Asia-Pacific Aerospace Engineering Services Outsourcing Market, by Country, Competition, Forecast & Opportunities, 2020-2030F

The Asia-Pacific Aerospace Engineering Services Outsourcing Market was valued at USD 39.48 Billion in 2024, and is projected to reach USD 68.74 Billion by 2030, rising at a CAGR of 9.68%. The Aerospace Engineering Services Outsourcing market is experiencing notable growth, fueled by the increasing complexity of aircraft systems and the need for specialized engineering expertise. Growth is driven by rising demand for cost-effective design, maintenance, and testing services, enabling aerospace companies to optimize operations and reduce time-to-market. The adoption of advanced digital engineering technologies, such as CAD/CAE simulations, predictive analytics, and digital twins, is enhancing service efficiency and accuracy, creating opportunities for service providers to offer high-value solutions.

Market Drivers

Growing Government Investment in the Aviation Sector

Government funding and defense budgets are being directed toward modernizing civil and military aviation capabilities, fueling demand for engineering services. Investments target new aircraft acquisition, upgrades, retrofitting, and infrastructure modernization, all of which require expert engineering support. Public sector initiatives often include partnerships with private engineering service providers to deliver advanced design, testing, and certification solutions efficiently.

For instance, The Uttar Pradesh government is targeting $2 billion in private investment for civil aviation, alongside a $3.3 billion allocation in FY25 for airstrip modernization, land acquisition, and infrastructure upgrades. Efforts include operationalizing 225 routes under the Regional Connectivity Scheme and upgrading 14 state-owned airstrips, with six prioritized for immediate development. In FY24, the state recorded a 20% rise in flyers and a 50% surge in tourist inflow to 480 million, with tourism and PPP-based helicopter taxi services driving aviation growth.

Key Market Challenges

Intellectual Property and Data Security Concerns

Outsourcing engineering services involves sharing sensitive design data, proprietary algorithms, and technical documentation with third-party service providers. Protecting intellectual property and ensuring data security is a major challenge, as any breach or misuse could lead to financial losses, compromised safety, or legal disputes. Aerospace projects often involve multiple stakeholders across geographies, increasing the risk of unauthorized access or inadvertent disclosure. Companies must implement strict data governance policies, secure communication protocols, and robust cybersecurity measures to safeguard proprietary information while maintaining workflow efficiency. Compliance with international standards, defense regulations, and contractual obligations adds further complexity, as any lapses can damage credibility and result in penalties.

Key Market Trends

Increasing Demand for Fighter Jets

Rising defense modernization programs and strategic military priorities are driving demand for fighter jets, requiring specialized engineering support for design, testing, upgrades, and maintenance. Outsourced services help defense manufacturers manage the technical complexity of advanced avionics, stealth technology, and weapons integration. Engineering providers are increasingly offering end-to-end solutions, including performance analysis, structural modifications, and certification assistance. The focus on rapid deployment and mission readiness is encouraging the use of simulation, digital twins, and predictive maintenance tools.

This trend is creating significant opportunities for service providers to offer scalable, high-precision engineering solutions that align with stringent defense requirements. For instance, India is set to sign a $1 billion deal with the US firm GE for 113 GE-404 engines to support the Light Combat Aircraft (LCA) Tejas program, ensuring continuity in engine supply for HAL’s fleet expansion. This follows a previous Rs 62,000 crore agreement to procure 97 LCA Mark 1A fighter jets. The deal will enable the US firm to supply two engines per month, helping HAL meet its target of 212 GE-404 engines and avoiding production delays. India also plans to acquire GE-414 engines with 80% technology transfer to support LCA Mark 2 and Advanced Medium Combat Aircraft development.

Key Market Players

• Northrop Grumman Corporation
• Accenture plc
• L&T Technology Services
• Altran Technologies (now part of Capgemini)
• IBM Corporation
• Siemens AG
• Boeing Global Services
• Lockheed Martin Corporation
• Raytheon Technologies Corporation
• General Electric Aviation

Report Scope:

In this report, Asia-Pacific Aerospace Engineering Services Outsourcing Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Asia-Pacific Aerospace Engineering Services Outsourcing Market, By Service Type:

• Design & Engineering Services
• Simulation & Analysis Services
• Testing & Certification Services
• Manufacturing Support Services
• Maintenance, Repair & Overhaul (MRO) Services
• Others

Asia-Pacific Aerospace Engineering Services Outsourcing Market, By End Use Industry:

• Commercial Aviation
• Defense & Military
• Space & Satellite

Asia-Pacific Aerospace Engineering Services Outsourcing Market, By Outsourcing Type:

• Offshore Outsourcing
• Onshore Outsourcing

Asia-Pacific Aerospace Engineering Services Outsourcing Market, By Country:

• China
• India
• Japan
• Indonesia
• Thailand
• South Korea
• Australia
• Rest of APAC

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in Asia-Pacific Aerospace Engineering Services Outsourcing Market.

Available Customizations:

With the given market data, the publisher offers customizations according to the company’s specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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