Aerospace Engineering Services Outsourcing Market

Recent Developments:

• In 2022, Altair, a global leader in computational science and artificial intelligence (AI), acquired Concept Engineering, the leading provider of electronic system visualization software that accelerates the development, manufacture, and service of complex electrical and electronic systems in various industries, such as aerospace, automotive, and industrial.

• In 2023, Honeywell acquired the heads-up display (HUD) technology assets of Swedish aerospace and defense company, Saab. This assists in strengthening Honeywell’s avionics and aviation safety product lines by improving situational awareness, especially at night or in difficult weather conditions.

• In 2023, ALTEN Group, headquartered in Paris, France and a market leader in engineering and technology consulting services, completed the strategic acquisition of Accord Global Technology Solutions. This strategic acquisition combines ALTEN's scale and technology diversity with the digital innovation and know-how of Accord Global Technology Solutions in the aerospace and automotive industries.

In terms of services, offerings include a wide array of engineering solutions such as design, analysis, testing, certification, and maintenance. This segmentation enables aerospace companies to select specific services tailored to their project requirements and objectives, whether it's designing new aircraft components or ensuring regulatory compliance through certification services.

Additionally, the segmentation by location allows aerospace companies to leverage outsourcing partners from various regions around the world. This ensures access to a global talent pool and allows companies to benefit from cost advantages, expertise, and proximity to key markets. Whether it's outsourcing engineering services to established aerospace hubs like the United States and Europe or tapping into emerging markets in Asia-Pacific and Latin America, companies can strategically select outsourcing locations to optimize efficiency and cost-effectiveness.

Furthermore, the segmentation by component enables aerospace companies to focus on specific areas of their aircraft systems, such as avionics, propulsion, structures, or interiors. This granularity allows for targeted outsourcing solutions tailored to the unique needs of each component. Whether it's outsourcing structural analysis for airframe components or avionics design for cockpit systems, companies can select outsourcing partners with specialized expertise in the relevant component areas, thereby ensuring high-quality engineering solutions across all aspects of aircraft development and maintenance.

Global Aerospace Engineering Services Outsourcing Segment Analysis

In this report, the Global Aerospace Engineering Services Outsourcing Market has been segmented by Service, Location, Component and Geography.

Global Aerospace Engineering Services Outsourcing Market, Segmentation by Service

The Global Aerospace Engineering Services Outsourcing Market has been segmented by Service into Design & engineering, Manufacturing support, Security & certification and After-market services.

Design and engineering services constitute a significant portion of the market, encompassing activities such as conceptual design, structural analysis, systems integration, and prototype development. Outsourcing design and engineering tasks allows companies to access specialized expertise and resources, streamline the product development process, and accelerate time-to-market for new aircraft and components.

Manufacturing support services are another crucial segment of the aerospace engineering services outsourcing market, providing assistance to aerospace manufacturers in production planning, tooling design, process optimization, and quality assurance. Outsourcing manufacturing support tasks enables companies to leverage external capabilities and facilities, reduce production costs, and improve manufacturing efficiency while maintaining high standards of quality and compliance with regulatory requirements.

Security and certification services play a vital role in ensuring the safety, security, and airworthiness of aircraft and aerospace components. Outsourcing security and certification tasks to specialized service providers allows companies to navigate complex regulatory frameworks, obtain necessary certifications, and comply with industry standards and regulations. Additionally, outsourcing security and certification services enables companies to stay abreast of evolving security threats and regulatory changes, ensuring the continued safety and reliability of aerospace products throughout their lifecycle.

Global Aerospace Engineering Services Outsourcing Market, Segmentation by Location

The Global Aerospace Engineering Services Outsourcing Market has been segmented by Location into On-shore and Off-shore.

On-shore outsourcing refers to the engagement of engineering services within the same country or region as the client company. On-shore services often provide benefits such as proximity to the client's operations, ease of communication, and alignment with regulatory standards. This proximity allows for better collaboration, quicker response times, and easier management of projects, particularly for sensitive or critical engineering tasks.

