enterprises. The rise of cloud-based and modular services, which allow SMEs to customize solutions based on their needs, further accelerates this adoption. Additionally, government initiatives and funding aimed at supporting SME growth and technological advancement are further propelling this segment's rapid expansion.

Industry Insights

The automotive segment accounted for the largest revenue share in 2024, owing to the increasing complexity and demand for innovation in vehicle design, manufacturing, and maintenance. As the automotive industry continues to evolve with advancements in electric vehicles (EVs), autonomous driving technology, and smart features, the need for specialized product engineering services has surged. Automotive companies require high-quality engineering solutions to stay competitive in an increasingly technology-driven market. Additionally, the ongoing trend toward sustainability and regulatory pressures for emissions control are pushing automotive companies to invest in more efficient product development and MRO services, thereby driving segmental growth.

The retail & consumer goods segment is expected to witness the highest CAGR from 2025 to 2030, as businesses in this industry increasingly rely on advanced product engineering services to meet the evolving demands of consumers. With the rise of e-commerce, personalized products, and smart consumer goods, companies in retail and consumer goods are focusing on innovation, speed-to-market, and operational efficiency. This, in turn, drives the demand for specialized engineering solutions, particularly in areas such as product design, packaging, and supply chain optimization. Additionally, the growing importance of sustainability in product development and the integration of AI and IoT into consumer goods further accelerates the growth of this segment.

Regional Insights

North America product engineering services market accounted for the largest revenue share of over 40% in 2024, primarily driven by the region’s focus on technological innovation, particularly in industries such as automotive, aerospace, consumer electronics, and healthcare. The increasing adoption of digital transformation and advanced technologies such as AI, IoT, and machine learning is pushing businesses to seek specialized engineering services to stay competitive.

U.S. Product Engineering Services Market Trends

The product engineering services market in the U.S. is expected to grow at a CAGR of over 4% from 2025 to 2030, driven by the country’s strong focus on innovation and technological advancement. Additionally, the growth of startups and the increasing adoption of digital transformation strategies by established companies contribute to the rising demand for product engineering services in the U.S.

Europe Product Engineering Services Market Trends

Europe product engineering services are expected to grow at a CAGR of over 7% from 2025 to 2030. In Europe, the product engineering services market is shaped by strong industrial sectors such as automotive, manufacturing, and high-tech electronics. Major drivers include a growing focus on sustainability and compliance with stringent environmental regulations, which are pushing companies to adopt eco-friendly and energy-efficient designs. Furthermore, the digitalization of manufacturing processes, propelled by Industry 4.0 initiatives, is driving the demand for advanced product engineering services to integrate automation, AI, and IoT into production.

The product engineering services market in the UK is expected to grow at a significant rate in the coming years. The country benefits from a highly developed industrial base and a growing emphasis on digital transformation. The UK’s strong automotive, aerospace, and manufacturing industries are further driving the need for advanced product engineering services to enhance innovation, improve efficiency, and comply with sustainability standards.

Germany product engineering services market is fueled by the country’s strong industrial sectors, particularly automotive, mechanical engineering, and industrial automation, which continue to drive demand for innovative product design and engineering solutions. Additionally, Germany’s emphasis on sustainability and energy efficiency is pushing businesses to adopt environmentally friendly product designs, creating more opportunities for product engineering services to evolve with these standards.

Asia Pacific Product Engineering Services Market Trends

The product engineering services in the Asia Pacific are expected to grow at a CAGR of about 8% from 2025 to 2030, driven by rapid industrialization, technological advancements, and government initiatives to support innovation. The region is seeing a surge in demand for product engineering services due to its booming manufacturing sectors and increasing emphasis on automation and AI integration. Consumer-driven demands for personalization, along with the growing tech startup ecosystem, further accelerate the need for advanced product engineering services in APAC.

Japan product engineering services market is gaining traction fueled by its technological prowess, particularly in sectors such as automotive, robotics, and electronics. The country’s long-standing commitment to innovation, quality manufacturing, and automation drives the need for specialized engineering services that can enhance product design, reduce costs, and improve efficiency. Japan’s aging population has also increased the demand for products tailored to meet the needs of the elderly, further boosting demand for personalized and innovative engineering solutions.

