The report covers US Engineering Services Companies and the market is Segmented by Engineering Disciplines (Civil, Mechanical, Electrical, and Environmental), End-user Industry (Construction, Oil and Gas, Manufacturing, Utilities, Transportation), and Region.

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Engineering Services Market Size 2025-2029

The engineering services market size is forecast to increase by USD 421.1 billion at a CAGR of 4.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the cost-effective deployment of engineering services that help businesses reduce overhead costs. Another trend transforming the industry is the integration of IoT, enabling real-time monitoring and predictive maintenance.
Moreover, the increasing adoption of industrial automation enhances productivity, reduces labor costs, and improves operational reliability across manufacturing and service sectors. Additionally, outsourcing ancillary tasks such as facilities management and administrative functions enables businesses to concentrate resources on core activities, fostering innovation and competitive advantage. However, the market faces challenges, including the shortage of skilled labor and expertise, which can hinder growth. Companies must invest in training and development programs to address this issue and remain competitive. 

What will be the Engineering Services Market Size of the During the Forecast Period?

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Engineering services play a pivotal role in various sectors, including highways, bridges, tunnels, water sources, and infrastructure projects. These services encompass a wide range of disciplines, including design, planning, consulting, product engineering, process engineering, automation-related services, and architectural design. In the automotive sector, engineering services are essential for the development of innovative and efficient vehicles. Similarly, in the aircraft sector, these services ensure the safety and functionality of aircraft designs. In the building sector, engineering services contribute to the creation of energy-efficient and sustainable structures. Civil engineering services are a crucial component of infrastructure projects, with a focus on designing and constructing highways, bridges, tunnels, and water sources.



The integration of advanced technologies such as AI, IoT, and cloud computing has revolutionized engineering services, enabling more accurate designs, efficient processes, and improved project outcomes. Product engineering and process engineering are essential services for manufacturing industries, ensuring the production of high-quality goods and optimizing manufacturing processes. Offshore and onsite engineering models offer flexibility and cost savings, depending on the project's specific requirements. Engineering disciplines continue to evolve, with a growing emphasis on sustainability and innovation. The future of engineering services lies in the integration of emerging technologies and the ability to provide comprehensive solutions to meet the evolving needs of various industries.
AI-driven engineering is transforming construction and civil engineering solutions, leveraging digital twins to create accurate virtual models of physical assets. These innovations enable sustainable design and smart infrastructure, promoting energy efficiency and integrating renewable energy engineering into modern projects. Automation engineering and robotic process automation streamline workflows, while 3D printing services revolutionize product design engineering with custom, precise solutions. Industrial IoT further enhances connectivity and performance, enabling real-time monitoring. Engineering consulting services, supported by advanced cybersecurity for engineering, ensure secure and efficient project delivery. Virtual engineering also plays a crucial role in simulating and optimizing processes, providing a more innovative, cost-effective approach to construction and infrastructure development. This convergence of technologies is reshaping the future of engineering.

How is the Engineering Services Market Segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Automotive
  Healthcare
  Telecommunication
  Others


Deployment

  Outsourcing
  Onsite


Engineering Disciplines

  Civil
  Mechanical
  Electrical
  Piping and Structural
  Environmental
  others


Services Type

  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

    KSA

By End-user Insights

The automotive segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth due to the automotive industry's shifting landscape. Pressures from emerg

The Engineering Services Market report segments the industry into By Engineering Disciplines (Civil, Mechanical, Electrical, and more), By Delivery Model (Offshore, Onsite), By Services (Product Engineering, Process Engineering, Automation Related Services, and more), By Industries (Aerospace and Defense, Automotive, Chemical and Petrochemical, and more), and By Geography (North America, Europe, Asia-Pacific, and more).

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US Engineering Services Outsourcing Market Size 2024-2028

The US engineering services outsourcing market size is estimated to grow by USD 187.62 billion at a CAGR of 32.14% between 2023 and 2028. The market experiences significant growth due to various factors. Primarily, businesses seek cost savings through access to lower labor wages in offshore locations. Additionally, outsourcing and engineering R&D services enable companies to tap into a vast pool of highly skilled engineering professionals, addressing potential in-house expertise gaps. This strategic approach not only reduces operational costs but also enhances project efficiency and productivity. By leveraging engineering services outsourcing and automotive engineering services outsourcing, organizations can effectively manage their resources and focus on their core competencies, ultimately contributing to their overall growth and success.

