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 2023-2033

  • Report ID: 5152
  • Published Date: Aug 11, 2023
  • Report Format: PDF, PPT

Global Engineering R&D Services Outsourcing Market

  1. An Outline of the Engineering R&D Services Outsourcing Market
    1. Market definition
    2. Market segmentation
  2. Assumptions and Abbreviations
  3. Research Methodology
    1. Research Process
    2. Primary Research
      1. Service Providers
      2. End Users
    3. Secondary Research
    4. Market Size Estimation
  4. Summary of the Report for Key Decision Makers
  5. Forces of the Market Constituents
    1. Factors/drivers impacting the growth of the market
    2. Market trends for better business practices
  6. 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
  7. Major Roadblocks for the Market Growth
  8. 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
  9. Government Regulation
  10. Technology Transition and Adoption Analysis
  11. Industry Risk Analysis
  12. 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
  13. Impact of COVID-19 on Global Engineering R&D Services Outsourcing Market
  14. Industry Value Chain Analysis
  15. Regional Demand Analysis
  16. End-Use Industry Analysis
  17. Competitive Positioning: Strategies to differentiate a company from its competitors
  18. 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
  19. Global Engineering R&D Services Outsourcing Outlook & Projections, Opportunity Assessment, 2022 to 2033
    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, 2022-2033F
        2. Offshore, Market Value (USD billion), CAGR, 2022-2033F
      2. By Industrial Vertical
        1. Telecommunication, Market Value (USD billion), CAGR, 2022-2033F
        2. Automotive, Market Value (USD billion), CAGR, 2022-2022-2033F
        3. Aerospace, Market Value (USD billion), CAGR, 2022-2033F
        4. Consumer Electronics, Market Value (USD billion), CAGR, 2022-2033F
        5. Pharmaceutical, Market Value (USD billion), CAGR, 2022-2033F
        6. Construction, Market Value (USD billion), CAGR, 2022-2033F
        7. Semiconductors, Market Value (USD billion), CAGR, 2022-2033F
        8. Computing System, Market Value (USD billion), CAGR, 2022-2033F
        9. Others, Market Value (USD billion), CAGR, 2022-2033F
      3. By Geography
        1. Market Revenue by Value (USD billion) and Compound Annual Growth Rate (CAGR)
          1. North America, Market Value (USD billion), CAGR, 2022-2033F
          2. Europe, Market Value (USD billion), CAGR, 2022-2033F
          3. Asia Pacific, Market Value (USD billion), CAGR, 2022-2033F
          4. Latin America, Market Value (USD billion), CAGR, 2022-2033F
          5. Middle East and Africa, Market Value (USD billion), CAGR, 2022-2033F
  20. North America Engineering R&D Services Outsourcing Outlook & Projections, Opportunity Assessment, 2022 to 2033
    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, 2022-2033F
        2. Offshore, Market Value (USD billion), CAGR, 2022-2033F
      2. By Industrial Vertical
        1. Telecommunication, Market Value (USD billion), CAGR, 2022-2033F
        2. Automotive, Market Value (USD billion), CAGR, 2022-2033F
        3. Aerospace, Market Value (USD billion), CAGR, 2022-2033F
        4. Consumer Electronics, Market Value (USD billion), CAGR, 2022-2033F
        5. Pharmaceutical, Market Value (USD billion), CAGR, 2022-2033F
        6. Construction, Market Value (USD billion), CAGR, 2022-2033F
        7. Semiconductors, Market Value (USD billion), CAGR, 2022-2033F
        8. Computing System, Market Value (USD billion), CAGR, 2022-2033F
        9. Others, Market Value (USD billion), CAGR, 2022-2033F
      3. By Country
        1. US, Market Value (USD billion), CAGR, 2022-2033F
        2. Canada, Market Value (USD billion), CAGR, 2022-2033F
  21. Europe Engineering R&D Services Outsourcing Outlook & Projections, Opportunity Assessment, 2022 to 2033
    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, 2022-2033F
        2. Offshore, Market Value (USD billion), CAGR, 2022-2033F
      2. By Industrial Vertical
        1. Telecommunication, Market Value (USD billion), CAGR, 2022-2033F
        2. Automotive, Market Value (USD billion), CAGR, 2022-2033F
        3. Aerospace, Market Value (USD billion), CAGR, 2022-2033F
        4. Consumer Electronics, Market Value (USD billion), CAGR, 2022-2033F
        5. Pharmaceutical, Market Value (USD billion), CAGR, 2022-2033F
        6. Construction, Market Value (USD billion), CAGR, 2022-2033F
        7. Semiconductors, Market Value (USD billion), CAGR, 2022-2033F
        8. Computing System, Market Value (USD billion), CAGR, 2022-2033F
        9. Others, Market Value (USD billion), CAGR, 2022-2033F
      3. By Country
        1. Germany, Market Value (USD billion), CAGR, 2022-2033F
        2. France, Market Value (USD billion), CAGR, 2022-2033F
        3. UK, Market Value (USD billion), CAGR, 2022-2033F
        4. Italy, Market Value (USD billion), CAGR, 2022-2033F
        5. Spain, Market Value (USD billion), CAGR, 2022-2033F
        6. Netherlands, Market Value (USD billion), CAGR, 2022-2033F
        7. Russia, Market Value (USD billion), CAGR, 2022-2033F
        8. Rest of Europe, Market Value (USD billion), CAGR, 2022-2033F

