Product Code: PM1030
The global Engineering Services Outsourcing (ESO) market size is expected to reach USD 19,490.67 million by 2032, according to a new study by Polaris Market Research. The report "Engineering Services Outsourcing (ESO) Market Share, Size, Trends, Industry Analysis Report, By Application; By Location (On Shore, Off Shore); By Region; Segment Forecast, 2024 - 2032" gives a detailed insight into current market dynamics and provides analysis on future market growth.
Engineering Services Outsourcing (ESO) offers technical, mechanical, and application software support throughout the product development lifecycle, including innovative products, plant setup, and other processes. ESO has been embraced by original equipment manufacturers (OEMs) and application developers to reduce operational costs by eliminating labor and R&D expenses. The global ESO market is primarily driven by companies' growing desire to lower total operating costs. The industry is further boosted by adopting intelligent manufacturing technologies, robots, and artificial intelligence (AI) solutions, which enhance product design and details.
Additionally, the increasing use of strategic outsourcing solutions by industries like manufacturing, marine, and offshore, along with advancements in 3D printing technologies, are expected to contribute to the continued expansion of the Engineering Services Outsourcing market.
Cost efficiency plays a significant role, as companies can access a global talent pool and leverage lower labor costs in outsourcing destinations. This enables them to achieve cost savings and optimize resource allocation. ESO provides access to specialized expertise that may only be available in some places. Outsourcing partners have industry-specific knowledge, advanced technologies, and best practices, which can accelerate product development, enhance quality, and drive innovation.
Additionally, ESO offers scalability and flexibility, allowing companies to adjust their engineering capabilities based on project requirements easily. This agility helps businesses respond quickly to market demands. Companies can focus on their core competencies and strategic activities by outsourcing non-core engineering functions. Technological advancements drive the ESO market, as outsourcing providers offer access to cutting-edge engineering tools, software, and methodologies. Globalization and the need for faster time-to-market advantage contribute to the growth of ESO, enabling companies to expand their global reach, navigate diverse markets, and accelerate product development cycles.
Engineering Services Outsourcing (ESO) Market Report Highlights
Industrial segment accounted for the largest revenue shares of the market. Exploration facilities are digitizing, while industrial product manufacturers modernize IT infrastructure, adopt hybrid platforms, drive automation, and streamline processes for competitiveness.
On shore segment dominated the market with the largest revenue share due to emerging nations' automotive outsourcing vendors specialize in serving OEMs for modeling, development, and specialized processes.
Asia Pacific region holds the largest market share in 2022, Major automobile OEMs leverage the low-cost workforce in countries like India, the Philippines, and China by outsourcing manufacturing and related activities.
The global key market players include ALTEN, Microsoft Azure, Altran, Boston Engineering Corporation, Wipro Limited, Capgemini SE, EPAM Systems Inc., HCL Technologies Limited, Accenture Plc, Cybage Software Pvt. Ltd., AVL List GmbH and others.
