Engineering R&D Services Outsourcing Market Size & Share, by Type (Onshore, Offshore), End-user (Telecommunication, Automotive, Aerospace, Consumer Electronics, Pharmaceutical, Construction, Semiconductors, Computing Systems) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

Name: Engineering R&D Services Outsourcing Market Size Forecasts 2025-2037
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Report ID: 5152
Published Date: Dec 20, 2024
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Global Engineering R&D Services Outsourcing Market

An Outline of the Engineering R&D Services Outsourcing Market
1. Market definition
2. Market segmentation
Assumptions and Abbreviations
Research Methodology
1. Research Process
2. Primary Research
  1. Service Providers
  2. End Users
3. Secondary Research
4. Market Size Estimation
Summary of the Report for Key Decision Makers
Forces of the Market Constituents
1. Factors/drivers impacting the growth of the market
2. Market trends for better business practices
Key Market Opportunities for Business Growth
1. Based on the type
2. Based on the industry vertical
3. Based on the end user
4. Based on geographical presence
Major Roadblocks for the Market Growth
Decarbonization Strategy and Carbon Credit Benefits for Market Players
1. Global Government Decarbonization Plans/Goals by Each Country under 2015 Agreement Agreed by 200 Countries
2. Measures taken by Countries to Reduce Carbon Footprints
3. Carbon Credits and Subsidy Plans/Benefits Rolled out by the Government for Market Players
4. Effective Ways to Harness Carbon-Credits and Impact on Profit Margins
5. Demand Impact on the Companies Opting for Carbon Credits
Government Regulation
Technology Transition and Adoption Analysis
Industry Risk Analysis
Global Economic Outlook: Challenges for Global Recovery and its Impact on Global Engineering R&D Services Outsourcing Market
1. Ukraine-Russia crisis
2. Potential US economic slowdown
Impact of COVID-19 on Global Engineering R&D Services Outsourcing Market
Industry Value Chain Analysis
Regional Demand Analysis
End-Use Industry Analysis
Competitive Positioning: Strategies to differentiate a company from its competitors
Competitive Model: A Detailed Inside View for Investors
1. Market share of major companies profiled, 2022
2. Business Profiles of Key Enterprises
  1. Capgemini Engineering
  2. ALTEN Group
  3. HCL Technologies Limited
  4. Siemens
  5. SOLIZE Corporation
  6. Bertrandt AG
  7. Tech Mahindra Limited
  8. EDAG Engineering Group AG.
  9. Wipro Ltd.
  10. Infosys Limited
  11. Tata Consultancy Services Ltd.
  12. L&T Technology Services Limited
Global Engineering R&D Services Outsourcing Outlook & Projections, Opportunity Assessment, 2023 to 2036
1. Market Overview
2. Market Revenue by Value (USD billion) and Compound Annual Growth Rate (CAGR)
  1. By Type
    1. Onshore, Market Value (USD billion), CAGR, 2023-2036F
    2. Offshore, Market Value (USD billion), CAGR, 2023-2036F
  2. By Industrial Vertical
    1. Telecommunication, Market Value (USD billion), CAGR, 2023-2036F
    2. Automotive, Market Value (USD billion), CAGR, 2022-2023-2036F
    3. Aerospace, Market Value (USD billion), CAGR, 2023-2036F
    4. Consumer Electronics, Market Value (USD billion), CAGR, 2023-2036F
    5. Pharmaceutical, Market Value (USD billion), CAGR, 2023-2036F
