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I AgreeAnalysis of Engineering Services market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The global engineering services market is valued at US$ 707 billion at present and is forecast to become a trillion-dollar industry by 2032, expanding at a CAGR of 5.9% between 2022 and 2032.
Offering a spectrum of engineering services spread across a plethora of industry verticals, this fast-growing industry accounted for around 5% share of all enterprise professional services.
Report Attributes |
Details |
---|---|
Engineering Services Market Size (2021A) |
US$ 670 Billion |
Estimated Market Value (2022E) |
US$ 707.5 Billion |
Forecasted Market Value (2032F) |
US$ 1,220 Billion |
Global Market Growth Rate (2022-2032) |
5.6% CAGR |
North America Market Share (2021) |
~38% |
East Asia Market Growth Rate (2022-2032) |
~6.5% CAGR |
United States Market Growth Rate (2022-2032) |
~5.6% CAGR |
Market Share of Top 5 Companies |
~7% |
Key Companies Profiled |
|
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Infrastructure development is not just an indicator of economic growth but also for supporting economic activity. Engineering service firms provide design, planning, and consulting for infrastructure development such as highways, bridges, tunnels, water sources, and others. With rising investments in infrastructure development worldwide, demand for engineering service outsourcing is projected to rise at a significant rate over the coming years.
As such, increasing investments in infrastructure development across the world are expected to drive market growth over the studied period.
The global engineering services market expanded at a CAGR of 5.2% between 2017 and 2021, according to Fact.MR, a market research and competitive intelligence provider. As per the analysis, the market is projected to progress further at a 5.6% CAGR through 2032.
Market share analysis of engineering services based on service and region. Under the service segment, construction management services dominate with 23% market share in 2022.
“Continuous Development of Smart Cities”
Smart city development is a trend in both developed and developing economies. The growing development of smart cities worldwide is a major factor stimulating the demand for engineering services.
Engineering service corporations are essential facilitators of the global vision through updating infrastructure to include sensing technology and data analytics focused on updating infrastructure to include sensing technology and data analytics. Therefore, the development of smart cities and new investments in industry expansion in China, India, and Indonesia will boost the demand for engineering and design services.
“Rapid Adoption of Advanced Technologies”
Modern construction, design, and engineering projects have become extremely complex these days and require engineers for essential inputs from vivid backgrounds along with advanced technologies like artificial intelligence, the internet of things, and IT solutions such as engineering analytics.
These technologies are beneficial in solving complex design issues and addressing the right solutions adequately to offer increased productivity and help in smart decision-making. Owing to such factors, demand for engineering services is expected to see significant growth in managing the complex connected infrastructure. Moreover, these technologies minimize the errors associated with the development of products and infrastructure and enhance business efficiency.
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“Lack of Skilled Professionals – A Market Dampener”
A large number of graduate engineers worldwide lack the skills required by the client, which is restraining the market growth. Since, the utility of advanced technologies such as mobile technologies, Artificial Intelligence, data engineering, and machine learning are in trend. However, only 3% of engineers possess the skills in these areas.
It has been found that 25% of engineers graduating from Indian engineering schools are of high quality, while 80%-85% of young people lack the skills necessary for any profession. Additionally, the engineering and industrial sectors were negatively impacted by COVID-19, with roughly 85% of employees experiencing a skills shortage in 2020.
The Asia Pacific (East Asia & South Asia & Oceania) engineering services market holds 23% share of the global market at present.
Favorable government initiative toward the development of economic infrastructure coupled with an increasing level of urbanization in the Asia Pacific region is one of the major factors driving the growth of the market.
With an average yearly urbanization rate of 3%, East Asia and the Pacific is the region in the world that is urbanizing the fastest. Such elements are anticipated to fuel market growth for engineering services in the Asia Pacific region.
The Indian government places a strong emphasis on infrastructure development because it is crucial to the country’s overall growth. It is trying to ensure that world-class infrastructure is built across the country on schedule. Power plants, bridges, dams, highways, and urban infrastructure development, all come under the infrastructure sector.
Also, the government is making investments in the aviation sector to increase international trade and fuel market growth. India intends to launch 1,000 new connections connecting the nation's smaller cities and villages by opening 100 extra airports by 2024. Such development activities will boost the building of infrastructure in the area, favorably affecting the market for engineering services.
The Indian engineering service market is expected to grow at a CAGR of 6.2% through 2032.
Rising urbanization and population growth are impacting the construction of buildings, rail structures, tunnels, bridges, and others. This factor is driving the demand for engineering consulting services in the construction industry.
Planning and designing is an essential part of construction projects offered by engineering service providers to ensure the proper amalgamation of the design and construction process. Whereas, surging renovation activities with the increasing demand to protract the life of structures are expected to stimulate segment growth over the decade.
The construction management segment accounts for a share of 23% of the global engineering service market.
The industrial sector is projected to account for a leading share of 21% in the global engineering services market.
Development of the industrial sector requires professionals and experts from various disciplines, which is projected to stimulate the demand for engineering consultants. With increArdurra Groupasing digitalization across different sectors, the industrial sector has seen the tremendous utility of smart technologies in various processes such as crushing, tunneling, blasting, and others.
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Prominent engineering service providers are AECOM, Affiliated Engineers Inc, AKF Group LLC, Arcadis, Arora Engineers, Arup, Burns & McDonnell, CJL Engineering, Coffman Engineers, ESD, IMEG Corp., Integral Group, Interface Engineering, Jensen Hughes, Kimley-Horn, Loring Consulting Engineers, M & E Consulting Engineers, Magnusson Klemencic Associates, Martin/Martin Consulting Engineers, Mott MacDonald, RMF Engineering, Smith Seckman Reid, Stantec, Terracon Consultants, Tetra Tech High Performance Buildings Group, Vanderweil Engineers, Walter P Moore, and WSP USA.
The competitive intensity in the global engineering consortium consulting market is high with the presence of various new and established players in the market. Strategic moves by these market players, such as acquisitions, mergers, and partnerships are being implemented to upscale their presence among end users.
Fact.MR has provided detailed information about the providers of engineering services positioned across regions, sales growth, and service offering expansion, in the recently published report.
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Construction management services account for 23% market share.
Revenue from engineering services is anticipated to reach US$ 1,220 billion by the end of 2032.
The market for engineering services increased at 5.2% CAGR between 2017 and 2021.
North America tops the global market with 38% market share.
The global engineering services market is set to be valued at US$ 707.5 billion in 2022.