Why Aerospace Engineering Services Outsourcing Market has been a bustPosted by Mrudula Anil Karmarkar on August 27th, 2021 The global aerospace engineering services outsourcing market size is anticipated to reach USD 188.24 billion by 2025, registering a CAGR of 25.9% over the forecast period, according to a new report by Grand View Research, Inc. The increased demand for the replacement of aging and outdated aircraft and the intensifying need to reduce operational costs are expected to drive the increased global demand for aerospace engineering services outsourcing (ESO) over the forecast period. Owing to the increasing engineering and technological complexities in the industry, Original Equipment Manufacturers (OEMs) are facing the growing need to outsource some of their services to specialized aerospace Engineering Service Providers (ESPs). Outsourcing a variety of engineering services can help manufacturers reduce their operating expenses and simultaneously harness the domain-specific skills of these ESPs. Factors such as a flourishing middle-class population, increasing per capita incomes, and positive GDP outlook in emerging economies of Asia Pacific, particularly India and China, are generating more demand for air mobility. Countries in the region are investing in aircraft manufacturing and aftermarket maintenance, repair and overhaul (MRO) services to address this increasing demand for civil aviation. Owing to this, the region is anticipated to witness a substantial increase in fleet and MRO spending, thereby driving the market. The growing deployment of connected devices in aircraft has introduced the risk of intellectual property theft and cybersecurity concerns. OEMs, worldwide, are taking measures for data security and are expected to continue emphasizing on safeguarding crucial business information. Managing the innate vulnerabilities, which are a by-product of growing digitization, is also of utmost importance from the point-of-view of aerospace OEMs. As a result of this, security & certification services offered by ESPs are anticipated to witness significant traction over the forecast period. ESO, short for engineering services outsourcing, continues to acquire a larger share in the world’s total demand for aerospace engineering services as the aerospace industry struggles with challenges such as cost pressures, shortage of skilled resources, and an aging workforce. Soon, aerospace companies are expected to outsource an increasing number and volume of designing- and manufacturing-related services to reduce their operational costs, among other factors. The increasing demand for aircraft and their reduced half-lives are likely to lead to a notable rise in aerospace ESO activities over the forecast period. The aerospace industry has significantly progressed in terms of the increased use of innovative technologies and digital devices over the years. The consecutive rise in the need for specialized engineering skills and expertise, which can be difficult to acquire, retain, and internally develop, is expected to drive a growing need for ESO activities. The growth of the aerospace ESO industry is also facilitated by partnerships between OEMs and service providers for leveraging cost-effective access to domain-specific technical expertise and higher production capacities. For instance, in February 2019, Diehl Aviation signed a multi-year agreement with Altair Engineering, Inc., establishing the company as Diehl Aviation’s strategic computer-aided engineering supplier. To Request Sample Copy of this report, click the link: The need for specialized IT and core engineering services has witnessed a surge in the past decade. Thus, apart from traditional engineering proficiencies like drafting, modeling, and MRO of airplane parts, service providers are also focusing on other offerings such as designing, prototyping, simulation, testing, and system engineering for aerostructures and avionics. The trend is likely to remain strong soon as well. Further key findings from the report suggest:
Aerospace ESO is a dynamic market and faces several multi-faceted challenges such as growing operating costs, rising number of stringent environmental regulations, and a decrease in revenue-per-person. Intense competition among key players in the aerospace ESO industry has now shifted their focus to cost-effectiveness, innovation, and ESO. OEMs are focusing on green aviation, optimization of engine designs, and additive manufacturing. Advanced technologies such as structural health monitoring and blockchain infrastructure have also made their foray into the industry. The ensuing modernizations can improve the efficacy and security of the supply chain, enrich data integrity, and reduce risks. To address the growing environmental concerns, manufacturing organizations are expected to focus more on investments in green technology. For instance, the U.K.-based technology start-up Samad Aerospace Ltd. is developing Starling Jet. This is a Vertical Take-Off and Landing (VTOL) hybrid-electric propulsion aircraft for commuting. Such trends are expected to increasingly encourage aerospace OEMs to invest in ESO. Some of the leading players in the market for aerospace ESO are Honeywell International Inc., LISI Group, ALTRAN, Bertrandt, AKKA, Altair Engineering, Inc., Alten Group, L&T Technology Services Limited, Safran, and QuEST Global Services Pte. Ltd. About Grand View Research Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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