Product Engineering Services Market Size, Share, and Growth Analysis

Product Engineering Services Market By Service (Development, Deployment), By Enterprise Type (Large Enterprises, Small & Medium Enterprises), By Industry (Manufacturing, Healthcare & Life Science), By Region -Industry Forecast 2025-2032


Report ID: SQMIG45B2193 | Region: Global | Published Date: February, 2025
Pages: 197 |Tables: 97 |Figures: 71

Format - word format excel data power point presentation

Product Engineering Services Market Insights

Global Product Engineering Services market size was valued at USD 1,084.45 Billion in 2023 and is poised to grow from USD 1,187.82 Billion in 2024 to USD 2,893.76 Billion by 2032, growing at a CAGR of 9.5% in the forecast period (2025-2032).

Different solution phases of product engineering lifecycle form various solutions at different phases that are provided under product engineering services. It follows and controls operations of solution and service from the beginning of a lifecycle of designing to reengineering and deliveries. The growing importance of reducing costs of production will drive the advancement of product engineering service demand. Output assurance with minimal operation time and cost is believed to enhance growth in the market. From the side of enterprises, TTM systems are going to be in high demand. The way of making a product change has also undergone an insightful transformation in modernized industries in terms of how products are comprehended, designed, developed, and handled based on the new progression of technology.

Generative AI emerges as a novel paradigm to wholly transform product engineering services. It facilitates the product development process and improves time-to-market, customer experience, and employee productivity. Various applications of generative AI may help solve these problems and make the productivity and efficiency of several industries better. In addition, technology is one of the biggest quality assurance factors along with low-cost methods. Hence, the increasing incidence of customized development and the growing concern over the designing of the product is expected to propel the global product engineering services market growth.

Market snapshot - (2025-2032)

Global Market Size

USD 1,084.45 Billion

Largest Segment

Large Enterprises

Fastest Growth

Small & Medium Enterprises

Growth Rate

9.5% CAGR

Global Product Engineering Services Market ($ Bn)
Country Share for Asia-Pacific (%)

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Product Engineering Services Market Segments Analysis

The global product engineering services market is segmented into service, enterprise type, industry, and region. By service, the market is classified into design, development, testing, deployment, support & maintenance, redesigning & re-engineering, and others. Depending on enterprise type, it is bifurcated into large enterprises and small & medium enterprises. According to industry, the market is divided into automotive, healthcare & life science, manufacturing, BFSI, retail & consumer goods, aerospace & defense, it & telecom, and others. Regionally, it is studied across North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.

Analysis by Service

As per the 2024 global product engineering services market analysis, the development segment dominated the market, driven by a growing demand for innovative product solutions and the need for faster time-to-market. Product development services allow companies to successfully manufacture leading-edge solutions, from initial benchmarking to final product delivery. Product development engineers are instrumental in managing and optimizing this entire process, thereby ensuring that customer expectations for quality and delivery speed are met. This reflects the global trend of digital transformation, which sees firms in all industries looking for new technology and solutions to stay ahead of the competition.

The deployment segment is predicted to account for the maximum CAGR during the forecast period as a result of increased demand for efficient product integration and data protection. Deployment services are of great importance, which deal with complicated multi-site integration and facilitate smooth coordination of systems and teams. As businesses expand their operations, especially for remote and dispersed teams, specialist deployment services were in demand more than ever before. These services not only improve the scalability of solutions but also emphasize data security, which is more crucial in the digital era. As the dependence on digital infrastructure is increasing, the deployment segment is expected to capture a significant share of the product engineering service market, thereby boosting market growth and ensuring robust, secure, and efficient solution delivery.

Analysis By Enterprise Type

Based on the 2024 global product engineering services market forecast, the large enterprises segment dominated the market, led by the intensification of competition in global markets. Multinational companies are heavily investing in innovative product development services that help in streamlining the manufacturing cycle and reducing time-to-market for them to stay ahead in the market. Such services are essential for the management of a wide range of operations throughout the whole lifecycle of the manufacturing process-from original design to final product delivery-for ensuring efficiency and innovation. Large companies, in addition to these services, are using their digital transformation through the improvement in operational flexibility. Such strategic investments enable the companies to meet the rapidly growing expectations of the customers and new opportunities in the market, contributing extensively to their growth and expansion.

The segment, small and medium enterprises (SMEs), will experience the highest CAGR during the forecast period, primarily due to the large-scale digitization among smaller organizations. SMEs can improve their product development processes and get an edge in the market by embracing new engineering services. These services help SMEs rationalize their manufacturing processes and cut down on time-to-market by offering cost-effective and scalable solutions. Increasing demand for product engineering services is generated due to digital technologies like cloud computing, IoT, and automation. This move allows SMEs to improve product quality, develop faster, and extend their market presence, making them ready for significant growth in the following years.

Global Product Engineering Services Market By Enterprise Type

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Product Engineering Services Market Regional Insights

Asia Pacific experienced strong growth for two major reasons. It is mostly due to the increased demand for customized products and the rise in investment in technology. The governments of China, Japan, India, and others have evolved policies and initiatives that are aimed at promoting technological innovation, and besides this, there has been increased investment in R&D to stimulate innovation and quality product development in the region to be ahead in terms of technological advancements. India is expected to grow with the highest CAGR in the forecast period because the country has a huge pool of high-skilled engineers. This also puts it at the forefront in developing emerging technologies such as ML, AI, and IoT. India has emerged as the leading destination for technology and product engineering services, with around 1,300 global organizations becoming part of India's global capability center sector.

North America is predicted to hold the largest share of revenues during the forecast period as a result of increasing demand for services aimed at improving efficiency and reducing costs in production processes. Growth in the market across various sectors is being fostered by strong regional emphasis on faster delivery of products and technological innovations. Manufacturing, aerospace & defense, BFSI, retail, healthcare, and IT sectors are aggressively spending on time-efficient solutions in product development to have productivity with an enhanced satisfaction quotient of their customers. Moreover, the dominance of key technology providers, innovation hubs, and R&D centers reinforces the expansion of the market. In addition, a high take-up of AI, automation, and digital transformation is compelling the requirement of advanced engineering services in North America.

Global Product Engineering Services Market By Geography
  • Largest
  • Fastest

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Product Engineering Services Market Dynamics

Drivers

Higher Demand for Faster Product Development

  • The need for shorter manufacturing cycles and faster time-to-market is enhancing demand for product development services. Companies try to gain operational efficiency through the induct of new solutions that accelerate product design, testing, and implementation. This places organizations at an advantage in fast-paced markets, where rapid product releases are the only key to success.

Technological Advance and Digital Transformation

  • The primary driving force of market growth is the increasing digital revolution in various sectors. Artificial intelligence, machine learning, the Internet of Things, and cloud computing are being incorporated into product development processes, allowing firms to generate more inventive, efficient, and cost-effective solutions. These technologies assist firms in optimizing operations, improving product quality, and enhancing consumer experiences.

Restraints

High Initial Investment and Implementation Costs

  • Perhaps the biggest challenge to the adoption of new product development services for any organization, especially SMEs, is the upfront cost. The costs of adapting the infrastructure, acquiring new technology, and retraining the employees may prove to be a deterrent to many businesses from making full use of these solutions thus limiting the market development in the cost-sensitive countries.

Integration Difficulty with Legacy Systems

  • Many firms find it challenging to integrate new product development tools with old systems. This often requires extensive modification and more resources, which can lead to delays, higher prices, and even technical issues. The complexity of these interfaces may hinder the adoption of new product development services, especially in businesses with old infrastructure.

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Product Engineering Services Market Competitive Landscape

The global product engineering services industry is competitive and dynamic in nature, wherein the leading contenders are focusing more on technological innovations, automation, and cloud-based solutions. The major contenders include Accenture, IBM, TCS, Capgemini, and Wipro, which offer end-to-end services across wide-ranging industries from manufacturing to aerospace and financial services. Strategic collaboration, acquisition, and investment into AI, IoT, and digital transformation are forcing growth and better positioning these enterprises to take advantages of shifting market opportunities.

Top Player’s Company Profile

  • Accenture
  • IBM
  • Tata Consultancy Services (TCS)
  • Capgemini
  • Wipro
  • Cognizant Technology Solutions
  • Infosys
  • HCL Technologies
  • Atos
  • DXC Technology
  • Altran (part of Capgemini)
  • Siemens Digital Industries Software
  • L&T Technology Services
  • Zensar Technologies
  • Ericsson

Recent Developments

  • June 2024: Cognizant collaborated with Gentherm, a medical patient temperature management system company, for product engineering services. Cognizant provides system engineering, model-based development, and validation and has created a test facility to conduct research and development for Gentherm products.
  • June 2024: Partners with D+I, a product development and design consultancy company based in Australia, to strengthen its engineering capacity by bringing new products into the Australian industrial and consumer sectors as part of the collaboration agreement.
  • May 2024: Quest Global acquired a majority stake in People Tech Group, which is a next generation digital transformation and digital innovation company. The acquisition marks a significant milestone in the growth journey for Quest Global, expanding its footprint into North America and India within Hi-Tech industries, in enabling to have expertise that can better serve customers.

