Engineering R&D Services Outsourcing Market to surpass $ 650 BN by 2025

March 22, 2019


Global engineering R&D services outsourcing market is projected to exceed an industry valuation of USD 650 billion by the year 2025, , according to the latest research available at Market Study Report LLC, report provides extensively data on market share, growth, trends and forecasts for the period 2018-2025.

The key factors propelling this market are the availability of low-cost skilled professionals which can effectively perform complicated tasks pertaining to not just testing and designing but also simulation, execution, and validation. There has been a paradigm shift from business process outsourcing in companies toward knowledge process outsourcing and pivotal industries such as telecom, aerospace, semiconductors, consumer electronics, and automotive are now offering immense opportunities to consulting firms.

According to the report, offshore outsourcing has gained traction due to low cost and additional capabilities offered by service organizations. Of late, there has been an emergence of dedicated ER&D service companies that not only offer basic services but combinedly invest in the businesses to augment their services in growing markets and geographies. Businesses are also concentrating on enhancing their market reach together with quicker turnaround times from the service providers.

Speaking of the changing landscape of the ER&D services, the market has grown from outsourcing of low-cost basic engineering services to capacity enhancements. These days, firms are concentrating more on shortened timelines, quality, and amplified productivity of outsourcing services. Nations including China, India are the biggest consumers for ER&D service companies.  With that being said, the increasing number of engineering professionals each year in consort with the affordability of the service has escalated the demand for ER&D outsourcing market across the Asia Pacific.

Top pointers that the ‘Engineering R&D Services Outsourcing Market’ report covers pertaining to the key market parameters are included below:

•    Businesses operating in Europe and North America are anticipated to spend more over engineering R&D services outsourcing, whereas the Asia Pacific stands as the largest market for these services.

•    In 2017, applications in consumer electronics, telecom, aerospace, and automotive segments accrued the largest market share.

•    Offshore services adoption has surged in comparison to onsite services owing to lower rates and the availability of highly skilled professions at offshore facilities.

•    The offshore outsourcing type is projected to grow at a higher rate over the predicted duration compared to the onsite service.


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As per the report, the leading restraint for this market is the threat of intellectual property theft especially while outsourcing offshore. This has emerged as the biggest problem for many companies, which eventually leads to losses for the companies. However, because of stringent laws and evolving regulations, this obstacle is predicted to be overcome during the forecast timeline.

Key market contenders profiled in the research include HCL Technologies Limited, Wipro Limited, P+Z Engineering GmbH, IAV GmbH, Kistler Instruments AG, Tata Consulting Services Ltd, EDAG Engineering GmbH, FEV Group, Cybage software, ASAP Holdings GmbH, Infosys Ltd, and others.

The report also provides a detailed outline of the global engineering R&D services outsourcing market in terms of market insights, industry snapshot, market opportunities, drivers, challenges, competition degree, industry trends, ranking analysis, deployment location, regional landscape, competitive outlook, and application dynamics.