The global engineering services outsourcing market size is expected to reach USD 2.47 trillion by 2027, registering an estimated CAGR of 29.2% from 2020 to 2027, according to a new report published by Grand View Research, Inc. Multiple attributes of the outsourced service offerings including low costs, application of information technology in varied industries, and globalization of R&D and engineering are anticipated to fuel the growth.
Over the last decade, the engineering services outsourcing (ESO) industry has evolved abruptly, wherein the engineering service providers (ESPs) traditionally provided solutions required by the original equipment manufacturers (OEMs) at each of product lifecycle ranging from conceptualization to aftermarket support services. With the advent of technology advancements, ESPs are now leveraging analytics, automation and IT related services-largely been used in product design and development-in their portfolios to cater the expectations of their customers. Furthermore, the proliferation of wireless communications, distributed computing, big-data capabilities, and sensor technologies are rapidly transforming the technology landscape.
The emergence of fundamental technologies, such as, blockchain, digital reality, virtual reality (VR), augmented reality (AR), internet of things (IoT), and cognitive technologies is expected to harness innovation; maintaining operational integrity of the businesses. These technologies have surfaced to be a critical factor in digital transformation services, modernizing the core systems of the OEMs and thereby increasing the potential of ESO at a global scale. As a result, the global engineering centers (GECs) are now investing heavily in R&D for broadening the scope of their service offerings to their customers.
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Further key findings from the study suggest:
The automotive segment accounted for over 20% of the total revenue share of the market in 2019.
The designing segment is anticipated to witness the fastest growth over the next eight years with an anticipated CAGR of 31.3% between 2020 and 2027 owing to the rising demand for latest technologies for product designing and visual designing to enhance the end-user experience.
Asia Pacific ESO market accounted for the largest revenue share in 2019 and is anticipated to continue dominating the overall market over the forecast period.
The key players in engineering services outsourcing market are Wipro Limited, Infosys Limited, Tech Mahindra Limited, Tata Consultancy Services Limited, HCL Technologies Limited, Alten GmbH, Infosys Ltd., and Altran Technologies S.A.
Grand View Research has segmented the global engineering services outsourcing market on the basis of services, location, application, and region:
ESO Services Outlook (Revenue, USD Billion, 2016 - 2027)
ESO Location Outlook (Revenue, USD Billion, 2016 - 2027)
ESO Application Outlook (Revenue, USD Billion, 2016 - 2027)
ESO Regional Outlook (Revenue, USD Billion, 2016 - 2027)
Middle East & Africa
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