 

  1. Asia Pacific Engineering R&D Services Outsourcing Outlook & Projections, Opportunity Assessment, 2022 to 2033
    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, 2022-2033F
        2. Offshore, Market Value (USD billion), CAGR, 2022-2033F
      2. By Industrial Vertical
        1. Telecommunication, Market Value (USD billion), CAGR, 2022-2033F
        2. Automotive, Market Value (USD billion), CAGR, 2022-2033F
        3. Aerospace, Market Value (USD billion), CAGR, 2022-2033F
        4. Consumer Electronics, Market Value (USD billion), CAGR, 2022-2033F
        5. Pharmaceutical, Market Value (USD billion), CAGR, 2022-2033F
        6. Construction, Market Value (USD billion), CAGR, 2022-2033F
        7. Semiconductors, Market Value (USD billion), CAGR, 2022-2033F
        8. Computing System, Market Value (USD billion), CAGR, 2022-2033F
        9. Others, Market Value (USD billion), CAGR, 2022-2033F
      3. By Country
        1. China, Market Value (USD billion), CAGR, 2022-2033F
        2. Japan, Market Value (USD billion), CAGR, 2022-2033F
        3. India, Market Value (USD billion), CAGR, 2022-2033F
        4. South Korea, Market Value (USD billion), CAGR, 2022-2033F
        5. Australia, Market Value (USD billion), CAGR, 2022-2033F
        6. Singapore, Market Value (USD billion), CAGR, 2022-2033F
        7. Rest of Asia Pacific, Market Value (USD billion), CAGR, 2022-2033F
  2. Latin America Engineering R&D Services Outsourcing Outlook & Projections, Opportunity Assessment, 2022 to 2033
    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, 2022-2033F
        2. Offshore, Market Value (USD billion), CAGR, 2022-2033F
      2. By Industrial Vertical
        1. Telecommunication, Market Value (USD billion), CAGR, 2022-2033F
        2. Automotive, Market Value (USD billion), CAGR, 2022-2033F
        3. Aerospace, Market Value (USD billion), CAGR, 2022-2033F
        4. Consumer Electronics, Market Value (USD billion), CAGR, 2022-2033F
        5. Pharmaceutical, Market Value (USD billion), CAGR, 2022-2033F
        6. Construction, Market Value (USD billion), CAGR, 2022-2033F
        7. Semiconductors, Market Value (USD billion), CAGR, 2022-2033F
        8. Computing System, Market Value (USD billion), CAGR, 2022-2033F
        9. Others, Market Value (USD billion), CAGR, 2022-2033F
      3. By Country
        1. Brazil, Market Value (USD billion), CAGR, 2022-2033F
        2. Argentina, Market Value (USD billion), CAGR, 2022-2033F
        3. Mexico, Market Value (USD billion), CAGR, 2022-2033F
        4. Rest of Latin America, Market Value (USD billion), CAGR, 2022-2033F
  3. Middle East and Africa Engineering R&D Services Outsourcing Outlook & Projections, Opportunity Assessment, 2022 to 2033
    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, 2022-2033F
        2. Offshore, Market Value (USD billion), CAGR, 2022-2033F
      2. By Industrial Vertical
        1. Telecommunication, Market Value (USD billion), CAGR, 2022-2033F
        2. Automotive, Market Value (USD billion), CAGR, 2022-2033F
        3. Aerospace, Market Value (USD billion), CAGR, 2022-2033F
        4. Consumer Electronics, Market Value (USD billion), CAGR, 2022-2033F
        5. Pharmaceutical, Market Value (USD billion), CAGR, 2022-2033F
        6. Construction, Market Value (USD billion), CAGR, 2022-2033F
        7. Semiconductors, Market Value (USD billion), CAGR, 2022-2033F
        8. Computing System, Market Value (USD billion), CAGR, 2022-2033F
        9. Others, Market Value (USD billion), CAGR, 2022-2033F
      3. By Country
        1. GCC, Market Value (USD billion), CAGR, 2022-2033F
        2. Israel, Market Value (USD billion), CAGR, 2022-2033F
        3. South Africa, Market Value (USD billion), CAGR, 2022-2033F
        4. Rest of the Middle East and Africa, Market Value (USD billion), CAGR, 2022-2033F