On the other hand, off-shore outsourcing involves contracting engineering services from companies located in different countries or regions. Off-shore services are typically chosen for their cost-effectiveness, as labor and operational expenses may be lower in certain regions. Off-shore outsourcing also offers access to a broader talent pool, potentially providing specialized expertise and skills that may be scarce or expensive domestically. However, off-shore outsourcing may present challenges related to communication barriers, time zone differences, and cultural differences, requiring effective management and coordination to ensure successful project outcomes.

Both on-shore and off-shore outsourcing options present opportunities for aerospace companies to access specialized engineering expertise, optimize operational efficiency, and manage costs effectively. The choice between on-shore and off-shore outsourcing depends on various factors such as project requirements, budget constraints, regulatory considerations, and strategic objectives. By leveraging the benefits of both on-shore and off-shore outsourcing, aerospace companies can tailor their approach to meet specific needs and maximize the value derived from engineering services outsourcing, ultimately driving innovation and competitiveness in the global aerospace market.

Global Aerospace Engineering Services Outsourcing Market, Segmentation by Component

The Global Aerospace Engineering Services Outsourcing Market has been segmented by Component into Hardware and Software.

Hardware components encompass a wide range of physical elements used in aircraft design, manufacturing, and maintenance, including structural components, propulsion systems, avionics, and landing gear, among others. Outsourcing hardware engineering services allows aerospace companies to access specialized expertise in areas such as structural analysis, materials science, and mechanical design, enabling them to develop innovative and reliable hardware solutions that meet stringent industry standards and regulatory requirements.

On the other hand, software components play a crucial role in modern aircraft systems, providing essential functionality for navigation, communication, flight control, and mission-critical operations. Outsourcing software engineering services enables aerospace companies to leverage the expertise of software developers, systems engineers, and cybersecurity specialists to design, develop, and maintain software solutions tailored to their specific needs. This includes software for flight management systems, cockpit displays, onboard diagnostics, and in-flight entertainment systems, as well as cybersecurity solutions to protect against cyber threats and ensure the integrity and security of aircraft systems and data.

Moreover, the segmentation of the aerospace engineering services outsourcing market into hardware and software components reflects the increasing convergence of hardware and software technologies in aerospace systems. With the rise of digitalization, connectivity, and automation in aviation, there is a growing demand for integrated hardware-software solutions that deliver enhanced functionality, performance, and reliability. Outsourcing engineering services for both hardware and software components enables aerospace companies to address the complexities of integrated systems design, development, and validation, ensuring seamless interoperability and optimal performance across the entire aircraft platform.

Global Aerospace Engineering Services Outsourcing Market, Segmentation by Geography

In this report, the Global Aerospace Engineering Services Outsourcing Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Aerospace Engineering Services Outsourcing Market Share (%), by Geographical Region, 2024

Europe is another key region in the aerospace engineering services outsourcing market, with countries like the United Kingdom, France, and Germany being prominent players. Europe boasts a strong aerospace manufacturing base and a tradition of engineering excellence, making it an attractive destination for outsourcing engineering services. Additionally, the region benefits from partnerships and collaborations between aerospace companies and research institutions, fostering innovation and driving growth in the engineering services sector.

Asia-Pacific is emerging as a rapidly growing market for aerospace engineering services outsourcing, driven by the expansion of the aerospace industry in countries like China, India, and Japan. Rising air travel demand, increasing investments in aerospace infrastructure, and the establishment of aerospace clusters contribute to the region's growth potential. Furthermore, the availability of skilled engineering talent, lower labor costs, and government initiatives to promote aerospace manufacturing and innovation fuel the outsourcing market in Asia-Pacific. As a result, the region is expected to witness significant market share growth in the coming years, further diversifying the global landscape of aerospace engineering services outsourcing.

This report provides an in depth analysis of various factors that impact the dynamics of Global Aerospace Engineering Services Outsourcing Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Key players in Global Aerospace Engineering Services Outsourcing Market include:

• Boeing Global Services
• Airbus Engineering
• GE Aviation Systems
• Rolls-Royce Engineering Services
• Safran Engineering Services
• Lockheed Martin Aeronautics
• Northrop Grumman Aerospace Systems
• Bombardier Aerospace Services
• Honeywell Aerospace Engineering
• Thales Aerospace Engineering

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis