Engineering Services Outsourcing Market Report 2025 (Global Edition)

Global Engineering Services Outsourcing Market Report 2025 Market Size Split by Location Outlook: (Onshore, Offshore), by Service Outlook: (Designing, Prototyping, System Integration, Testing, Others)...

Engineering Services Outsourcing Market Report Description

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Competitive Landscape of the Engineering Services Outsourcing Market

The Engineering Services Outsourcing (ESO) market is competitive, with key players offering a wide range of services, from product design and development to testing and prototyping. Innovation, cost efficiency, and a strong global presence are critical to success. Strategic alliances, mergers, and the adoption of digital technologies like AI and IoT further enhance their competitive advantage in serving diverse industries worldwide.

In September 2023, the Alten Group completed the acquisition of Accord Global Technology Solutions, an engineering services company located in India. This strategic merger brings together ALTEN's extensive scale and technological diversity with Accord Global Technology Solutions' digital innovation and expertise. The primary focus of this acquisition is to harness technologies and enhance engineering capabilities for further development. (Source: https://www.alten.com/alten-acquires-accord-global-technology-solutions-an-engineering-services-company-based-out-of-india/) In August 2023, BrainChip and Tata Elxsi joined forces to offer intelligent, ultralow-power solutions. The primary objective of this partnership is to integrate Akida technology into medical devices and industrial applications, utilizing BrainChip's pioneering fully digital neuromorphic technology. The goal is to deliver intelligent and energy-efficient solutions tailored to the specific demands of these target markets. (Source: https://www.tataelxsi.com/news-and-events/brainchip-and-tata-elxsi-partner-to-provide-intelligent-ultralow-power-solutions) In February 2023, Tech Mahindra and the Ministry of Communication and Information Technology (MCIT) of Saudi Arabia signed a Memorandum of Understanding (MoU) to establish a Data & AI and a Cloud Centre of Excellence (CoE). The CoE is designed to integrate academic and socioeconomic goals, aiming to propel the growth of small and medium businesses, enhance the nation's capabilities in high-tech expertise, and generate high-quality employment opportunities. (Source: https://www.techmahindra.com/insights/news/tech-mahindra-establish-its-first-data-ai-and-cloud-center-excellence-saudi-arabia/)

Top Companies Market Share in Engineering Services Outsourcing Industry: (In no particular order of Rank)

• AKKA
• Alten Group
• Capgemini Engineering
• Entelect
• HCL Technologies Limited
• Infosys Limited
• Tata Elxsi
• Tata Consultancy Services Limited.
• Tech Mahindra Limited
• Wipro Limited
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

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Regional Analysis of the Engineering Services Outsourcing Market

Which Region Dominates the Engineering Services Outsourcing Market in 2025?

According to Cognitive Market Research, North America currently dominates the Engineering Services Outsourcing market, and the region is expected to have significant growth during the projected period. This is due to its established presence of major corporations seeking cost-effective solutions, access to cutting-edge technologies, and specialized engineering expertise.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific is expected to make significant gains during the projected period, with the greatest compound annual growth rate (CAGR) due to its cost-effective labour, skilled engineering talent, and robust infrastructure.

The current report Scope analyzes Engineering Services Outsourcing Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Engineering Services Outsourcing Market Analysis

According to Cognitive Market Research, the global Engineering Services Outsourcing market size was estimated at USD 2051421.6 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 820568.64 million in 2025 and will grow at a compound annual growth rate (CAGR) of 23.4% from 2025 to 2033.

• According to Cognitive Market Research, the US had a major share in the Engineering Services Outsourcing market with a market size of USD 647428.66 million in 2025 and is projected to grow at a CAGR of 23.2% during the forecast period due to the advancements in technology.
• The Canada Engineering Services Outsourcing market had a market share of USD 98468.24 million in 2025 and is projected to grow at a CAGR of 24.2% during the forecast period due to the expansion of industries requiring outsourced services.
• The Mexico Engineering Services Outsourcing market is projected to witness growth at a CAGR of 23.9% during the forecast period, with a market size of USD 74671.75 million in 2025.

Europe Engineering Services Outsourcing Market Analysis

According to Cognitive Market Research, the global Engineering Services Outsourcing market size was estimated at USD 2051421.6 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 615426.48 million in 2025 and will grow at a compound annual growth rate (CAGR) of 23.7% from 2025 to 2033.

