Engineering Services Outsourcing Market Size, CAGR, Trends and Growth Report Forecast 2025–2033
- Rahul Pal
- Dec 5, 2025
- 3 min read
The global Engineering services outsourcing market was valued at USD 1,668.94 Billion in 2024 and is projected to reach USD 6,335.04 Billion by 2033, growing at a CAGR of 15.18% during the forecast period of 2025-2033. This growth is driven by factors such as the rising demand for cost optimization, access to global talent, and the increasing adoption of digital engineering technologies across industries. Asia Pacific leads the market with a 42.1% share in 2024.
Study Assumption Years
Base Year: 2024
Historical Years: 2019-2024
Forecast Period: 2025-2033
Engineering Services Outsourcing Market Key Takeaways
The global engineering services outsourcing market size was valued at USD 1,668.94 Billion in 2024.
The market is expected to reach USD 6,335.04 Billion by 2033, with a CAGR of 15.18% from 2025 to 2033.
Asia Pacific dominates the market with a 42.1% share in 2024.
The growth in Asia Pacific is driven by its large pool of skilled engineers, competitive labor costs, and strong infrastructure in countries like India and China.
Increasing investments in R&D for sophisticated, innovative products bolster demand.
The United States is a key market, driven by the adoption of advanced technologies such as AI, digital twins, CAD, and IoT.
Outsourcing provides access to skilled labor at reduced pay levels, contributing to the trend among large and medium businesses.
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Market Growth Factors
Businesses face pressure to reduce expenses related to product development and operations, making engineering services outsourcing a strategic option. Labor-intensive engineering tasks done internally in high-cost countries can be costly. Outsourcing to regions with lower pay levels allows companies access to skilled workers at reduced costs, fueling market growth.
Increasing investments in research and development (R&D) to develop sophisticated and interconnected products, especially in automotive, aerospace, and telecommunications, drive demand. Engineering roles require multidisciplinary skills, flexible project management, and specialized tools, which outsourcing providers offer.
Adoption of advanced technologies such as digital twins, AI-enhanced design optimization, cloud-based CAD, and IoT-enabled systems in the United States is expanding market scope. These services facilitate innovation, faster iteration, and system integration. Acquisitions, like Cognizant's $1.3 billion purchase of Belcan, strengthen engineering capabilities and market leadership.
Market Segmentation
By Service:
Designing
Prototyping
System Integration
Testing: Dominates the market by ensuring safety, performance, and reliability of complex engineered systems. Includes functional, stress, compliance testing, and software validation. Outsourcing testing provides access to advanced labs, equipment, and expertise, reducing capital expenditure and risks, enabling faster market entry.
Others
By Location:
Onshore: Largest component in 2024 with 68.7% market share due to the need for close collaboration, better project control, adherence to local regulations, and faster feedback cycles. Offers cultural alignment and sector-specific knowledge.
Offshore
By Application:
Aerospace
Automotive: Leads with 25.4% market share in 2024, driven by innovation, safety, and regulatory adherence. Outsourcing accelerates development, reduces costs, and incorporates advanced technologies like electric powertrains and autonomous systems.
Construction
Consumer Electronics
Semiconductors
Pharmaceuticals
Telecom
Others
Regional Insights
Asia Pacific is the dominant region in 2024, holding a 42.1% market share. Its leadership results from rapid industrialization, a large skilled engineering talent pool, competitive labor costs, and strong infrastructure especially in India and China. The region benefits from government support for digital innovation and a robust presence of service providers.
Recent Developments & News
March 2025: CGI signed an exclusivity agreement to acquire Apside, a French digital and engineering services firm, with closure expected by June 2025.
December 2024: YRH Inc. and Pinargon Ltd. merged to form a fully integrated telecommunications engineering service offering expertise in wireless communications, civil structures, fiber optics, and intelligent transportation.
July 2024: Accenture acquired Cientra, a silicon design and engineering firm, enhancing its custom silicon and semiconductor services.
June 2024: Cognizant entered an agreement to provide engineering services to Gentherm, including 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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