As the Engineering Services market continues to evolve, the Everest Group’s Engineering Services Top 50™ 2024 report offers valuable insights into the shifting dynamics and emerging trends shaping the industry.
Now in its sixth edition, this definitive list provides a comprehensive overview of the 50 largest third-party engineering services providers, ranked by their revenue and year-on-year growth.
Significance of the Top 50™
Before delving into the details of the report, it’s important to understand the significance of the Engineering Services Top 50™ list. This report presents a clear and objective view of the current market landscape. As providers navigate the challenges of a volatile global economy, their ability to innovate and adapt remains crucial for sustaining momentum. The report serves as a valuable resource for enterprises seeking to identify leading providers, for service providers benchmarking against their peers, and for anyone aiming to understand the broader trends shaping the engineering services market.
A market defined by incremental growth
The 2024 edition of the Top 50™ list highlights a market characterized by steady, incremental growth rather than rapid expansion. Providers have increasingly recognized the importance of cost efficiency and short-term return-on-investment (ROI) for enterprises, prompting a shift in focus towards greater agility in managing high-velocity, smaller deals. This strategic pivot has enabled providers to remain competitive in a landscape where larger contracts are becoming less common.
Despite the global economic challenges that have slowed growth, the engineering services market has shown resilience. Outsourcing continues to rise, while providers continue to expand through strategic acquisitions, while strengthening their engineering capabilities.
European firms leading the charge
European firms have once again proven their dominance in the engineering services market. The report reveals that four of the top six providers are headquartered in Europe, with these companies growing at an impressive rate of 11.8%—the highest among the regions covered. This growth is attributed to their ability to innovate and expand into new markets, even as global conditions remain challenging.
Noteworthy performances and emerging trends
After finishing in the top spot in 2023, French technology services and consulting firm Capgemini retained its crown in 2024, maintaining the highest revenue among all providers.
Furthermore, Indian firm KPIT became the fastest-growing provider over the last 12 months, climbing 20 places in the top 50 rankings. Other notable growth within the top 50 included IAV, who climbed 17 spots from 41st to 24th, TATA Technologies who rose 14 places from 36th to 22nd. Cyient who moved from 31st to 20th, and Segula Technologies who advanced from 34th in 2023 to 26th in 2024.
This suggests that Engineering Research and Development (ER&D Services) firms have outperformed both pure-play and broad-based Software Product Engineering (SPE) peers, indicating that asset-heavy verticals performed better than services-centric and SPE-focused verticals in 2023.
Approximately 24% of the rankings changed by five or more positions in the 2024 listings, compared to 26% last year, implying lower volatility in the performance of all the listed providers this time around.
The 2024 report also highlighted several key trends that are likely to influence the future direction of the engineering services market:
- Platformization and softwarization: These trends continued to drive growth, particularly in the automotive and medical device sectors, where software defined everything (SDX) became an increasingly critical component
- Generative Artificial Intelligence (Gen AI): Providers across industries experimented with Generative AI to enhance efficiency, improve customer experiences, and reduce turnaround times
- Digital manufacturing and Industry 4.0: Providers developed consulting practices and leveraged partnerships to execute digital manufacturing and Industry 4.0 use cases
- Sustainability and green technology: The focus on sustainability gained momentum, with more providers integrating green practices into their engineering processes
- Self-sufficiency in chip design: This trend gained momentum as firms invested heavily in chips to power connected products, vehicles, networks, and artificial intelligence (AI) workloads
Platformization, generative AI, digital manufacturing, sustainability, and self-sufficiency in chip design, are shaping the future of the engineering services market. These developments reflect how leading providers are not just responding to immediate market needs but are also setting the foundation for future growth.
Much of this growth stems from the innovation and strategic moves of top providers. By scaling up niche capabilities, forming new partnerships, and expanding into emerging markets and nearshore regions, these providers are positioning themselves for continued success in 2025 and beyond.
- For more insights, read the full 2024 report
- Explore the 2023 report
Please contact Nishant Udupa and Nandita Pandey for questions regarding the list, or specific providers and assistance navigating the dynamic world of engineering services.