The product engineering services market in China is rapidly expanding. China’s rapid industrialization and focus on technological innovation are significant drivers of the product engineering services market. The government’s focus on innovation and R&D, combined with the drive for "Made in China 2025" initiatives, is accelerating the demand for high-quality product engineering services. Additionally, China’s efforts to improve sustainability in manufacturing and meet international standards are fostering a growth environment for engineering service providers, thereby driving market growth.

Key Product Engineering Services Company Insights

Some key players operating in the market include Accenture PLC and Wipro Limited, among others

• Accenture PLC is a global professional services company providing a broad range of services, including consulting, technology, and product engineering solutions. With a strong focus on innovation and digital transformation, the company partners with businesses across various industries to develop and optimize their products, integrating cutting-edge technologies such as AI, IoT, cloud computing, and automation. Accenture PLC's extensive expertise, global presence, and focus on driving growth through technology make it a key player in the product engineering services market.

• Wipro Limited is an Indian multinational corporation that provides IT services, consulting, and business process services, with a significant emphasis on product engineering solutions. The company offers a comprehensive suite of product engineering services, helping companies across industries such as automotive, aerospace, healthcare, and telecommunications to design, develop, and optimize products. The company's focus on digital transformation, IoT, AI, and cloud-based solutions allows businesses to enhance their product development cycles, improve efficiency, and meet market demands.

Innovify Ventures Limited and Apptunix are some emerging market participants in the product engineering services market.

• Innovify Ventures Limited specializes in developing innovative, scalable, and technology-driven solutions for businesses. The company focuses on transforming ideas into high-quality products by leveraging advanced technologies such as AI, IoT, cloud computing, and blockchain. The company offers end-to-end product engineering services, from ideation and design to development and optimization, enabling startups and established enterprises to enhance their product offerings.

• Apptunix is an emerging software development and product engineering services company that specializes in creating customized and cutting-edge solutions for mobile and web applications. The company offers a wide range of services, including product design, development, and integration, helping businesses build robust digital products with advanced technologies such as AI, machine learning, and IoT. The company’s focus on user-centric design, innovative features, and seamless functionality allows clients across industries like healthcare, fintech, and e-commerce to build competitive, scalable products.

Recent Developments

• In March 2025, Wipro Limited announced a significant business restructuring aimed at enhancing its AI and cloud capabilities. The restructuring, effective from April 1, 2025, aims to focus on aligning its services to better meet the growing demand for advanced technologies like AI, cloud computing, and automation. The company plans to consolidate these services to streamline its operations and offer more integrated solutions across various industries.

• In October 2024, Capgemini SE announced the launch of its augmented engineering offerings powered by generative AI. This new initiative enhances its product engineering services by integrating advanced AI technologies to automate and optimize the entire product development lifecycle. By leveraging generative AI, Capgemini SE aims to improve efficiency, reduce time-to-market, and create more innovative and customized solutions for clients across industries.

• In June 2024, Cognizant Technology Solutions Corporation announced a strategic partnership with Gentherm, a global leader in thermal management technologies. The collaboration focuses on providing product engineering services and developing a new delivery center to support Gentherm's growth. The agreement aims to enhance Gentherm’s product development and innovation capabilities by leveraging Cognizant’s expertise in advanced engineering and digital solutions.

Product Engineering Services Market Report Scope:

Global Product Engineering Services Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest technological trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global product engineering services market report based on service, enterprise size, industry and region:

• Service Outlook (Revenue, USD Billion, 2018 - 2030)

  • Product Engineering

  • Process Engineering

  • Maintenance, Repair & Operations

  • Others

• Enterprise Size Outlook (Revenue, USD Billion, 2018 - 2030)

  • Large Enterprises

  • Small & Medium Enterprises

• Industry Outlook (Revenue, USD Billion, 2018 - 2030)

  • Automotive

  • Healthcare & Life Science

  • Manufacturing

  • BFSI

  • Retail & Consumer goods

  • Aerospace & Defense

  • IT & Telecom

  • Others      

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

    • South Africa

    • UAE