Polaris Market Research has segmented the engineering services outsourcing (ESO) market report based on application, location, and region:
Engineering Services Outsourcing (ESO), Application Outlook (Revenue - USD Million, 2019 - 2032)
- Automotive
- Energy
- Network & Communications
- Industrial Automation
- Medical Technology
- Industrial Electronics & Automated Embedded Service
- Consumer Electronics
- Semiconductors
- Construction
- Aerospace
Engineering Services Outsourcing (ESO), Location Outlook (Revenue - USD Million, 2019 - 2032)
Engineering Services Outsourcing (ESO), Regional Outlook (Revenue - USD Million, 2019 - 2032)
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Russia
- Netherlands
- Asia Pacific
- China
- India
- Japan
- South Korea
- Indonesia
- Malaysia
- Latin America
- Argentina
- Brazil
- Mexico
- Middle East & Africa
- UAE
- Saudi Arabia
- Israel
- South Africa
Table of Contents
1. Introduction
- 1.1. Report Description
- 1.1.1. Objectives of the Study
- 1.1.2. Market Scope
- 1.1.3. Assumptions
- 1.2. Stakeholders
2. Executive Summary
3. Research Methodology
- 3.1. Overview
- 3.2. Data Sources
- 3.2.1. Primary Sources
- 3.2.2. Secondary Sources
4. Engineering Services Outsourcing (ESO) Market Insights
- 4.1. Engineering Services Outsourcing (ESO) Market - Industry Snapshot
- 4.2. Engineering Services Outsourcing (ESO) Market Dynamics
- 4.2.1. Drivers and Opportunities
- 4.2.1.1. The rising shift from core-engineering services to embedded engineering solutions
- 4.2.1.2. The growing partnerships and collaborations between OEMs and ESPs
- 4.2.2. Restraints and Challenges
- 4.2.2.1. Lack of technological know-how
- 4.3. Porter's Five Forces Analysis
- 4.3.1. Bargaining Power of Suppliers (Moderate)
- 4.3.2. Threats of New Entrants: (Low)
- 4.3.3. Bargaining Power of Buyers (Moderate)
- 4.3.4. Threat of Substitute (Moderate)
- 4.3.5. Rivalry among existing firms (High)
- 4.4. PESTLE Analysis
- 4.5. Value Chain Analysis
- 4.6. Engineering Services Outsourcing (ESO) Industry trends
- 4.7. COVID-19 Impact Analysis
5. Global Engineering Services Outsourcing (ESO) Market, by Location
- 5.1. Key Findings
- 5.2. Introduction
- 5.2.1. Global Engineering Services Outsourcing (ESO), by Location, 2019 - 2032 (USD Million)
- 5.3. On Shore
- 5.3.1. Global Engineering Services Outsourcing (ESO) Market, by On Shore, by Region, 2019 - 2032 (USD Million)
- 5.4. Off Shore
- 5.4.1. Global Engineering Services Outsourcing (ESO) Market, by Off Shore, by Region, 2019 - 2032 (USD Million)
6. Global Engineering Services Outsourcing (ESO) Market, by Application
- 6.1. Key Findings
- 6.2. Introduction
- 6.2.1. Global Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 6.3. Automotive
- 6.3.1. Global Engineering Services Outsourcing (ESO) Market, by Automotive, by Region, 2019 - 2032 (USD Million)
- 6.4. Energy
- 6.4.1. Global Engineering Services Outsourcing (ESO) Market, by Energy, by Region, 2019 - 2032 (USD Million)
- 6.5. Network & Communications
- 6.5.1. Global Engineering Services Outsourcing (ESO) Market, by Network & Communications, by Region, 2019 - 2032 (USD Million)
- 6.6. Industrial Automation
- 6.6.1. Global Engineering Services Outsourcing (ESO) Market, by Industrial Automation, by Region, 2019 - 2032 (USD Million)
- 6.7. Medical Technology
- 6.7.1. Global Engineering Services Outsourcing (ESO) Market, by Medical Technology, by Region, 2019 - 2032 (USD Million)
- 6.8. Industrial Electronics & Automated Embedded Service
- 6.8.1. Global Engineering Services Outsourcing (ESO) Market, by Industrial Electronics & Automated Embedded Service, by Region, 2019 - 2032 (USD Million)
- 6.9. Consumer Electronics
- 6.9.1. Global Engineering Services Outsourcing (ESO) Market, by Consumer Electronics, by Region, 2019 - 2032 (USD Million)
- 6.10. Semiconductors
- 6.10.1. Global Engineering Services Outsourcing (ESO) Market, by Semiconductors, by Region, 2019 - 2032 (USD Million)
- 6.11. Construction
- 6.11.1. Global Engineering Services Outsourcing (ESO) Market, by Construction, by Region, 2019 - 2032 (USD Million)
- 6.12. Aerospace
- 6.12.1. Global Engineering Services Outsourcing (ESO) Market, by Aerospace, by Region, 2019 - 2032 (USD Million)
7. Global Engineering Services Outsourcing (ESO) Market, by Geography
- 7.1. Key findings
- 7.2. Introduction
- 7.2.1. Engineering Services Outsourcing (ESO) Market Assessment, By Geography, 2019 - 2032 (USD Million)
- 7.3. Engineering Services Outsourcing (ESO) Market - North America
- 7.3.1. North America: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.3.2. North America: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.3.3. Engineering Services Outsourcing (ESO) Market - U.S.
