LONDON--(BUSINESS WIRE)--The global research and development (R&D) outsourcing services market is expected to post a CAGR of over 8% during the period 2019-2023, according to the latest market research report by Technavio.
A key factor driving the growth of the market is the increased access to the global talent pool by enterprises. Most of the SMEs have limited operational reach due to which they have access to only the regional talent pool. However, specialized vendors have operations across the world. Hence, outsourcing R&D services to such vendors will provide enterprises, especially SMEs, access to the global talent pool. Enterprises can leverage diverse skill sets distributed across geographies by outsourcing R&D services to these vendors. This also provides enterprises with access to R&D support around the clock. Hence, vendors from countries focus on expanding their operations to countries such as India for real-time support and low-cost labor. Accessing talent pool from such countries can lead to a reduction in R&D cost, which will help enterprises in increasing their profit margins. All these factors will lead to the growth of the global R&D outsourcing market during the forecast period.
As per Technavio, the emergence of industry 4.0 will have a positive impact on the market and contribute to its growth significantly over the forecast period. This global research and development (R&D) outsourcing services market 2019-2023 research report also analyzes other important trends and market drivers that will affect market growth over 2019-2023.
Global research and development (R&D) outsourcing services market: Emergence of industry 4.0
Currently, enterprises are under pressure to innovate product and service offerings and make their production processes efficient to remain competitive in the market. This is encouraging enterprises to implement Industry 4.0, which refers to the use of emerging digital technologies for automation and implementation of smart production processes. Therefore, engineering R&D services are used by enterprises to check the feasibility of implementing and improving innovative solutions. Hence, many enterprises are seen outsourcing these engineering R&D tasks so that they can focus on their core competencies. Thus, with the adoption of Industry 4.0, the demand for R&D outsourcing services is expected to increase during the forecast period.
“Apart from the emergence of industry 4.0, another factor that is expected to boost market growth is the cost-effectiveness of outsourcing R&D services. Maintaining in-house R&D services can be a costly affair for many enterprises, especially small and mid-sized (SMEs) in industries such as construction and consumer electronics. Outsourcing R&D services can enable enterprises to save costs on facilities and training and wages of R&D engineers. It also helps enterprises in gaining access to advanced technologies. These factors will foster the demand for R&D outsourcing services during the forecast period,” says a senior analyst at Technavio.
Global research and development (R&D) outsourcing services market: Segmentation analysis
This market research report segments the global research and development (R&D) outsourcing services market by end-user (automotive, consumer electronics, telecommunications, semiconductor, aerospace, healthcare, construction, and others), and geographical regions (North America, Europe, APAC, South America, and MEA).
The North American region led the market in 2018, followed by Europe, APAC, South America, and MEA respectively. During the forecast period, the North American region is expected to maintain its domination over the global market and register the highest incremental growth due to the increasing demand from industries such as aerospace, semiconductor, and consumer electronics.
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Five Forces Analysis
- Regional comparison
- Key leading countries
- Vendors covered
- Vendor classification
- Market positioning of vendors
- Competitive scenario
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