    6. Construction, Market Value (USD billion), CAGR, 2023-2036F
    7. Semiconductors, Market Value (USD billion), CAGR, 2023-2036F
    8. Computing System, Market Value (USD billion), CAGR, 2023-2036F
    9. Others, Market Value (USD billion), CAGR, 2023-2036F
  3. By Geography
    1. Market Revenue by Value (USD billion) and Compound Annual Growth Rate (CAGR)
      1. North America, Market Value (USD billion), CAGR, 2023-2036F
      2. Europe, Market Value (USD billion), CAGR, 2023-2036F
      3. Asia Pacific, Market Value (USD billion), CAGR, 2023-2036F
      4. Latin America, Market Value (USD billion), CAGR, 2023-2036F
      5. Middle East and Africa, Market Value (USD billion), CAGR, 2023-2036F
North America Engineering R&D Services Outsourcing Outlook & Projections, Opportunity Assessment, 2023 to 2036
1. Market Overview
2. Market Revenue by Value (USD billion) and Compound Annual Growth Rate (CAGR)
  1. By Type
    1. Onshore, Market Value (USD billion), CAGR, 2023-2036F
    2. Offshore, Market Value (USD billion), CAGR, 2023-2036F
  2. By Industrial Vertical
    1. Telecommunication, Market Value (USD billion), CAGR, 2023-2036F
    2. Automotive, Market Value (USD billion), CAGR, 2023-2036F
    3. Aerospace, Market Value (USD billion), CAGR, 2023-2036F
    4. Consumer Electronics, Market Value (USD billion), CAGR, 2023-2036F
    5. Pharmaceutical, Market Value (USD billion), CAGR, 2023-2036F
    6. Construction, Market Value (USD billion), CAGR, 2023-2036F
    7. Semiconductors, Market Value (USD billion), CAGR, 2023-2036F
    8. Computing System, Market Value (USD billion), CAGR, 2023-2036F
    9. Others, Market Value (USD billion), CAGR, 2023-2036F
  3. By Country
    1. US, Market Value (USD billion), CAGR, 2023-2036F
    2. Canada, Market Value (USD billion), CAGR, 2023-2036F
Europe Engineering R&D Services Outsourcing Outlook & Projections, Opportunity Assessment, 2023 to 2036
1. Market Overview
2. Market Revenue by Value (USD billion) and Compound Annual Growth Rate (CAGR)
  1. By Type
    1. Onshore, Market Value (USD billion), CAGR, 2023-2036F
    2. Offshore, Market Value (USD billion), CAGR, 2023-2036F
  2. By Industrial Vertical
    1. Telecommunication, Market Value (USD billion), CAGR, 2023-2036F
    2. Automotive, Market Value (USD billion), CAGR, 2023-2036F
    3. Aerospace, Market Value (USD billion), CAGR, 2023-2036F
    4. Consumer Electronics, Market Value (USD billion), CAGR, 2023-2036F
    5. Pharmaceutical, Market Value (USD billion), CAGR, 2023-2036F
    6. Construction, Market Value (USD billion), CAGR, 2023-2036F
    7. Semiconductors, Market Value (USD billion), CAGR, 2023-2036F
    8. Computing System, Market Value (USD billion), CAGR, 2023-2036F
    9. Others, Market Value (USD billion), CAGR, 2023-2036F
  3. By Country
    1. Germany, Market Value (USD billion), CAGR, 2023-2036F
    2. France, Market Value (USD billion), CAGR, 2023-2036F
    3. UK, Market Value (USD billion), CAGR, 2023-2036F
    4. Italy, Market Value (USD billion), CAGR, 2023-2036F
    5. Spain, Market Value (USD billion), CAGR, 2023-2036F
    6. Netherlands, Market Value (USD billion), CAGR, 2023-2036F
    7. Russia, Market Value (USD billion), CAGR, 2023-2036F
    8. Rest of Europe, Market Value (USD billion), CAGR, 2023-2036F