What will be the Size of the US Engineering Services Outsourcing Market During the Forecast Period?

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US Engineering Services Outsourcing Market Segmentation

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

Sourcing Outlook

  Offshore
  Onshore





End-user Outlook

  Telecom
  Automotive
  Healthcare
  Aerospace
  Semiconductor and others

The market share growth by the offshore segment will be significant during the market forecasting period. The term offshore outsourcing describes the transfer of all or a portion of the engineering processes to a different organization located abroad. This segment's nominal growth can be attributed to the ease of access to skilled and talented human resources in the US as well as the availability of resources that are both cost-effective and readily available.

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The offshore segment was valued at USD 17.18 billion in 2018. However, due to a number of factors including the rate of global inflation, the high cost of training employees, high churn rates, and a growing preference for outsourcing to onshore partners, it is anticipated that the offshore segment in the US will grow more slowly than the onshore segment.

In the US, there is an increasing amount of opposition to offshore outsourcing, which claims that offshoring is to blame for the loss of job opportunities. The US government has already erected a number of onerous trade restrictions against its significant trading partners. During the forecast period, this is predicted to slow down international trade. These limitations would have a negative effect on the expansion of the US outsourcing market for engineering services and architectural engineering and construction solutions. During the forecast period, it is anticipated that value-based or collaborative partnerships between customer organizations and outsourced ESPs may experience significant growth.

US Engineering Services Outsourcing Market Dynamics

Iron ore demand and supply analysis highlights the evolving dynamics of the iron market, influenced by factors like iron ore price volatility and steel industry demand. Top iron ore exporters and producers play a crucial role in maintaining supply chain stability, while the recycling of steel and the adoption of alternative steel production methods are gaining momentum. Sustainable mining practices are increasingly prioritized to promote environmental care. The demand for high-grade iron ore continues to rise, particularly in infrastructure development, as it plays a key role in modern construction. Iron ore pricing forecasts remain essential for strategic planning, and the impact of decarbonization on iron ore demand reflects the industry's shift towards eco-friendly solutions and green steel production. Additionally, iron ore export dynamics are critical to global trade flows, further shaping the market's future.

The US engineering services outsourcing market is experiencing significant growth, driven by the adoption of advanced technologies such as cloud-based engineering software, automation mechanisms, and platform as a service (PaaS). OEMs and end application enterprises are increasingly turning to engineering service providers (ESPs) for expertise in G Technology, including the Internet of Things (IoT) and artificial intelligence (AI) to enhance their product offerings.

ESPs are leveraging AI and machine learning (ML) to streamline designing services, from computer aided design (CAD) and computer aided engineering (CAE) to computer aided manufacturing (CAM), and CNC machines. Cloud-based engineering software enables real-time collaboration and access to the latest design iterations from anywhere. Automation mecha

The North America Product Engineering Services market size will be $350.05 Billion by 2023.

The U.S. Engineering Services Market size was valued at USD 162.50 Billion in 2024 and is projected to reach USD 276.12 Billion by 2032, growing at a CAGR of 6.8% from 2025 to 2032.

U.S. Engineering Services Market Dynamics

The key market dynamics that are shaping the U.S. Engineering Services Market include:

Key Market Drivers Increased Demand for Infrastructure Development: The U.S. Engineering Services Market is thriving due to the increasing demand for infrastructure development, driven by government initiatives like the Infrastructure Investment and Jobs Act. In 2021, the government allocated $1.2 trillion for infrastructure improvements, boosting the need for engineering services in transportation, utilities, and public works. The construction sector grew 7.3% in 2022.

Market Size statistics on the Engineering Services industry in United States

Global Engineering Services market size is expected to reach $1323.57 billion by 2029 at 3.5%, segmented as by type, civil engineering services, electrical engineering services, mechanical engineering services, others engineering services

The North America Network Engineering Services Market would witness market growth of 7.9% CAGR during the forecast period (2024-2031). The US market dominated the North America Network Engineering Services Market by Country in 2023, and would continue to be a dominant market till 2031; thereby, ach

