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.
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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.
Product Engineering Services Market: Segmentation
By Service Type
- New Product Development
- Product Testing
- Product Sustenance
- Product Deployment
- Product Support
- Product Management
By Organization Size
- Large Enterprises
- Aerospace & Defense
- Automotive & Transportation
- Consumer Electronics
- Industrial Manufacturing
- IT & Telecom
- Media & Entertainment
- North America
- Latin America
- East Asia
- South Asia
The market for product engineering services will remain a consolidated landscape, where leading players, such as Accenture, Cognizant, Persistent System, TCS, and Wipro, among others, command 60-65% market share. These companies continue to zoom in their strategic focus on acquisitions of local service providers, for regional expansion.
New launches centered at customer demands will remain among the key strategies of market forerunners as they continue to invest efforts in introducing product designs that appeal to a wider customer base.
Profound domain knowledge and deep expertise in customers’ business verticals will be considered as an important determinant, offering companies an additional edge in the competition landscape of product engineering services market.
The market is lately witnessing increase in the collaborations of stakeholders with enterprises, which are attempting new market entry and thus need assistance from product engineering services providers, right from the initial stage to the post-deployment support phase.