Product Engineering Services Market - By Services (Product Engineering, Process Engineering, Support & Maintenance), By Industry Vertical (A&D, Automotive & Transportation, BFSI, Energy & Utility, Healthcare, Oil & Gas), By Organization Size, & Forecast 2023 – 2032

Product Engineering Services Market Size

Product Engineering Services Market size was valued at USD 950 billion in 2022 and is anticipated to grow at a CAGR of over 5% between 2023 and 2032, driver by the increasing demand for accelerating the Time to Market (TTM) and the growing demand for faster product deliveries.
 

The digital transformation of various industry verticals including BFSI, healthcare, and energy is also positively contributing to the market expansion. Also, the rising demand for smart homes, smart electronic devices and in-vehicle networking systems is expected to generate huge demand in the product engineering services market.
 

The major factors restraining market growth are the growing security concerns related to legacy systems and infrastructure issues along with integration & interface issues concerning product engineering services. However, the proliferation of IoT technologies is expected to offer numerous growth opportunities to the market during the forecast period.
 

Product Engineering Services Market Analysis

Large enterprises segment held a product engineering services market share of over 75% in 2022 and expected to grow at a CAGR of over 5% during the projected timeline. The growth of the segment can be attributed to the increasing emphasis of large enterprises on reducing operational costs and quicker innovation. The use of product engineering services helps large organizations in the early stages of product development as well as in developing innovative, exclusive software in a cost-friendly and effective manner. Large enterprises are transforming into smart businesses by maximizing their capabilities through product engineering services.
 

Product engineering services segment held an industry share of over 50% in 2022. Product engineering services include the use of embedded software, hardware design, and various design capabilities & features to manufacture an electronic product. The product engineering service providers have understood the importance of manufacturing user-friendly products in order to cater to the growing market demand. Also, the rising focus of businesses on speeding up the time-to-market of their product line-up and reducing the cost of development, maintenance, and migration.
 

Healthcare segment is expected to grow at a CAGR of over 10% during the forecast period owing to the innovations in the healthcare sector with the help of product engineering and IoT. Product engineering services help in reducing healthcare costs, improving patient engagement, boosting population health, and offering healthcare services to a wider audience while maintaining transparency at all levels. These services also aid in the manufacturing of healthcare products, applying quick & improved go-to-market strategies, and ensuring that these products are successfully launched & accepted in the market.
 

Asia Pacific product engineering services market is expected to grow at a CAGR of over 5 % during the forecast period. This growth can be attributed to the large presence of SME in the region and their growing inclination toward product engineering services for improving their business processes and increasing their revenue. According to the SME Finance Forum, in Asia Pacific, SME comprise 98% of the total number of enterprises and contribute nearly 17% to the national GDP in many countries in the region including India. SME in the region are utilizing product engineering services to serve customers efficiently.
 

Product Engineering Services Market Share

The major companies operating in the product engineering services market are :

• Accenture
• Capgemini
• Cyient
• HARMAN International (Samsung)
• HCL Technologies Limited
• IBM Corporation
• Persistent Systems
• TATA Consultancy Services Limited.

These companies are focusing on mergers & acquisitions to expand their presence. For instance, in April 2022, Cyient acquired Citec, a plant and product engineering services company that offers services for various industries including energy, process, manufacturing, and oil & gas. The acquisition improved the company’s position in the product engineering sector, reinforced its position in the energy sector, and built up its presence in Europe, especially in Nordic countries including Finland, Sweden, and Norway.
 

The product engineering services market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:

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By Services

• Product engineering services
  • Product design
  • Product development
  • Product testing
  • Deployment and integration
• Process engineering services
• Support & maintenance services

By Organization Size

• SME
• Large enterprises

By Industry Vertical

• Aerospace & defense
• Automotive & transportation
• BFSI   
• Energy & utility
• Healthcare
• Industrial        
• IT & telecom
• Oil & gas
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Singapore
  • Taiwan
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa