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Engineering Services Market (By Engineering Disciplines: Civil, Mechanical, Electrical, Piping and Structural, Others; By Delivery Model: Offshore, Onsite; By Service: Product Engineering, Process Engineering, Automation Related Services, Asset Management Related Services, Others; By Industries: Aerospace and Defense, Automotive, Chemical and Petrochemical, Electric Power Generation, Municipal Utility Projects, Mining, Oil and Gas, Transportation, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis And Forecast 2024 To 2033

Engineering Services Market Size and Growth 2024 to 2033

The global engineering services market size was valued at USD 3.34 trillion in 2023 and is expected to hit around USD 5.28 trillion by 2033, growing at a compound annual growth rate (CAGR) of 4.68% from 2024 to 2033.

The Engineering Services market refers to the set of professional services that engineering firms provide to various industries. These services range from design, development, consulting, project management, and maintenance, and many others in industries such as construction, manufacturing, aerospace, and energy, among others. The growth of this market is driven by technological advancements, infrastructure, and management of modern-day intricate projects. One of the significant trends is the use of next-generation technologies including, artificial intelligence, automation and digital twins. The upswing in the development of the engineering services market is attributed to the growing need for sustainable solutions, urbanization, and westernization of industries in the world whereby the firms seek to improve operational efficiency while cutting down costs.

Report Highlights

  • The Asia Pacific region has dominated the market by holding revenue share of 36.8% in 2023.
  • The North America experiencing significant growth in the market by generating revenue share of 23.62% in 2023.
  • By engineering disciplines, electrical segment has captured 29.40% revenue share in 2023.
  • By engineering disciplines, civil segment has accounted revenue share of 21.80% in 2023.

Engineering Services Market Growth Factors

  • Technological Improvements: The application of new technologies like artificial intelligence, machine learning, and automation, among other emerging technologies, into engineering services improves designing capacity, efficiency, and innovativeness. Such developments allow for more accurate modeling, simulation, and real-time data analytics, which is what is propelling the growth of this market.
  • Infrastructure Growth: The worldwide phenomenon of urbanization coupled with the call for improved infrastructure is a major facilitator of growth. There are ongoing expenditures in infrastructure such as transport, utilities, and smart cities which require engineering services in design, construction, and operation thus contributing to the growth of the market.
  • Industrialization and Rising Manufacturing: The expansion of engaged industrial sectors and high-end production strategies like the IoT, Industry 4.0, or smart factories generates demand for engineering services. This concerns provision of services for built environment management such as automation and optimization of processes and integration of systems.
  • Focus on Sustainability: A rise in concerns for sustainable development and green engineering solutions creates a need for services that enhance green practices, energy efficiency, and renewable energy programs. Engineering companies are actively participating in the design and oversight of environmental-friendly practices.
  • Globalization and Mergers & Acquisitions: The business network growth and borders overlapping acquisition activities enhance the market. Engineering companies have been modernizing their capabilities and geographical extent to meet the needs of global customers, bring in advanced technologies, and provide combined services in various locations.
  • Regulatory and Compliance Requirements: Compliance with regulation is becoming more and more with each passing day for all players, especially with the engineering services that in construing safety, environmental and quality put into perspective the end users of such engineering polices. Engineering establishment are called upon to assure both the construction and engineering services offered are able to comply with the various codes in existence.
  • Digital Transformation: With most industries equally transforming to digital platforms, the engineering services aimed at digital transformation are equally increasing. These include all the engineering services that are meant constructive integration of digital technologies, data analytics, cyber security and cloud technology aimed at transforming and enhancing the efficiency of the modern-day businesses.
  • Increase in Complex Projects: The necessity of providing specialized engineering services correlate positively to the level of difficulty of the projects undertaken whether it is a construction of a complex infrastructure or a modern technological project inclusive of several branches. Companies are often faced with the challenge of possessing the skills needed to manage and carry out these sophisticated projects.
  • Expansion in Emerging Markets: The recent developments in the Asia-Pacific and African regions, more so in the emerging economies, provide a favourable environment for the provision of engineering services. High levels of population growth combined with rapid urbanization and industrialization as well as infrastructural development on the other hand place heavy engineering demands in such regions.
  • Advancements in Smart Technologies: Smart systems such as the Internet of Things devices smart electricity grids or smart networks also open up new avenues in the supply and provision of engineering services. As businesses seek more and more effective means of enhancing their internal processes and interaction with other partners, the demand for design, installation, and maintenance of smart systems will grow among the engineering services offered by companies.