The size of the U.S. Engineering Services Outsourcing Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 17.2 % during the forecast period. U.S. engineering services outsourcing is the practice of contracting engineering tasks and projects to third-party service providers, often located in countries with lower labor costs or specialized expertise. This trend has gained significant traction as U.S. companies seek to reduce operational expenses, access a global talent pool, and focus on their core competencies. Product design, research and development, software engineering, testing, and systems integration are the kinds of services outsourced in engineering. Such services are widely adopted across various industries such as automotive, aerospace, electronics, and construction. This means U.S. companies can avail the latest cutting-edge technologies and advanced engineering solutions without the expensive infrastructures or having to hire a large in-house team. However, the trend also poses challenges, including quality control concerns, intellectual property protection, and communication barriers. Still, engineering services outsourcing remains a strategic choice for many U.S. businesses in their quest to stay competitive in a global market. Recent developments include: In February 2024, MGS established its Global Engineering Services Group, uniting over 85 engineers and 200 global toolmakers. This expansion empowers Pharma, Diagnostics, and MedTech innovators to expedite healthcare projects from concept to validated production. The move follows strategic acquisitions bolstering MGS's front-end engineering expertise and global reach across North America and Europe. , In June 2024, Cognizant acquired Belcan, a digital engineering firm. This expands Cognizant's reach into the aerospace, defense, space, and automotive industries. Belcan brings a global footprint with a strong client base including Boeing, General Motors, Rolls-Royce, NASA, and the U.S. Navy. , In May 2024, Tech Mahindra entered into a strategic alliance with Atento to deliver comprehensive business transformation solutions across the Americas, Europe, and the Middle East & Africa. .

North America Engineering Services Market is expected to grow during 2025-2031

The Big Data Engineering Services Market report segments the industry into By Type (Data Modelling, Data Integration, Data Quality, Analytics), By Business Function (Marketing and Sales, Finance, Operations, and more), By Organization Size (Small and Medium Enterprizes, Large Enterprises), By Deployement Type (Cloud, On-premise), By End-user Industry (BFSI, Government, and more), and Geography (North America, Europe, and more).

Industry operators are primarily engaged in engineering duties related to the design, construction and testing of aircraft, missiles and spacecraft. To a lesser degree, operators may evaluate and recommend improvements relative materials, equipment and techniques.

The North America engineering service outsourcing industry size reached around US$ 410.4 billion in 2023. Over the forecast period, demand for engineering service outsourcing in North America is projected to expand at 16.8% CAGR, taking the total valuation to US$ 1,940.5 billion by 2033.

2018 to 2022 Engineering Service Outsourcing Demand Outlook in North America

Adjacent North America Engineering Service Outsourcing Industries

Category-wise Insights

Scope of the Report

The engineering services market is anticipated to reach a value of USD 3.41 trillion by 2033, expanding at a CAGR of 5.5% over the forecast period. The market growth is attributed to the increasing demand for specialized engineering expertise for infrastructure development, industrial projects, technology implementation, and environmental projects. Moreover, the rising complexity of engineering projects and the need for efficient project management are driving the demand for engineering services. Additionally, the advancements in technology, such as the integration of artificial intelligence (AI) and machine learning (ML), are creating new opportunities for engineering service providers. The market is fragmented, with key players, including STRABAG SE, Jones Lang LaSalle Incorporated, Balfour Beatty Inc., Kiewit Corporation, and AECOM Engineering company. Regionally, North America is the dominant market for engineering services, followed by Europe and Asia Pacific. However, the Asia Pacific region is anticipated to witness the highest growth rate during the forecast period, driven by the massive investments in infrastructure development and the growing industrial sector in countries such as China, India, and Southeast Asia. The Middle East & Africa region is also expected to offer significant growth opportunities, primarily due to the ongoing infrastructure development projects in the Gulf Cooperation Council (GCC) countries and the increasing demand for engineering services in energy and utilities, transportation, and healthcare sectors. Recent developments include: In June 2024, AECOM, a leading global infrastructure consulting firm, announced a partnership with Ukrhydroenergo, Ukraine's primary hydropower generation company. The collaboration aims to identify and undertake projects aimed at restoring and enhancing Ukraine's hydropower assets, systems, and capabilities. , In April 2024, WSP Global Inc. announced its agreement to acquire 1A Ingenieros, S.L. (1A Ingenieros), a Spanish consulting firm specializing in the Power & Energy sector with approximately 250 employees. The acquisition is anticipated to finalize in the second quarter of 2024. This strategic move is set to bolster WSP’s capabilities in Spain within the Power & Energy sector, establishing a robust multidisciplinary presence in the region. It will also diversify WSP’s portfolio across its core markets of Transportation & Infrastructure, Power & Energy, and Property and Buildings, while expanding its footprint in Earth and Environment services. .

