$1510 Billion Product Development Services Markets: Smart Manufacturing Opportunities, Emergence of IoT, and Growth in Smart City Projects

DUBLIN, March 3, 2023 /PRNewswire/ — The “Global Product Engineering Services Market by Service (Product Engineering; Process Engineering; Maintenance, Repair and Operations), Organization Size, Vertical (Automotive, Aerospace & Defense, Industrial Manufacturing) and Der Region – Forecast to 2027 report has been added to ResearchAndMarkets.com offering.

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The size of the product development services market is expected to grow from US$1056.2 billion in 2022 to US$1510.0 billion in 2027 at a compound annual growth rate (CAGR) of 7.4%.

ISVs, which specialize in developing and selling software to the masses, are the key market drivers for product development services. In response to the growing demand for IoT, many service providers have built a separate IoT engineering portfolio. Due to agile development methods, there has been a shift towards using automation for testing activities.

The Product Engineering segment will see significant growth during the forecast period

The process of innovating, designing, developing, testing and delivering a software product is called product development. With the advent of Web 2.0 technologies and service-based software delivery via Software as a Service (SaaS), client enabling engineering services have gradually shifted from traditional software development to product development. Product development is responsible for the entire product life cycle, starting with the innovation phase through the deployment and user acceptance testing phases.

The term “product development” typically refers to a large number of activities performed to organize and execute the product development process as efficiently as possible. In other words, it is used to describe the design and execution of a successful product. These technologies are used in a variety of fields, including software development and business models.

Vertical automotive and transportation industry is projected to grow with the highest market size during the forecast period

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The Automotive & Transportation segment holds the largest market size during the forecast period. The design and development of a system, device, assembly, or functionality are examples of product development services. Product development also includes testing and deployment activities and the subsequent transition to product manufacturing.

The story goes on

The automotive industry is undergoing a significant technological change. Modern cars can do much more than just drive and park. The launch of various innovative products and services has turned the status quo of the industry upside down. When it comes to new onboard automotive technologies, consumers are now spoiled for choice.

Connected cars, electric vehicles with improved battery technology, predictive maintenance to monitor vehicle operational performance, and other innovations have significantly changed the mobility landscape. Transitioning from a traditional car to an automotive ecosystem—a sort of smartphone on wheels—requires changes to the vehicle’s electronics and software architecture.

This means moving away from the traditional use of distributed, embedded Electronic Control Units (ECUs) and towards a domain-focused system with central vehicle controls. It requires more sophisticated software, such as B. a software abstraction layer, Ethernet usage and scalable connectivity. It also implies a greater reliance on advanced microprocessors rather than embedded microcontrollers to improve performance, reduce power consumption, and centralize control.

The Asia Pacific product development services market is set to grow at the highest market size during the forecast period

During the forecast period, the product development services market in Asia-Pacific is expected to grow significantly. The widespread presence of the end-user industry of product development services is one of the main factors driving the market growth.

In addition, the governments of emerging Asia-Pacific countries such as India and China are constantly striving to grow the manufacturing sectors of their respective economies. Governments provide subsidies and funds for small and medium-sized enterprises (SMEs).

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As a result, the Asia-Pacific market is expected to witness significant growth during the forecast period. Currently, there is very little artificial intelligence in the Product Engineering Services (AI) market. However, artificial intelligence has the potential to automate and speed up the process of creating and developing products, which means it can significantly advance and advance product engineering.

Artificial intelligence in product development also shortens throughput times and helps companies or industries to increase productivity. Incorporating artificial intelligence into the development of better product development services would significantly increase productivity to meet the current technical needs, which would lead to growth prospects for the product development services market. In manufacturing, India has traditionally prioritized domestic production and consumption.

The availability of cheap labor and high technology costs led to challenges such as a price-conscious market, inadequate infrastructure and supply networks, and a preference for labor-intensive processes. As a result of the Government of India’s Make-in-India strategy, the domestic manufacturing sector is expected to increase its demand for and consumption of machinery and equipment.

Premium Insights

Collaboration between OEMs and engineering service providers to drive the market forward

Product development segment to hold larger market share

Product development segment dominates the market

Manufacturing Engineering Support segment to hold larger market share

Large enterprise segment to hold larger market share

Vertical automotive and transportation sector holds largest market share

Asia-Pacific is emerging as the best market for investment over the next five years

Market in India will grow the fastest during the forecast period

company profiles

key figures

old group



Akka Technologies






Happiest minds

other companies

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Nest Digital

TV next


Luxoft Holdings

Nous info systems

Pactera Edge

Epam systems

Tech Mahindra

Trigent software

Segula Technologies


Sysvine Technologies


Aspire systems



global logic




ltimind tree


Sonata software


Dextra Technologies


to the new



Narcissus software

market dynamics


Increasing demand for Accelerating TTM

Need for continuous innovation and iteration

Growing need to reduce production costs

Increasing demand for smart homes & electronics and automatic vehicles

Growing demand for advanced technologies


Fear of losing control of intellectual property rights

Cultural differences related to product philosophy and design

High initial upfront costs when developing new product development services



Need for excellent feedback loops and constant management

Deviations can occur during the test phase

Lack of technical expertise

case study analysis

Case Study 1: Engineering Healthcare to Achieve Better Outcomes

Case study 2: Automation application to improve user experience

Case study 3: Integrated modules for effective management

Case study 4: Promotion of innovation in the automotive digital cockpit

Case study 5: Improving interoperability between solutions

Case Study 6: Engineering for HVAC Vendors

Technological Analysis

For more information about this report, visit https://www.researchandmarkets.com/r/bo6si

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