U.S. engineering outsourcing to hit $844Bn by 2030: Research and Markets
DUBLIN, IRELAND — The United States engineering services outsourcing market is poised for explosive growth, projected to surge from $337.28 billion in 2024 to $843.97 billion by 2030 at a 15.7% compound annual growth rate (CAGR), according to a Research and Markets report.
Cost advantage fuels offshore engineering boom
Companies are taking advantage of labor arbitrage by utilizing providers in India, the Philippines, and Eastern Europe, where engineering skills are cheaper than those obtained locally.
An advantage of outsourcing is that the funds saved are not spent on expensive equipment, including systems and testing facilities, and these funds can be utilized to support the core business. Furthermore, various industries now outsource their services, such as those in aerospace, automotive, and telecom.
The acceleration of the trend is associated with the complexity of engineering projects, advanced technological capabilities, and moves to cut costs and scale operations efficiently.
Complexity and technological innovation drive outsourcing
Industry 4.0, which integrates automation, AI, IoT, and big data, is reshaping engineering demands. The complexity of these technologies requires expertise that many firms lack internally, increasing their reliance on engineering services outsourcing (ESO) providers.
The efficient delivery of these solutions by the ESO providers contributes to the growth of the market as industry after industry emerges in an attempt to smarten their manufacturing and automation processes.
Engineering service providers currently play a prominent role in offering comprehensive automation packages that encompass mechanical design, software coding, and complete system integration.
The end-to-end capability of this measure enables firms to release advanced robotics faster and more cost-effectively than creating these functions internally.
Leading players in the U.S. ESO landscape
Major players in the U.S. ESO market include:
- ABB Group
- Accenture plc
- Akka Technologies
- ALTEN Group
- Capgemini Engineering
- Cognizant Technology Solutions Corporation
- Emerson Electric Co.
- HCL Technologies Limited
- Hitachi Group
- Infosys Limited
- Siemens AG
- Tata Consultancy Services
- Wipro Limited
ESO transforms engineering value chains
This market evolution reflects a fundamental restructuring of engineering value chains. What began as a labor cost play has transformed into strategic access to specialized technical capabilities, making ESO not just an option but a necessity for competitive survival in the Industry 4.0 era.
