Product Engineering Services Market Size & Share 2023 to 2032
Market Size by Services (Product Engineering, Process Engineering, Support & Maintenance), by Industry Vertical (A&D, Automotive & Transportation, BFSI, Energy & Utility, Healthcare, Oil & Gas), by Organization Size.
Report ID: GMI5754
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Published Date: May 2023
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Product Engineering Services Market Size
Product Engineering Services Market size was valued at USD 950 billion in 2022 and is anticipated to grow at a CAGR of over 5% between 2023 and 2032, driver by the increasing demand for accelerating the Time to Market (TTM) and the growing demand for faster product deliveries.
Product Engineering Services Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
The digital transformation of various industry verticals including BFSI, healthcare, and energy is also positively contributing to the market expansion. Also, the rising demand for smart homes, smart electronic devices and in-vehicle networking systems is expected to generate huge demand in the product engineering services market.
The major factors restraining market growth are the growing security concerns related to legacy systems and infrastructure issues along with integration & interface issues concerning product engineering services. However, the proliferation of IoT technologies is expected to offer numerous growth opportunities to the market during the forecast period.
Product Engineering Services Market Analysis
Large enterprises segment held a product engineering services market share of over 75% in 2022 and expected to grow at a CAGR of over 5% during the projected timeline. The growth of the segment can be attributed to the increasing emphasis of large enterprises on reducing operational costs and quicker innovation. The use of product engineering services helps large organizations in the early stages of product development as well as in developing innovative, exclusive software in a cost-friendly and effective manner. Large enterprises are transforming into smart businesses by maximizing their capabilities through product engineering services.
Product engineering services segment held an industry share of over 50% in 2022. Product engineering services include the use of embedded software, hardware design, and various design capabilities & features to manufacture an electronic product. The product engineering service providers have understood the importance of manufacturing user-friendly products in order to cater to the growing market demand. Also, the rising focus of businesses on speeding up the time-to-market of their product line-up and reducing the cost of development, maintenance, and migration.
Healthcare segment is expected to grow at a CAGR of over 10% during the forecast period owing to the innovations in the healthcare sector with the help of product engineering and IoT. Product engineering services help in reducing healthcare costs, improving patient engagement, boosting population health, and offering healthcare services to a wider audience while maintaining transparency at all levels. These services also aid in the manufacturing of healthcare products, applying quick & improved go-to-market strategies, and ensuring that these products are successfully launched & accepted in the market.
Asia Pacific product engineering services market is expected to grow at a CAGR of over 5 % during the forecast period. This growth can be attributed to the large presence of SME in the region and their growing inclination toward product engineering services for improving their business processes and increasing their revenue. According to the SME Finance Forum, in Asia Pacific, SME comprise 98% of the total number of enterprises and contribute nearly 17% to the national GDP in many countries in the region including India. SME in the region are utilizing product engineering services to serve customers efficiently.
Product Engineering Services Market Share
The major companies operating in the product engineering services market are :
These companies are focusing on mergers & acquisitions to expand their presence. For instance, in April 2022, Cyient acquired Citec, a plant and product engineering services company that offers services for various industries including energy, process, manufacturing, and oil & gas. The acquisition improved the company’s position in the product engineering sector, reinforced its position in the energy sector, and built up its presence in Europe, especially in Nordic countries including Finland, Sweden, and Norway.
The product engineering services market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:
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By Services
By Organization Size
By Industry Vertical
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →