Product Engineering Services Market Overview:
As per MRFR analysis, the Product Engineering Services Market Size was estimated at 148.12 (USD Billion) in 2022. The Product Engineering Services Market Industry is expected to grow from 163.17(USD Billion) in 2023 to 389.8 (USD Billion) by 2032. The Product Engineering Services Market CAGR (growth rate) is expected to be around 10.16% during the forecast period (2024 - 2032).
Key Product Engineering Services Market Trends Highlighted
Key market drivers of Product Engineering Services include the rising demand for digital transformation, increasing complexity of products, and the need for specialized expertise. Opportunities exist in sectors such as healthcare, automotive, and manufacturing, where companies seek to enhance product functionality and user experience. Trends in recent times indicate a shift towards agile development methodologies, cloud-based engineering platforms, and the integration of artificial intelligence and machine learning in product design and development. These advancements and industry-specific needs drive the growth of the Product Engineering Services Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Product Engineering Services Market Drivers
Increasing Demand for Digital Transformation
On the way of enhancing the efficiency of their operations, improving customer experiences, and gaining a competitive advantage, enterprises in every industry are keen on utilizing digital technologies. To be able to design, develop, and implement sophisticated software solutions, they have to engage the services of product engineering. As a result, the demand for services in an industry titled Product Engineering Services Market Industry is burgeoning.
The adoption of cloud computing, artificial intelligence , and Internet of Things technologies is changing the world of business as it results in the automation of services and improved decision-making, leading companies to create unique experiences for their customers. Product Engineering Services Market Industry is growing and will go on growing at a pace that is mainly determined by the increase in demand for software development and engineering.Another factor contributing to the growth of the industry is the increasing adoption of agile development by enterprises.
Application of agile methodologies enables businesses to develop and deliver sophisticated software products quicker and with more efficiency, which is essential in the context of high demand volatility and quick changes that are likely to arise in the future. Market constituents in the Product Engineering Services Market Industry, namely providers of product engineering services, play an instrumental role in helping businesses become more agile and efficient, which, in turn, creates new opportunities for growth.
Another factor contributing to the increase in demand for services in the industry is the growing popularity of open-source software. On the one hand, as it is cost-saving, enterprises are likely to become more active users of open-source software. On the other hand, adjustments and integrating are required to guarantee that an open-source solution caters to the specific demands of an enterprise. Product engineering services providers are likely to take good advantage of the trend.In overall, the demand for software development and product engineering is likely to advance as more and more businesses come to realize the benefits that digital transformation and the application of digital technologies and open-source applications in particular can bring.
Rising Complexity of Software Development
The increasing complexity of software development is another major factor driving the growth of the Product Engineering Services Market Industry. Software products are becoming increasingly complex as businesses demand more features and functionality. This complexity is making it difficult for businesses to develop and maintain software in-house. As a result, businesses are increasingly outsourcing their software development needs to product engineering services providers.
The complexity of software development is also increasing due to the adoption of new technologies, such as cloud computing, AI, and IoT. These technologies are enabling the development of new types of software applications that are more complex and data-intensive. Product engineering services providers have the expertise and experience to develop and maintain these complex software applications.
Need for Specialized Expertise
Many businesses do not have the required expertise to develop or maintain complicated software products in-house. In such cases, product engineering services providers can be the ideal solution for the successful development and implementation of custom software. Indeed, product engineering services providers possess necessary knowledge, expertise, and experience in all phases of software design, development, and implementation. This includes versatile knowledge of software development methodologies, programming languages, and best industry practices.
On the other hand, product engineering services providers often have all the required tools and technologies to develop software products in the most efficient and quick manner. Moreover, with the help of such providers, the business will no longer have to worry about the ongoing support and maintenance of software products – such services are included in most of the contracts.
Product Engineering Services Market Segment Insights:
Product Engineering Services Market Service Type Insights
The Service Type segment holds significant importance in the Product Engineering Services Market, showcasing diverse service offerings that cater to specific product development needs. Among these services, Design and Development holds a prominent position, accounting for a substantial share of the market revenue. This service type plays a crucial role in conceptualizing and transforming product ideas into tangible designs, ensuring functionality, aesthetics, and user-friendliness. Mechanical Engineering services contribute significantly to the market, leveraging expertise in designing and analyzing mechanical systems, components, and assemblies. These services optimize product performance, durability, and efficiency, catering to industries such as automotive, aerospace, and manufacturing.
