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Global Engineering Research And Development ER and D Outsourcing Market Outlook 2024, Forecast To 2033

25 Sep, 2024

The engineering research and development (ER&D) outsourcing market is experiencing exponential growth, expected to increase from $433.91 billion in 2023 to $537.67 billion in 2024, with a CAGR of 23.9%. This growth is driven by the need for specialized skills and the rise of multinational corporations. By 2028, the market is projected to reach $1,288.8 billion, fueled by talent shortages and advancements in AI technology.

Major Driver In The Engineering Research And Development ER and D Outsourcing Market

The surge in outsourcing demand is poised to drive the expansion of the engineering research and development (ER&D) outsourcing market. Outsourcing involves contracting research projects to specialized development companies with proficient engineers skilled in cutting-edge technology. This strategic collaboration enables businesses to trim work costs and alleviate expenses related to office space, labor, infrastructure, and operations. NASSCOM estimates that global spending on engineering R&D (ER&D) is anticipated to surpass $1.5 trillion by 2025-2026, with $200 billion dedicated to outsourced services. Consequently, the escalating demand for outsourcing is a key factor propelling the growth of the engineering research and development (ER&D) outsourcing market, with projections indicating further market expansion in 2023, 2024, and 2028.

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Engineering Research And Development ER and D Outsourcing Market Competitive Landscape

Accenture plc, International Business Machines Corporation, Tata Consultancy Services Limited, Capgemini SE, Cognizant Technology Solutions Corporation, DXC Technology Company, Harman International Industries, Wipro LTD., Tech Mahindra Limited, EPAM Systems lnc., Alten Group, HCL Technologies Limited, Altran Technologies SA, Horiba Ltd., Akka Technologies Group, Mindtree Limited, Bertrandt AG, L&T Technology Services Limited, GlobalLogic Inc., IAV Gmbh, Cyient Limited, Tata Technologies Limited, Assystem, Kistler Group, KPIT Technologies Limited, FEV Europe GmbH, Infosys Limited, Vikram Solar Pvt. Ltd., QuEST Global Services Pte. Ltd., Luxoft lnc., Wabtec Corporation, Siemens AG, Robert Bosch GmbH, ABB Ltd., Honeywell International Inc., NEC Corporation

Key Engineering Research And Development ER and D Outsourcing Market Trend

The anticipated shortage of skilled personnel is expected to drive the expansion of the engineering research and development outsourcing market. Skilled personnel are individuals who possess specialized training and expertise gained through formal education or technical schools. Due to a scarcity of such workers in many manufacturing and IT sectors, many companies are outsourcing their technical tasks. This issue could be mitigated through internal training programs. For example, the Centre for Monitoring Indian Economy reported that India's skilled labor force decreased by 3.8 million in March 2022, and employment dropped by 1.4 million to 396 million, resulting in a 36.7% reduction in employment for that year. Additionally, Fortune projected that 85 million jobs worldwide will remain unfilled by 2030 due to skills shortages, leading to approximately $8.5 trillion in unrealized annual revenues. Thus, the shortage of skilled personnel is accelerating the growth of the engineering research and development outsourcing market.

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Engineering Research And Development ER and D Outsourcing Market Segmentation

The engineering research and development (ER&D) outsourcing market covered in this report is segmented –
1) By Type: Mechanic, Embedded IT, Software
2) By Location: Onsite, Offshore
3) By End User: Automotive, Consumer Electronics, Telecom, Heavy Machinery, Semiconductor, Computing System, Aerospace, Energy, Medical Devices, Other End Users
By Geography:The regions covered in the engineering research and development (er&d) outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain. Asia-Pacific was the largest region in the engineering research and development outsourcing market in 2023.

The Engineering Research And Development ER and D Outsourcing Global Market Report 2024 furnishes information about the global engineering research and development er and d outsourcing market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.