“Engineering Research And Development (ER&D) Outsourcing Global Market Report 2023 ” from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on engineering research and development (er&d) outsourcing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Where is the largest and fastest growing market for engineering research and development (er&d) outsourcing? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? “The engineering research and development (er&d) outsourcing market global report ” from The Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
- 1) By Type: Mechanic; Embedded IT; Software
- 2) By Location: Onsite; Offshore
- 3) By End User: Automotive; Consumer Electronics; Telecom; Heavy Machinery; Semiconductor; Computing System; Aerospace; Energy; Medical Devices; Other End Users
- Companies Mentioned: Altran Technologies; Alten Group; Akka Technologies; Wipro LTD; Tata Consultancy Services
- Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
- Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
- Delivery Format: PDF, Word and Excel Data Dashboard.
Executive Summary
Major players in the engineering research and development (ER&D) outsourcing market are: Altran Technologies, Alten Group, Akka Technologies, Wipro LTD., Tata Consultancy Services, HCL Technologies, Capgemini SE, Kistler Group, Harman International Industries, Tata Technologies Limited, Horiba Ltd., KPIT Technologies Limited, FEV Europe GmbH, IAV Gmbh, Infosys Limited, and Assystem.
The global engineering research and development (er&d) outsourcing market is expected to grow from $347.68 billion in 2022 to $434.72 billion in 2023 at a compound annual growth rate (CAGR) of 25.0%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The engineering research and development (er&d) outsourcing market is expected to grow to $1,037.5 billion in 2027 at a CAGR of 24.3%.
The engineering research and development (ER&D) outsourcing market includes revenues earned by entities by providing outsourcing services such as service outsourcing, equipment outsourcing. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
Engineering research and development (ER&D) outsourcing refers to the process of contracting out the research project to a development company that specializes in cutting-edge technology and employs knowledgeable engineers, skilled at creating profitable outsourcing partnerships. These are used as a widespread practice in which a corporation engages a different contractor to carry out tasks and manage activities.
Asia-Pacific was the largest region in the engineering research and development outsourcing market in 2022. The regions covered in the engineering research and development (ER&D) outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The main types of engineering research and development (ER&D) outsourcing market are mechanic, embedded IT, and software. Mechanic are used for PLM implementation and customization services. The mechanic refers to the process of outsourcing that transfers ownership of the product to the individuals in charge of the CAD drawings that are used to convey measurements, tolerances, and crucial specifications for designs. The various types of locations include onsite, offshore. The several end users include automotive, consumer electronics, telecom, heavy machinery, semiconductor, computing system, aerospace, energy, medical devices, others.
The lack of skilled personnel is expected to propel the growth of the engineering research and development outsourcing market going forward. Skilled personnel refer to any worker who has special skills, training, and knowledge that they can then apply to their work. A skilled worker is a person who had got trained in college, university, or technical school. Because of the lack of skilled personnel in many manufacturing and IT organizations, most of these companies are giving their technical work for outsourcing to other companies. This can be decreased by providing internal training in the organization. For instance, according to the Centre for Monitoring Indian Economy, an India-based government organization, in March 2022, the Indian skilled labour force had decreased by 3.8 million during 2022. Also, employment decreased by 1.4 million which is 396 million in 2022. This reduction decreased the employment rate by 36.7% for the year 2022. Further, according to Fortune, a US-based online news daily, in 2022, it is estimated that 85 million jobs will go unfilled globally by 2030 due to skills shortages, resulting in about $8.5 trillion in unrealized annual revenues. Therefore, the Lack of skilled personnel is driving the growth of the engineering research and development outsourcing market.
Rising outsourcing demand is expected to propel the growth of the engineering research and development (ER&D) outsourcing market going forward. Outsourcing refers to the process of contracting out the research project to a development company that specializes in cutting-edge technology and employs knowledgeable engineers, skilled at creating profitable outsourcing partnerships. Outsourcing engineering services allow businesses to reduce work cost and also reduce the costs associated with extra office space, labour, infrastructure, and operations. For instance, according to NASSCOM, an India-based National Association of Software and Service Companies, it is estimated that the global spending on engineering R&D (ER&D) to cross the $1.5 trillion mark by 2025-2026, of which $200 billion will be in the form of outsourced services. Therefore, the increase in rising outsourcing demand is driving the growth of the engineering research and development (ER&D) outsourcing market.