Product Engineering Services Key Market Trends

Product Engineering Services Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.

As per SkyQuest analysis, the global product engineering services market outlook is changing at a rapid pace due to increased need for faster innovation, digital transformation, and sophisticated engineering solutions. Companies in industries such as manufacturing, aerospace, BFSI, IT, and healthcare are rapidly investing in AI, IoT, automation, and cloud-based technologies to speed up product development and reduce time-to-market. However, problems such as high installation costs and integration complexities with older systems place limitations. Despite these deterrents, it is a fiercely competitive business, and more importantly firms maintain technological improvements, strategic collaborations, and service expansion. As further industries continue in the process of digitizing and modernization, the resultant demand for efficiency, scalability and cost-effectiveness in product developments will be bound to increase propelling market growth.

Report Metric Details
Market size value in 2023 USD 1,084.45 Billion
Market size value in 2032 USD 2,893.76 Billion
Growth Rate 9.5%
Base year 2024
Forecast period (2025-2032)
Forecast Unit (Value) USD Billion
Segments covered
  • Service
    • Design, Development, Testing, Deployment, Support & Maintenance, Redesigning & Re-Engineering, and Others
  • Enterprise Type
    • Large Enterprises and Small & Medium Enterprises
  • Industry
    • Automotive, Healthcare & Life science, Manufacturing, BFSI, Retail & Consumer Goods, Aerospace & Defense, IT & Telecom, and Others
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Accenture
  • IBM
  • Tata Consultancy Services (TCS)
  • Capgemini
  • Wipro
  • Cognizant Technology Solutions
  • Infosys
  • HCL Technologies
  • Atos
  • DXC Technology
  • Altran (part of Capgemini)
  • Siemens Digital Industries Software
  • L&T Technology Services
  • Zensar Technologies
  • Ericsson
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Product Engineering Services Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Product Engineering Services Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Product Engineering Services Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Product Engineering Services Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Product Engineering Services Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Product Engineering Services Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Global Product Engineering Services market size was valued at USD 1,084.45 Billion in 2023 and is poised to grow from USD 1,187.82 Billion in 2024 to USD 2,893.76 Billion by 2032, growing at a CAGR of 9.5% in the forecast period (2025-2032).

The global product engineering services industry is competitive and dynamic in nature, wherein the leading contenders are focusing more on technological innovations, automation, and cloud-based solutions. The major contenders include Accenture, IBM, TCS, Capgemini, and Wipro, which offer end-to-end services across wide-ranging industries from manufacturing to aerospace and financial services. Strategic collaboration, acquisition, and investment into AI, IoT, and digital transformation are forcing growth and better positioning these enterprises to take advantages of shifting market opportunities. 'Accenture', 'IBM', 'Tata Consultancy Services (TCS)', 'Capgemini', 'Wipro', 'Cognizant Technology Solutions', 'Infosys', 'HCL Technologies', 'Atos', 'DXC Technology', 'Altran (part of Capgemini)', 'Siemens Digital Industries Software', 'L&T Technology Services', 'Zensar Technologies', 'Ericsson'

The need for shorter manufacturing cycles and faster time-to-market is enhancing demand for product development services. Companies try to gain operational efficiency through the induct of new solutions that accelerate product design, testing, and implementation. This places organizations at an advantage in fast-paced markets, where rapid product releases are the only key to success.

Shift to Cloud-based Product Development Solutions: Cloud-based product development solutions are gaining popularity, providing firms with increased scalability, flexibility, and cost effectiveness. Cloud systems provide real-time collaboration, data storage, and remote access, making them more popular among enterprises aiming to improve development processes while lowering overhead costs and infrastructure requirements.

Asia Pacific experienced strong growth for two major reasons. It is mostly due to the increased demand for customized products and the rise in investment in technology. The governments of China, Japan, India, and others have evolved policies and initiatives that are aimed at promoting technological innovation, and besides this, there has been increased investment in R&D to stimulate innovation and quality product development in the region to be ahead in terms of technological advancements. India is expected to grow with the highest CAGR in the forecast period because the country has a huge pool of high-skilled engineers. This also puts it at the forefront in developing emerging technologies such as ML, AI, and IoT. India has emerged as the leading destination for technology and product engineering services, with around 1,300 global organizations becoming part of India's global capability center sector.

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Product Engineering Services Market

Report ID: SQMIG45B2193

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