Engineering And Design Services- Procurement Intelligence
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Procurement Market Intelligence Report

Engineering and Design Services – Procurement Best Practices & Sourcing Strategies

Engineering and Design Services Market – Executive Summary, Global Engineering & Design Industry, Regional Market Analysis, Procurement Best Practices, Market Monitoring Insights, Procurement Process, Sustainability Initiatives, Supplier Analysis, COVID Analysis, End–user Industry Update

1. Executive Summary
1.1. Global Engineering & Design Outlook
1.2. Supply Outlook
1.3. Global Demand Trends
1.4. COVID-19: Impact on Engineering & Design Services
1.5. Talking Points to Business: Engineering and Design
2. Global Engineering & Design Industry
2.1. Global Engineering & Design Outlook
2.2. Technology Trends
2.3. Sustainability Trends
3. Regional Market Analysis
3.1. North America (US, Canada), South America (Brazil), Europe (UK), Asia Pacific (China), Australia
4. Procurement Best Practices
4.1. Decision Enablers
4.2. Peer Industry Best Practices
4.3. Key Factors for Successful Sourcing
4.4. Pricing Models
4.5. KPIs
5. Market Monitoring Insights
5.1. Cost Structure
5.2. Cost Analysis and Expected Savings
5.3. Engineering & Design Billing Rates
5.4. Methodology
6. Procurement Process
6.1. RFI/RFP template
7. Sustainability Initiatives
7.1. Sustainable Materials
7.2. Renewable Energy
7.3. Carbon Emission
8. Supplier Analysis
8.1. Supplier Analysis
8.2. Supplier Market Outlook
8.3. Porter’s Five Forces Analysis
9. COVID Analysis
9.1. Impact of COVID on Construction
9.2. Supplier Watch
10. End–user Industry Update
10.1. FMCG Global Construction Industry Outlook
10.2. Sourcing Approach Adopted by FMCG Companies, Case Studies
10.3. Global Mining Construction Industry Outlook, Market Analysis (South Africa)
10.4. Global Mining Construction Industry: Sourcing Trends, Case Studies

According to ELINT Market Research, what is the expected global market size of engineering and design services?

 

The latest of these statistics is displayed in the report, ELINT Market Research, where the growth forecast in the global market for engineering and design services is being touted to reach a whopping sum of $1.07 trillion by 2023, with a fantastic number of opportunities based on this growth.

 

Which are the most influential factors impacting the overall engineering and design services market?

 

The market for engineering and design services is dynamic and is driven by technological advances, especially AI, ML, and AR, the increasing trend of sustainability, globalization, and increased project complexity, which requires specially designed solutions.

 

Which industry segment commands the highest engineering and design services market share?

 

Aerospace is one of the significant market segments. During the forecast period 2022-2023, it led the majority share as the industry is more towards technology development for the aviation and space industry.

DESCRIPTION

Engineering and Design Services Market Size 

In the dynamic landscape, ELINT Market Research’s engineering and design services procurement market research report signals a promising outlook for the future of the engineering and design services market. The research projects a global market size of $1.07 trillion by 2023, reflecting about how powerful this field’s economic effect can be on the world stage. It underscores the strong demand for engineering services across sectors and geographies. Both the statistics and the trends collectively emphasize the sector’s positive trajectory toward becoming a key player in the evolving landscape of global industries.

According to the US Census Bureau, one such adequate measure of this positive trend for the engineering and design services market is the leap in the new building infrastructure in the US. The statistics show an increase from $1808.34 billion in October 2022 to $1844.10 billion in February 2023. This upward curve, therefore, signals the need for infrastructure development, thus rippling on to the demand for skilled engineering service providers. The requirements above are in response to the growing infrastructure landscape for the providers to collaborate with other stakeholders to improve their capabilities. 

 

Market Definition

The engineering and design services market refers to a dynamic and expansive sector dealing with the entire range of professional services – including conceptualization, planning, and execution targeting the vast sphere of projects across different industries. The interdisciplinary nature of the market has drawn experts from civil engineering, mechanical engineering, electrical engineering, architecture, and others. 

 

Engineering and Design Services Market Drivers

 

  1. Technological Advancements: The constant integration of advanced technologies, e.g., artificial intelligence, augmented reality, or the Internet of Things (IoT), supports innovation processes within solutions for engineering and design.

 

  1. Complex Project Requirements: Aerospace, automotive, and infrastructure need intricate solutions, which drive demand for experts qualified to maneuver through complex project requirements.

 

Engineering and Design Services Market Challenges 

 

  1. Cost Pressures: The competition in the market is high, and the head of the service providers is on tenterhooks about the same for their cost optimization. 

 

  1. Regulatory Compliance: Conformance with diverse and emerging regulatory frameworks cutting across geographies is one of the most critical challenges any engineering and design service provider faces. 

 

Engineering and Design Services Market Opportunities 

 

  1. Digital Transformation: Digital technologies, for instance, Building Information Modeling (BIM), virtual prototyping, and collaborative design tools can bring operational efficiency and new market opportunities.

