Engineering Services Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)
Reportlinker.com has just released a report on the Engineering Services Market, providing analysis on its size, share, growth trends, and forecasts from 2023 to 2028. The report highlights the growing importance of shortening product life cycles and reducing costs in the industry, as well as the increasing demand for product options that integrate outdated technology. These factors are expected to drive the expansion of the market for engineering services. Additionally, clients are increasingly willing to outsource different services to lower costs, which has contributed to the steady growth of this market.
Main Points: - The ES model is very useful for providing smart solutions to clients. - The ES sector's market has shifted from essential engineering services to solutions that include automation, analytics, and the IoT. - Technical advancements have made it possible to offer platform-as-a-service (PaaS) plans with bundled IT solutions. - Engineering services firms are crucial in upgrading infrastructure with sensing technology and data analytics. - Investments in India, Indonesia, and China are driving the growth of engineering and design services. - Digitization has led to increased demand for advanced IT solutions like engineering analytics, IoT, and AI. - Industrial IoT has penetrated various industry verticals, leading to exponential growth in the demand for engineering services to manage complex connected infrastructure.
Engineering service companies are used to experiencing ups and downs in their business, but the impact of COVID-19 was unlike anything they had ever faced before. Many projects were postponed or abandoned altogether, putting strain on the industry. Supply chains were in jeopardy, posing a threat to the entire operation. The well-being of employees and subcontractors became a major concern, as maintaining their health became a top priority. Additionally, implementing social distancing protocols on construction sites proved to be a challenging task. Companies that were forced to lay off staff also worried about the long-term implications, such as the availability and skill level of future employees. The lockdown measures had a significant impact on the financial stability of engineering and contracting companies, leading some to restructure their debt or seek alternative sources of funding. For many of these businesses, the lack of substantial cash reserves put them at risk of going bankrupt.
Current Developments in the Engineering Services Industry The engineering services market is experiencing noteworthy advancements in recent times.
The field of Civil Engineering Services is projected to witness substantial expansion.
The civil engineering market has a great opportunity for exponential growth due to the increasing demand for environmentally friendly buildings, government initiatives to revamp infrastructure, and investments in various construction projects worldwide. Industrial goods manufacturing organizations are quickly adopting private, public, and hybrid clouds to modernize their IT infrastructure, automate processes, and streamline operations. The industrial internet of things is expected to play a crucial role in this growth by reducing downtimes, detecting mistakes, and decreasing supervision costs. In a recent development, Jacobs announced its plan to restructure as a new holding company called Jacobs Solutions Inc., aligning with its image as a global technology solutions provider. Additionally, the use of robots in the construction industry is driving market share. Robots are being utilized for repetitive tasks, improving worker safety and overall productivity. Novarc Technologies, a Canadian-based robotics company, showcased its Spool Welding Robot (SWR) as a solution for industrial automation problems in pipe welding applications. This robotic technology lowers welding costs and has a positive impact on the market.
Additionally, moving forward, engineering companies will expand their range of offerings by incorporating digital and interconnected technological resources in order to seize a greater portion of the market.
The Asia-Pacific region is set to experience the most rapid expansion
The growth of the market in the Asia-Pacific region is influenced by two important factors: a government initiative to improve economic infrastructure and the rapid urbanization taking place in this area. East Asia and the Pacific are urbanizing at a faster rate than any other parts of the world, with an average yearly pace of 3%. There are several reasons why the market for engineering services is expected to grow in this region. Firstly, there is a high demand for industrial products, which are manufactured in the area. Additionally, there is a large pool of highly skilled engineering professionals who can provide cost-effective employment support. Furthermore, the region is a hub for major software outsourcing service providers. The expansion of the market in the Asia-Pacific region will be driven by the increasing need for technological advancement and the integration of embedded software into existing models. India and China are the two most populous countries in the Asia-Pacific region. China is investing heavily in infrastructural projects, including the expansion of gas, crude, and oil product pipelines. These investments provide opportunities for engineering services to thrive, as these services offer functional benefits. With urbanization levels in the Asia-Pacific region surpassing 50% by the previous year, there will be a higher demand for products and services. This will encourage various industries to establish their facilities and offices in these economies. As a result, the engineering services market will have ample opportunities to expand its presence in the region. Governments in the region are also investing in the aviation industry to boost global trade. For example, India plans to open 100 additional airports by 2024 and establish 1,000 new routes connecting smaller towns and villages in the country. This development will lead to increased infrastructure construction in the area, creating more opportunities for the engineering services market to grow.
Overview of the Engineering Services Sector The engineering services industry is a crucial sector that plays a significant role in various fields, such as construction, technology, and infrastructure. This industry is responsible for providing essential services in engineering design, project management, and consulting. In recent years, the engineering services sector has experienced significant growth and development. With advancements in technology, companies within this industry have adapted and embraced new techniques, tools, and software to enhance their services. The engineering services sector includes a wide range of services, such as civil engineering, structural engineering, mechanical engineering, electrical engineering, and environmental engineering. These services are vital for the planning, design, and development of infrastructure projects, buildings, machinery, and systems. One of the key drivers of growth in this industry is the increasing demand for infrastructure development. As countries continue to invest in large-scale infrastructure projects, the need for engineering services becomes paramount. These services are crucial for ensuring the effective design, construction, and maintenance of infrastructure, such as roads, bridges, airports, and utilities. Another significant factor contributing to the growth of the engineering services sector is the rapid technological advancements. Companies within this industry are leveraging technologies like artificial intelligence, virtual reality, and automation to optimize their operations and deliver more efficient and cost-effective solutions to clients. Moreover, the engineering services industry is witnessing globalization, with companies expanding their operations worldwide. This trend allows companies to tap into new markets and access a larger client base, leading to increased opportunities for growth and profitability. Overall, the engineering services sector continues to thrive and evolve, showcasing its crucial role in supporting various industries. With the increasing demand for infrastructure development and technological advancements, this industry is poised for further growth and innovation in the coming years.
The engineering services industry is highly competitive due to the existence of numerous major companies that operate globally, like AECOM, Bechtel Corporation, and Kiewit Corporation, among others. In order to secure a larger share of the market, there has been a noticeable increase in mergers and partnerships among various international engineering firms over the past ten years. In particular, international companies in this industry are actively seeking out smaller companies to acquire, which makes it difficult for new businesses to enter the market. Some noteworthy recent occurrences in this industry include:
In October 2022, Tech Mahindra, a leading company that offers services and solutions for digital transformation, consulting, and business reengineering, joined forces with SoftTech to bring digital modernization to the construction and infrastructure industries worldwide. By combining Tech Mahindra's technological expertise with SoftTech's extensive knowledge of the building and infrastructure sectors, the partnership aims to offer customized solutions for businesses seeking end-to-end digital transformation.
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