Electrical Engineering services hold equal importance, focusing on electrical systems, power distribution, and control mechanisms. By ensuring electrical safety, reliability, and energy efficiency, these services are vital for industries like electronics, telecommunications, and healthcare. Software Engineering services play a pivotal role in developing and maintaining software applications and systems. These services encompass software design, coding, testing, and deployment, enabling businesses to leverage technology for innovation and growth. Quality Assurance and Testing services ensure product quality and performance by identifying and rectifying defects. They adhere to industry standards and regulations, ensuring customer satisfaction and minimizing product recalls.
The Product Engineering Services Market is experiencing notable growth, driven by increasing demand for specialized engineering expertise, technological advancements, and the need for efficient product development processes. The market is expected to continue its growth trajectory, with projections indicating a promising future for each service type.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Product Engineering Services Market Industry Insights
The Product Engineering Services Market is categorized by its target industry, as the axial industries include Automotive, Aerospace and Defense, Healthcare, Industrial Machinery, Consumer Electronics, and others. Each industry has its peculiarities and needs specifically oriented product engineering services. The Automotive industry will witness notable development in the on-coming years, as the role of electric and autonomous cars will increase. The Aerospace and Defense industry will request high-precision engineering for the development of various aircraft and defense mechanisms.
Healthcare industry will require reliable and effective engineering services for different medical devices. The Industrial Machinery Equipment and Tools industry will be dependent on product engineering to improve production processes. The same refers to the Consumer Electronics industry, which will require broader knowledge and deeper research in designing and developing emerging technologies due to an array of electronic gadgets. The Product Engineering Services Market is expected to arise to about USD 200 billion by 2024, as more industries require long-term and original solutions and services.
Product Engineering Services Market Engineering Capability Insights
The Product Engineering Services Market is segmented based on Engineering Capability into CAD/CAM/CAE Software Proficiency, Finite Element Analysis (FEA), Computational Fluid Dynamics (CFD), Artificial Intelligence (AI) and Machine Learning (ML), and Additive Manufacturing (3D Printing). The CAD/CAM/CAE Software Proficiency segment is expected to hold the largest market share in 2023, owing to the increasing adoption of these software tools by product design and engineering companies. The Finite Element Analysis (FEA) segment is expected to witness significant growth over the forecast period, driven by the rising demand for FEA services in industries such as automotive, aerospace, and manufacturing.
The Computational Fluid Dynamics (CFD) segment is expected to grow steadily, fueled by the increasing need for CFD simulations in the design and optimization of fluid flow systems. The Artificial Intelligence (AI) and Machine Learning (ML) segment is expected to gain traction in the coming years, as AI and ML are increasingly being used to automate product design and engineering processes. The Additive Manufacturing (3D Printing) segment is expected to witness exponential growth, driven by the increasing adoption of 3D printing technologies in various industries.
Product Engineering Services Market Regional Insights
The regional segmentation of the Product Engineering Services Market offers valuable insights into the market's geographical distribution and growth patterns. North America is expected to remain the dominant regional market, accounting for a significant share of the global revenue in 2024. The region's robust infrastructure, technological advancements, and high demand for product engineering services from various industries drive its growth. Europe is another key market, characterized by a strong automotive and manufacturing sector.
The region is expected to witness steady growth in the coming years due to increasing investments in product development and innovation.APAC is poised to emerge as a high-growth region, driven by the rapidly expanding manufacturing and electronics industries in countries like China and India. South America and MEA are expected to contribute a smaller share to the global market but are expected to exhibit moderate growth rates.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Product Engineering Services Market Key Players And Competitive Insights:
Leading Product Engineering Services Market players are consistently investing in research and development (R&D) to enhance their service offerings and gain a competitive advantage. Strategic partnerships and acquisitions are also common strategies employed by major players to expand their market presence and capabilities. The industry is characterized by a high degree of competition, with numerous players vying for market share. To differentiate themselves, companies are focusing on offering specialized services, industry-specific expertise, and value-added solutions that cater to the unique needs of their clients. Furthermore, the Product Engineering Services Market industry is witnessing the emergence of new players, particularly in emerging markets, adding to the competitive landscape.