• The United Kingdom Engineering Services Outsourcing market had a market share of USD 103391.65 million in 2025 and is projected to grow at a CAGR of 24.5% during the forecast period. In the UK, Engineering Services Outsourcing sales witness an upswing due to the expansion of technological innovations and digital transformation.
• The France Engineering Services Outsourcing market is projected to witness growth at a CAGR of 22.9% during the forecast period, with a market size of USD 56619.24 million in 2025.
• According to Cognitive Market Research, the German Engineering Services Outsourcing market size was valued at USD 121854.44 million in 2025 and is projected to grow at a CAGR of 23.9% during the forecast period. In Germany, Engineering Services Outsourcing surged due to the increased pressure on companies to focus on core competencies.
• The Italy Engineering Services Outsourcing market is projected to witness growth at a CAGR of 23.1% during the forecast period, with a market size of USD 52926.68 million in 2025.
• The Russia Engineering Services Outsourcing market is projected to witness growth at a CAGR of 22.7% during the forecast period, with a market size of USD 95391.10 million in 2025.
• The Spain Engineering Services Outsourcing market is projected to witness growth at a CAGR of 22.8% during the forecast period with a market size of USD 50464.97 million in 2025
• The Luxembourg Engineering Services Outsourcing market is projected to witness growth at a CAGR of 23.8% during the forecast period, with a market size of USD 19078.22 million in 2025.
• The Portugal Engineering Services Outsourcing market is projected to witness growth at a CAGR of 23.5% during the forecast period, with a market size of USD 12923.96 million in 2025.
• The Greece Engineering Services Outsourcing market is projected to witness growth at a CAGR of 24.0% during the forecast period, with a market size of USD 7385.12 million in 2025.
• The Rest of Europe's Engineering Services Outsourcing market is projected to witness growth at a CAGR of 22.4% during the forecast period, with a market size of USD 95391.10 million in 2025.

Asia Pacific Engineering Services Outsourcing Market Analysis

According to Cognitive Market Research, the global Engineering Services Outsourcing market size was estimated at USD 2051421.6 Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD 471826.97 million in 2025 and will grow at a compound annual growth rate (CAGR) of 27.2% from 2025 to 2033.

• According to Cognitive Market Research, the China Engineering Services Outsourcing market size was valued at USD 212322.14 million in 2025 and is projected to grow at a CAGR of 26.7% during the forecast period. Engineering Services Outsourcing surged in China due to the availability of a large pool of skilled engineers and technical talent at competitive wages.
• The Japan Engineering Services Outsourcing market is projected to witness growth at a CAGR of 25.7% during the forecast period, with a market size of USD 65112.12 million in 2025.
• The India Engineering Services Outsourcing market had a market share of USD 56619.24 million in 2025 and is projected to grow at a CAGR of 29.0% during the forecast period due to the growth in industries such as automotive, electronics, and telecommunications .
• The South Korean Engineering Services Outsourcing market is projected to witness growth at a CAGR of 26.3% during the forecast period, with a market size of USD 47182.70 million in 2025.
• The Australian Engineering Services Outsourcing market is projected to witness growth at a CAGR of 26.9% during the forecast period, with a market size of USD 24535.00 million in 2025.
• The South East Asia Engineering Services Outsourcing market is projected to witness growth at a CAGR of 28.2% during the forecast period, with a market size of USD 32556.06 million in 2025.
• The Rest of Asia Pacific Engineering Services Outsourcing market is projected to witness growth at a CAGR of 27.0% during the forecast period, with a market size of USD 33499.71 million in 2025.

South America Engineering Services Outsourcing Market Analysis

According to Cognitive Market Research, the global Engineering Services Outsourcing market size was estimated at USD 2051421.6 Million, out of which Latin America held the market share of around 5% of the global revenue with a market size of USD 102571.08 million in 2025 and will grow at a compound annual growth rate (CAGR) of 24.6% from 2025 to 2033.

• According to Cognitive Market Research, the Brazil Engineering Services Outsourcing market size was valued at USD 43900.42 million in 2025 and is projected to grow at a CAGR of 25.2% during the forecast period. Engineering Services Outsourcing flourished in Brazil due to the expansion of manufacturing and infrastructure projects.
• Argentina's Engineering Services Outsourcing market had a market share of USD 17231.94 million in 2025 and is projected to grow at a CAGR of 25.5% during the forecast period due to the favourable government policies and incentives .
• Colombia Engineering Services Outsourcing market is projected to witness growth at a CAGR of 24.4% during the forecast period, with a market size of USD 9128.83 million in 2025.
• Peru Engineering Services Outsourcing market is projected to witness growth at a CAGR of 24.8% during the forecast period, with a market size of USD 8410.83 million in 2025.
• Chile Engineering Services Outsourcing market is projected to witness growth at a CAGR of 24.9% during the forecast period, with a market size of USD 7385.12 million in 2025.
• The Rest of Latin America's Engineering Services Outsourcing market is projected to witness growth at a CAGR of 23.7% during the forecast period, with a market size of USD 16513.94 million in 2025.

