The
engineering services market is predicted to reach USD 1167.21 billion by 2025. Some of the major factors bolstering the growth of this market are the operations, which are being rearranged by organizations owing to recovering from the impact of the pandemic. These had earlier resulted in restrictive containment measures. It comprises remote working, social distancing, as well as the closure of commercial activities that led to operational challenges.
While the engineering services market comprises the sale of engineering services, the enterprises rendering these services apply physical laws & principles of engineering in the processes of design, development & utilization of machines, structures, processes as well as instruments. Engineering services consist of the technical application of engineering in
innovations, product designing, and other sectors. These include mining, transportation, building construction, manufacturing, and power & energy, etc.
The adoption of IoT around the world is the latest trend in the engineering services market. For instance,
.PureSoftware –built a steady IoT platform to improve the accuracy and speed to retrieve data. PureSoftware is an engineering service company. It achieved this by successfully integrating the Internet of Things into engineering services. India has a 43 percent market share in the global IoT market.
Top trends in Engineering Services Outsourcing
While the outsourcing decisions in organizations today are highly strategic, Project managers on a major scale opt to outsource engineering services such as 3D modeling & CAD. Furthermore, Digitization has triggered them to demand advanced IT solutions. These include engineering analytics, IoT, and AI for gaining an edge over the rest of the players as well as maintaining the momentum of the company. The top emerging trends driving the global engineering services outsourcing include the emergence of AI and ML, the growing trend of engaging clients with consulting services, and the Evolution of IoT.
The emergence of AI & ML
The usage of AI technology is being triggered by
Automation in engineering services. While Automation in engineering services helps anorganization to reduce costs by 35 to 45 percent, AI-powered engineering solutions help to resolve various stages of design and development of engineering products.
Evolution of IIoT
The use of IIoT in several industry verticals has proliferated to a great extent. While Smart connected devices are helping and assisting manufacturers to enable Machine- to – machine communications, IIoT services render real-time information exchange for helping industrial manufacturers to design as well as develop products. The industrial IoT services for ER&D hopes to get innovation in engineered products.
Leading automotive companies are investing in building next-generation autonomous cars. These include GM, Nissan & BMW. GM has invested USD 500 million in Lyft for providing on-demand autonomous vehicles. Lyft is one of the ride-sharing firms. Also, Autonomous cars are being designed and tested with the help of IoT technologies.
Factors restraining the growth of the engineering services market
What may restrain the engineering services market growth is the lack of quality control & safety concerns of engineering firms, while the defects of failures in construction activities result in high costs. These minor defects lead to re-construction making the facility operations impaired. Growing costs & delays are the consequences of ineffective internal controls & safety measures that hamper the end-to-end quality.
For instance, an engineering services company - Quest is faced with difficulties that are caused by a lack of understanding of the problems in the execution process & inconsistency across numerous business units. In order to develop new & advanced methods for combating issues of safety & control, the organizations in the industry are practicing high maintenance and incurring budgeting costs
In 2020, Wipro acquired Eximus Design – a California-based engineering services organization that is majorly focused on ASIC design, systems & software engineering, for USD 80 million. The acquisition is anticipated to strengthen the company’s market presence in the semiconductor ecosystem.
The road ahead
“Enterprises have been focusing on certain expectations in order to maximize the benefits from digital engineering initiatives,” says Dr. Rishab Panda, CEO & MD, L&T Technology Services.
“Enterprises require engineering services’ companies to identify and build products and services that are scalable and support legacy products, effectively support the customer with an agile, iterative model translating to faster GTM and reconfigure, re-skill, and rejuvenate the engineering workforce ensuring the team is in parallel with the latest developments in technology,” he adds.
The engineering services market is predicted to benefit from positive economic growth in both developed as well as developing economies. IMF predicted that the global real GDP growth will be 3.6 by 2023. This trend will be driven by regions of Asia. As per the report, Asia will represent sixty percent of the global middle-class population by the year 2030 and one such instance is, in FY 2017, the Indian IT-BPM industry grew by 7.7 percent, with software products and engineering services reaching USD 25 billion.
