Aerospace Engineering Services Outsourcing Market Report 2026

The aerospace engineering services outsourcing market size has grown rapidly in recent years. It will grow from $111.53 billion in 2025 to $133.65 billion in 2026 at a compound annual growth rate (CAGR) of 19.8%. The growth in the historic period can be attributed to growing adoption of cost-effective outsourcing strategies in aerospace engineering, rising demand for specialized design and development services, technological advancements in testing and validation processes, early adoption of mro outsourcing for aircraft and spacecraft, increasing reliance on third-party vendors for r&d and technical publications.

The aerospace engineering services outsourcing market size is expected to see rapid growth in the next few years. It will grow to $256.2 billion in 2030 at a compound annual growth rate (CAGR) of 17.7%. The growth in the forecast period can be attributed to expansion of outsourcing for advanced propulsion systems and avionics development, integration of digital twins and ai-driven engineering solutions, rising demand for global outsourcing in spacecraft and satellite projects, increasing adoption of end-to-end engineering services including structural and electromechanical components, growth in outsourcing for training, simulation, and certification services in aerospace operations. Major trends in the forecast period include rising adoption of simulation and digital validation tools for aerospace design, increasing outsourcing of mro services to reduce operational costs, growth in advanced avionics and propulsion system development outsourcing, expansion of offshore engineering services centers in emerging markets, emphasis on certification, safety, and compliance services in outsourced projects.

The expanding travel and tourism industries are expected to propel the growth of the aerospace engineering services outsourcing market going forward. The travel and tourism industries encompass a wide range of businesses and services related to the movement of people for leisure, business, or other purposes, as well as their stay at various destinations. Growth in these industries is driven by millennial travelers, experiential travel, health and wellness tourism, online travel agencies (OTAs), and increased leisure activities. Aerospace engineering services outsourcing enables travel and tourism companies to access specialized expertise, reduce operational costs, and concentrate on core business functions. It also offers flexibility and scalability to adapt to changing market conditions while ensuring regulatory compliance. For instance, in May 2024, according to data from the Office for National Statistics Census 2021, a UK-based government agency, UK residents made 6.3 million international business trips in 2023. Therefore, the expanding travel and tourism industries are driving the growth of the aerospace engineering services outsourcing market.

Major companies operating in the aerospace engineering services outsourcing market are focusing on innovative solutions, such as aerospace capacity expansion, to boost production efficiency and advance aircraft development. Aerospace capacity expansion involves increasing an organization’s capability to design, manufacture, and service aircraft and components through upgraded facilities, advanced technology, and a skilled workforce. For instance, in October 2025, India-based Trusted Aerospace Engineering (TASE Global) announced a $30 million investment to expand its aerospace operations through both organic growth and acquisitions. This strategy, including acquisitions and brownfield developments, strengthens TASE’s manufacturing capabilities, enabling it to produce a broader range of precision components and services. The expansion enhances cost efficiency, innovation, and market reach, positioning TASE as a strategic partner for Tier 1 global clients while supporting its transition from engine parts to complex aerostructures and fostering long-term competitiveness and industry leadership.

In June 2024, Cognizant Technology Solutions Corporation, a US-based technology company specializing in banking, healthcare, and manufacturing, acquired Belcan LLC for $1.29 billion. This acquisition allows Cognizant to enhance its engineering and manufacturing capabilities by integrating Belcan's extensive expertise in engineering services and solutions. It strengthens Cognizant’s position in key sectors such as aerospace and automotive, while further enabling the company to offer comprehensive digital transformation services to its clients. Belcan LLC, a US-based company, provides engineering services and workforce solutions.

Major companies operating in the aerospace engineering services outsourcing market are General Dynamics Mission Systems Inc., Honeywell International Inc., Collins Aerospace Inc., L3Harris Technologies Inc., Meggitt PLC, Ball Corporation, Kyocera Corporation, Hexagon AB, Carlisle Interconnect Technologies Inc., Rohde And Schwarz GmbH & Co. KG, Cobham plc, Esterline Technologies Corporation, R.A. Miller Industries Inc., Astronics Corporation, TECOM Industries, Inc., AeroVironment, Inc., CMC Electronics Inc., Dayton-Granger Inc., HR Smith Group, Chelton Limited, Haigh-Farr Inc., Antcom Corporation, PIDSO Propagation Ideas And Solutions GmbH.

North America was the largest region in the aerospace engineering services outsourcing market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the aerospace engineering services outsourcing market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on aerospace components, avionics systems, and engineering services have increased costs for outsourced engineering projects, impacting timelines and profitability in the aerospace engineering services outsourcing market. Segments such as hardware development and MRO services are most affected, particularly in regions like Asia-Pacific and Europe, which serve as key outsourcing hubs. However, tariffs are driving investment in local engineering capabilities and innovation, encouraging the development of cost-efficient, high-quality aerospace solutions and strengthening domestic service providers.

The aerospace engineering services outsourcing market research report is one of a series of new reports that provides aerospace engineering services outsourcing market statistics, including aerospace engineering services outsourcing industry global market size, regional shares, competitors with a aerospace engineering services outsourcing market share, detailed aerospace engineering services outsourcing market segments, market trends, and opportunities, and any further data you may need to thrive in the aerospace engineering services outsourcing industry. This procedure trays market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Aerospace engineering services outsourcing involves contracting specialized engineering tasks and projects to external service providers or third-party vendors, typically situated in regions with either lower labor costs or specialized expertise. This practice allows aerospace companies to tap into specialized skills, control expenses, expedite project schedules, and concentrate on core strengths, all while ensuring the delivery of secure, dependable, and innovative aerospace products and services.

The primary elements of aerospace engineering services outsourcing comprise software and hardware. Software encompasses a collection of instructions, programs, or data facilitating computers and other electronic devices to execute specific tasks or functions. These services encompass design and engineering, manufacturing support, security and certification, as well as after-market services, spanning various locations such as onshore and offshore. The functions cover the maintenance process, production process, design and simulation, and digital validation.

The countries covered in the aerospace engineering services outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The aerospace engineering services outsourcing market consists of revenues earned by entities by providing design and development outsourcing, testing and validation outsourcing, maintenance, repair, and overhaul (MRO) outsourcing, technical publications and training outsourcing, and research and development (R&D) outsourcing. encompassing a wide range of activities, including the design, analysis, testing, manufacturing, and maintenance of aircraft, spacecraft, and related systems and components. The market value includes the value of related goods sold by the service provider or included within the service offering. The aerospace engineering services outsourcing market also includes sales of structural components, propulsion systems, avionics, electromechanical components, and control surfaces. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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