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2033

Engineering R&D Services Outsourcing Market size is anticipated to surpass USD 1.2 Trillion by the end of 2033, growing at a CAGR of 17.43% during the forecast period, i.e., 2023 – 2033. In the year 2022, the industry size of engineering R&D services outsourcing was USD 228.35 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.


Engineering R&D Services Outsourcing Market
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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

Base Year

2022

Forecast Year

2023-2033

CAGR

~17.43%

Base Year Market Size (2022)

~USD 228.35 Billion

Forecast Year Market Size (2033)

~USD 1.2 Trillion

Regional Scope

  • North America (U.S., and Canada)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, Netherlands, Rest of Europe)
  • Asia-Pacific (Japan, China, India, South Korea, Singapore, Australia, Rest of Asia-Pacific)
  • Latin America (Brazil, Argentina, Mexico, Rest of Latin America)
  • Middle East& Africa (GCC, Israel, South Africa, Rest of Middle East & Africa)
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Engineering R&D Services Outsourcing Segmentation

Type (Onshore, Offshore)

The off-shore segment in the engineering R&D services outsourcing market is estimated to surpass USD 660.32 billion as well as grow at the fastest growth rate over the projected time frame. 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 of USD 336.65 billion in the year 2033. 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

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Engineering R&D Services Outsourcing Industry - Regional Synopsis

Asia Pacific Market Forecast

Asia Pacific engineering R&D services outsourcing market, amongst the market in all the other regions, is projected to hold the largest market gain of USD 572.11 billion by the end of 2033. 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.

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Engineering R&D Services Outsourcing Market Size
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Companies Dominating the Engineering R&D Services Outsourcing Landscape

top-features-companies
    • 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

In-the-news

In The News

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.

Author Credits:  Mohd Shadab, Yashika Karodiwal


  • Report ID: 5152
  • Published Date: Aug 11, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Growing demand for product solutions that incorporate the most advanced technologies, coupled with dynamically increasing spending on R&D developments throughout the world are the major factors driving the market growth.

The market is anticipated to attain a CAGR of ~17.43% over the forecast period, i.e., 2023 – 2033.

The major players in the market are Capgemini Engineering, ALTEN Group, HCL Technologies Limited, Siemens.

The offshore segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
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