Electrical Design and Engineering Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Electrical Design and Engineering Category Overview

The electrical design and engineering category is expected to grow at a CAGR of 3.28% from 2023 to 2030. The increasing demand for automation is expected to drive the category growth. Currently, automation is included in all system designs since it streamlines and accelerates in resolving challenging problems and helps people to be more productive. For instance, a CAD (computer-aided design) system makes communication easier by utilizing interactive computer images. It also enhances the abilities of program designers by serving as a visualization of real-world design. CAD is used by engineers, designers, and drafters for their clients. The most popular CAD software preferred by companies are SolidWorks, Inventor, Revit, AutoCAD, Civil 3D, MicroStation, CATIA, Creo, and Siemens NX. The North American region accounts for the largest category share as the region hosts some of the strongest and clearest electrical networks globally. Further, the region comprises new technologies, planning, and operation methods, grid architectures, and commercial strategies that are anticipated to influence the power system and daily lives.

Companies are increasing their research and development efforts, to incorporate cutting-edge technology advancement into product offerings to accelerate the process cycle, reduce overall costs, and gain a competitive advantage in the global economy. Companies are adopting and integrating smart grid technology to increase the electricity supply's efficiency and stability and to provide a more sustainable energy supply from renewable energy sources. It is considered as one of the leading technological innovations in this category. Smart grid technology enables suppliers and clients with two-way communication which can better manage the delivery of electricity and anticipate a change in demand. IoT plays a crucial role in smart grid technology. IoT technology for smart grids is frequently utilized to automate procedures and boost supply chain effectiveness. For instance, in January 2023, TE Connectivity announced the acquisition of German-based smart grid company, Kries. The acquisition broadens TE's offering of automation, protection, and monitoring technologies for the power grid. Infrastructure operators can detect fault conditions, execute preventative maintenance, and stabilize the interaction between power generation and consumption by adding intelligence to their distribution infrastructure, which is essential for the switch towards renewable energy. Similarly, in its IoT portfolio, Siemens has a sizable portion of solutions for the smart grid. For energy intelligence, the company provides a variety of software programs and networking solutions. In 2021, a significant retrofit project was undertaken by one of its clients, the German electrical wholesaler, Rexel, using an integrated Siemens power monitoring system for energy metering and analytics.

The three main cost components in this category are labor, equipment, and material costs. Other costs involved are manufacturing costs, construction costs, and design costs.  In engineering services, a group of engineers integrates the latest software and technology to produce precise and effective solutions in a shorter amount of time at the most competitive prices. Multiple pieces of equipment are being utilized by engineers for delivering electrical design and engineering such as electrical instrumentation services, electrical design tools, etc. For instance, the hourly rate for electrical instrumentation services is USD 14 to USD 16, while the annual cost of electrical design software like AutoCAD and Fusion360 is between USD 300 – 500. The price of such equipment depends on several factors including the contract's terms, the project's complexity, the software program utilized, the qualifications and experience of the engineers and animators engaged, and the quantity of work. The category follows multiple pricing models such as per hour basis, per project basis, or full-time engineer (FTE) model. For instance, pricing for some of the services provided by Outsource2india (O2I), an India based company, are as follows - electrical design and layout services are charged between USD 9 – 12 per hour, while PCB design and layout services range between USD 12 – 15 per hour.

Countries such as the U.S. and Canada are the most preferred sourcing destinations for this service due to substantial changes in the U.S road infrastructure and increasing investments in projects. Further, the continuous innovations and advancements, particularly in the distribution and transmission grid are expected to accelerate the regional market. Selecting full-service contract manufacturers with internal design teams is considered to be an important sourcing practice in this category. Other best sourcing practices include investments in automation and cloud-based tools. The design and manufacturing teams are encouraged to create products that are convenient to manufacture, have affordable parts, and are reliable. Companies can achieve a reduction in design services costs with reliable contract manufacturers in the long run as they can provide an honest evaluation of design suggestions. Considering that both processes are interconnected and that designing is not their main source of income, the team will be better connected, and manufacturing and design services will be less expensive.

Electrical Design and Engineering Procurement Intelligence Report Scope