Product Engineering Services Market Size, Share & COVID-19 Impact Analysis, By Service (Design, Development, Testing, Support & Maintenance, Redesigning & Re-engineering, Deployment, and Others), By Enterprise Type (Large Enterprises, and Small & Medium Enterprises), By Industry (Automotive, Healthcare & Life Science, Manufacturing, BFSI, Retail & Consumer goods, Aerospace & Defense, IT & Telecom, and Others), and Regional Forecast, 2023 – 2030

The global product engineering services market size was valued at USD 1,147.33 billion in 2022 and is projected to grow from USD 1,242.32 billion in 2023 to USD 2,405.92 billion by 2030, exhibiting a CAGR of 9.9% during the forecast period. North America dominated the global market with a share of 40.68% in 2022.

Product engineering services offer various solutions at different phases of the product engineering lifecycle. It monitors and controls solution and service operations from the beginning of the lifecycle of design to re-engineering and deliveries. The growing focus on lowering production costs is expected to propel the demand for advanced engineering services. The assurance of better output with reduced operation time and cost is expected to boost market growth. Industries such as automotive, manufacturing, healthcare, BFSI, aerospace & defense, and more are committed to delivering efficient products by ensuring high-quality at each production phase. Considering the rising demand for product and use case applications, various companies are entering the business through strategic acquisition. For instance,

• In August 2023, Ascendion acquired U.S.-based Nitor Infotech to enhance its product engineering services capabilities with the expertise of generative AI. This move enables the company to offer a broader range of services and enter new markets.

COVID-19 IMPACT

Limitations on Manufacturing and Business Operations amid Pandemic Encouraged Market Growth

The COVID-19 pandemic severely hampered the production and operation of industries across the world. Manufacturing shutdowns, supply chain limitations, and closure of global borders significantly impacted markets across countries, hindering the production and development of products across industries such as BFSI, manufacturing, retail, healthcare, automotive, and more. To tackle the situation, various companies invested in launching innovative solutions. For instance,

• In September 2021, product engineering and lifecycle service provider Quest Global launched a COVID-19 vaccine awareness program across the cities of India.

Thus, to ensure business continuity, engineering service providers collaborated and introduced innovative products. These services supported industries in offering quick and cost-effective solutions, resulting in post-pandemic market growth. Product engineering technology helped manufacture essential products such as medical kits, online banking services, retail services, and more amid the pandemic. Post pandemic, the industries are more focused on customer satisfaction through faster product development and production. This is expected to boost the product engineering services market share.

Product Engineering Services Market Trends

Artificial Intelligence Integration with Engineering Services to Propel Market Growth

Artificial Intelligence (AI) is offering revolutionary solutions across industry applications. Product engineering services integrate artificial intelligence to enhance output through innovative solutions. Together, these technologies have elevated the expertise and experience in product design and development. It helps mitigate the risk of development and deployment in advance, thus enhancing time management.

Similarly, artificial intelligence identifies the areas that can support lowering the expenses, thus, major enterprises in the engineering services are investing in the technology. This collaborative integration fosters improved customer satisfaction, scalability, efficiency, and competitiveness. The integration of artificial intelligence with engineering series is expected to unlock significant growth opportunities.

Product Engineering Services Market Growth Factors

Growing Focus on Product Design and Enhancement of Customer Engagement Services to Drive Market Growth

Engineering services support all activities in the lifecycle of product design, development, testing, re-engineering, and more. It uses sophisticated methodologies to understand production and offer comprehensive support across the product lifecycle. In recent times, companies have majorly focused on offering quicker and faster deliveries to enhance customer engagement. Thus, the rise in focus on customer satisfaction has led companies to increase production efficiency and product quality.

Product customization is also gaining traction, and customers are experimenting with their needs and requirements. This has fueled the need for monitoring and analyzing the development process through this type of engineering services. Moreover, technology plays a crucial role in quality assurance, along with cost-effective methods. Thus, the growing prevalence of customized development and the heightened focus on product designing is likely to propel the market growth.

RESTRAINING FACTORS

Additional Cost of Designing Services to Hamper Market Growth

Product engineering services are gaining significant demand across industry applications. However, for growing businesses, the installation of such services entails additional costs. Moreover, not all enterprises find it comfortable to utilize designing and developing services during the initial product conceptualization process. Limited innovation funds and high cost of investment is expected to hamper market growth.

Product Engineering Services Market Segmentation Analysis

By Service Analysis

Development Segment’s Growth Driven by Effective Product Development Services

On the basis of service, the market is segmented into design, development, testing, support & maintenance, redesigning & re-engineering, deployment, and others.

The development segment is expected to gain maximum share during the forecast period. The efficiency of product development empowers enterprises to offer innovative and emerging solutions. The product development engineer manages the process from benchmarking to delivery, boosting time management and customer service.

Similarly, the design segment is poised to gain a prominent market share during the forecast period. The series helps enterprises conceptualize products and offers a window for rectifying or modifying designs.