Forensic Engineering Services Market Outlook 2032

The global forensic engineering services market size was USD 4.27 Billion in 2023 and is projected to reach USD 6.89 Billion by 2032, expanding at a CAGR of 5.8% during 2024–2032. The market growth is attributed to increasing technological advancements.



Growing advancements in technology are expected to opened up new applications for the market in the next few years. One such application is in the realm of cybersecurity. Here, forensic engineers apply their analytical skills to investigate data breaches, identify vulnerabilities, and recommend remediation strategies. This novel application is gaining traction as businesses increasingly prioritize the security of their digital infrastructure.

Rising regulatory scrutiny, particularly in the construction and manufacturing sectors, is leading to stricter standards and guidelines. For instance, the American Society of Civil Engineers (ASCE) has issued guidelines for forensic engineering practice, setting the bar for professional conduct and quality of service. These regulations are likely to drive the market, as businesses seek to comply with standards and mitigate risk. The impact on the market is expected to be substantial, fostering the market.

Impact of Artificial Intelligence (AI) in Forensic Engineering Services Market

Artificial Intelligence (AI) has a significant impact on the forensic engineering services market. AI's integration into these services enhances their analytical capabilities, enabling the accurate identification and interpretation of evidence. Moreover, AI-driven algorithms provide deeper insights into complex engineering failures, facilitating the development of effective prevention strategies.



The automation of data collection and analysis, another AI contribution, allows for an efficient allocation of resources, thereby reducing operational costs. Furthermore, AI's real-time data processing capability ensures rapid response to emerging issues, strengthening the reliability of forensic engineering services in an increasingly complex environment.

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Oil And Gas Engineering Services Market Size 2024-2028

The oil and gas engineering services market size is forecast to increase by USD 5.32 billion at a CAGR of 8.51% between 2023 and 2028.

The market is experiencing significant growth due to several key factors. The increase in Exploration and Production (E&P) activities, particularly In the shale industry, is driving market growth. Additionally, rising investments In the shale industry are contributing to market expansion. However, the market is also facing challenges from alternative energy sources, which are gaining popularity due to their environmental benefits. The hydrocarbon resources sector is also witnessing the emergence of new pipelines, expanding the energy source network and facilitating the transportation of hydrocarbons to various industries, including aviation, manufacturing, construction, and daily necessities. This trend is expected to intensify In the coming years, posing a significant threat to the market. Despite these challenges, the market is expected to continue growing due to the high demand for engineering services In the oil and gas sector. Companies In the market are focusing on innovation and technology to remain competitive and meet the evolving needs of their clients. Overall, the market is poised for steady growth, driven by increasing E&P activities, rising investments, and the challenges posed by alternative energy sources.

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The market is a dynamic and evolving industry, driven by the need to maximize productivity and efficiency In the extraction and processing of hydrocarbon resources. Automation technologies, such as machine learning and artificial intelligence, are increasingly being adopted to streamline operations and reduce costs. Renewable energy and carbon footprint regulations are also influencing the market, as companies seek to minimize their environmental impact and explore alternative energy sources. Electric vehicles and changing demand patterns are further disrupting traditional business models. Strategic collaborations between multinational engineering firms and specialized niche players are on the rise, as companies seek to leverage each other's expertise and resources.
Furthermore, mechanical, electrical, civil, and chemical engineering services remain crucial for the design, construction, and maintenance of infrastructure and equipment. Regulatory developments and technological advancements continue to shape the market, as companies navigate complex hydrocarbon sources and adapt to shifting industry dynamics.

How is this Oil And Gas Engineering Services Industry segmented and which is the largest segment?

The oil and gas engineering services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Downstream
  Midstream
  Upstream


Geography

  North America

    Canada
    US


  APAC

    China
    India


  Europe



  Middle East and Africa



  South America

By Type Insights

The downstream segment is estimated to witness significant growth during the forecast period.

