Product Engineering Services Market Forecast, Trend Analysis & Competition Tracking: Global Market Insights 2019 to 2029

Product Engineering Services Market in Numbers

• Product engineering services market is envisaged to account for revenues worth US$ 26 Bn in 2019. Increasing need of businesses to achieve faster time to market (TTM) and deliver superior customer experience in the midst of uncertainties continue to create a demand for product engineering services across enterprises.
• Projected to witness a robust ~10% CAGR through 2029, the product engineering services market is likely to remain influenced by the fact that ER&D capability is indispensable for organizations, not just for competitive advantages but also for survival.
• North America will continue to be the leading market for product engineering services market, in line with the rapidly emerging smart technologies in the region, and strong market presence of key companies.
• South Asia is anticipated to emerge as a high growth region in product engineering services industry, owing to a notable rise in demand for organizing a massive workforce in the region.
• A majority of leading providers of product engineering services are currently focused on the development of strong expertise in digital technologies.

Competition Landscape

The market for product engineering services will remain a consolidated landscape, where leading players, such as Accenture, Cognizant, Persistent System, TCS, and Wipro, among others, command 60-65% market share. These companies continue to zoom in their strategic focus on acquisitions of local service providers, for regional expansion.

New launches centered at customer demands will remain among the key strategies of market forerunners as they continue to invest efforts in introducing product designs that appeal to a wider customer base.

Profound domain knowledge and deep expertise in customers’ business verticals will be considered as an important determinant, offering companies an additional edge in the competition landscape of product engineering services market.

The market is lately witnessing increase in the collaborations of stakeholders with enterprises, which are attempting new market entry and thus need assistance from product engineering services providers, right from the initial stage to the post-deployment support phase.

A few companies have been strategizing on foraying in the intelligent and quick product engineering services management, sensing its growing profitability in market.

While some of the leading providers of product engineering services have been constantly focused on leveraging their consulting and advisory expertise along with services, others are observed to have shifted the focus to reassessment of their pricing Companies are also likely to concentrate on revisiting their patenting strategies, to better realize revenues in coming years.

Key Factors Determining Growth of the Product Engineering Services Market

• Shifting focus of enterprises on transforming legacy systems into advanced ones to survive competition has been creating a significant demand for best-in-class product engineering services, which continues to translate into a broad range of opportunities for vendors.
• While significant ER&D challenges prevail, facing enterprises, it is highly likely that product engineering services providers will look forward to lucrative avenues. Lack of R&D expertise and inadequate availability of engineering stronghold continue to sustain substantial traction for product engineering services providers across various verticals. With established companies spending in bulk on digital engineering R&D, primarily driven by technology and business model innovation, demand for product engineering services is likely to see an upsurge in the forthcoming years.
• Industrial Internet of Things (IIOT) is helping vendors boost their operational efficiency, improve productivity, and deliver seamless performance, thereby enabling them to build high quality designs for clients. Palpable penetration of IoT is further driving fresh demand for product engineering services, across varied verticals.
• Emergence of connected/smart technology and the subsequent hike in sales of smart electronic devices, smart homes, and in-vehicle networking systems, are cited as the key factors pushing the demand growth of product engineering services in the global market.
• The convergence of technology and engineering is creating significant demand for new ER&D services portfolio, enabling enterprises to drive efficiencies in design, development, and testing processes by using analytics, automation, and design thinking to improve quality and reduce costs.

Product Engineering Services Market - Key Restraining Factors

• The threat of losing control over IP rights prevails, which continues to add to the reluctance of a large number of enterprises, who wish to outsource product engineering services. This will remain a strong restraining factor, restricting revenue generation opportunities in the product engineering services market.
• Increasing preference of enterprises for onsite resources in order to achieve faster TTM, coupled with rapid implementation of advanced technologies in business processes, has been increasing the cost burden of service providers, which remains an important factor, influencing the profit margins of product engineering services providers.

A Consistent Rise in the Number of NPDs across Verticals to Underpin Significant Gains

Fact.MR study states that product engineering services for new product developments will continue to witness maximum demand during the foreseeable future.

The shift in technology complexity, coupled with growing consumer demand for a ‘connected’ ecosystem, has triggered collaborations between enterprises and product engineering services providers, which further impacts the market dynamics, technology, and competition bringing changes to virtually every vertical, and making NPD one of the most powerful business activities.

Companies providing product engineering services are thus leveraging IIoT to create novel need-based hybrid business models, expand production capacities, and exploit the state-of-the-art technologies to fuel NPDs.

Product Engineering Services Market – Research Methodology

An accurate methodology along with holistic approach form the foundation of the valuable insights mentioned in the product engineering services market. The Fact.MR study delivers exhaustive information pertaining to the growth projections of product engineering services industry and systematic breakdown of the determinants that are impacting the growth of the market.

In-depth primary and secondary research has been performed to jolt down the incisive insights into the forecast analysis of product engineering services market.

The report on product engineering services market has also undergone several authentication tunnels to ensure that the report is one of its kind with exclusive information published in it.