Report Scope

Area of Focus Details
Market Size in 2024 USD 3.5 Trillion
Projected Market Size by 2033 USD 5.28 Trillion
Growth Rate CAGR of 4.68% from 2024 to 2033
Largest Revenue Holder Region Asia Pacific
Fastest Growing Region North America
Segment Coverage By Engineering Disciplines, Delivery Model, Service, Industries and Regions

Engineering Services Market Dynamics

Drivers

Increased Investment in Research and Development (R&D)

The rapid pace of technological advancement requires substantial investment in new tools, software, and infrastructure. Innovation and keeping a competitive advantage have compelled firms to invest a lot in research and development. This leads to an increased need for engineering services that facilitate the creation of new technologies, products, and processes. Engineering firms are important in appreciating research and coming up with applications and solutions.

Growth in Renewable Energy Sector

Moving away from the traditional sources of energy to the likes of solar, wind, and even hydropower is the other main driver for the growth of the engineering service market. There is a need for engineering companies to design, construct, and refine systems and facilities for power generation from renewables in response to this global trend which reduces dependence on environmentally unfriendly sources of energy.

Restraints

Shortage of Skilled Workforce

  • There is an evident skill shortage especially for the professional workers in engineering service market structural areas like advanced engineering technologies and complex project implementation. This skills gap may affect the ability of the firms to respond to the client’s needs and provision of quality service, and consequently restricts these clients’ market growth and project scheduling.

High Cost of Technology Implementation

  • There has been a requirement for the high investment in the new tools, software, and infrastructure owing to the rapid pace of the technological advancements. The cost implications of such acquisitions and their subsequent application present a real challenge to engineering firms in particular the small size ones and those in low pricing environments. As a result, these firms may find it hard to compete effectively or even innovate.

Opportunities

Adoption of Modular and Prefabricated Construction:

  • An increase in the adoption of modular and prefabricated construction methods will create good opportunities for engineering services. With these methods, processes are easier to follow, costs are low and productivity high because the components are manufactured elsewhere and brought and assembled on site. Thus, engineering firms can take advantage of this opportunity to offer design, engineering, project management, and other services for modular and prefabricated construction projects.

Integration of Advanced Simulation and Modelling Tools

  • The enhanced simulation and modelling capabilities, including the utilization of digital twins and real-time analysis, help to create a demand on the market for engineering services. Such tools allow better forecasting as well as effective decision-making and development, giving due to what firms can create more complex concepts and develop projects in several branches in a more effective way.

Challenges

Managing Data Security and Privacy

  • As more and more engineering services incorporate digital tools and data science, concern for preventing technological misuse and maintaining confidentiality becomes important. Engineering companies should protect classified project and customer data from risks, as well as take care of possibly burdensome and expensive restrictions regarding the accessible information.

Adapting to Rapid Technological Changes

  • The Engineering services market remains dynamic as new technologies and even designs come into play. Firms in this sector experience difficulties in overhauling and incorporating these technologies in their services offering that can only take a few months. This means more resources are needed for more training, more infrastructure and changes in processes if the firm is to be able to cope with the clients’ demands and the competitive environment.

Engineering Services Market Segmental Analysis

Engineering Disciplines Analysis

Civil Engineering: As a branch of engineering, civil focuses on the infrastructure design, construction and preservation including roads, bridges and buildings. It includes emerging railways and smart infrastructure technology, green building construction, and advanced materials and techniques. The depletion of available space in cities where a certain level of civil infrastructure is focused increases the supply of civil engineering problem solving.

Mechanical Engineering: In mechanical engineering, mechanical systems and devices including engines, machines, and mechanical systems such as HVAC are designed and manufactured. These trends involve the use of robotics, the Internet of Things, and high-performance materials. The factors advocating for a well-efficient energy system towards industrialization and provision of mechanical engineering services are on the upward surge.

Electrical Engineering: This branch of engineering concerns itself with designing and constructing electrical systems such as power generation systems, transmission systems and distribution systems. Innovations in renewable energy sources, smart grid technology and infrastructure for electric vehicles are amongst the recent improvements in this sector. The upsurge in electrical engineering services is due to the increasing demand for energy efficiency improvements and the adoption of more digital systems in different processes.

Piping and Structural: Piping and structural engineering comprises of piping system and any structures supporting the piping systems within industries such as oil and gas and construction industrial spaces. Incorporation of modern materials and technology has brought efficiency and safety through, for example, use of computerized designs and technology. The increasing number of construction projects and expansion of infrastructures creates an opportunity in this sector.

Others: The “Others” category encompasses niche engineering fields including, but not limited to, the aerospace and the environmental and chemical engineering. These trends show a strong orientation towards the issues of sustainability, design methods more advanced than the traditional ones, and application of new materials. The growth of such sectors as aviation and environmental management creates the demand for new engineering services due to the complex nature of the work and new technologies that are emerging.

Delivery Model Analysis

Offshore: It includes executing engineering services from a different country than the client’s, commonly to cut down costs and also source for specialized skills. Trends include the growing dependency on remote teams and technology to oversee the management of the teams. This model is on the rise because it is cost effective and allows sourcing of skills from different parts of the world without any geographical limitation.

Onsite: Onsite delivery models refer to the situation where engineering services are carried out at the client’s site especially for the purpose of teamwork and resolving issues at hand without delay. Trends include more client interaction and modifying projects according to the client’s wishes. This model often has advantages especially where a project is vast complex and requires full-time attention, because it helps make strong ties with the clients and offers solutions that suit their requirements.

Service Analysis

Product Engineering: It constitutes the ideation, design, development, and launch of new products at the market. The trends in this discipline includes development of smarter products through use of advanced technologies such as AI and IoT, application of digital twins for conjoining ideas and concepts to produce prototypes and increased focus towards green design due to regulatory and consumer demands.

Process Engineering: Process engineering specializes in the design and management of ways to improve process efficiency and product quality. Current trends focus on integrating automation and digital means of operation to lessen the workloads, lean manufacturing maximization, as well as employing data analytics to watch and control processes in real time.

Automation Related Services: The automation related services include the implementation and maintenance of the automated systems for enhancing the operational efficiency. Nowadays, these include deployment of robots, artificial intelligent automation, and the fourth industrial revolution concepts where there are cyber-physical systems. There is also a rise in demand for a user-defined automation concept especially for developed industries and the improvement of self-operating systems.

Asset Management Related Services: The services relating to asset management consist of proper implementation and utilization of physical and virtual assets within their life span. The trends are the use of digital twins for asset tracking, AI based predictive maintenance and use of the internet of things for better management of assets. These services apply to limit the asset costs while maximizing the efficiency of the operations.

Others: The “Others” category involves other specialized engineering services such as agricultural engineering, structural engineering, and project management consulting. Trends in these areas include changes in strategies due to emphasis on environmental sustainability, occupational safety, and regulatory compliance, and integration of modern science and information technology in the specialized areas. This part of the market highlights the versatility of engineering services offered to different sectors and the increasing need for customized solutions.

Industries Analysis

Aerospace and Defense: The provision of engineering services within the aerospace as well as defense industry encompasses aircraft, spacecraft and their respective weapons systems design, development and maintenance activities. The trends associated with it include the use of better composite materials, the robotics in aerospace and system autonomics. There is emphasis on safety and performance capabilities and operational effectiveness while adhering to the regulations and fostering defensive technologies.

Automotive: The engineering services offered within the automotive industry include the design of vehicles and product testing as well as support during the manufacturing process. Important trends are associated with the introduction of electric vehicles (EVs), advancements in vehicle self-driving technology, and smart manufacturing technologies. The sector is also enhancing fuel efficiency and reducing emissions while integrating advanced driver assistance systems (ADAS).