Partnership and collaboration is a key trend gaining popularity in the engineering research and development (ER&D) outsourcing market. Major players in the engineering research and development (ER&D) outsourcing market are focused on partnerships and collaborations to sustain their marketplace. For an instance, in February 2020, Infosys Limited, an India-based information technology company, partnered with GE Appliances, a US-based, Haier company, to efficiently streamline IT operations. With this partnership, Infosys would help GE Appliances enhance the pace of their digital and workplace transformation by providing automation-driven managed IT services support for their worldwide command centers, support desks, end-user computing, IT facilities, and solutions. Furthermore, in March 2022, HCL, an India-based software technology company partnered with Novo Nordisk for an undisclosed amount. With this partnership HCL helps, Novo Nordisk transforms its IT operations, creates world-class end-user experiences, and increases the efficiency across its workforce. Through this partnership, HCL will implement a diversified omni-channel digital workplace solution for Novo Nordisk. Using the knowledge-centered service (KCS) methodology it helps the company to develop its next-generation automation and self-service capabilities. With this HCL will support more than 48,000 end-users. Novo Nordisk is a Denmark-based pharmaceutical company.
The countries covered in the engineering research and development (ER&D) outsourcing market report are: Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The engineering research and development (ER&D) outsourcing market research report is one of a series of new reports from The Business Research Company that provides engineering research and development (ER&D) outsourcing market statistics, including engineering research and development (ER&D) outsourcing industry global market size, regional shares, competitors with an engineering research and development (ER&D) outsourcing market share, detailed engineering research and development (ER&D) outsourcing market segments, market trends and opportunities, and any further data you may need to thrive in the engineering research and development (ER&D) outsourcing industry. This engineering research and development (ER&D) outsourcing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
Table of Contents
1. Executive Summary
2. Engineering Research And Development (ER&D) Outsourcing Market Characteristics
3. Engineering Research And Development (ER&D) Outsourcing Market Trends And Strategies
4. Engineering Research And Development (ER&D) Outsourcing Market - Macro Economic Scenario
- 4.1. COVID-19 Impact On Engineering Research And Development (ER&D) Outsourcing Market
- 4.2. Ukraine-Russia War Impact On Engineering Research And Development (ER&D) Outsourcing Market
- 4.3. Impact Of High Inflation On Engineering Research And Development (ER&D) Outsourcing Market
5. Engineering Research And Development (ER&D) Outsourcing Market Size And Growth
- 5.1. Global Engineering Research And Development (ER&D) Outsourcing Historic Market, 2017-2022, $ Billion
- 5.1.1. Drivers Of The Market
- 5.1.2. Restraints On The Market
- 5.2. Global Engineering Research And Development (ER&D) Outsourcing Forecast Market, 2022-2027F, 2032F, $ Billion
- 5.2.1. Drivers Of The Market
- 5.2.2. Restraints On the Market
6. Engineering Research And Development (ER&D) Outsourcing Market Segmentation
- 6.1. Global Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- Mechanic
- Embedded IT
- Software
- 6.2. Global Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Location, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- Onsite
- Offshore
- 6.3. Global Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- Automotive
- Consumer Electronics
- Telecom
- Heavy Machinery
- Semiconductor
- Computing System
- Aerospace
- Energy
- Medical Devices
- Other End Users
7. Engineering Research And Development (ER&D) Outsourcing Market Regional And Country Analysis
- 7.1. Global Engineering Research And Development (ER&D) Outsourcing Market, Split By Region, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 7.2. Global Engineering Research And Development (ER&D) Outsourcing Market, Split By Country, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
8. Asia-Pacific Engineering Research And Development (ER&D) Outsourcing Market
- 8.1. Asia-Pacific Engineering Research And Development (ER&D) Outsourcing Market Overview
- Region Information, Impact Of COVID-19, Market Information, Background Information, Government Initiatives, Regulations, Regulatory Bodies, Major Associations, Taxes Levied, Corporate Tax Structure, Investments, Major Companies
- 8.2. Asia-Pacific Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 8.3. Asia-Pacific Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
9. China Engineering Research And Development (ER&D) Outsourcing Market
- 9.1. China Engineering Research And Development (ER&D) Outsourcing Market Overview
- 9.2. China Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F,$ Billion
- 9.3. China Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F,$ Billion
10. India Engineering Research And Development (ER&D) Outsourcing Market
- 10.1. India Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 10.2. India Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
11. Japan Engineering Research And Development (ER&D) Outsourcing Market
- 11.1. Japan Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 11.2. Japan Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
12. Australia Engineering Research And Development (ER&D) Outsourcing Market
- 12.1. Australia Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 12.2. Australia Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
13. Indonesia Engineering Research And Development (ER&D) Outsourcing Market
- 13.1. Indonesia Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 13.2. Indonesia Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
14. South Korea Engineering Research And Development (ER&D) Outsourcing Market
- 14.1. South Korea Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 14.2. South Korea Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
15. Western Europe Engineering Research And Development (ER&D) Outsourcing Market
- 15.1. Western Europe Engineering Research And Development (ER&D) Outsourcing Market Overview
- 15.2. Western Europe Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 15.3. Western Europe Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
16. UK Engineering Research And Development (ER&D) Outsourcing Market
- 16.1. UK Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 16.2. UK Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
17. Germany Engineering Research And Development (ER&D) Outsourcing Market
- 17.1. Germany Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 17.2. Germany Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
18. France Engineering Research And Development (ER&D) Outsourcing Market
- 18.4. France Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 18.5. France Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
19. Eastern Europe Engineering Research And Development (ER&D) Outsourcing Market
- 19.1. Eastern Europe Engineering Research And Development (ER&D) Outsourcing Market Overview
- 19.2. Eastern Europe Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 19.3. Eastern Europe Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
20. Russia Engineering Research And Development (ER&D) Outsourcing Market
- 20.1. Russia Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 20.2. Russia Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
21. North America Engineering Research And Development (ER&D) Outsourcing Market
- 21.1. North America Engineering Research And Development (ER&D) Outsourcing Market Overview
- 21.2. North America Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 21.3. North America Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
22. USA Engineering Research And Development (ER&D) Outsourcing Market
- 22.1. USA Engineering Research And Development (ER&D) Outsourcing Market Overview
- 22.2. USA Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 22.3. USA Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
23. South America Engineering Research And Development (ER&D) Outsourcing Market
- 23.1. South America Engineering Research And Development (ER&D) Outsourcing Market Overview
- 23.2. South America Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 23.3. South America Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
24. Brazil Engineering Research And Development (ER&D) Outsourcing Market
- 24.1. Brazil Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 24.2. Brazil Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
25. Middle East Engineering Research And Development (ER&D) Outsourcing Market
- 25.1. Middle East Engineering Research And Development (ER&D) Outsourcing Market Overview
- 25.2. Middle East Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 25.3. Middle East Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
26. Africa Engineering Research And Development (ER&D) Outsourcing Market
- 26.1. Africa Engineering Research And Development (ER&D) Outsourcing Market Overview
- 26.2. Africa Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By Type, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
- 26.3. Africa Engineering Research And Development (ER&D) Outsourcing Market, Segmentation By End User, Historic and Forecast, 2017-2022, 2022-2027F, 2032F, $ Billion
27. Engineering Research And Development (ER&D) Outsourcing Market Competitive Landscape And Company Profiles
- 27.1. Engineering Research And Development (ER&D) Outsourcing Market Competitive Landscape
- 27.2. Engineering Research And Development (ER&D) Outsourcing Market Company Profiles
- 27.2.1. Altran Technologies
- 27.2.1.1. Overview
- 27.2.1.2. Products and Services
- 27.2.1.3. Strategy
- 27.2.1.4. Financial Performance
- 27.2.2. Alten Group
- 27.2.2.1. Overview
- 27.2.2.2. Products and Services
- 27.2.2.3. Strategy
- 27.2.2.4. Financial Performance
- 27.2.3. Akka Technologies
- 27.2.3.1. Overview
- 27.2.3.2. Products and Services
- 27.2.3.3. Strategy
- 27.2.3.4. Financial Performance
- 27.2.4. Wipro LTD
- 27.2.4.1. Overview
- 27.2.4.2. Products and Services
- 27.2.4.3. Strategy
- 27.2.4.4. Financial Performance
- 27.2.5. Tata Consultancy Services
- 27.2.5.1. Overview
- 27.2.5.2. Products and Services
- 27.2.5.3. Strategy
- 27.2.5.4. Financial Performance
28. Key Mergers And Acquisitions In The Engineering Research And Development (ER&D) Outsourcing Market
29. Engineering Research And Development (ER&D) Outsourcing Market Future Outlook and Potential Analysis
30. Appendix
- 30.1. Abbreviations
- 30.2. Currencies
- 30.3. Historic And Forecast Inflation Rates
- 30.4. Research Inquiries
- 30.5. The Business Research Company
- 30.6. Copyright And Disclaimer