Engineering R&D Services Outsourcing Market - Regional Analysis
Asia Pacific Market Insights
Asia Pacific industry is predicted to dominate majority revenue share of 47% by 2035, due to strong presence of engineering R&D services providers in the region. Significant factors in the region include the strong presence of engineering R&D services providers focusing on building a technology ecosystem which will eventually reduce the time taken to market new technologies and meet the uncertainty of capabilities at scale. The availability of cheap engineering R&D services is the primary factor for the growth in the region. The growing population in the area resulted in a surge of demand for innovative and sustainable products across every industry vertical. Manufacturing companies invest heavily in developing connective, creative, and customer-centric products and solutions. This is also one of the crucial traits to aid in regional market growth. Companies in the region are focusing on acquisitions to diversify and increase their global reach to provide onshore outsourcing in developed nations.
For instance, in 2022, HCL Technologies signed a contract to acquire Starschema, a data engineering solutions provider in Budapest, Hungary. This acquisition is expected to boost HCL's capability in digital engineering next-generation offerings. Starschema and HCL is expected to undergo a data-driven revolution with their strategic capabilities. This acquisition is expected to assist HCL in catering to the demand in Central and Eastern Europe engineering R&D outsourcing services.
European Market Insights
The Europe engineering R&D services outsourcing market also shows promising CAGR growth of 15.39% during the forecast period. The market's expansion may be ascribed primarily to the increased emphasis of engineering service providers (ESPs) on preserving basic engineering procedures, as well as the increasing emphasis on activities involving the remote development of goods. Furthermore, tools such as cloud computing, digital twins, analytics, and AI have become available in the region's technological industries, which are projected to propel market growth as these tools are growing as demand grows for cybersecurity, analytics, and automation.