Asia Pacific Engineering R&D Services Outsourcing Outlook & Projections, Opportunity Assessment, 2023 to 2036
1. Market Overview
2. Market Revenue by Value (USD billion) and Compound Annual Growth Rate (CAGR)
  1. By Type
    1. Onshore, Market Value (USD billion), CAGR, 2023-2036F
    2. Offshore, Market Value (USD billion), CAGR, 2023-2036F
  2. By Industrial Vertical
    1. Telecommunication, Market Value (USD billion), CAGR, 2023-2036F
    2. Automotive, Market Value (USD billion), CAGR, 2023-2036F
    3. Aerospace, Market Value (USD billion), CAGR, 2023-2036F
    4. Consumer Electronics, Market Value (USD billion), CAGR, 2023-2036F
    5. Pharmaceutical, Market Value (USD billion), CAGR, 2023-2036F
    6. Construction, Market Value (USD billion), CAGR, 2023-2036F
    7. Semiconductors, Market Value (USD billion), CAGR, 2023-2036F
    8. Computing System, Market Value (USD billion), CAGR, 2023-2036F
    9. Others, Market Value (USD billion), CAGR, 2023-2036F
  3. By Country
    1. China, Market Value (USD billion), CAGR, 2023-2036F
    2. Japan, Market Value (USD billion), CAGR, 2023-2036F
    3. India, Market Value (USD billion), CAGR, 2023-2036F
    4. South Korea, Market Value (USD billion), CAGR, 2023-2036F
    5. Australia, Market Value (USD billion), CAGR, 2023-2036F
    6. Singapore, Market Value (USD billion), CAGR, 2023-2036F
    7. Rest of Asia Pacific, Market Value (USD billion), CAGR, 2023-2036F
Latin America Engineering R&D Services Outsourcing Outlook & Projections, Opportunity Assessment, 2023 to 2036
1. Market Overview
2. Market Revenue by Value (USD billion) and Compound Annual Growth Rate (CAGR)
  1. By Type
    1. Onshore, Market Value (USD billion), CAGR, 2023-2036F
    2. Offshore, Market Value (USD billion), CAGR, 2023-2036F
  2. By Industrial Vertical
    1. Telecommunication, Market Value (USD billion), CAGR, 2023-2036F
    2. Automotive, Market Value (USD billion), CAGR, 2023-2036F
    3. Aerospace, Market Value (USD billion), CAGR, 2023-2036F
    4. Consumer Electronics, Market Value (USD billion), CAGR, 2023-2036F
    5. Pharmaceutical, Market Value (USD billion), CAGR, 2023-2036F
    6. Construction, Market Value (USD billion), CAGR, 2023-2036F
    7. Semiconductors, Market Value (USD billion), CAGR, 2023-2036F
    8. Computing System, Market Value (USD billion), CAGR, 2023-2036F
    9. Others, Market Value (USD billion), CAGR, 2023-2036F
  3. By Country
    1. Brazil, Market Value (USD billion), CAGR, 2023-2036F
    2. Argentina, Market Value (USD billion), CAGR, 2023-2036F
    3. Mexico, Market Value (USD billion), CAGR, 2023-2036F
    4. Rest of Latin America, Market Value (USD billion), CAGR, 2023-2036F
Middle East and Africa Engineering R&D Services Outsourcing Outlook & Projections, Opportunity Assessment, 2023 to 2036
1. Market Overview
2. Market Revenue by Value (USD billion) and Compound Annual Growth Rate (CAGR)
  1. By Type
    1. Onshore, Market Value (USD billion), CAGR, 2023-2036F
    2. Offshore, Market Value (USD billion), CAGR, 2023-2036F
  2. By Industrial Vertical
    1. Telecommunication, Market Value (USD billion), CAGR, 2023-2036F
    2. Automotive, Market Value (USD billion), CAGR, 2023-2036F
    3. Aerospace, Market Value (USD billion), CAGR, 2023-2036F
    4. Consumer Electronics, Market Value (USD billion), CAGR, 2023-2036F
    5. Pharmaceutical, Market Value (USD billion), CAGR, 2023-2036F
    6. Construction, Market Value (USD billion), CAGR, 2023-2036F
    7. Semiconductors, Market Value (USD billion), CAGR, 2023-2036F
    8. Computing System, Market Value (USD billion), CAGR, 2023-2036F
    9. Others, Market Value (USD billion), CAGR, 2023-2036F
  3. By Country
    1. GCC, Market Value (USD billion), CAGR, 2023-2036F
    2. Israel, Market Value (USD billion), CAGR, 2023-2036F
    3. South Africa, Market Value (USD billion), CAGR, 2023-2036F
    4. Rest of the Middle East and Africa, Market Value (USD billion), CAGR, 2023-2036F

