Product Engineering Services Market Report 2026

The product engineering services market size has grown strongly in recent years. It will grow from $1150.78 billion in 2025 to $1.25 trillion in 2026 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to increasing outsourcing of engineering activities, growth of complex product architectures, expansion of global R&D operations, rising need for faster product time-to-market, availability of skilled engineering talent.

The product engineering services market size is expected to see strong growth in the next few years. It will grow to $1750.42 billion in 2030 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to increasing demand for digital and connected products, rising investments in smart manufacturing, expansion of sustainability-driven product design, growing focus on software-defined products, increasing adoption of predictive maintenance and digital twins. Major trends in the forecast period include increasing demand for end-to-end product development services, rising adoption of agile and devops engineering models, expansion of embedded and digital product engineering, growing focus on product lifecycle optimization, enhanced integration of design and manufacturing processes.

The growing use of internet penetration is expected to drive the expansion of the product engineering services market in the coming years. Internet penetration refers to the global number of individuals using internet services. Product engineering services, such as software engineering, leverage internet computing for the development, management, deployment, and quality assurance of software that supports internet-based systems. Consequently, as internet penetration rises, the demand for product engineering services grows, as companies are creating new products to meet the rapidly increasing consumer demands. For example, in February 2023, according to Meltwater, a Netherlands-based software company, internet users in the UK increased by 224 thousand (+0.3%) between 2022 and 2023, reaching a total of 66.11 million. Additionally, the UK had 35 million LinkedIn members and 28.75 million Instagram users, with LinkedIn's potential ad reach rising by 2.9% over the same period. Therefore, the increasing internet penetration is expected to fuel the demand for product engineering services throughout the forecast period.

Leading companies in the industry are concentrating on developing innovative solutions such as the Jira Suite to secure a competitive advantage and improve their product offerings. The Jira Suite is an integrated set of software tools provided by Atlassian that supports various stages of the software development lifecycle, enabling project management, collaboration, and issue tracking. For example, in February 2023, Atlassian Corporation, an Australia-based software company, introduced enhancements to its Jira Suite. These updates include Jira Product Discovery for ideation and prioritization, Jira Work Management, now available for free with Jira Software licenses, and new Jira Templates. This expansion delivers end-to-end support for the software development lifecycle, covering idea generation, development, collaboration, and support, equipping teams with a robust suite of interconnected tools for streamlined work processes. Jira Product Discovery promotes cross-functional team collaboration to build the right products for the right customers at the right time, while Jira workflow and toolchain templates simplify workflows and automations.

In May 2023, Deloitte, a UK-based consulting firm, acquired Optimal Design for an undisclosed amount. This acquisition significantly expands Deloitte's existing engineering services portfolio, particularly in industrial design, hardware engineering, embedded software, and prototyping. Optimal Design is a US-based product engineering services company.

Major companies operating in the product engineering services market include Alten SA, AVL List GmbH, HCL Technologies Limited, AKKA Technologies SE, International Business Machines Corporation, Accenture plc, ÅF Pöyry AB., Altran Technologies SA, Capgemini SE, Cognizant Technology Solutions, Endava plc, Globant S. A., Happiest Minds Technologies Limited, Infogain Corporation, Mindtree Limited, Tata Consultancy Services Limited, Wipro Limited, 3D Systems Corporation, ABB Ltd., Advantech Co. Ltd., AECOM Technology Corporation, Altair Engineering Inc., Amazon Web Services Inc., ANSYS Inc., Apple Inc., Applied Materials Inc., Arcadis NV, Autodesk Inc., BAE Systems plc, Bentley Systems Incorporated

North America was the largest region in the product engineering services market in 2025.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the product engineering services market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the product engineering services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The product engineering service market includes revenues earned by entities by providing product engineering services including product and component design such as new product development, design support, software engineering, hardware engineering, prototype testing, and process engineering services such as manufacturing engineering support, and knowledge-based engineering (KBE) services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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