- 7.3.3.1. U.S.: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.3.3.2. U.S.: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.3.4. Engineering Services Outsourcing (ESO) Market - Canada
- 7.3.4.1. Canada: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.3.4.2. Canada: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.4. Engineering Services Outsourcing (ESO) Market - Europe
- 7.4.1. Europe: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.4.2. Europe: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.4.3. Engineering Services Outsourcing (ESO) Market - UK
- 7.4.3.1. UK: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.4.3.2. UK: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.4.4. Engineering Services Outsourcing (ESO) Market - France
- 7.4.4.1. France: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.4.4.2. France: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.4.5. Engineering Services Outsourcing (ESO) Market - Germany
- 7.4.5.1. Germany: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.4.5.2. Germany: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.4.6. Engineering Services Outsourcing (ESO) Market - Italy
- 7.4.6.1. Italy: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.4.6.2. Italy: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.4.7. Engineering Services Outsourcing (ESO) Market - Spain
- 7.4.7.1. Spain: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.4.7.2. Spain: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.4.8. Engineering Services Outsourcing (ESO) Market - Netherlands
- 7.4.8.1. Netherlands: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.4.8.2. Netherlands: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.4.9. Engineering Services Outsourcing (ESO) Market - Austria
- 7.4.9.1. Austria: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.4.9.2. Austria: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.5. Engineering Services Outsourcing (ESO) Market - Asia Pacific
- 7.5.1. Asia Pacific: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.5.2. Asia Pacific: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.5.3. Engineering Services Outsourcing (ESO) Market - China
- 7.5.3.1. China: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.5.3.2. China: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.5.4. Engineering Services Outsourcing (ESO) Market - India
- 7.5.4.1. India: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.5.4.2. India: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.5.5. Engineering Services Outsourcing (ESO) Market - Malaysia
- 7.5.5.1. Malaysia: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.5.5.2. Malaysia: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.5.6. Engineering Services Outsourcing (ESO) Market - Japan
- 7.5.6.1. Japan: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.5.6.2. Japan: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.5.7. Engineering Services Outsourcing (ESO) Market - Indonesia
- 7.5.7.1. Indonesia: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.5.7.2. Indonesia: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.5.8. Engineering Services Outsourcing (ESO) Market - South Korea
- 7.5.8.1. South Korea: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.5.8.2. South Korea: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.6. Engineering Services Outsourcing (ESO) Market - Middle East & Africa
- 7.6.1. Middle East & Africa: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.6.2. Middle East & Africa: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.6.3. Engineering Services Outsourcing (ESO) Market - Saudi Arabia
- 7.6.3.1. Saudi Arabia: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.6.3.2. Saudi Arabia: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.6.4. Engineering Services Outsourcing (ESO) Market - UAE
- 7.6.4.1. UAE: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.6.4.2. UAE: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.6.5. Engineering Services Outsourcing (ESO) Market - Israel
- 7.6.5.1. Israel: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.6.5.2. Israel: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.6.6. Engineering Services Outsourcing (ESO) Market - South Africa
- 7.6.6.1. South Africa: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.6.6.2. South Africa: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.7. Engineering Services Outsourcing (ESO) Market - Latin America
- 7.7.1. Latin America: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.7.2. Latin America: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.7.3. Engineering Services Outsourcing (ESO) Market - Mexico
- 7.7.3.1. Mexico: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.7.3.2. Mexico: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.7.4. Engineering Services Outsourcing (ESO) Market - Brazil
- 7.7.4.1. Brazil: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.7.4.2. Brazil: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
- 7.7.5. Engineering Services Outsourcing (ESO) Market - Argentina
- 7.7.5.1. Argentina: Engineering Services Outsourcing (ESO) Market, by Application, 2019 - 2032 (USD Million)
- 7.7.5.2. Argentina: Engineering Services Outsourcing (ESO) Market, by Location, 2019 - 2032 (USD Million)
8. Competitive Landscape
- 8.1. Expansion and Acquisition Analysis
- 8.1.1. Expansion
- 8.1.2. Acquisitions
- 8.2. Partnerships/Collaborations/Agreements/Exhibitions
9. Company Profiles
- 9.1. Accenture Plc
- 9.1.1. Company Overview
- 9.1.2. Financial Performance
- 9.1.3. Product Benchmarking
- 9.1.4. Recent Development
- 9.2. Altair Engineering, Inc.
