Engineering Services Outsourcing Market is expected to reach nearly USD 415 billion by 2020: Radiant Insights

Engineering Services Outsourcing Market (ESO) report focus on performance, innovation, reliability and safety will drive the engineering services outsourcing market in the near future

The engineering services outsourcing market (ESO) is expected to reach nearly USD 415 billion by 2020. It is expected to grow at a CAGR of over 25% during the forecast period (2014-2020). Focus on performance, innovation, reliability and safety will drive the engineering services outsourcing market in the near future. Mergers between OEMs (original equipment manufacturers) and suppliers remain the primary driver of this market. 

ESO or engineering outsourcing services refers to outsourcing the services of design and simulation to engineering service providers. Factors such as efficiency, low costs, and low time-to-market delivery lead to outsourcing of these services. But the recent economic crisis of 2008 forced competitors to outsource their services to survive the competition.

The report “Global Engineering Services Outsourcing (ESO) Market 2014-2018” is available now at

Security threats and intellectual property rights seem to be the only concerns restraining the growth of the engineering services outsourcing market. The global market is segmented by services, end-users, and regions. Services comprise drafting and 3D modeling, plant design/process engineering, engineering analysis, design automation, control engineering, product design and testing, manufacturing engineering, and embedded systems. 

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Regions include Asia Pacific, Europe, North America, and Rest of the World (RoW). Asia Pacific leads the global market in terms of demand in 2013. It was valued over 30 billion in the same year. It is estimated to reach over USD 220 billion by 2020. 

End-users of ESO are semiconductors, aerospace, pharmaceuticals, automotive, and consumer electronics. The telecom industry is dependent on the engineering services outsourcing market and was valued at USD 16 billion in 2013. It will grow at a CAGR exceeding 30% during the forecast period. For example, Apple Inc. releases new models for its signature brand of smartphones with enhanced features and longer lifecycles. 

The emerging demand and costs, accompanied by the large talent pool make the Asian Pacific region a sought-after destination. Europe was the second largest, in terms of market demand in 2013. It was valued over USD 15 billion in 2013 and expects to grow at a CAGR of over 29% during the forecast period. Major players in the engineering services outsourcing (ESO) market are Wipro, Infosys, Tech Mahindra, Cybage Software Pvt. Ltd., and Vanceinfo Technologies.

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