Deployment is expected to showcase a rapid growth rate during the forecast period. Product deployment services enhance the multiple site integration along with data protestation. This is expected to boost product engineering service market share.

By Enterprise Type Analysis

Capability to Support across Production Lifecycle is Likely to Propel Large Enterprises Segment

Based on enterprise type, the market is segmented into large enterprises and small & medium enterprises.

The large enterprises segment is expected to gain the maximum share during the forecast period. The rise in competition is driving companies to invest in services that can help enhance product development and production time. Furthermore, these services help cover a wide range of activities across the production lifecycle to boost market growth.

The small & medium enterprises segment is expected to gain rapid growth rate during the forecast period. The growing digitalization across small enterprises is expected to propel the demand for this type of engineering services.

By Industry Analysis

Increasing Demand for Quick production to Fuel Engineering Services Adoption in Manufacturing

By industry, the market is categorized into automotive, healthcare & life science, manufacturing, BFSI, retail & consumer goods, aerospace & defense, IT & telecom, and others.

The manufacturing segment is expected to capture the maximum revenue share during the forecast period. The increasing demand for faster production with higher quality and lesser cost is likely to boost the demand for this type of engineering services in manufacturing industries worldwide. These services monitor the product throughout the entire production lifecycle and offer effective ways to reduce the time and cost further.

The healthcare and life science segment is expected to grow rapidly during the forecast period. These services help design and manufacture medical devices within a cost-competitive range.

Similarly, automotive is projected to gain a significant segment share during the forecast period. Its growing application in car concept development, designing, and more is expected to boost segmental share.

Regional Product Engineering Services Market Analysis

Based on region, the market has been studied across North America, South America, Europe, Asia Pacific, and the Middle East & Africa.

North America is expected to gain a dominant revenue share with increased demand for services supporting production time and cost. The growing focus on faster product deliveries is likely to fuel market growth in the region. Industries such as manufacturing, aerospace and defense, BFSI, retail, and more are investing in time-efficient product development solutions to enhance customer satisfaction.

Asia Pacific is likely to witness the highest growth rate during the forecast period. The remarkable growth in the service industry vertical of the region is expected to propel market share. Engineering services are gaining significant demand across industries in China. Moreover, India is expected to play a strong role in offering efficient IT services across the globe.

Europe is set to gain a prominent growth rate during the forecast period. With the rise in digitalization and automation in the region, various key players are expanding into European countries. The enterprises are keen on enhancing operations to boost market growth.

The Middle East & Africa are estimated to showcase significant growth rate during the forecast period. Rapidly growing industries such as aerospace and defense, automotive, BFSI and more to boost the market growth in the region. South America to showcase steady growth with the rise in digitalization and production services.

List of Key Product Engineering Services Market Companies

Key Players Are Adopting Acquisitions Strategies to Expand their Market Reach

Key players in the market are significantly strengthening their market position through the strategic acquisition of small and niche local players. Through this, these players are gaining expertise, a new client base and global expansion. Similarly, with the rise in advanced technologies, the key players are integrating generative AI capabilities to offer higher-end capabilities.

• November 2023: HARMAN International announced the acquisition of Flux Software Engineering, an immersive audio service provider. Through this acquisition, the company aimed to expand its engineering tools for professionals in designing real-time immersive experiences. 

List of Key Companies Profiled:

• HCL Technologies (India)


• Capgemini SE (France)


• IBM Corporation (U.S.)


• Accenture plc (Ireland)


• Cognizant AG (U.S.)


• Wipro (India)


• TATA Consultancy Services Limited (India)


• HARMAN International (U.S.)


• LTIMindtree Limited (India)


• AKKA Technologies (Belgium)

KEY INDUSTRY DEVELOPMENTS:

• June 2023: FPT Corporation, a Vietnam-based IT service provider, acquired U.S. based Cardinal Peak, offering product type of engineering services to strengthen its market position. The company aimed to deliver end-to-end product engineering services such as Internet of Things (IoT), cloud, hardware, mobile product development, and more.


• October 2023: Happiest Minds Technologies Limited introduced product and digital engineering services, offering focused, cutting-edge technologies and engineering skills. With this strategic move, the company focused on building deep domain expertise.


• May 2023: Next-generation product engineering provider Encora introduced generative AI-powered digital engineering services to offer higher quality and productivity to its clients. The advanced services offered support across the software development lifecycle.


• September 2022: High-end product engineering solutions providing company Azilen Technologies announced a partnership with Australia-based GANTNER to add ecosystem value to boost development goals. Together, the companies aimed to expand their India operations using Azilen engineering solutions.


• April 2021: California-based ACL Digital announced a collaboration with silicon intellectual property Mobiveil to expand the engineering services business. Together, the companies offered semiconductor engineering capabilities IP and value-added services across Asia Pacific, U.S., and Europe.

REPORT COVERAGE

The market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation