Product Engineering Services Market Report 2025 (Global Edition)

Global Product Engineering Services Market Report 2025 Market Size Split by Service Type (Product & Component Design, Process Engineering, Maintenance, Repair & Operations, Others), by Organization Si...

Product Engineering Services Market Report Description

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Product Engineering Services industry company profile:

Capgemini

The company deals with business segments including application & technology, operations & engineering, and strategy & transformation. Additionally company provides its services to sectors such as manufacturing, financial services, public sector, consumer goods & retail, telecommunications, media & technology, energy & utilities, and services. 

Latest News

8 Apr 2021

• Capgemini consolidates its engineering and R&D proficiency with the introduction of the new brand: 'Capgemini Engineering'.

Capgemini introduced 'Capgemini Engineering', combining a distinctive range of top-notch capabilities in engineering and R&D. Coupled with the Group's extensive industry knowledge and advanced digital and software technologies, it will assist organizations in navigating the merging of digital and physical realms. This global business line, boasting a workforce of 52,000 engineers and scientists, operates in key engineering hubs worldwide. It stems from the inCorporation of Altran, a year following its acquisition by Capgemini.

Alten Group

Alten Group is one of the significant companies engaged in providing engineering and IT services. The company has its operations in the key sectors such as defense & naval, energy, aeronautics & space, security, automotive, rail, life sciences, retail, finance, service sectors, and telecommunications. Alten Group has its geographical presence in about 30 countries worldwide. The company also has its 12 agencies located in France, due to which it covers the entire national territory.

August 2023

• ALTEN acquired Accord Global Technology Solutions

ALTEN strategically acquired Accord Global Technology Solutions, an engineering services company based out of India in August 2023. This strategic acquisition combined the Alten's technology and scale diversity with the digital innovation and know-how of the Accord Global Technology Solutions in order to focus on leveraging technologies and thereby deepen its engineering capabilities.

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

• Capgemini SE
• Alten Group
• HCL Technologies Limited
• AFRY Group
• AVL Group
• AKKA Technologies
• TATA Consultancy Services Limited
• Accenture plc
• Wipro Limited
• Others
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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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North America accounts for the significant share of 35.73% in the Product Engineering Services Market.

Product Engineering Services (PES) market dominance in North America may be related to a variety of past circumstances, advanced technology, a strong innovation ecosystem, and a developed corporate environment. Firstly, the area has a long history of manufacturing and invention, which has encouraged an entrepreneurial culture and the development of technology. Particularly in the aerospace, automotive, and information technology sectors, the United States has been a worldwide leader, which has increased demand for PES to assist the creation and improvement of innovative products and solutions. For instance, according to the International Trade Administration, among all industrial sectors, the U.S. aerospace industry continues to create the greatest trade balance of $77.6 billion and the second-highest volume of exports of $148 billion. Similarly, one of the world's biggest marketplaces for automobiles is in the United States. 14.5 million light vehicles were sold in the United States in 2020. Overall, the United States is the second-largest market for the manufacturing and sale of automobiles in the world. Furthermore, with 1.6 million software and web developers, the sector employs a highly educated and competent America workforce.

Additionally, a large number of well-known technological companies with global reach are based in North America, including Silicon Valley huge companies like Apple, Google, and Microsoft. These businesses depend on engineering services to maintain their position as market leaders in their respective industries. In addition to fostering the rise of PES providers, the presence of these digital corporations has strengthened the region's dominance by developing a highly trained workforce with experience in a variety of fields.

Governments in North America make significant investments in infrastructure and defense programs. Contracts for engineering services connected to these projects are often secured by PES suppliers. Government agencies and PES firms work together throughout the development of vital infrastructure, such as bridges, tunnels, and transportation networks, to assure safety, effectiveness, and regulatory compliance.

The current report Scope analyzes Product Engineering Services 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 Product Engineering Services Market Analysis

North America Product Engineering Services Market Size 2023

The North America Product Engineering Services market size will be $350.05 Billion by 2023.

North America Product Engineering Services Market Analysis:

North America accounts for a significant share of 35.73% in the Product Engineering Services Market. Product Engineering Services (PES) market dominance in North America may be related to a variety of past circumstances, advanced technology, a strong innovation ecosystem, and a developed corporate environment. Firstly, the area has a long history of manufacturing and invention, which has encouraged an entrepreneurial culture and the development of technology. Particularly in the aerospace, automotive, and information technology sectors, the United States has been a worldwide leader, which has increased demand for PES to assist in the creation and improvement of innovative products and solutions.

Europe Product Engineering Services Market Analysis

Europe Product Engineering Services Market Size 2023

The Europe Product Engineering Services market size will be USD 293.02 Billion by 2023.

Europe Product Engineering Services Market Analysis:

The constant search for innovation and the need for firms to remain competitive in a fast-changing digital environment are two major driving factors. European businesses are becoming more and more aware of the need of being on the leading edge of technical developments in order to hold onto their competitive advantage and seize new possibilities.

The development of innovative technologies is increasingly being outsourced to product engineering services by European manufacturers, who are known for their commitment to quality and safety

Asia Pacific Product Engineering Services Market Analysis

Asia Pacific Product Engineering Services Market Size 2023

The Asia Pacific Product Engineering Services market size will be USD 222.80 Billion by 2023.

Asia Pacific Product Engineering Services Market Analysis:

Asia Pacific held a share of 22.64%. India, China, and Japan are at the forefront of innovation, and the area has become an important hub for technology globally. These countries are ideal places for outsourcing product engineering services because they offer a large pool of highly trained technical people, frequently at competitive prices. For instance, Japan is working with engineering colleges and other organizations to train 40,000 technical workers in ten years.

Furthermore, the need for specialized product engineering knowledge has been driven by the quick digitization and growth of sectors including healthcare, electronics, and automotive in Asia-Pacific. Companies in the area are increasingly in need of assistance in creating innovative products and solutions to satisfy changing consumer needs as they seek to compete on a global scale.

South America Product Engineering Services Market Analysis

South America Product Engineering Services Market Size 2023

The South America Product Engineering Services market size will be USD 45.13 Billion by 2023.

South America Product Engineering Services Market Analysis:

The region has become an appealing choice for businesses looking for affordable, superior technical services. There is a sizable pool of qualified engineering personnel available in Latin American nations like Mexico, Brazil, and Argentina that are able to offer complete product engineering solutions.

For instance, Peru is in need of engineering services from outside, notably in two crucial sectors: mining and infrastructure, while Colombia is growing as a platform for exporting engineering services to Central American and Caribbean countries. Chile contributes its skills in mining engineering, whereas Brazil offers services related to infrastructure.

Middle East Product Engineering Services Market Analysis

Middle East and Africa Product Engineering Services Market Size 2023

The Middle East and Africa Product Engineering Services market size will be USD 73.15 Billion by 2023.

Middle East and Africa Product Engineering Services Market Analysis:

The region is attracting technological companies and multinational corporations as it develops into a major worldwide commercial center. Product engineering services are increasingly in demand as these businesses extend their operations in the MEA region in order to create and modify goods and services that are tailored to the distinct requirements and preferences of the regional markets.

Governments in numerous MEA nations are also strongly fostering technical innovation and economic diversity. Reduced reliance on oil income and the promotion of a knowledge-based economy are the goals of programs like "Vision 2030" in Saudi Arabia and "Made in Africa" in nations like Nigeria.

Product Engineering Services Market Analysis

Based on the service type, the product and component design segment accounted for the share of 42.31% in 2022 and is expected to grow at a CAGR of 5.45%.

In 2018, the Product & Component Design revenue (USD Billion) was USD 355.96 Billion and it expected to reach at USD 596.24 Billion in 2030. Based on the service type, product and component design segment accounted for the share of 42.31% in 2022 and is expected to grow at a CAGR of 5.45%. Product and component design plays a crucial role in the creation and innovation of a wide range of goods across sectors, making it an essential service within the larger scope of product engineering services. It includes the thorough strategizing, prototyping, and optimization of product features to make sure they satisfy market expectations and consumer needs. For instance, according to the U.S. Bureau of Labor Statistics in 2021, web designers and developers received an average yearly income of about $77,000.

When providing product and component design services, diverse teams of engineers, designers, and subject matter experts work together to provide creative, practical, and appealing solutions. Modern technology, simulation tools, and design approaches are used to improve performance, lower production costs, and shorten time to market. The effectiveness of Product and Component Design services becomes a critical aspect in the success of any product development initiative in a competitive market driven by rapidly changing consumer demands and technological advances. Businesses that provide these services are crucial to driving innovation, improving product quality, and ultimately influencing the course of different sectors.

Process Engineering

Based on the service type, the process engineering accounted for 31.62% of share in 2022. With an emphasis on the optimization and enhancement of production and manufacturing processes, process engineering is a key service within the market for product engineering services. For instance, according to the U.S. Bureau of Labor Statistics, currently, there are about 249,186 process engineers working in the US.
This service is essential in ensuring products are not only well-designed but also manufactured quickly and affordably. Over the course of the whole product lifetime, process engineers strive to improve quality, productivity, and efficiency. They work closely with design teams to make sure that the manufacturing procedure is in line with the requirements and objectives of the product. Process modeling, simulation, and analysis, as well as the discovery and use of modern technologies and methodologies, are responsibilities that makeup process engineering services.

Maintenance 

The maintenance segment accounted for the share of 11.25% in 2022, which is expected to grow to 6.46% in 2030. A key component of the market for product engineering services is maintenance as a service. This service category is concerned with maintaining the effectiveness, efficiency, and dependability of the systems and products created by engineering companies. It involves taking preventative measures to find and fix problems, put upgrades in place, and enhance a product's overall performance during its existence. Predictive maintenance, preventive maintenance, and corrective maintenance are just a few of the alternatives that providers of maintenance as a service provide to enterprises to save delay, increase the lifespan of products, and reduce operational interruptions. Maintenance as a service is emerging as a vital offering, ensuring that goods continue to function at their top levels and continue to satisfy rising consumer needs and industry standards in a market where product excellence is important due to increased competition

Repair & Operations 

Based on the service type, the repairs and operations segment accounted for 9.78% of the market share in 2022 with a CAGR of 9.20%. One of the core components of the market for product engineering services is the service category known as repair and operations (R&O). It includes a variety of services aimed at maintaining, repairing, and improving systems and products. The goal of R&O services is to guarantee that items continue to operate well and effectively throughout their lifespan. This service category includes tasks including problem diagnosis, necessary repairs, component upgrades, and performance optimization to meet or exceed industry requirements. repairs and operations as a service are especially useful in sectors like manufacturing, aircraft, and energy where downtime can have serious consequences.

Repairs and operations as a service are an essential part of Product Engineering Services because they ensure that goods remain reliable as well as competitive in a technical environment that is constantly developing

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 Product Engineering Services Industry. Request a Free Sample PDF!

Based on organisation size, SME segment accounted for share of 78.26% in 2022 and is expected to grow at a CAGR of 7.05

Based on organisation size, SME segment accounted for share of 78.26% in 2022 and is expected to grow at a CAGR of 7.05% during the forecast period. The market for small and medium-sized businesses' (SMEs') product engineering services has experienced enormous expansion and change in recent years. Product engineering services have become critical in helping SMEs to compete on a bigger scale, which is important given that they play a significant role in generating innovation and economic growth internationally. These services cover a wide variety of operations that are intended to introduce new goods to the market or improve current ones, such as product design, development, testing, and maintenance.

An SME in the e-commerce industry was having trouble competing with the bigger businesses on the internet. To update its website and mobile application, they enlisted the help of a product engineering services company. Advanced personalisation algorithms, a simplified user interface, and a secure payment channel were all implemented by the service provider. This had a revolutionary effect on SMEs in the digital domain, resulting in a 40% rise in online sales and a 20% increase in customer retention.

When SMEs work with product engineering service providers, they get not just cost savings but also a quicker time-to-market and lower development risks. These service providers give access to conventional methods, industry best practices, and a substantial body of information gained from numerous industry experiences. As a result, SMEs experience less of a learning curve, their product development cycles are accelerated, and they are ultimately better able to capture market opportunities faster.

Large Enterprises

Based on the organisation size, large enterprises accounted for 21.74% of market share in the year 2022. With their extensive operations and global reach, large enterprises largely rely on product engineering services to promote innovation, keep a competitive advantage, and adjust to the rapid growth in technological change. Large companies' ongoing search of innovation is one of the key factors driving this industry. These businesses must constantly create new products and services if they want to remain competitive in their respective markets. Another critical component of the Product Engineering Services Market for major organizations is the incorporation of emerging technologies like artificial intelligence, machine learning, the Internet of Things (IoT), and blockchain. Large enterprises may efficiently leverage the impact of these technologies, which have the potential to affect whole sectors, with the help of product engineering services providers.

Large firms also use product engineering services to ensure adherence to strict business standards and regulations. This is especially important in industries where following regulatory regulations is required, such as healthcare, banking, and aerospace. Providers of product engineering services with industry knowledge may assist major businesses with the complex procedures of compliance, minimizing risks and ensuring that their products adhere to the highest quality and safety requirements.

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

Product Engineering Services Verticals Segment Analysis

In 2018, the Automotive and transportation Product Engineering Services revenue (USD Billion) was USDThe automotive industry is experiencing a significant technological transformation.

Today's cars are capable of more than just driving and parking. The introduction of innovative products and services has disrupted the industry's status quo, providing consumers with a vast selection of new on-board automotive technologies. Connected cars, electric vehicles with enhanced battery technology, and predictive maintenance that monitors vehicle operational performance have revolutionized the mobility landscape. These transformations are so disruptive that companies that fail to implement these changes will fall behind their competitors in the market. This is where the importance of automotive product engineering services comes into play. Different engineering service providers are offering services for the automotive and transportation industry. For instance, Embitel offers a wide range of automotive engineering solutions to OEMs and suppliers across India, the US, Europe, and China. These services include
•    Android Infotainment Solution 
•    Car Heads-up Display (HUD) Software Solution 
•    Vehicle Telematics Application
•    Others
In addition, HCL Technologies Limited offers embedded systems engineering, Engineering Design, and Manufacturing, Hardware Systems Development, Process Transformation, Informed Product Cost Decisions, Product Testing Services, Next Generation PLM Strategies, and other services for the automotive and transportation industry. Further, Sasken and Primatec partnered to enable end-to-end Product Engineering Services for Automotive Customers in November 2020 206.24 Billion and it expected to reach at USD 424.16 Billion in 2030.