Chemical and Petrochemical: The chemical and petrochemical engineering field involves engineering services that include the design of a plant, facilitating the process and maintaining machinery. Key trends are the shift to more cost effective and environment friendly processes, improvement in plastics and other recyclables, and application of digital twins technology to facilitate monitoring. The sector has objectives of minimizing its negative effects on the environment while operational efficiency is increasing.

Electric Power Generation: The scope of engineering services associated with electric power generation encompasses the design, development, and upkeep of power generation plants and their supporting systems. Increasingly, the use of non-conventional energy sources like solar and wind, modernization of grids and the use of smart grid technologies are on the increase. The aim is on making energy generation more effective, dependable, and eco-friendly.

Municipal Utility Projects: These Municipal utility projects include engineering design services devoted to the provision of water, waste disposal, and other services to urban centers. Trends comprise the use of smart technologies in cities, the practice of water recycling and conservation and building infrastructures that are climate change resilient. The primary focus of the sector is to ensure sustainable urban development that is characterized by enhanced service delivery.

Mining: Mining engineering is comprised of services offered in relation to exploration, design and planning of mines and their operations. Trends emphasize on more automation, safety improvement by introducing better observation techniques for deeper ground mining and safe environmental practices/methods. The impact on the environment of the processes of production is being investigated, and methods of raw material obtaining are working more effectively.

Oil and Gas: Concerning the oil and gas domain, engineering services include, but are not limited to, exploration activities, drilling operations, and production processes of the located oil reserves. These include digital oilfields technologies, new drilling practices, as well as measures to enhance environment protection. The industry is concentrating on enhancement of the production systems whilst decreasing the cost of production in global markets and high volatility of the prices in certain periods.

Transportation: Activities under engineering services in transportation include designing and managing infrastructural works such as roads, rail and bridge systems. Smart transportation systems, electric and autonomous vehicles, and advanced strategies for traffic control belong to the latest technological developments today. Moreover, there is a growing concern towards safety, efficiency and ecology of the wheeled transportation networks.

Others: The "Others" section represents a variety of sectors spanning from the chemical medicine industry to the creation of buildings and structures within which engineering services are offered additionally. The trends depend on the expected growth rate of each sector but most usually cover digital transformation, orientation to sustainability and tackling the issues with creative ideas. This section indicates engineering services are not only restricted within a discipline but also serve the ever-changing needs in distinct areas.

Engineering Services Market Regional Analysis

Why Asia Pacific is leading in the engineering services market?

The Asia Pacific engineering services market size is calculated at USD 1.29 trillion in 2024 and is projected to grow around USD 1.94 trillion by 2033 with a CAGR of 4.7%. The growing engineering services sector in Asia-Pacific is driven today primarily by industrialization and urbanization of the region. These include megaprojects like building high-speed rail for smart cities, and investments in clean energy and factories. The region is also making progress in its digital arm even with the likes of AI and IoT whose aim is to boost GDP and cities development.

Why is North America experiencing significant growth in the engineering services market?

North America market size is expected to reach around USD 1.25 trillion by 2033 increasing from USD 0.83 trillion in 2024 with a CAGR of 5.23%. In North America, the diagnosis of the engineering services market shows that it is driven by technological advancement and growth in infrastructure. Among the trends include heavy funding of smart cities and environmentally friendly building activities, development of self-driving as well as electric cars, and the digital change across sectors. Region, further, aims at improving the resilience and efficacy of the energy and utilities.

Europe Engineering Services Market Trends

The Europe engineering market size is measured at USD 1.11 trillion in 2024 and is expected to grow around USD 1.68 trillion by 2033 with a CAGR of 4.81%. European market focuses more on the regulatory aspects and green development. They include the use of clean energy technologies as well thanks to the circular economy, and the use of more advanced energy saving in building design. The region is also quite ambitious in terms of strict environmental protection and application of innovations into the public and transport infrastructure, systems.

LAMEA Engineering Services Market Trends

The LAMEA market size is forecasted to reach around USD 0.41 trillion by 2033 from USD 0.27 trillion in 2024. The engineering services market in LAMEA, on the other hand, presents a mixed bag of unique challenges and opportunities. Trends include the focus on market restructuring and more investments in infrastructure and urbanization especially among the developing countries. Attention is also given to the energy and water management systems through the application of new technologies to solve utility service problems and the enhancement of economic growth through better information communication infrastructure.

Global Engineering Services Market Top Companies

  • AECOM Technology Corporation
  • Jacobs Engineering Group Inc.
  • Worley Limited
  • Fluor Corporation
  • Tetra Tech, Inc.
  • SNC-Lavalin Group Inc.
  • Ramboll Group A/S
  • KBR, Inc.
  • ARUP Group Limited
  • Buro Happold Group
  • Burns & McDonnell
  • Deloitte Consulting LLP
  • Mott MacDonald Group Limited
  • Hyder Consulting PLC
  • Stantec Inc.

New players like Tetra Tech, Inc. and Ramboll Group A/S are driving innovation by integrating advanced technologies such as AI and digital twins into their engineering solutions. They focus on sustainable practices and smart infrastructure development. Dominating the market, AECOM Technology Corporation and Jacobs Engineering Group Inc. lead with their extensive global reach and expertise in large-scale infrastructure projects. They leverage advanced technologies, extensive experience, and a broad service portfolio to maintain their competitive edge and address complex client needs across diverse sectors.

CEO Statements

  • “Amit Chadha, CEO and MD of LTTS, reported a 33.4% year-on-year revenue increase from India in the December quarter, contributing 21.5% of total revenue. The Smart World & Communication business, acquired from Larsen & Toubro, is driving growth and securing more deals in India.”
  • ”Nicholas Cumins has been appointed CEO of Bentley Systems, marking the first non-family leadership in the company's history. Cumins unveils a vision focused on AI-driven infrastructure resilience and emphasizes the importance of the operations phase in the lifecycle. Greg Bentley transitions to Executive Chair of the Board.”

Recent Developments

  • In 2023, KSB and KSB SupremeServ North America unveiled a new engineering services division to address business growth. The division includes product development, application engineering, automation, digitization, consultancy, spare parts, technical documentation, training, licenses, and warranty management.
  • In 2023, WSP Global acquired Enstruct, a structural engineering firm with 75 employees, known for its high-quality building projects across Australia. This acquisition strengthens WSP's capabilities in structural engineering and expands its presence in the Australian market.
  • In 2023, L&T Technology Services Limited was chosen as a strategic engineering partner for Airbus, providing advanced engineering and digital manufacturing services under a multi-year contract. LTTS will support Airbus in key technology areas and commercial innovation programs.
  • In 2023, SCF Partners invested in Global E&C, an engineering and maintenance firm serving the offshore energy sector. This investment aims to strengthen GEC's capacity to support evolving energy markets and expand its digital and decarbonization services.

Market Segmentation

By Engineering Disciplines

  • Civil
  • Mechanical
  • Electrical
  • Piping and Structural
  • Others

By Delivery Model

  • Offshore
  • Onsite 

By Service

  • Product Engineering
  • Process Engineering
  • Automation Related Services
  • Asset Management Related Services
  • Others

By Industries

  • Aerospace and Defense
  • Automotive
  • Chemical and Petrochemical
  • Electric Power Generation
  • Municipal Utility Projects
  • Mining
  • Oil and Gas
  • Transportation
  • Others

By Regions

  • North America
  • APAC
  • Europe
  • LAMEA
...
...

FAQ's

The global engineering services market size is anticipated to reach around USD 5.28 trillion by 2033.

The global engineering services market size is growing at a CAGR of 4.68% during the forecast period 2024 to 2033.

The top companies operating in engineering services market are AECOM Technology Corporation, Jacobs Engineering Group Inc., Worley Limited, Fluor Corporation, Tetra Tech, Inc., SNC-Lavalin Group Inc., Ramboll Group A/S, KBR, Inc., ARUP Group Limited, Buro Happold Group and Burns & McDonnell.