The product engineering services market is expanding as organizations outsource engineering expertise to accelerate innovation, reduce costs, and adopt AI-, IoT-, and cloud-enabled product design across automotive, healthcare, and manufacturing industries.
Austin, Jan. 13, 2026 (GLOBE NEWSWIRE) — The global Product Engineering Services Market size was valued at USD 1390.36 billion in 2025E and is expected to reach USD 2385.63 billion by 2033, growing at a CAGR of 7.09% from 2026-2033.
The market for product engineering services is expanding as a result of rising industry demand for improved product design, digital transformation, and quicker time-to-market. In order to acquire specialist expertise, cut expenses, and improve operational efficiency, organizations are outsourcing engineering work.
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The U.S. product engineering services market size was valued at USD 374.13 billion in 2025E and is expected to reach USD 624.19 billion by 2033, growing at a CAGR of 6.61% from 2026-2033.
The demand for creative and effective product development services is being driven by the automotive, healthcare, and manufacturing sectors’ strong adoption of digital engineering solutions, high R&D spending, and sophisticated infrastructure, all of which are contributing to the growth of the U.S. product engineering services market.
Segmentation Analysis:
By Enterprise Size
Large Enterprises dominated with 61% share in 2025 due to their substantial budgets, established infrastructure, and ability to adopt advanced engineering solutions. Small & Medium Enterprises segment is expected to grow fastest from 2026-2033 as SMEs increasingly outsource product engineering to access cost-effective solutions and specialized skills.
By Industry
Automotive dominated with 26% share in 2025 due to high investment in R&D, technological advancements, and growing demand for electric and autonomous vehicles. Retail & Consumer Goods segment is expected to grow fastest from 2026-2033 as companies adopt digital transformation and advanced product design solutions to meet changing consumer preferences.
By Delivery Mode
Offshore dominated with 40% share in 2025 due to cost advantages, access to skilled talent, and established global delivery centers. Hybrid segment is expected to grow fastest from 2026-2033 as organizations combine onshore and offshore resources for flexibility, cost optimization, and better project management.
By Service
Product Engineering dominated with 45% share in 2025 due to increasing demand for innovative product design, development, and testing solutions across industries. The segment is expected to grow fastest from 2026-2033 as organizations increasingly adopt digital transformation initiatives, seek cost-effective solutions, and outsource complex engineering tasks to accelerate innovation and maintain competitiveness.
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Regional Insights:
North America dominated the Product Engineering Services Market with the highest revenue share of about 38% in 2025 due to the presence of major technology and engineering service providers, advanced infrastructure, and high R&D investments.
Asia Pacific segment is expected to grow at the fastest CAGR of about 8.69% from 2026-2033 due to rapid industrialization, increasing adoption of advanced technologies, and growing manufacturing and automotive sectors.
Increasing Demand for Digital Transformation and Advanced Product Innovation to Boost Market Expansion Globally
The demand for advanced product engineering services is being driven by the rapid adoption of digital transformation projects across industries. Businesses are looking for more creative ways to increase overall operational efficiency, shorten time-to-market, and improve product development. Businesses are able to produce smarter, more effective goods by integrating technologies like artificial intelligence (AI), the Internet of Things (IoT), and cloud computing into product design and development. Businesses are increasingly being compelled to outsource engineering services due to rising client demands for superior, customized products. The global market for product engineering services is expanding significantly as a result of this trend.
Key Players:
- Capgemini
- HCL Technologies
- Accenture
- Wipro
- Tata Consultancy Services (TCS)
- IBM
- Cognizant
- Alten Group
- AVL
- AKKA Technologies
- Infosys
- Tech Mahindra
- EPAM Systems
- Persistent Systems
- Quest Global
- Cyient
- L&T Technology Services
- Happiest Minds Technologies
- GlobalLogic
- Luxoft
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Recent Developments:
2025: Wipro acquired the Digital Transformation Solutions (DTS) business unit of Harman International, enhancing ER&D capabilities across aerospace, industrial, automotive, and consumer-tech verticals.
2025: EPAM Systems built its largest-ever hub in India, scaling to over 10,000 engineers focused on cloud-native, data, AI, and product-engineering services.
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