According to a new study of Fact.MR, the global demand for product engineering services is envisaged to account for the revenues worth US$ 26 Bn by the end of 2019. While gains will be particularly underpinned by the aggravating demand for shorter product life cycles, it is highly likely that myriad opportunities are underway for vendors of product engineering services, following the dramatic rise of new product launches across various industry verticals. Software and product development and engineering services have garnered the center stage in IT and telecom sector in the recent past, according to the report.
The Fact.MR study opines that though product engineering services are comparatively new for several small and medium businesses (SMBs), a considerably high number of businesses are already opting for outsourced product engineering services for enhanced operational efficiency. SMBs are likely to create notable traction for product engineering services over the years to come, owing to the enhanced customer experience and cost reduction benefits of these services.
Both large enterprise and SMBs are turning to outsourcing product engineering services to leverage the advantages of latest technologies and stay ahead of the competition. Product engineering services providers help enterprises overcome ER&D challenges, such as high costs of ER&D tools, labs & infrastructure, and associated process & documentation requirements. Enhanced customer experience ensured by customer-centric product designs continues to be imperative for growth of organizations amid rapidly evolving industrial trends, thereby, fuelling investments in the product engineering services market.
IT & Telecom and Healthcare, Combined, Hold 3/5th Shares
According to Fact.MR’s report, increased need of organizations to alleviate the ‘time to market’ (TTM) cycle is a key determinant providing an impetus to the growth of product engineering services market. While the need for speed grows, a large number of verticals, such as IT and telecom and healthcare in particular are considerably outsourcing their product engineering needs. The study estimates that demand from IT & telecom and healthcare verticals will collectively account for a revenue share of 60% in the product engineering services market over the forthcoming years.
High penalty for developing products with errors has never been greater, and the study indicates that margins of enterprises are increasingly getting squeezed through growing manufacturing costs. In view of the fact that enterprises that get product to market faster by reducing product development cycles are more likely to survive, which clearly advocates for the rising demand for product engineering services.
The study opines that the consumer electronics industry will create lucrative opportunities for product engineering services providers owing to increasing emphasis of enterprises on boosting customer satisfaction and improve competitiveness. Soaring demand for smarter consumer electronics, particularly in developed countries, is augmenting market value of product engineering services in regions, such as North America and Europe.
Fact.MR study offers a long-term perspective of the product engineering services market for the period 2019 to 2029. The product engineering services market is envisaged to register a whopping CAGR of ~10% through 2029.
The study indicates that product engineering services are likely to witness significant transformation on account of the rapidly expanding digital technologies. Advanced technology areas, including DevOps, agile and other digital technologies, are shaping different sections of product engineering services for better. With growing number of companies transforming their product offerings to align them with emerging digital technologies, the demand for product sustenance services is expected to surge through 2029. Growing focus of enterprises on building their own digital platforms is highly likely to shape the future technology landscape of software product engineering services.
According to the study, the highly dynamic and evolving nature of markets and the shifting demand for products in line with rapidly altering customer needs and advancing technologies, are augmenting the demand for product engineering services. With enterprises facing high pressure to continuously evaluate existing product line and consider ways to ensure their offerings are upgraded and in sync with their customer preferences, product engineering services will continue to garner significant limelight through 2029.