Latest News- Engineering Services Market: Automotive is expected to lead the End-user segment during 2025-2029

The Engineering Services Market is being driven by Deploying engineering services reduces overhead costs

The Engineering Services Market is expected to grow at a CAGR of 4.5% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 421.1 billion. The engineering services market is experiencing substantial growth due to the widespread adoption of advanced technologies such as predictive analytics, the Industrial Internet of Things (IIoT), blockchain, cloud computing, virtual assistants, autonomous vehicles, and augmented and virtual reality. Notably, IoT analytics has seen a significant increase from approximately 13% to 18.8 billion in 2024. Key technologies driving this growth include data analytics, cloud computing, and electronics (sensors). The electricity and manufacturing sectors are projected to be the primary consumers of IoT and IoT-based engineering services. This trend is expected to continue throughout industries and verticals during the forecast period. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• End-user
  • Automotive
  • Healthcare
  • Telecommunication
  • Others
• Deployment
  • Outsourcing
  • Onsite
• Engineering Disciplines
  • Civil
  • Mechanical
  • Electrical
  • Piping and Structural
• Services
  • Product Engineering
  • Process Engineering
  • Automation
  • Asset Management
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • APAC
    • China
    • India
    • Japan
  • South America
    • Brazil
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Deploying engineering services reduces overhead costs
• Increasing adoption of industrial automation
• Delegation of ancillary tasks enabling focus on core competencies

However, the market also witnesses some limitations, which are as follows:

• Shortage of expertise and skilled labor
• Regulatory standard-in end-user industries
• Lack of end-to-end quality and process control by engineering service providers

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Market Scope in Engineering Services Market Research Report

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Research Analysis Overview

Engineering services encompass various disciplines, including design, planning, consulting, and specialized services for the highways, bridges, tunnels, and water sources sectors. The automotive and aircraft industries also benefit from engineering services, specifically in product and process engineering. Automation-related services, infrastructure projects, AI, IoT, and cloud computing are modern technologies integrated into engineering services. Civil engineering services offer architectural design for energy-efficient buildings, while engineering disciplines provide offsite and onsite models for efficient project execution.

Market Research Overview

The global engineering services market encompasses businesses specializing in non-residential construction, including engineering consultancies and Engineering, Procurement, and Construction (EPC) contractors. This market excludes entities involved in residential construction. According to Technavio, the market size is determined by the consolidated revenue of engineering service providers and EPC contractors operating within the non-residential sector. Key growth drivers for the engineering services market include escalating investments in urban infrastructure. With increasing urban populations and expanding demands for transportation, communication services, and essential utilities such as water and electricity in major cities worldwide, significant spending is allocated towards the development of highways, bridges, tunnels, smart cities, and infrastructure projects in the automotive and aircraft sectors, as well as the building industry. Furthermore, advancements in sensing technology and data analytics are fostering the integration of smart solutions into infrastructure projects, thereby propelling market growth.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/