 

  1. Industry-specific solutions: This type of solution will be up there at the top, industry-specific for healthcare, energy, and telecommunications businesses. Specific solutions for every industrial requirement might stand out as a competitive edge.

 

Engineering and Design Services Market Segmentation 

 

  1. Industry Verticals: The research report classifies the market into Aerospace, Automotive, Healthcare, Energy, Infrastructure, and others.

 

  1. Service Type: The research report segments the market into Conceptual Design, Detail Engineering, Prototyping, Simulation, and Testing.

 

  1. Geography: The research report divides the market into Europe, Asia-Pacific, North America, Latin America, and the Middle East & Africa.

 

Regional Outlook of the Engineering and Design Services Market  

The regional features of the global engineering and design services market define its movement in the domain. For instance, Western Europe, North America, and Australia form high market maturity regions leading innovations and technological developments. In North America, notably the United States, best-in-class technologies and open, collaborative research ecosystems allow businesses to compete within the global market. Australia is one of the prominent participants in this mature field of engineering and design services as it’s ideally placed and keen on the research and development of the same.

On the other hand, in the medium market maturity areas of the global market, regions such as India, China, Brazil, Chile, and Mexico are turning out to be emerging players. India, mainly due to its upsurge in IT and engineering, has become an attractive place for outsourcing engineering services. With rapid industrialization and growth in technological advancements, China is emerging as one of the major players in engineering services, providing a mix of quality and competitive costs. The European countries also contribute to the medium maturity zone, reflecting a diversified landscape of countries offering more preferable locations for outsourcing activity. 

 

Impactful Cost Component in the Engineering and Design Services Market

This vital cost component is one of the deciding factors without which the outcome of a project in the market can either make or break. Different cost models include cost reimbursable, lump sum, percentage of total construction, hybrid, and detailed cost breakdowns. The selected cost structure reflects the budgeting, allocation of resources, and general project management. However, the primary responsibility of practitioners in the field is to ensure that every appropriate cost component is selected accordingly to avoid the waste of resources and retain budgetary control.

 

Pricing Outlook of the Engineering and Design Services Market

A list of different pricing models includes cost reimbursable, lump sum, and percentage of total construction, all with advantages and considerations. Furthermore, cost breakdowns further differentiate the distribution of expenses across these project phases and allocate the resources for schematic design, design development, construction documents, bidding, construction, and project closeout. Such a comprehensive pricing outlook not only influences the financial side of such undertakings but also governs project times, resource management, and relations with the client. 

 

Emerging Engagement Strategies in the Engineering and Design Services Market

The market evolution brings specific innovative engagement strategies to attain project success and client satisfaction. Some noteworthy models are Integrated Project Delivery (IPD) and bundling of services, which both emphasize collaboration and a holistic approach to delivering services. The environment provided by the Integrated Project Delivery is that of seamless cooperation among stakeholders to foster an integrated vision and shared accountability. On the other hand, service bundling provides consolidated offers, providing clients with an integrated solution. Industry practitioners must watch such trends and fit them into their operations strategically to stay competitive and meet the changing market demands.

 

Contract Period in the Engineering and Design Services Market

The contract periods play a crucial role in setting the market dynamics. They range from short-term contracts to long-term ones, hence affecting the whole dimension of planning, execution of projects, and, in sum, the satisfaction of the client involved. While short-term contracts are suited for relatively minor and less complex projects, long-term contracts would be better for complex endeavors involving ongoing collaboration. Therefore, the essence is in determining the right balance in the contract periods to align with customer expectations.

 

Negotiation Factors in the Engineering and Design Services Market

Negotiation in the market is a complex phenomenon influenced by various regards. The negotiation considerations include client expectations, the project scope, timelines, and budgetary constraints. In a nutshell, the challenges are balancing a high-quality level in the delivery of projects versus the client’s fiscal constraints. In addition, negotiations usually contain elements of risk allocation, ownership of intellectual property rights, and mechanisms for dispute resolution. Experts in the engineering and design services industry are excellent in handling them, with the spirit of teamwork so that results can be mutually acceptable. 

 

Leading Players in the Engineering and Design Services Market

Some of the leading stakeholders in the global engineering and design services market are going with significant impacts as the market landscape is fast transforming. Leading names to figure in these contributions are WSP, GS Engineering & Construction, WorleyParsons Ltd., Arcadis NV, SNC-Lavalin International Inc., Jacobs Engineering Group Inc., Stantec Inc, McConnell Dowell Corporation, Jacobs Engineering Group, Tetra Tech Inc, Aecom, Kiewit Corporation, SNC Lavalin International Inc., NCL Ingenieria Construcción (NCL), Dumas mine contracting, Construtora Andrade Gutierrez SA, Exyte AG, Logiman, Lycopodium, NRW Civil & Mining, AMEC Foster Wheeler, China State Construction Engineering Corp.

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