zinnov geip : engineering services outsourcing overview
TRANSCRIPT
GLOBAL ENGINEERING INSIGHTS PLATFORM
Engineering Services Landscape and Zinnov Zones
Total Corporate Engineering Spend reached USD 1 Trillion in 2015; with corporate R&D contributing ~78%
USD
614Billion
USD
786Billion
USD
1007Billion
R&D Spend on Global
Top 500 R&D Spenders
Manufacturing Engineering Spend
MRO Spend in Aerospace
Project Engineering Spend (EPC)
Telecom Network Service and Layout
Regulatory Services Spend
Includes Traditional R&D spend and Total
Engineering Spend Organization wideG500 R&D SpendR&D Spend by Global
Corporates ( Includes
companies beyond top
500 R&D Spenders
Total Corporate R&D
Spend
Total Corporate Engineering Spend
Global Corporate Engineering Spend
reached USD 1 Trillion in
2015
Source: Zinnov Global Engineering Insights Platform
The ER&D outsourcing reached $36Bn, Western European companies continue to dominate ER&D services market with a market share of above 50%
15.0
14.3
7.0
Software
Embedded
Mechanical
USD 36 BillionEngineering R&D
Outsourced Services
8.7%Growth Rate over 2015
Addressed ER&D Globalisation & Services
market through Outsourcing partners
Billion
USD
Source: Zinnov Global Engineering Insights Platform
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2200
2400
1 11 21 31 41 51 61 71 81 91 101 111
Top 20
59%Next 30
32%Remaining
9%
Contribution of Service Providers to Overall Market
The ER&D services market is highly consolidated with top 20 Service Providers contributing to ~59% of the overall market
Source: Zinnov Global Engineering Insights Platform
Aerospace, Software/Internet and Automotive are most mature verticals in terms of R&D services outsourcing and constitute ~50% of the global ER&D services
4.50
9.12
0.95
4.64
2.09
1.290.93
6.22
3.76
Aerospace Automotive Consumer
Electronics
Energy &
Utilities
Industrial
Automation
Medical
Devices
Semiconductors Software/Internet Telecom
Vertical wise split of the Global Service Providers
Revenue (in USD Billions)
Source: Zinnov Global Engineering Insights Platform
Bangalore 69 "Prathiba Complex",4th 'A' Cross, Koramangala 5th Block,Bangalore-560 095.Phone: +91-80-41127925/6
SingaporeLevel 42, Suntec Tower Three8 Temasek BoulevardSingapore 038988Phone:+65 6829 2123
Texas21, Waterway AveSuite 300The WoodlandsTX-77380 USAPhone:+1-281-362-2773
BeijingMeilifang Tower 4, Entrance 4, 10/F #1003,11 Beiyuan Shuangying Road,Chaoyang District, BeijingChina 100012
Gurgaon Office:First Floor,Plot no. 131, Sector 44,Gurgaon-122002,Phone: +91 124 4420100
California Office3080 Olcott StreetSuite A125,Santa Clara, CA 95054Phone: +408-716-8432
Thank You