Market Overview
The global Engineering Services Outsourcing Market was valued at USD 1,922.2 Billion in 2025 and is projected to reach USD 6,460.5 Billion by 2034. The market is expected to grow at a CAGR of 14.42% during the forecast period of 2026-2034. Growth is driven by industrial automation, increased demand for cost optimization, and rapid adoption of digital engineering technologies worldwide.
Study Assumption Years
- Base Year: 2025
- Historical Years: 2020-2025
- Forecast Period: 2026-2034
Engineering Services Outsourcing Market Key Takeaways
- The global engineering services outsourcing market size was USD 1,922.2 Billion in 2025.
- The market is anticipated to grow at a CAGR of 14.42% from 2026 to 2034.
- Forecast period spans from 2026 to 2034.
- Asia Pacific dominated the market with a 42.1% share in 2025, benefiting from skilled labor, competitive costs, and government support.
- Onshore outsourcing accounted for 68.7% of the market in 2025 due to collaboration needs and regulatory adherence.
- Automotive leads application segments with 25.4% market share in 2025 due to innovation and regulatory focus.
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Market Growth Factors
The need for automation tools is one of the key factors driving the growth of the engineering services outsourcing market. They reduce employee workload while improving productivity and revenue. About 94% of companies today have repetitive and rules-based processes that are ideal for RPA automation. RPA helps companies perform these tasks efficiently, providing productive and operational benefits. The tools can quickly and accurately examine, test, and build engineering systems, enabling companies to optimize their operations and focus on their core business, fueling the growth of the market.
The increased use of engineering systems such as computer-helped design (CAD), computer-helped engineering (CAE), computer-helped manufacturing (CAM) and electronic design automation (EDA) software tools in various industries encourages market growth owing to improved design accuracy, reduced development time, and global collaboration. With pressure to shorten production cycles and cut costs, outsourcing allows companies to use proper methods while saving on infrastructure and manpower costs providing flexibility and savings to the company.
The industrial automation industry is growing and integrated engineering solutions are being used across the globe. With over 4.28 million industrial robots in factories (increasing by 10% per year), companies are investing in more advanced tools to increase efficiency and decrease down time. Outsourcing provides access to specialized expertise and technology, flexible cost structures and scalable low-cost manufacturing. Key applications have positive revenue impacts and strong expected growth.
Market Segmentation
By Service
- Designing: Encompasses activities related to initial creation and planning of engineering projects.
- Prototyping: Involves building preliminary versions of products for testing and validation.
- System Integration: Combines subsystems to function as a whole, ensuring operational synergy.
- Testing: The dominant service segment ensuring safety, reliability, and performance via functional, stress, compliance, and software testing. Outsourcing reduces capital expenditure and grants access to advanced facilities.
- Others: Additional ancillary engineering services supporting core functions.
By Location
- Onshore: Largest segment with 68.7% market share in 2025, favored for close collaboration, improved control, local regulatory compliance, faster feedback, and intellectual property protection, critical for industries like aerospace and defense.
- Offshore: Involves outsourcing to locations with cost advantages but no specific data provided on share.
By Application
- Aerospace: Engineering services addressing aerospace system requirements.
- Automotive: Leads with 25.4% share in 2025, driven by innovation, regulation, and advanced technologies including electric powertrains and autonomous systems.
- Construction: Engineering support related to building infrastructure.
- Consumer Electronics: Design and development services for electronic devices.
- Semiconductors: Services focused on microchip engineering and testing.
- Pharmaceuticals: Engineering in drug development and manufacturing processes.
- Telecom: Services supporting telecommunications infrastructure and technologies.
- Others: Other applications across varied sectors.
Regional Insights
Asia Pacific leads the market with a 42.1% share in 2025, driven by robust demand from consumer electronics and telecommunications, abundant skilled engineers in countries like India and China, and strong local infrastructure. The region benefits from industrialization, government support for innovation, and a growing base of international clients seeking cost-effective, high-quality engineering solutions.
Recent Developments & News
- March 2025: CGI signed an exclusivity agreement to acquire Apside, a French digital and engineering service firm, with closure expected by June 2025.
- December 2024: YRH Inc. and Pinargon Ltd. merged, creating an integrated telecommunications engineering service covering wireless, fiber optics, and intelligent transport.
- July 2024: Accenture acquired Cientra, enhancing semiconductor and IoT design capabilities.
- June 2024: Cognizant partnered with Gentherm to provide engineering services with a delivery center and test facility in Hyderabad, India.
Key Players
- Accenture Plc
- Altair Engineering Inc.
- ALTEN
- Cybage Software Pvt. Ltd.
- EPAM Systems Inc.
- HCL Technologies Limited
- Infosys Ltd.
- QuEST Global Services Pte. Ltd.
- Sonata Software Limited
- Tata Consultancy Services Limited
- Tech Mahindra Limited (Mahindra Group)
- Wipro Limited
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