Several factors such as rising demands for reducing time to market, need for continuous innovation and cost efficiencies has bolstered the growth of product engineering services. Verticals such as healthcare, banking, defense, commercial security, and many more has boosted the product engineering services industry.
Growing popularity of Industrial Internet of Things (IIoTs) is anticipated to positively impact industry growth over the forecast period. Manufacturer is anticipated to use IIoT to create new hybrid business model, boost revenue by increasing production and exploit latest technologies to fuel new product development. Growing need to drive cost efficiencies in the manufacturing stages is expected to fuel the market for product and component design services in the market during the forecast period.
The product engineering services market is segmented by services, organization size, industry vertical and region. Product and component design is expected to hold the largest market share during the forecast period due to increasing demand for cost efficiencies in the manufacturing stage; Process engineering in the service type is projected to witness the highest growth due to growing need to reduce rework and reuse captured knowledge.
The global product engineering services market has been segmented on the basis of regions into North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and Latin America to provide a region-specific analysis in the report. APAC is expected to have the largest market share and is expected to dominate the market from 2016 to 2021. This is mainly because of factors such as, large talent pool, large domestic demand, good (and improving) infrastructure, government incentives, and breaking down of trade barriers which are driving the product engineering services in this market.
Growing R&D spending in energy & utilities, healthcare, and automotive is expected positively impact the market during the forecast period.
The healthcare sector focuses on offering quality care at affordable price. product engineering services market have become the backbone of modern healthcare. It is helping in encourage patient engagement, reducing healthcare expenditure, and boosting general health. Some of the key challenges that the healthcare industry is facing include viable patient outcomes, stringent regulatory environment, delivering quality & affordable healthcare, and shrinking innovation pipeline. Key areas where product engineering services are applied in healthcare include recording devices, healing or therapeutic appliances, radiology apparatus, respiratory devices, in-vitro devices, and diagnostics & monitoring devices.
Wide-scale adoption of smart devices, the advent of next-generation communication technology, and shift towards digitalization have transformed the telecom ecosystem. Growing need to expand to new locations and keep pace with the latest technology developments is driving the demand for product engineering services market. The telecom vertical includes telecom network & device OEMs, test & measurement OEMs, semi-conductor ODMs, communication service providers, and IoT solution ODMs & OEMs. The product engineering services accelerate innovation, optimize R&D spending, improve product TTM, and offer vendors to stay ahead of the technology curve. Key telecom engineering services include planning & design, integration & testing, and deployment.
Energy and Utilities
The energy and utilities vertical typically includes tidal, solar, oil & gas, and wind industries. The scarcity of non-renewable energy resources, aging infrastructure, increasing need to comply with stringent regulations, and the growing operational expenditures are some of the challenges affecting this vertical. Industry participants are looking to leverage digital technologies such as robotics, cloud computing, mobility, and analytics to effectively improve asset and risk management capabilities, manage industry expectations and pricing pressures, and harness renewable energy sources to meet the rapidly growing global demand. Significant technology expertise in grid technology and power generation is required to meet the growing demand for alternate energy sources.
The main challenge faced by organizations in the product engineering services market is developing new products with reduced cost. Increasing cost efficiency is a planned engineering work that requires a dynamic approach and needs to be effective. Due to cultural differences in terms of product design and loss of ownership of intellectual property for enterprises, most of the organizations struggle to optimally utilize the full potential of product engineering services. This has been significantly hindering the growth of the market. Technological giants such as HCL, ALTEN Group, along with some of the key innovators such as TVS Infotech and others, have created leading product engineering service offerings. These players have adopted various growth strategies such as new product launches, partnerships, contracts, collaborations, acquisitions, and expansions to expand their global presence and increase their market shares in the global market.
Some of the key software vendors in the market ecosystem that offer major product engineering services market are mapped to key product offering are given below:
These players are increasingly undertaking mergers and acquisitions, and product launches to develop and introduce new technologies and products in the market.
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