How Big Is the Engineering Services Outsourcing Market | Demands & Forecasts 2031

Q: What is the projected size of the engineering services outsourcing market?

The engineering services outsourcing market was valued at USD 7.3 Billion in 2024 and is expected to reach USD 16 Billion by 2031.

Q: What factors proliferates the engineering services outsourcing market growth?

Growing adoption of Industry 4.0 technologies and rising investments in R&D by manufacturing and technology companies are the key drivers.

Q: What companies are dominating the engineering services outsourcing industry?

In genral, Infosys Ltd., HCLTech, Wipro EngineeringNXT, Alten Group, Tata Technologies, and others dominates this industry.

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6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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Code: MTA6383

Publication Date: Jul 2025

How Big Is the Engineering Services Outsourcing Market?

According to 6Wresearch internal database and industry insights, the Globla Engineering Services Outsourcing Market was valued at USD 7.3 Billion in 2024 and is expected to reach USD 16 Billion by 2031, growing at a compound annual growth rate of 12.00% during the forecast period (2025-2031).

This enormous growth is underpinned by the factors such as increased demand for cost-effective, the growing adoption of Industry 4.0 technologies, the need for faster product development cycles, and increasing investments in R&D by manufacturing and technology companies.

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Growth Drivers of the Engineering Services Outsourcing Market

Surging demand for specialized skills in areas such as AI, IoT, robotics, and automotive design
Cost optimization and talent shortages pushing global firms toward offshore engineering support
Development in industrial automation and smart manufacturing initiatives
Increasing investments by OEMs in digitized product development and design validation
Need for quicker time-to-market for complex engineering projects
Government initiatives supporting engineering R&D hubs in emerging markets like India and Vietnam

Engineering Services Outsourcing Market Trends

Engineering Services Outsourcing Market (ESO) is witnessing a major transition towards high-end design services, digital engineering, and platform-based outsourcing. Also, there is a rising trend of strategic partnerships between global firms and engineering service providers for end-to-end product lifecycle support. In addition to this, the integration of simulation-based engineering, cloud-based CAD platforms, and digital twins is gaining momentum in sectors such as aerospace, automotive, and industrial.

Emerging Developments in Engineering Services Outsourcing Market

In the Engineering Services Outsourcing Market, vendors are increasingly investing in domain-specific centers of excellence and co-innovation labs. The emergence of outcome-based pricing models, IP-driven service delivery, and expansion of services into sustainability-focused engineering (green design, renewable systems) mark significant market evolution. Additionally, AI-enabled engineering analytics and embedded software development are transforming ESO capabilities.