The downstream segment of the market is expected to dominate the industry in 2023, driven by the increasing demand for reliable operations and asset integrity management in refining, transportation, and petroleum product sales. Downstream processes, including refining, processing, and transportation, are crucial for optimizing operations and enhancing the marketability of petroleum products. Automation technologies and productivity enhancements are key trends In the market, aiming to reduce costs and improve efficiency. Additionally, renewable energy sources and carbon footprint regulations are influencing the industry, with some companies investing in hydroelectric, wind, and solar power. Machine learning and strategic collaborations between multinational engineering firms and specialized niche players are also shaping the market landscape.

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The downstream segment was valued at USD 4.83 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 39% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The North American market is experiencing significant growth due to the increasing number of oil and gas projects I

According to Cognitive Market Research, the global Engineering Services Outsourcing market size will be USD 2051421.6 million in 2025. It will expand at a compound annual growth rate (CAGR) of 25.20% from 2025 to 2033.

North America held the major market share for more than 40% of the global revenue with a market size of USD 820568.64 million in 2025 and will grow at a compound annual growth rate (CAGR) of 23.4% from 2025 to 2033.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 615426.48 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 471826.97 million in 2025 and will grow at a compound annual growth rate (CAGR) of 27.2% from 2025 to 2033.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 102571.08 million in 2025 and will grow at a compound annual growth rate (CAGR) of 24.6% from 2025 to 2033.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 41028.43 million in 2025 and will grow at a compound annual growth rate (CAGR) of 24.9% from 2025 to 2033.
The offshore category is the fastest growing segment of the Engineering Services Outsourcing industry

Market Dynamics of Engineering Services Outsourcing Market

Key Drivers for Engineering Services Outsourcing Market

Increasing Access to Advanced Technologies and Expertise to Boost Market Growth

The growing complexity of engineering projects and the rapid advancement of technology have made access to specialized expertise and advanced tools a critical driver for the Engineering Services Outsourcing market. By outsourcing, companies can tap into global expertise and gain access to cutting-edge tools, technologies, and innovative solutions that might not be available in-house. Service providers often have specialized knowledge in areas like automation, AI, IoT, and advanced materials, which allows them to offer higher-quality engineering solutions. Additionally, outsourcing provides access to engineers with a wide range of skills, making it easier to manage a diverse set of engineering challenges across various sectors, including aerospace, automotive, and construction. The ability to quickly integrate emerging technologies without extensive in-house training or investment in equipment is a significant advantage for companies looking to stay competitive.

For instance, Wipro Limited declared its collaboration with Amazon Web Services (AWS) for the upcoming evolution of laboratory procedures in the life sciences sector. This inventive solution aims to tackle the fundamental challenges affecting the industry by introducing a comprehensive, cloud-based platform.

(Source: https://www.wipro.com/newsroom/press-releases/2023/wipro-unveils-lab-of-the-future-with-aws-to-transform-lab-processes/)

Cost Efficiency and Resource Optimization to Drive Market Growth

Outsourcing engineering services allow businesses to reduce labour costs, minimize operational expenses, and avoid investments in infrastructure and resources. By partnering with service providers in countries with lower labour costs, organizations can access highly skilled engineering talent at a fraction of the price compared to domestic operations. This cost efficiency enables companies to allocate resources to other critical areas such as research and development or marketing. Furthermore, outsourcing allows organizations to leverage a broader talent pool without the need to invest in hiring, training, and retaining in-house personnel. As industries face increasing pressure to maintain competitive pricing and improve profitability, outsourcing engineering services provides a flexible solution to optimize operational efficiency and reduce overhead costs, making it a key driver for the market.

Restraint Factor for the Engineering Services Outsourcing Market

Intellectual Property (IP) and Security Concerns Will Limit Market Growth

Companies outsourcing engineering services often share proprietary designs, technology, and sensitive data with third-party vendors, leading to potential IP theft or misuse. Security breaches, such as cyber-attacks or unauthorized access, can compromise confidential information and disrupt business operations. These risks are particularly concerning for industries like aerospace, defence, and healthcare, where product designs ...

Engineering Services Outsourcing Market size is expected to reach US$ 14.03 Tn by 2032, from US$ 3.37 Tn in 2025, a CAGR of 22.60% during the forecast period

The North America Engineering R&D Services Market report segments the industry into By Service Provider Type (Global Capability Centers (GCCs), Engineering Service Providers (ESPs)), By Industry Vertical (Automotive, Industrial, Aerospace and Defence, and more), By Service Line (Mechanical and Electrical Engineering Services, Embedded Engineering Services, Software Engineering Services), and By Geography (United States, Canada).