- 9.2.1. Company Overview
- 9.2.2. Financial Performance
- 9.2.3. Product Benchmarking
- 9.2.4. Recent Development
- 9.3. ALTEN
- 9.3.1. Company Overview
- 9.3.2. Financial Performance
- 9.3.3. Product Benchmarking
- 9.3.4. Recent Development
- 9.4. Altran
- 9.4.1. Company Overview
- 9.4.2. Financial Performance
- 9.4.3. Product Benchmarking
- 9.4.4. Recent Development
- 9.5. Amazon Web Services (AWS)
- 9.5.1. Company Overview
- 9.5.2. Financial Performance
- 9.5.3. Product Benchmarking
- 9.5.4. Recent Development
- 9.6. ASAP Holding GmbH
- 9.6.1. Company Overview
- 9.6.2. Financial Performance
- 9.6.3. Product Benchmarking
- 9.6.4. Recent Development
- 9.7. AVL List GmbH
- 9.7.1. Company Overview
- 9.7.2. Financial Performance
- 9.7.3. Product Benchmarking
- 9.7.4. Recent Development
- 9.8. Boston Engineering Corporation
- 9.8.1. Company Overview
- 9.8.2. Financial Performance
- 9.8.3. Product Benchmarking
- 9.8.4. Recent Development
- 9.9. Capgemini SE
- 9.9.1. Company Overview
- 9.9.2. Financial Performance
- 9.9.3. Product Benchmarking
- 9.9.4. Recent Development
- 9.10. Cybage Software Pvt. Ltd.
- 9.10.1. Company Overview
- 9.10.2. Financial Performance
- 9.10.3. Product Benchmarking
- 9.10.4. Recent Development
- 9.11. EPAM Systems Inc.
- 9.11.1. Company Overview
- 9.11.2. Financial Performance
- 9.11.3. Product Benchmarking
- 9.11.4. Recent Development
- 9.12. HCL Technologies Limited
- 9.12.1. Company Overview
- 9.12.2. Financial Performance
- 9.12.3. Product Benchmarking
- 9.12.4. Recent Development
- 9.13. Infosys Limited
- 9.13.1. Company Overview
- 9.13.2. Financial Performance
- 9.13.3. Product Benchmarking
- 9.13.4. Recent Development
- 9.14. International Business Machines Corporation
- 9.14.1. Company Overview
- 9.14.2. Financial Performance
- 9.14.3. Product Benchmarking
- 9.14.4. Recent Development
- 9.15. Microsoft Azure
- 9.15.1. Company Overview
- 9.15.2. Financial Performance
- 9.15.3. Product Benchmarking
- 9.15.4. Recent Development
- 9.16. QuEST Global Services Pte. Ltd.
- 9.16.1. Company Overview
- 9.16.2. Financial Performance
- 9.16.3. Product Benchmarking
- 9.16.4. Recent Development
- 9.17. Sonata Software Limited
- 9.17.1. Company Overview
- 9.17.2. Financial Performance
- 9.17.3. Product Benchmarking
- 9.17.4. Recent Development
- 9.18. Tata Consultancy Services Limited
- 9.18.1. Company Overview
- 9.18.2. Financial Performance
- 9.18.3. Product Benchmarking
- 9.18.4. Recent Development
- 9.19. Tech Mahindra Limited (Mahindra Group)
- 9.19.1. Company Overview
- 9.19.2. Financial Performance
- 9.19.3. Product Benchmarking
- 9.19.4. Recent Development
- 9.20. Wipro Limited
- 9.20.1. Company Overview
- 9.20.2. Financial Performance
- 9.20.3. Product Benchmarking
- 9.20.4. Recent Development