DUBLIN--(BUSINESS WIRE)--The "Aerospace Engineering Services Outsourcing Market Size, Share & Trends Analysis Report By Service (Design & Engineering, Manufacturing Support, Security & Certification, After-market Services), By Location, By Component, And Segment Forecasts, 2019 - 2025" report has been added to ResearchAndMarkets.com's offering.
The global aerospace engineering services outsourcing market size is anticipated to reach USD 188.24 billion by 2025, registering a CAGR of 25.9%.
The increased demand for the replacement of aging and outdated aircraft and the intensifying need to reduce operational costs are expected to drive the increased global demand for aerospace engineering services outsourcing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.
Further key findings from the report suggest:
- Businesses are increasingly leveraging the benefits of outsourcing services to control costs, improve the overall quality of their products and services, and enhance their expertise across a range of competencies.
- In terms of service, the aerospace ESO market has been segmented into design & engineering, manufacturing support, security & certification, and after-market services. The design & engineering service segment is projected to register the highest CAGR over the forecast period.
- The Asia Pacific and MEA regional markets for aerospace ESO are expected to witness a substantial rise in growth prospects over the forecast period. This can be attributed to the increasing number of low-cost carriers in developing economies and growing investments being done to boost outsourcing of services.
- Leading vendors in the aerospace engineering services outsourcing market are increasing usage of composite materials for manufacturing aerostructures and components due to their robustness and better stiffness-to-density ratios, in addition to further focus on the optimization of turboprops.
Market Driver Analysis
- Increasing number of tie-ups between aerospace OEMs and suppliers
- Expanding travel and tourism industries
- Growing airline fleets
- Aircraft replacement demand
Market Restraint/Challenges Analysis
- Stringent emission regulations
- Confidentiality and security threats
- High average age of labor in aerospace industry
- Reduction in flight costs and emissions through hybrid and electric engines
- Introduction of autonomous flight systems
Penetration & Growth Prospect Mapping
Roadmap of Aerospace ESO Market
Business Environment Analysis Tools
- Industry analysis - Porter's
- PEST analysis
- Altair Engineering, Inc.
- ALTEN Group
- Honeywell International Inc.
- ITK Engineering GmbH
- L&T Technology Services Limited
- LISI Group
For more information about this report visit https://www.researchandmarkets.com/r/cttuyq