Middle East Engineering Services Outsourcing Market Analysis

According to Cognitive Market Research, the global Engineering Services Outsourcing market size was estimated at USD 2051421.6 Million, out of which the Middle East and Africa held the major market share of around 2% of the global revenue with a market size of USD 41028.43 million in 2025 and will grow at a compound annual growth rate (CAGR) of 24.9% from 2025 to 2033..

• The GCC Countries Engineering Services Outsourcing market is projected to witness growth at a CAGR of 25.7% during the forecast period, with a market size of USD 17560.17 million in 2025. Engineering Services Outsourcing sales flourish due to the increased focus on infrastructure development and modernization projects.
• The Egypt Engineering Services Outsourcing market is projected to witness growth at a CAGR of 25.2% during the forecast period, with a market size of USD 4307.99 million in 2025.
• The South Africa Engineering Services Outsourcing market is projected to witness growth at a CAGR of 25.9% during the forecast period, with a market size of USD 6482.49 million in 2025. Engineering Services Outsourcing sales flourished in South Africa due to the rising need for specialized technical expertise in diverse industries.
• The Turkey Engineering Services Outsourcing market is projected to witness growth at a CAGR of 24.4% during the forecast period, with a market size of USD 3528.45 million in 2025.
• The Nigeria Engineering Services Outsourcing market is projected to witness growth at a CAGR of 24.0% during the forecast period, with a market size of USD 0.99 million in 2025.
• The Rest of the MEA Engineering Services Outsourcing market is projected to witness growth at a CAGR of 23.9% during the forecast period, with a market size of USD 1.11 million in 2025.

Engineering Services Outsourcing Market Analysis

How are Segments Performing in the Global Engineering Services Outsourcing Market?

Engineering Services Outsourcing Market Location Segment Analysis

According to Cognitive Market Research, onshore is likely to dominate the Engineering Services Outsourcing Market over the forecast period due to its proximity, enabling better communication, faster turnaround times, and fewer cultural barriers. It also ensures compliance with local regulations, enhances IP security, and allows easier monitoring of project quality, making it a preferred option for sensitive or high-stakes projects.

The offshore is the fastest-growing segment in the Engineering Services Outsourcing Market due to cost advantages, access to a global talent pool, and scalable solutions. Offshore locations, particularly in Asia and Eastern Europe, offer lower labour costs, high-quality engineering expertise, and round-the-clock productivity, driving rapid growth.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Engineering Services Outsourcing Industry. Request a Free Sample PDF!

Engineering Services Outsourcing Market Service Segment Analysis

According to Cognitive Market Research, the testing segment holds the largest share of the market due to its critical role in ensuring product quality, safety, and compliance with industry standards. Outsourcing testing services allows companies to reduce costs, access specialized expertise, and streamline product development, driving demand across sectors such as automotive, aerospace, and IT.

In the Engineering Services Outsourcing Market, the designing sector has been expanding at a rapid pace due to increasing demand for innovative product development across industries like automotive, consumer electronics, and healthcare. Outsourcing design services allows companies to leverage specialized expertise, reduce costs, and accelerate time-to-market, driving significant growth in this area.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Engineering Services Outsourcing Industry Outlook: Segment Analysis

Engineering Services Outsourcing Market Industry Segment Analysis

According to Cognitive Market Research, the industrial manufacturing segment holds the largest market share due to its constant demand for specialized engineering solutions. Outsourcing enables manufacturers to access expertise in design, prototyping, and production processes while reducing costs and accelerating time-to-market. This sector's reliance on efficiency and innovation drives significant outsourcing activity.

In the Engineering Services Outsourcing market, the rapidly growing sector is the pharmaceuticals & medical devices category due to increasing demand for innovative product development, regulatory compliance, and rapid time-to-market. Outsourcing engineering services helps these industries reduce costs, access specialized expertise, and expedite the design and manufacturing of complex medical technologies.

• Automotive
• Electronics & Semiconductor
• Industrial Manufacturing
• Pharmaceuticals & Medical Devices
• Aerospace & Defense
• IT & Telecom
• Others

Author's Detail

Swasti Dharmadhikari

Research associate at Cognitive Market Research

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Swasti Dharmadhikari, an agile and achievement-focused market researcher with an innate ardor for deciphering the intricacies of the Service & Software sector. Backed by a profound insight into technology trends and consumer dynamics, she has committed herself to meticulously navigating the ever-evolving terrain of digital Services and software solutions.

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