A leading company in the Product Engineering Services Market is Infosys, a global provider of digital services and consulting. The company offers a wide range of product engineering services, including product design, development, and maintenance. Infosys has established itself as a trusted partner for businesses across various industries, delivering innovative solutions that drive digital transformation. The company's focus on customer-centricity, agile methodologies, and domain expertise has enabled it to maintain a strong position in the market.
A competitor company in the Product Engineering Services Market is Tata Consultancy Services (TCS), a leading provider of IT services and solutions. TCS offers a comprehensive suite of product engineering services, leveraging its deep industry knowledge and expertise in emerging technologies. The company's focus on building long-term partnerships with clients and its commitment to delivering high-quality solutions have contributed to its success in the market. TCS has established a global presence, serving clients in various industries, and continues to expand its offerings to meet the evolving needs of the market.
Key Companies in the Product Engineering Services Market Include:
Product Engineering Services Market Industry Developments
The global Product Engineering Services (PES) market is projected to reach $389.8 billion by 2032, exhibiting a 10.16% CAGR from 2024 to 2032. The increasing adoption of digital transformation initiatives, cloud computing, and IoT is driving market growth. Automotive, healthcare, and aerospace & defense are key verticals leveraging PES to enhance product design, development, and manufacturing processes.
Strategic partnerships and acquisitions among PES providers are shaping the competitive landscape, with companies expanding their service offerings and geographic reach. Recent news highlights include the acquisition of Altran by Capgemini, strengthening its position in the automotive and aerospace sectors. Additionally, the growing demand for specialized engineering skills and the need for cost optimization are driving the adoption of PES, particularly in emerging economies.
Product Engineering Services Market Segmentation Insights
-
Product Engineering Services Market Service Type Outlook
-
Product Engineering Services Market Industry Outlook
-
Automotive
-
Aerospace and Defense
-
Healthcare
-
Industrial Machinery
-
Consumer Electronics
-
Product Engineering Services Market Engineering Capability Outlook
-
CAD/CAM/CAE Software Proficiency
-
Finite Element Analysis (FEA)
-
Computational Fluid Dynamics (CFD)
-
Artificial Intelligence (AI) and Machine Learning (ML)
-
Additive Manufacturing (3D Printing)
-
Product Engineering Services Market Regional Outlook
-
North America
-
Europe
-
South America
-
Asia Pacific
-
Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
148.12(USD Billion) |
| Market Size 2023 |
163.17(USD Billion) |
| Market Size 2032 |
389.8(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
10.16% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Atos ,Accenture ,Siemens Digital Industries Software ,PTC ,Wipro ,HCL Technologies ,Cognizant ,IBM ,Capgemini ,Infosys ,TCS ,DXC Technology |
| Segments Covered |
Service Type ,Industry ,Engineering Capability ,Regional |
| Key Market Opportunities |
Digitalization Cloud adoption IoT integration Data analytics Blockchain applications |
| Key Market Dynamics |
Rapid technology advancements Growing outsourcing trend Increased product complexity Focus on innovation Digital transformation |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Product Engineering Services Market is expected to reach a valuation of USD 163.17 billion in 2023, growing at a CAGR of 10.16% to reach USD 389.8 billion by 2032.
North America is expected to hold the largest market share, followed by Europe, Asia Pacific, and the Rest of the World (RoW).
Key growth drivers of the Product Engineering Services Market include increasing demand for digital transformation, rising adoption of cloud and IoT, and growing need for product innovation.
Major applications of Product Engineering Services include product design and development, manufacturing engineering, and testing and validation.
Key competitors in the Product Engineering Services Market include Accenture, Capgemini, Cognizant, HCL Technologies, IBM, and Infosys.
Challenges faced by the Product Engineering Services Market include talent shortage, increasing competition, and geopolitical uncertainties.
Opportunities for the Product Engineering Services Market include growing demand for digital transformation, increasing adoption of cloud and IoT, and growing need for product innovation.
Trends shaping the Product Engineering Services Market include the rise of digital twins, increasing use of artificial intelligence (AI), and growing adoption of agile methodologies.
The Product Engineering Services Market is expected to grow at a CAGR of 10.16% from 2023 to 2032, reaching a valuation of USD 389.8 billion by 2032.
Key factors driving the growth of the Product Engineering Services Market include increasing demand for digital transformation, rising adoption of cloud and IoT, and growing need for product innovation.