Global Market Size, Forecast, and Trend Highlights Over 2025-2037

Engineering R&D Services Outsourcing Market size was valued at USD 314.46 billion in 2024 and is set to exceed USD 2.5 trillion by 2037, expanding at over 17.3% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of engineering R&D services outsourcing is evaluated at USD 407.53 billion.

With increasing digitization in almost every country, the competition to attract customers is at an all-time high. With so many options available for consumers, companies need to go out of their way for customer satisfaction to ensure long-term relationships with them. Therefore, the scope for software product testing services is very significant.

Increasing strategic investments by the leading market players are also accelerating the engineering R&D services outsourcing market. For instance, in June 2022, Capgemini announced plans to set up semiconductor design services centers throughout Europe to support Intel's expanded chip manufacturing and ecosystem design services program. This will help enhance the production capacity of next-generation semiconductors in Europe to better support regional enterprises and build resilience in the European semiconductor supply chains, in keeping with the strategic aims of the European Chips Act.

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Engineering R&D Services Outsourcing Sector: Growth Drivers and Challenges

Growth Drivers

Growing Incorp oration of the Internet of Things (IoT) with Engineering R&D Services– The Internet of Things (IoT) gives organizations a real-time view of how their systems operate, providing insights into everything from machine performance to supply chain and logistics operations. During previous years, engineering R&D services coupled with IoT have boosted the healthcare landscape with European innovations. It has helped to reduce and encourage patient engagement and healthcare costs, promote population health, and make healthcare more accessible to consumers.
Increasing Initiative by Engineering Service Providers (ESP) – During previous years, it has been observed that there has been a rapid increase in engineering service providers (ESP) who provide services for OEMs. As the ESO delivers and continues to evolve, engineering R&D service providers are setting service delivery standards and a licensing framework that encourages innovation and accelerates market growth. This has further boosted them to increase their respective strategic investments to boost market share. L&T Technology Services Limited announced that it would open its Engineering Research & Development (ER&D) Centre in Toronto, Canada in November 2022, marking its third close-to-shore worldwide engineering facility in two seasons.
Rise in the Number of New Businesses- According to US Census Bureau data, 5,044,748 new enterprises will be established in 2022. The lack of adequate infrastructure with new business has compelled them to outsource the R&D team for their company’s operations.

Challenges

Fear of Maintaining the Same Quality Standards and SOP - Most organizations fear that the lack of SOPs in the third-party entities may hamper their brand image or their product image, and ultimately, sales. Furthermore, the concern of losing their uniqueness, as well as the fear among companies of not meeting their high standards of quality when functioning through independent entities, is predicted to hamper market expansion.
Absence of Building New Infrastructure in Developing Countries
High Cost of the Services

Engineering R&D Services Outsourcing Market: Key Insights

Report Attribute	Details
Base Year	2024
Forecast Year	2025-2037
CAGR	17.3%
Base Year Market Size (2024)	USD 314.46 billion
Forecast Year Market Size (2037)	USD 2.5 trillion
Regional Scope	North America (U.S., and Canada) Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific) Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Latin America (Mexico, Argentina, Brazil, Rest of Latin America) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

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Engineering R&D Services Outsourcing Segmentation

Type (Onshore, Offshore)

The off-shore segment share in the engineering R&D services outsourcing market is estimated to surpass 55% by 2037. Advantages of offshore engineering R&D services, such as accessibility to cheap and talented professionals from several developing nations worldwide and a large pool of service experts, are expected to benefit the growth of offshore engineering R&D services. This type of outsourcing saves considerable time in training individuals and increases overall productivity.

Industry Verticals (Telecommunications, Automotive, Aerospace, Consumer Electronics, Pharmaceuticals, Construction, Semiconductor, Computing Systems)

Engineering R&D services outsourcing market from the automotive segment is expected to garner a significant revenue share of 28% in the year 2037. This can be ascribed to the rising demand for motor vehicles, the expanding desire for industrial robots in the industry of automobiles, and manufacturers' increased emphasis on implementing automation into their production and manufacturing processes as part of their business plan for growth. Engineering services outsourcing in the automotive industry assists in increasing efficiency and reducing overall labor costs and time. As a result, these services are widely employed in commercial, passenger, electric, and hybrid vehicles (EVs/HVs).

Our in-depth analysis of the global market includes the following segments:

Type	Onshore Offshore
Industry Vertical	Telecommunication Automotive Aerospace Consumer Electronics Pharmaceutical Construction Semiconductor Computing Systems Others

Vishnu Nair

Head - Global Business Development

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Asia Pacific Market Forecast

Asia Pacific industry is predicted to dominate majority revenue share of 47% by 2037, due to strong presence of engineering R&D services providers in the region. Significant factors in the region include the strong presence of engineering R&D services providers focusing on building a technology ecosystem which will eventually reduce the time taken to market new technologies and meet the uncertainty of capabilities at scale. The availability of cheap engineering R&D services is the primary factor for the growth in the region. The growing population in the area resulted in a surge of demand for innovative and sustainable products across every industry vertical. Manufacturing companies invest heavily in developing connective, creative, and customer-centric products and solutions. This is also one of the crucial traits to aid in regional market growth. Companies in the region are focusing on acquisitions to diversify and increase their global reach to provide onshore outsourcing in developed nations.

For instance, in 2022, HCL Technologies signed a contract to acquire Starschema, a data engineering solutions provider in Budapest, Hungary. This acquisition is expected to boost HCL's capability in digital engineering next-generation offerings. Starschema and HCL is expected to undergo a data-driven revolution with their strategic capabilities. This acquisition is expected to assist HCL in catering to the demand in Central and Eastern Europe engineering R&D outsourcing services.

