FMI: North America’s engineering outsourcing market to reach $1.94Tn by 2033 

DELAWARE, UNITED STATES — Future Market Insights (FMI) has released a new report stating that The North American engineering service outsourcing market is poised for robust growth over the coming decade. 

Revenues are expected to climb from around $410 billion in 2023 to nearly $1.94 trillion by 2033, reflecting a compound annual growth rate (CAGR) of 16.8%.

Key factors driving demand in the market include the push to shorten product development lifecycles and reduce costs across manufacturing industries like automotive and electronics. Outsourcing to offshore talent hubs also grants access to qualified engineers at a fraction of onshore wages.

Onshoring dominates the regional industry, holding a 58.2% value share, thanks to benefits like ease of communication and collaboration. Design services, in particular, are projected for faster 20.7% CAGR growth as firms seek end-to-end product lifecycle management from ideation through retirement.

Discrete manufacturing industries are expected to drive much of the continued expansion. Automotive players, for instance, are leveraging outsourcing to access specialized expertise around innovation priorities like electric and autonomous vehicles. Adaptability and cost-effectiveness will remain key.

Leaders in the space providing services include Wipro, HCL Technologies, Capgemini, Infosys, and Tata Consultancy Services (TCS). With engineering complexity only set to rise, these players can differentiate through integrated automation and data analytics offerings to aid informed decision-making.