Product Engineering Services Market Research, 2031
The global product engineering services market size was valued at $1085.8 billion in 2021, and is projected to reach $1610.6 billion by 2031, growing at a CAGR of 4.1% from 2022 to 2031.
Product engineering services manages the entire life cycle of a product including product research, feasibility study, design, and its deployment. In addition, the process involves various stakeholders including product managers, technical architects, business analysts, and others. Moreover, these service provider companies have realized the importance of developing products that are more user-centric and fulfill a latent need for the product in the society.
Increased demand for accelerating Time to Market (TTM) and need for continuous innovation and iteration boost the growth of the global product engineering services market. In addition, increase in use of digital transformation technology is positively impacts growth of the product engineering services market. However, lack of technical expertise and increasing security concerns is hampering the product engineering services market growth. On the contrary, emergence of IoT technologies is expected to offer remunerative opportunities for expansion of the product engineering services market during the forecast period.
The product engineering services market is segmented into Service Type, Application, Enterprise Size and Industry Vertical.
The product engineering services market is segmented on the basis of service type, application, enterprise size, industry vertical, and region. Depending on service type, the market is bifurcated into product design and development services, process engineering services, implementation and integration services, support and maintenance services, others. On the basis of application, the market is fragmented into Customer Enterprise Products, and Customer Mobile Products. As per enterprise size, it is classified into large enterprises and SMEs. In terms of industry vertical, it is differentiated into BFSI, IT and telecom, energy and utilities, manufacturing, media and entertainment, healthcare, retail and e-commerce, others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Some of the key players operating in the global product engineering services indsutry include Accenture PLC, Akka Technologies, Alten, Altran Technologies, SA, AVL, Calsoft, Inc., Capgemini, CloudMoyo, Happiest Minds Technologies, HCL Technologies Limited, IBM Corporation, Infinite Computer Solutions, Inc., Nous Infosystems, TCS, Wipro Ltd., Algoscale Technologies, Inc., Producement. These players have adopted various strategies to increase their market penetration and strengthen their position in the Product Engineering Services Industry.
Region-wise, the product engineering services market share was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to the presence of major players that offer advanced solutions and invest heavily in product engineering services. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to rising research and development proficiencies among growth in number of SMEs.
COVID-19 Impact Analysis
The product engineering service industry has witnessed stable growth during the COVID-19 pandemic, owing to a rise in demand for quick product deliveries, fraud detection solutions, and various other solutions during the pandemic situation. In addition, the COVID-19 pandemic has resulted in changes in model performance, as continuous monitoring and validation is required to mitigate various types of risks compared to static validation and testing methods, which, in turn, drive the development of advanced machine learning models. In addition, with rapid digital transformation, various governments have introduced stringent regulations to protect end-user data, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). Thus, governments in various countries have taken strict actions toward the defaulters of COVID-19 regulations, and product as-a-service, cloud technology hardware, embedded software, and IT services solutions help with the design and development of products. Moreover, the COVID-19 pandemic is making it even harder for larger companies to keep pace, and even more difficult for midsize and smaller companies to adopt AI/ML technologies, owing to long development timelines and high investment requirements.
Top Impacting Factors
Increased demand for accelerating TTM (Time to Market)
TTM is the amount of time a product takes from planning to deployment in the market for sale. In today’s fast-moving and competitive business environment, adopting new and innovating technology is providing first-mover advantage. Therefore, the demand for product engineering services is growing, due to rising need to reduce TTM of their products. Furthermore, companies are also using processes such as Six Sigma and project risk management to increase their business efficiency. Moreover, TTM is an essential benchmark enhances business efficiency as enterprises can get important advantages in branding by presenting items faster than their peers. For instance, in February 2021, Accenture PLC acquired Imaginea Technologies, LLC and add approximately 1,350 cloud professionals to enhance the global capabilities of Accenture Cloud First.
Need for continuous innovation and iteration
Continuous innovation and cost efficiencies of product engineering services have boosted the growth of the product engineering services market. The industry witnessed new innovations and iterations such as hyper-automation, custom software development, and the Internet of Things (IoT). Moreover, independent software vendors (ISVs) are rapidly utilizing social, mobile, and cloud technologies to propel innovation, stimulate product development, and decrease costs. In addition, various product engineering businesses are offering software product companies the opportunities to grow more agile and responsive to the evolving competitive landscape with product engineering solutions. Furthermore, product engineering services providers are offering training services for managing product development applications by predefined software while analyzing the entire realization-cycle, starting from the idea to the marketable product. Moreover, the rise in need for technological solutions and advancements in technological devices has increased the growth of product engineering services industry.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the Product Engineering Services Market Forecast, current trends, estimations, and dynamics of the product engineering services market analysis from 2021 to 2031 to identify the prevailing product engineering services market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the product engineering services market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global product engineering services market trends, key players, market segments, application areas, and market growth strategies.
Product Engineering Services Market Report Highlights
Market Size By 2031
USD 1610.6 billion
CAGR of 4.1%
2021 - 2031
By Service Type
By Enterprise Size
By Industry Vertical
Key Market Players
AVL, IBM Corporation, Calsoft, Inc., Infinite Computer Solutions, Inc., algoscale technologies, inc., alten, Tata Consultancy Services (TCS), HCL Technologies Limited, Producement, Capgemini, Accenture plc, Altran Technologies, SA, Happiest Minds Technologies, Nous Infosystems, Akka Technologies, CloudMoyo, Wipro Ltd
Product engineering service can be defined as an engineering consulting practice, which uses various hardware, embedded, software, and IT services solution for the designing and development of products. In addition, the product engineering services come in different phases from inception to the end of the lifecycle of a product. Furthermore, it involves a wide range of programming tools, processors/microprocessors, memory devices, interfaces, operating systems, UI Tools to design and engineer a product. Moreover, it considers various quality and environmental regulations to ensure safe and secure deployment of products.
The global product engineering services market is expected to register high growth due to worldwide digitization and Social, Mobile, Cloud technologies to propel innovation, stimulate product development, and decrease costs. Various product engineering businesses offer software product companies to grow more agile and responsive to evolving product engineering services market and competitive landscape with the product engineering solutions are anticipated to contribute towards the growth of the global product engineering services market. With growth in requirement for product engineering services, various companies have established alliance to increase their capabilities.
For instance, in May 2021, Akka Technologies partnered with AURA AERO to create electric aircraft and also to have access to strong R&D resources for a variety of competencies, from engineering to customer service. For instance, in August 2022 IBM Corporation Partnered with Improbable to deliver a new technology edge. Moreover, it forging not only technology innovations but a new ecosystem and relationships.
In addition, with further growth in investment across the world, the rise in demand for product engineering services, various companies have expanded their current product portfolio with increased diversification among customers. For instance, in June 2022, L&T Technology Services Limited a leading global pure-play engineering services company launched Engineering Design Centre (EDC) in Toulouse, France, to initially cater to the new age digital requirements of the global aerospace and defense sectors.
Moreover, with increase in competition, major market players have started acquisition companies to expand their market penetration and reach. For instance, in April 2022, Cyient acquired Citec, an international Plant and Product engineering services company serving customers across the energy, process, oil and gas, and manufacturing industries to enhance Cyient's position as a leader in the Plant and Product Engineering sector, and also to strengthen presence in the energy industry with a focus on clean energy.