The global engineering services outsourcing market was valued at USD 1,922.2 Billion in 2025 and is forecast to reach USD 6,460.5 Billion by 2034, exhibiting a CAGR of 14.42% from 2026-2034. The market growth is driven by cost optimization needs, access to global talent, expedited product development cycles, and adoption of digital engineering technologies. Asia Pacific leads with a 42.1% share in 2024 due to its skilled workforce and competitive costs. 

Study Assumption Years

• Base Year: 2025

• Historical Years: 2020-2025

• Forecast Period: 2026-2034

Engineering Services Outsourcing Market Key Takeaways

• The global engineering services outsourcing market size was USD 1,922.2 Billion in 2025, expected to grow at a CAGR of 14.42% toUSD 6,460.5 Billion by 2034.

• Asia Pacific dominated the market with a 42.1% share in 2024, propelled by skilled engineers, competitive labor costs, and government support.

• Onshore outsourcing held 68.7% of the market in 2024 due to collaboration, control, and adherence to regulations.

• Automotive was the leading application segment with 25.4% market share, driven by innovation needs and adoption of new technologies.

• The United States commanded 87.8% share of the North American market, driven by digital tech adoption such as AI and IoT.

Sample Request Link:

https://www.imarcgroup.com/engineering-services-outsourcing-market/requestsample

Market Growth Factors

Automation tools are a key growth driver in the engineering services outsourcing market. Such tools allow employees to automate repetitive tasks, enabling them to engage in value-adding calculated activities that help to reduce workloads and increase productivity. Research has reported that 94% of companies are performing repetitive, manual tasks that automated tools for inspecting, testing, and building engineering systems can complete faster and with better accuracy. The market is expected to grow due to focus on operational optimization, priority for business functions and technology adoption.

More and more industries worldwide are using engineering systems and software like CAD, CAE, CAM and EDA in order to increase accuracy, speed up development, enable collaborative work between teams around the globe, and meet the demand for shorter product lifecycles and lower costs. The outsourcing of the engineering department saves office space, infrastructure costs, and avoids the need for permanent headcount. The Everest Group Engineering Services Top 50 companies accounted for 89% of the USD 78 billion outsourced engineering market in 2023 (i.e. about USD 70 billion), indicating important market penetration.

The increase in industrial automation and system integrations are also responsible for the market growth. The report estimates that worldwide, there are 4.28 million industrial robots in use, an increase of 10% year on year. Over 500,000 units of industrial robots were installed annually, rising for three consecutive years. Outsourcing brings flexibility as well as lower-cost and more sustainable solutions through specialized skills and the latest technologies. The trend is more pronounced in industries where the primary needs relate to operations efficiency, predictable manufacturing, and global access to engineering expertise, as per engineering services outsourcing revenue.

Market Segmentation

By Service:

• Designing

• Prototyping

• System Integration

• Testing: Testing dominates due to ensuring safety, performance, and reliability in complex engineered systems; it covers functional, stress, compliance, and software validation testing, providing access to advanced labs and reducing capital expenses.

• Others

By Location:

• Onshore: Largest segment with 68.7% market share in 2024, favored for collaboration, project control, local regulation adherence, faster feedback, and IP security, crucial in aerospace, automotive, and defense.

• Offshore

By Application:

• Aerospace

• Automotive: Leading segment with 25.4% share in 2024, driven by innovation, safety, and regulation adherence; outsourcing accelerates development, cuts costs, and supports technologies like electric powertrains and autonomous systems.

• Construction

• Consumer Electronics

• Semiconductors

• Pharmaceuticals

• Telecom

• Others

Regional Insights

Asia Pacific holds the largest market share at 42.1% in 2024, driven by a robust demand from consumer electronics and telecommunications needing rapid innovation. Countries like India and China offer a large talent pool skilled in embedded systems, CAD design, and simulation. The presence of many service providers enables global companies to access high-quality and cost-effective engineering solutions, cementing the region as a market leader.

Recent Developments & News

• March 2025: CGI signed an exclusivity agreement to acquire Apside, a French digital and engineering services firm; closing expected by June 2025.

• December 2024: YRH Inc. and Pinargon Ltd. merged to create a fully integrated telecommunications engineering service, combining expertise in wireless, fiber optics, civil structures, and intelligent transportation.

• July 2024: Accenture acquired Cientra, a silicon design and engineering services firm, strengthening semiconductor innovation capabilities.

• June 2024: Cognizant partnered with Gentherm to provide engineering services including a dedicated 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

Request For Customization:

https://www.imarcgroup.com/request?type=report&id=2682&flag=E

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

About Us

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us

IMARC Group,

134 N 4th St. Brooklyn, NY 11249, USA,

Email: sales@imarcgroup.com,

Tel No: (D) +91 120 433 0800,

United States: +1-201971-6302