Engineering Services Market

Engineering Services Market Outlook (2024 to 2034)

The global engineering services market is estimated at US$ 1,801.75 billion in 2024 and has been projected to expand at 7.6% CAGR to reach a value of US$ 3,756.09 billion by 2034-end.

To acquire specialist knowledge, lower operating expenses, and focus on their main business operations, companies from several regions, particularly South Asia & Pacific and East Asia are increasingly outsourcing engineering services. In addition, businesses in all sectors are investing in research & development activities to remain competitive in the market.

This is aided by engineering services, which offer specific expertise and resources for innovation, especially in high-tech sectors, such as healthcare, IT, and others.

By integrating or combining technologies, such as automation, data analytics, and the Internet of Things, several industries are implementing smart manufacturing processes. The implementation of these systems requires engineering services, which raises demand in industrial sectors.

Governments in several countries are financing or supporting infrastructure and industrial development projects, which is driving the engineering services market growth. These programs generate a consistent need for engineering services in industries, such as housing, energy, transportation, and others.

Key Market Growth Drivers

• Requirement for advanced infrastructure, such as smart cities, transit systems, utilities, and others continues to rise as the number of people moving into cities is growing. Engineering services are essential to plan and oversee these massive projects.
• Developing technologies, including artificial intelligence, the Internet of Things, robotics, cloud computing, and others are positively bringing change in engineering services. The engineering services market size expanding due to these developments, which is making quicker project execution, cost reductions, and increased design precision.
• One of the key engineering services market trends is the growing demand for eco-friendly solutions. Opportunities for engineering service providers are created by companies' investments in resource-efficient industrial designs, green construction, renewable energy initiatives, and others.
• The market is expanding at a notable growth rate, as engineering services are essential for creating renewable energy projects, modernizing power grids, and putting energy-efficient systems into place as the world moves toward clean energy.
• Demand for engineering services is increasing due to developments in autonomous driving, smart aircraft systems, electric vehicles (EVs), and others. The design, testing, and production process depend heavily on engineering services.

Report Attribute	Detail
Engineering Services Market Size (2024E)	US$ 1,801.75 Billion
Forecasted Market Value (2034F)	US$ 3,756.09 Billion
Global Market Growth Rate (2024 to 2034)	7.6% CAGR
North America Market Value (2024E)	US$ 533.51 Billion
Western & Eastern Europe Market Growth Rate (2024 to 2034)	7.8% CAGR
Energy & Power Segment Value (2034F)	US$ 1,748.69 Billion
Private Businesses Segment Value (2034F)	US$ 1,803.58 Billion
Key Companies Profiled	AECOM; Bechtel Corporation; Kiewit Corporation; WSP Global Inc.; STRABAG SE; Deloitte Consulting LLP; Jacobs Engineering Group; Turner & Townsend; Arup Group; CH2M Hill

Which Factor is Playing a Crucial Role in Raising Demand for Engineering Services?

“Crucial Role in Meeting Growing Demand of EVs and Autonomous Driving Technologies”

The increasing utilization of electric vehicles (EVs), autonomous driving technologies, and smart aircraft systems is driving the demand for engineering solutions worldwide.

These developments call for knowledge of advanced materials, battery technology, software integration, and aerodynamic designs, among other fields. In the design, testing, and production phases, engineering service providers play a crucial role in maintaining efficiency, safety, and adherence to industry standards.

An important factor driving market expansion is the automotive and aerospace sectors' continued innovation, which depends on specialist engineering services to create innovative solutions.

What’s Limiting the Demand Growth for Engineering Services?

“Dependency and Variations in Performance and Regulations in Several Industries”

The market for engineering services heavily relies on the success of key industries, including automotive, construction, energy, and others as they drive the demand for design, development, and infrastructural projects. Demand for engineering services decreases during recessions or industry-specific difficulties, such as fewer building projects or lower energy project investments.

Because of this dependence, the market is vulnerable to changes in these vital industries, which possibly affect stability and growth.

Other than this, strict rules and guidelines that vary by area and industry apply to engineering projects. These rules and guidelines address topics, including quality control, safety, the influence on the environment, and others. Extensive documentation, audits, and approvals are widely required to comply with these regulations, which increases project costs as well as somehow limits market growth.

Country-wise Insights

The North American region is forecasted to lead in the market for the next ten years due to rising investments in renewable energy projects, high demand for infrastructure upgrades, and widespread acceptance of innovative technologies. Further, the presence of several leading engineering service provider companies and government efforts for smart city construction is driving the market in an upward direction.

What is the Demand Outlook for Engineering Services in the United States?

“Continuous Integration of AI, IoT, and Automation in Several Industries”

Attribute	United States
Market Value (2024E)	US$ 478.13 Billion
Growth Rate (2024 to 2034)	9.2% CAGR
Projected Value (2034F)	US$ 1,152.47 Billion

Engineering services are becoming more necessary in the United States due to the incorporation of advanced technologies, such as artificial intelligence (AI), the Internet of Things (IoT), and automation into sectors, including manufacturing, automotive, aerospace, and others. These technologies demand complex systems designs, integration, and continuous optimization, all of which are possible only through engineering expert solutions.

The need for engineering services that facilitate the adoption of new technologies is rising significantly, as businesses seek to increase productivity, innovation, and operational efficiency.

Why is the Requirement for engineering Services Growing in China?

“Increasing Emphasis on Upgrading Infrastructure Driving Demand for Engineering Services”

Attribute	China
Market Value (2024E)	US$ 99.52 Billion
Growth Rate (2024 to 2034)	8.9% CAGR
Projected Value (2034F)	US$ 232.94 Billion

The need for engineering services is growing in China because of the government's emphasis on modernizing infrastructure, which includes advanced industrial facilities, transportation networks, and power grids. Engineering service providers are prepared to deliver the advanced planning, design, and implementation needed for these large-scale projects.

The market in China is expanding due to several opportunities for engineering services brought about by the government's push for infrastructure modernization to support economic growth, urbanization, and sustainability goals.

Category-wise Insights

Based on product and service, the transportation segment is projected to increase at 7.6% CAGR over the next ten years due to the growing number of people moving into cities. New opportunities for engineering services in design, testing, and integration are created by technological breakthroughs, such as electric and driverless automobiles.

Why is the Need for Energy & Power Engineering Services Increasing Worldwide?

“Rising Focus on Energy Efficiency and Carbon Reduction Creating New Opportunities”

Attribute	Energy & Power
Segment Value (2024E)	US$ 738.58 Billion
Growth Rate (2024 to 2034)	9% CAGR
Projected Value (2034F)	US$ 1,748.69 Billion

The need for engineering services is increasingly growing in the energy and power sector because of the increasing demand for development, modernization, and sustainability initiatives. The growing demand for renewable energy sources, such as solar, wind, and hydropower generation, creates a business opportunity for engineering services for designing, implementing, and optimizing such systems.

New engineering services are needed for upgrading existing power grids and integration of smart technology. The focus on energy efficiencies, carbon reduction, and access to energy is driving demand for engineering services in this critically important sector.

Which Major Market Segment Holds a Sizable Portion of the Revenue?

“Businesses from Several Sectors Investing in Infrastructural Development”

Attribute	Private Businesses
Segment Value (2024E)	US$ 805.2 Billion
Growth Rate (2024 to 2034)	8.4% CAGR
Projected Value (2034F)	US$ 1803.58 Billion

The private business segment holds a significant engineering services market share due to rising funding for infrastructure, industrial development, and technology-driven projects. Private companies from several industries, including construction, manufacturing, energy, and others are adopting engineering services for the design, optimization, and implementation of their very complex systems.

Private organizations enhance their operational efficiency and infrastructure, often making them the priority consumers for engineering expertise, thus pushing demand and continuing to have a leading presence in the market.

Competitive Landscape

Key players in the engineering services market are expanding their services to meet a wide range of requirements of several industries. To guarantee steady revenue streams, this involves providing specialized services in in-demand industries, including smart manufacturing, renewable energy, infrastructure development, and others.

• In November 2024, to improve its position in the worldwide market and increase its footprint in Europe, Hinduja Tech Limited acquired the European engineering services provider TECOSIM Group. Intending to deliver cutting-edge mobility solutions and propel future automotive engineering improvements, this move combines Hinduja Tech's strengths with TECOSIM's expertise in virtual validation and body engineering.
• In November 2024, to assist design teams working on consumer electronics (CE) and micromobility projects, as well as their cell manufacturing partners, Sila, a firm that specializes in next-generation battery materials, launched new Battery Engineering Services.

Fact.MR provides detailed information about the price points of key providers of engineering services positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Engineering Services Market Research

• By Product & Service:

  • Energy & Power
  • Transportation
  • Building Construction
  • Water, Sewer, & Waste
  • Industrial & Manufacturing
  • Other Services

• By Major Market:

  • Private Business
  • Government Bodies
  • Other Engineering
  • Construction
  • Architectural
  • Individuals

• By Region:

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa