Product Engineering Service Market

According to Stratistics MRC, the Global Product Engineering Service Market is accounted for $1,155.48 billion in 2023 and is expected to reach $2,167.12 billion by 2030 growing at a CAGR of 9.4% during the forecast period. Product engineering is the practice of planning, building, and testing hardware, software, systems, or assemblies. Some of the main areas of focus are the creation of new products, product design, prototype testing, and maintenance services. Companies focused on launching products more quickly in the product engineering services sector have created new engineering services in response to the expanding demand for prompt product delivery.

According to the SME Finance Forum, in Asia Pacific, SMEs comprise 98% of the total number of enterprises and contribute nearly 17% to the national GDP in many countries in the region including India.



Market Dynamics:

Driver:

Increasing need for cutting-edge products in various industries

The market is being driven by the rising demand for innovative and cutting-edge products in industries like automotive, aerospace, consumer electronics, healthcare, telecommunications, and industrial production. Due to the complexity of products and the need to shorten time-to-market, businesses are increasingly outsourcing their product engineering functions to specialized service providers. They draw on their expertise in a range of engineering disciplines, such as mechanical, electrical, software, and industrial engineering, to support the entire product development lifecycle.

Restraint:

Lack of technical knowledge

Everywhere in the world, technology is advancing. However, the lack of technical know-how, business acumen, and general ignorance, particularly in developing nations, will make it difficult for the market to experience a steady increase in market value. Additionally, the need for excellent feedback loops, ongoing management, and cultural differences in product philosophy and design will all slow the market's growth rate.

Opportunity:

Integration of artificial intelligence

With the aid of artificial intelligence and machine learning, product engineering is capable of meeting the expanding demand for product analytics across industries. The market for product engineering services is then anticipated to benefit from growth opportunities as a result of this. There is an increasing need for product development, product complexity, and system engineering as more businesses enter the market for product engineering services. Emerging economies like China, Brazil, India, and South Africa are seeing rapid technological and software development. Global demand for intelligent products is currently high. As a result, it is anticipated that demand for product engineering services will rise significantly.

Threat:

Security issues and concerns

Data privacy and integrity concerns may impede the market's rate of expansion. Additionally, it is anticipated that the market for product engineering services won't grow internationally because outsourcing entails significant risks. Further, the insecurity about losing control of intellectual property rights will make the situation worse, impeding the growth of the market.

Covid-19 Impact

Due to increased demand for expedited product deliveries, fraud detection tools, and other solutions during the COVID-19 pandemic situation, the product engineering service sector has experienced steady growth. Additionally, the COVID-19 pandemic has led to changes in model performance because, in contrast to static validation and testing methods, continuous monitoring and validation are needed to mitigate different types of risks, these are driving the development of advanced machine learning models during this period.

The healthcare segment is expected to be the largest during the forecast period

During the anticipated period, the healthcare segment is predicted to dominate the market. Personal health is tracked with the aid of product engineering services. There are many benefits to using product engineering services, such as having access to one's own medical records, self-monitoring of one's own health or diagnostic data, active data collection, and documentation. Furthermore, it facilitates user interaction. Improvements in outcomes, diagnosis, and prevention brought about by technological advancements are further boosting the segment's growth in the health care industry.

The small and medium-sized enterprises (SMEs) segment is expected to have the highest CAGR during the forecast period

Small and medium-sized enterprises (SMEs) segment recorded a sizable revenue share and are anticipated to grow at a faster pace over the course of the forecast period. The increased demand among SMBs for business growth is attributed to the segment's increased growth. Small and medium-sized businesses are quickly embracing product engineering services in order to better serve their customers. As a result, the segment's growth is accelerating rapidly.

Region with largest share:

Due to technological advancements and an increase in the demand for product engineering services among businesses, North America is predicted to witness the largest market share during the forecast period. The North American market is heavily influenced by the U.S. and Canada. Additionally, the market in the area is growing as a result of the need and demand for constant innovation and technological upgrades across a number of industries, including aerospace and defense, automotive, industrial manufacturing, IT, and telecom.

Region with highest CAGR:

Due to the rising acceptance of the Industrial Internet of Things (IIoT) in nations like China, India, and Japan, the Asia-Pacific market is expected to grow at a rapid pace during the forecast period. New business models are being developed by IIoT as well for the expansion of the IT industries in the area. The market for product engineering services is then likely to expand as a result of this. Additionally, the growth of the region's market for product engineering services is being aided by the development of infrastructure in China, India, Japan, and Singapore, which is providing new business opportunities for vendors.



Key players in the market

Some of the key players profiled in the Product Engineering Service Market include Accenture, AEGIS Company, AKKA Technologies SE, ALTEN Group, Aquanima S.A., AVL List GmbH, Bitcomm Technologies, Broadcom, Capgemini SE, Cognizant, Corbus, LLC., DXC Technology Company, EPAM Systems, Inc, Happiest Minds Technologies, HCL Technologies Ltd., IBM Corporation, Infosys Limited, Nous Infosystems, Oracle, Pactera Edge, Tata Consultancy Services Ltd., Tech Mahindra Limited, Wipro Limited and Xoriant Corporation.

Key Developments:

In May 2022, AVL collaborated with the Clemson University International Center for Automotive Research. With this collaboration, the companies aimed to expand methods for autonomous driving research to allow students as well as researchers to conduct complex ADAS/AD validation as well as identification tasks in the safety of a laboratory environment.

In March 2022, Happiest Minds Technologies came into a partnership with OutSystems, a leading low-code application development company. This partnership aimed to bring a low-code platform into the offerings of Happiest Minds to allow businesses to develop, execute, and manage omnichannel enterprise applications operating in the cloud, on-premise, a s well as hybrid environments.

In January 2022, HCL came into a partnership with Husqvarna, an outdoor power products manufacturer. Through this partnership, the companies aimed to provide leading-edge hybrid cloud management, security services, and a digital workplace.

Service Types Covered:
• Product Engineering
• Process Engineering
• Other Service Types

Enterprise Sizes Covered:
• Large Enterprises
• Small and Medium-Sized Enterprises (SMEs)

End Users Covered:
• Banking, Financial Services and Insurance (BFSI)
• Energy and Utilities
• IT and Telecom
• Manufacturing
• Healthcare
• Media and Entertainment
• Retail and E-commerce
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026 and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances