Research Nester published a report titled “Engineering R&D Services Outsourcing Market: Global Demand Analysis & Opportunity Outlook 2027” which delivers detailed overview of the global engineering R&D services outsourcing market in terms of market segmentation by type, end-user and by region.
Further, for the in-depth analysis, the report encompasses the industry growth indicators, restraints, supply and demand risk, along with detailed discussion on current and future market trends that are associated with the growth of the market.
The global engineering R&D services outsourcing market is segmented by end-user into telecommunication, automotive, aerospace, consumer electronics, pharmaceutical, construction, semiconductor, computing systems and others, out of which, the automotive segment registered the largest market share of about 21% in the year 2019 and is anticipated to grow with a CAGR of around 7% during the forecast period, i.e., 2019-2027. Additionally, the designing segment, which forms a sub-segment of the automotive segment, registered the largest market share in the year 2019. This segment is further anticipated to grow with a CAGR close to 7.5% during the forecast period.
The global engineering R&D services outsourcing market is anticipated to grow with a CAGR near to 6% during the forecast period. The market is further projected to attain a value of USD 14000 million approximately by the end of 2027 from a value of about USD 8500 million in the year 2019. The outsourced engineering R&D services aims to lower the delivery time in the product lifecycle of organizations and includes transfer of services such as CAD, design software, various prototypes, drafting, design validation protocols and others. Organizations benefit themselves from the adoption of outsourced engineering R&D services by helping them enhance the quality of product delivery and raise their production scalability.
Regionally, the global engineering R&D services outsourcing market is segmented into five regions including North America, Europe, Latin America, Asia Pacific and Middle East & Africa, out of which, the market in North America registered the largest market share of nearly 50% in the year 2019 and is anticipated to grow with a CAGR of around 7% during the forecast period. The growth of the market in the region can be attributed to the presence of numerous companies in the region, which is allowing service providers from other regions to try for strategic alliances with these organizations, so as to achieve greater scalability.
Growing Need Amongst Organizations to Reduce the Delivery Time of their Products
There is a rising need amongst the manufacturers of products to enhance their scalability, on the back of the rising demand for their products and the increasing globalization. Moreover, to stay ahead in the competition, it is required to lower the delivery time of the products. As a result, organizations are focusing on the outsourcing of their mid-line processes. On the other hand, organizations are also focusing on process automation to achieve higher quality standards and to maintain the SOPs when run by the third-party entities. Such factors are anticipated to drive the growth of the global engineering R&D services outsourcing market.
However, the concerns for not following the SOPs by the third-party entities, along with the decline in the quality standards by these entities, which might hamper the brand image or product image of the organizations, are some of the factors anticipated to lower the market growth during the forecast period.
This report also provides the existing competitive scenario of some of the key players of the global engineering R&D services outsourcing market, which includes company profiling of Infosys Limited (NSE: INFY), Wipro Ltd. (NSE: WIPRO), Huawei Technologies Co., Ltd., ALTEN Group (EPA: ATE), Altran Technologies, Tata Consultancy Services Ltd. (NSE: TCS), L&T Technology Services Limited (NSE: LTTS), Bertrandt AG (ETR: BDT), Tech Mahindra Limited (NSE: TECHM) and EDAG Engineering Group AG (ETR: ED4). The profiling enfolds key information of the companies which encompasses business overview, products and services, key financials and recent news and developments. On the whole, the report depicts detailed overview of the global engineering R&D services outsourcing market that will help industry consultants, equipment manufacturers, existing players searching for expansion opportunities, new players searching possibilities and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future.