Wondering what is going on in the engineering industry and what factors have already influenced (and will influence) it in the future? Find the full overview in this article!
Initially, let’s identify what engineering services are.
Engineering services include a great variety of tech services, such as mechanical, software, electrical, IT, business process management, and many others. Businesses badly need such services (and hire industrial engineers for that) to design solution concepts, implement plant automation, develop electrical, mechanical, and embedded platforms; deliver lifecycle-based services for products; asset management, test and create prototypes for certain solutions.
Nowadays, in the majority of big corporations, engineering services are considered one of the essential aspects regarding how to build a successful business. The engineering services market presupposes engineering services sales. Engineering services are extremely popular among industries such as aerospace, building construction, manufacturing, mining, transportation, telecommunication, power and energy, and several others.
Now, let’s look at what trends impact the engineering services market on the global level, what has already happened due to the Covid-19 pandemic, and what to expect in the future. We have prepared a relevant overview! To understand what businesses determine the development of engineering services, check global engineering companies.
Key Drivers for Engineering Services Market
Global research expert centers that investigate the engineering market have figured out the following trends in the market development starting from 2021:
- The industrial automation growth is one of the key factors that trigger engineering services market increase in 2021;
- The integration of advanced technologies by industries will drive the requirement for firms that deliver design, manufacturing, and process organization services, which will lead to the engineering services market growth;
- Experts witness an increase in the implementation of smart production, automation, and digital technologies in industries to optimize problem-solving as well as decision-making;
- Engineering service companies are in high demand because they deliver effective solutions to control specific business requirements, which helps industries to optimize product value;
- Due to the economic crisis because of the Covid-19 pandemic, big companies and small businesses have already started employing engineering services more dynamically because that allows saving budgets.
Those trends were mentioned in general for you to get an idea of what factors impact the development of the engineering services market. Let’s now observe the thing in a more detailed manner pointing out statistics data.
The global engineering services market is predicted to increase from 900 billion US dollars in 2021 to 990 billion US dollars in 2022 at an annual growth rate of 14 percent. The factor that triggers such growth is that 89 percent of enterprises modify their operations as they have already started recovering from the pandemic impact, which had earlier resulted in the obligatory stop of commercial activities, social distancing, and remote working that, in turn, led to operational problems.
The engineering services market is supposed to reap the benefits due to stable economic growth in developed as well as developing countries. The IMF expects that the global real GDP increase is going to be 3.8 percent from 2021 to 2023.
The above-mentioned data is preliminarily driven by Asia and Africa regions. According to the News report, the Asian region will constitute more than 60 percent of the global population by 2028. For example, the Indian business process management industry has already increased by 12 percent in 2020, with engineering services gaining about 30 billion US dollars.
Experts also suppose that the Middle Eastern and Asia Pacific regions will be the fastest-developing markets when it comes to graphic designing and engineering services in 2021-2025. Countries with high potential, such as China and India have already started receiving investments from European countries to optimize their engineering infrastructure. That occurred mainly due to growing economic activity after the hard times of the Covid-19 pandemic.
The Future of the Engineering Services Market
Experts figure out two aspects that will play a significant role in the prosperity of the engineering services market:
- The Internet of Things or IoT.
In the engineering services market, the introduction of IoT around the world is acknowledged as the latest trend. IoT is considered a platform of interconnected devices ensuring data transmission over various networks. Engineering service contractors are intensely implementing industrial IoT to optimize their manufacturing process with energy-saving, better resource distribution, and asset administration. In 2021, India possesses a 46 percent market share when looking at the global IoT market. To compare, Western Europe has 29 percent and North America possesses 26 percent;
- Design in “Digital Twin” Concept.
We have heard about the idea of “digital twins” for the first time in 2019 but it happened in 2021 that we started seeing how it affects engineering industries. For those who have no idea what the term means, a digital twin is considered an exact copy of a certain thing in the real world, reproduced digitally.
Such digital replicas provide engineering specialists with the most relevant data regarding performance. The digital twin reveals arising modifications or challenges with performance so that engineers can then optimize the digital version to test things that will then be released.