European Market Statistics

The Europe engineering R&D services outsourcing market also shows promising CAGR growth of 15.39% during the forecast period. The market's expansion may be ascribed primarily to the increased emphasis of engineering service providers (ESPs) on preserving basic engineering procedures, as well as the increasing emphasis on activities involving the remote development of goods. Furthermore, tools such as cloud computing, digital twins, analytics, and AI have become available in the region's technological industries, which are projected to propel market growth as these tools are growing as demand grows for cybersecurity, analytics, and automation.

Engineering R&D Services Outsourcing Market Demand

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Companies Dominating the Engineering R&D Services Outsourcing Landscape

Capgemini Engineering
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
ALTEN Group
HCL Technologies Limited
Siemens
SOLIZE Corporation
Bertrandt AG
Tech Mahindra Limited
EDAG Engineering Group AG.
Wipro Ltd.
Infosys Limited
Tata Consultancy Services Ltd.
L&T Technology Services Limited

Recent Developments

•HCL Technologies Limited was ranked the No. 1 player in the US in Engineering R&D Services in the annual Zinnov Zones for ER&D 2021 rankings. In addition, the survey recognized HCL Technologies as a leader in worldwide engineering R&D services and digital engineering services.

•Siemens announced the addition of Siemens Xcelerator as a Service (XaaS) along with the launch of Simcenter Cloud HPC. The new service is maintained by Siemens and hosted on AWS (Amazon Web Services), optimized for Simcenter solver technologies, as part of the ongoing partnership between Siemens and AWS.

Report ID: 5152
Published Date: Dec 20, 2024
Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

In the year 2025, the industry size of engineering R&D services outsourcing is evaluated at USD 407.53 billion.

The engineering R&D services outsourcing market size was valued at USD 314.46 billion in 2024 and is set to exceed USD 2.5 trillion by 2037, expanding at over 17.3% CAGR during the forecast period i.e., between 2025-2037. Growing demand for product solutions that incorporate the most advanced technologies, coupled with dynamically increasing spending on R&D developments throughout the world will boost the market growth.

Asia Pacific industry is predicted to dominate majority revenue share of 47% by 2037, due to strong presence of engineering R&D services providers in the region.

The major players in the market are Capgemini Engineering, ALTEN Group, HCL Technologies Limited, Siemens, SOLIZE Corporation, Bertrandt AG, Tech Mahindra Limited, EDAG Engineering Group AG., Wipro Ltd., Infosys Limited, Tata Consultancy Services Ltd., L&T Technology Services Limited

Engineering R&D Services Outsourcing Market Report Scope

Engineering R&D Services Outsourcing Market Size
Engineering R&D Services Outsourcing Market Trends

Engineering R&D Services Outsourcing Market Analysis
Engineering R&D Services Outsourcing Market Share

Engineering R&D Services Outsourcing Market Companies

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Vishnu Nair

Head - Global Business Development

Vishnu Nair is the Head, Business Development handling Global Sales at Research Nester. With a decade of sales and business development experience, he excels in identifying client needs, tailoring solutions and driving revenue through strategic client partnerships and is responsible for Business Expansion and Strategic Growth. Passionate about understanding the ever-evolving market landscape, Vishnu’s focus is on identifying opportunities for both clients and Research Nester.

Global Market Size, Forecast, and Trend Highlights Over 2025-2037

Engineering R&D Services Outsourcing Sector: Growth Drivers and Challenges

Growth Drivers

Challenges

Engineering R&D Services Outsourcing Market: Key Insights

Engineering R&D Services Outsourcing Segmentation

Type (Onshore, Offshore)

Industry Verticals (Telecommunications, Automotive, Aerospace, Consumer Electronics, Pharmaceuticals, Construction, Semiconductor, Computing Systems)

Our in-depth analysis of the global market includes the following segments:

Vishnu Nair

Engineering R&D Services Outsourcing Industry - Regional Synopsis

Asia Pacific Market Forecast

European Market Statistics

Companies Dominating the Engineering R&D Services Outsourcing Landscape

Recent Developments

Frequently Asked Questions (FAQ)

How much is the engineering R&D services outsourcing market worth?

Why is the demand for engineering R&D services outsourcing growing?

Which region dominated the majority of engineering R&D services outsourcing industry share?

Who are the top engineering R&D services outsourcing companies?

Engineering R&D Services Outsourcing Market Report Scope

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