Aerospace & Defense

As the aerospace and defense industry evolves, it faces new challenges due to the demands of emerging markets and shifts in the global economy. The industry's growth is driven by the need for sustainable innovation, reduced time-to-market, and cost efficiency. Consequently, there is a heightened demand for product engineering services in the aerospace and defense sector. Some of the product engineering services offered by various market players are as follows

•    Aerostructures - Design and development support, weight optimization (including design and stress analysis), sustaining engineering, ECN/DCN/RFE/NIEOs support, stress dossier support
•    Manufacturing engineering - First Article Inspection (FAI) reviews, NC programming, methods planning, jigs, and fixtures design
•    Interior design engineering - NPD, sustaining engineering, concept to drawings release of galleys, inserts, wardrobes, closets, vanities, entertainment cabinet design
•    PLM standardization - Mass legacy data conversions, mylar conversions, 3D modeling, and detailing
•    Technical publications - CMM (Components Maintenance Manuals), AMM (Aircraft Maintenance Manual), IPL (Illustrated Parts Catalogue), SBs (Service Bulletins) SRMs (Structural Repair Manuals) and IETM/IETP (Interactive Electronic Technical Manual/Publication)
•    Electrical wire harness and schematics design

Healthcare

The healthcare industry is experiencing a significant change due to the merging of healthcare and technology. Healthcare product engineering is crucial to this transformation, as it drives the creation of medical devices and digital health solutions that are revolutionizing the way we diagnose, treat, and manage medical conditions. These digital health solutions, including telemedicine apps and AI-driven diagnostics, bridge geographical gaps, allowing patients to receive medical attention regardless of their location. For example, a patient residing in a remote village can now consult with a specialist located thousands of miles away and receive expert guidance in real-time through a telemedicine platform.
The healthcare industry is undergoing a revolution thanks to Product Engineering. This innovative approach is helping to reduce healthcare costs, increase patient engagement, improve population health, and make healthcare more accessible and transparent for everyone. Product Engineering involves addressing issues related to pricing, product quality, implementation processes, reliability, maintenance, anticipated product lifespan, and user features. By applying these principles to healthcare products, the industry can benefit from faster go-to-market strategies and ensure the success and widespread acceptance of these products in the market. For instance, Cyient, TCS, and other market players are offering healthcare product engineering services.

The common areas where product engineering is applied in the Healthcare industry are:
•    Diagnostics and monitoring devices
•    Radiology apparatus
•    Respiratory devices
•    Healing or therapeutic appliances
•    In-vitro devices
•    Recording devices

IT & Telecom

The telecom industry has been one of the key foundations on which the current digital era is based. However, the industry is experiencing a significant disruption due to multiple challenges such as capital challenges, the emergence of newer competition, and vertical/ horizontal integration within the customer value chain. The telecom industry needs solutions that expand and grow with the industry, in which product engineering services are playing a vital role. For instance, Tech Mahindra is one of the leading players in offering engineering services for the Communications Technology Provider (CTP) space. Further, L&T Technology Services (LTTS) 1. They provide advanced telecom product engineering solutions across areas like 5G, NB-IoT, SDN/NFV, and wireless & wireline products. Their services include 5G SDWAN, wireless networks, wireline networks, fiber/IPMPLS/FTTX.

Industrial Manufacturing

The Industrial Manufacturing sector is leading the way in integrating new technologies such as manufacturing 4.0, 3D printing, data-driven automation, and robotics. This industry encompasses a wide range of major manufacturing plants and is rapidly growing and evolving. However, to effectively adapt to these changes, many factories and companies will need to overcome numerous challenges. One significant area of focus in recent years has been the adoption of smart manufacturing (SM) technology, which allows manufacturers to analyze data trends and identify areas where production may be slowing down or materials are being used inefficiently.

Further, Automation is one of the key elements of modern industrial manufacturing. Many tasks that formerly required human intervention can now be automated thanks to modern software programs and robotics. The decrease of human involvement in repetitive and hazardous operations makes the manufacturing line safer and more beneficial for factories. In these technological advancements in industrial manufacturing, product engineering services play an important role. For instance, Capgemini has been uniquely positioned to support the industrial manufacturing industry in staying competitive and innovative. It provides product engineering services for the Industrial Manufacturing sector.

• Automotive & Transportation
• Aerospace & Defense
• Healthcare
• IT & Telecom
• Industrial Manufacturing
• Energy & Utilities
• Media & Entertainment
• BFSI
• Food & Beverages
• Retail
• 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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