Backed by the increasing globalization and the need to stay ahead in competition, product manufacturing organizations are increasingly raising their focus towards process scalability by outsourcing their mid-line processes. The resulting action lowers the delivery time of the products and helps achieve organizations to raise their production capabilities.
Moreover, organizations are also transforming their conventional processes by adopting to process automation and adhering to SOPs, which is resulting in achieving higher quality standards of their products. Such factors are anticipated to drive the growth of the global engineering R&D services outsourcing market.
Research Nester has released a report titled “Engineering R&D Services OutsourcingMarket – Global Demand Analysis & Opportunity Outlook 2027” which also includes some of the prominent market analyzing parameters such as industry growth drivers, restraints, supply and demand risk, market attractiveness, year-on-year (Y-O-Y) growth comparisons, market share comparisons, BPS analysis, SWOT analysis and Porter’s five force model.
The global engineering R&D services outsourcing market, which was valued at around $8,500 million in the year 2019, is anticipated to grow with a CAGR close to 6% during the forecast period, i.e., 2019-2027, and attain a value of about $14,000 million by the end of 2027. The process of the outsourcing of engineering R&D services includes transfer of services such as CAD, design software, various prototypes, drafting, design validation protocols and others. Organizations adopt these services to lower the delivery time in the product lifecycle and to enhance the quality of product delivery and raise their production scalability.
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 these segments, the automotive segment registered the largest market share near to 21% in the year 2019. The segment is further anticipated to grow with a CAGR of around 7% during the forecast period. The segment is further divided into designing, prototyping, system integration and testing, out of which, the designing segment, which recorded the largest market share in the year 2019, is expected to grow with a CAGR of about 7.5% during the forecast period.
Geographically, 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 these regions, the North America engineering R&D services outsourcing market, which held the largest market share of around 50% in the year 2019, is anticipated to grow with a CAGR of nearly 7% during the forecast period. The region possesses numerous organizations which allows service providers from other regions to try for strategic alliances to achieve greater scalability.
However, concerns regarding the decline in the quality standards by the third-party entities and for not following the SOPs, which hampers the product image or the brand image of the organizations, are anticipated to act as restraining factors to the growth of the global engineering R&D services outsourcing market.
This report also studies existing competitive scenario of some of the key players of the global engineering R&D services outsourcing market, which includes 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).