The Market for Engineering Services & Technology Consulting
The market for Engineering Services and Technology Consulting is a billion-dollar business that is currently facing major challenges. Automotive manufacturers and suppliers, traditionally the largest customer group for Engineering Service providers, are in the midst of a far-reaching transformation process. They are strategically realigning themselves, with far-reaching consequences for service providers in the field of Engineering Services and Technology Consulting.
Engineering Services: Customer requirements change
The focus on digitalisation, the electrification of the powertrain, and the transformation to mobility service providers has a direct impact on customer demand and the requirements placed on providers of Engineering Services and Technology Consulting. Everything to do with software, sensor technology and autonomous driving is taking on an increasingly important role, ultimately leading to the development service providers having to greatly expand their competencies here in order to differentiate themselves from the competition on the one hand and to position themselves as strategic service providers for the OEMs and Tier 1 suppliers on the other.
The smart factory is gaining importance across all industries. Research and development, purchasing, supply chains, production and after sales must be considered as a whole and linked as part of the digital transformation. In addition, technology consultants and engineering service providers must deal with the volatility of the markets as well as the regulatory and ecological challenges.
Challenges: Fluctuation, digitalisation, regulation
Furthermore, the trend can be observed that clients are awarding ever larger task packages to service providers. This puts pressure on smaller engineering service providers in particular, as they simply do not have the capacity to meet this demand from clients. In order to meet the high demand from clients in the process and manufacturing industry, the innovation drivers in the sector must offer attractive conditions for skilled workers – because the fluctuation rate among engineers is extremely high.
Topics such as digitisation, automation and electrification are not alone in moving the market, but also the regulations on temporary employment. Lünendonk has been analysing the market for Engineering Services and Technology Consulting in Germany since 2006 and examines not only company key figures but also trends and development potential in the industry.