The product engineering services market revenue is expected to reach USD 1,840.8 million by 2030, exhibiting a CAGR of 7.5% during 2024–2030. This can be ascribed to the rising focus on time-to-market (TTM) products, the increasing requirement for ongoing innovation and iteration, and the growing desire for smart homes, smart electronics, and in-vehicle networking systems.
Additionally, the increased adoption of digital transformation technology contributes to the market growth. Product engineering services are in demand as a result of the rise in the use of the internet of things (IoT), artificial intelligence (AI), machine learning (ML), cloud computing, and big data analytics. For businesses to create innovative goods and maintain market competitiveness, they need knowledge of these technologies.
Moreover, these services supervise a product's whole life cycle, including its development, design, and deployment. The process also includes a number of stakeholders, such as product managers, technical architects, and business analysts. Additionally, organizations are aware of the value of creating goods that are more user-centric and meet an unmet social need.
The healthcare category dominates the market. This is because product engineering services help in monitoring personal health, accessing one's medical records, self-monitoring of diagnostic data, active data collecting and documentation, and others in the healthcare industry. The industry continues to undergo a technological revolution, with better outcomes, diagnosis, and prevention as a result. All kinds of medical equipment now use powerful processors, specialized software, a variety of algorithms, and network connectivity to carry out their functions. With innovations that lower healthcare costs, promote patient involvement, enhance population health, and, eventually, make healthcare more accessible and transparent at all levels, product engineering and IoT are improving the healthcare landscape.
The design and development of new cars require the use of product engineering services. To develop concepts, carry out feasibility studies and computer-aided design (CAD) modeling, and validate designs through prototyping and testing, automotive manufacturers work with engineering service providers. For better safety and driving experiences, the automobile industry is quickly integrating modern technologies like ADAS into vehicles. Product engineering service providers are essential in the development of ADAS technologies like parking assistance, lane departure warning, adaptive cruise control, and automatic emergency braking.
Moreover, automotive players need product engineering services to create EV platforms, battery management systems, charging infrastructure, and other essential components, due to the rising demand for electric vehicles. The design, improvement, and testing of electric drivetrains, battery systems, and related technologies are supported by engineering service providers. Overall, the demand for innovation, compliance, safety, and improved user experience propels the industry's reliance on such services. Also, these services give manufacturers the ability to maintain their competitiveness, provide high-quality vehicles, and adjust to changing market trends.
Some of the key industry players are Alten Group, AVL Group, HCLTech, Akka technologies, IBM Corporation, Capgemini SE, TATA Consultancy Services Limited, Wipro, and Accenture plc.