Stronger global economic growth and construction activity is forecast to support industry revenue growth over the five years through 2017.
Los Angeles, CA (PRWEB) July 29, 2012
The global market for engineering services consists of the work performed by consultant engineering firms along with the in-house services undertaken by construction contractors, manufacturers, government agencies and utility owners. The industry's performance is principally driven by trends in construction, manufacturing and mining developments (particularly in the large industrial economies) and increasingly from work in the fields of technological development and the sustainable environment. Global Engineering Services is one of the largest professional service industries, generating revenue of about $530 billion in 2012 (up 2.0% on the previous year), and employing 2.9 million people, according to IBISWorld industry analyst Anthony Kelly.
Following record investment into infrastructure projects and manufacturing capacity during the mid-2000s, the demand for engineering services deteriorated with the onset of severe recession in the largest developed economies during the late 2000s. Global Engineering Services industry revenue is estimated to average subdued growth by an annualized 0.5% over the five years through 2012, lagging well behind the pace of world GDP growth (4.4%), Kelly says. However, industry growth is commensurate with the weak growth in the value of global construction (0.3%) and the subdued or negative GDP growth evident in the largest economies (United States, Japan and the European Union).
Stronger global economic growth and construction activity is forecast to support industry revenue growth over the five years through 2017. The industry has a low degree of ownership concentration. The industry has a fragmented structure and contains many small-scale establishments that confine their operations to national or regional markets, or to the delivery of a narrow range of specialized services. The bulk of firms are very small-scale establishments employing fewer than five people while few firms employ more than 100 people. Despite this low concentration, there has been a trend over the past decade for the consolidation of the operations of many of the world's leading consulting engineering firms, through mergers or strategic alliances. These large-scale, multidisciplined, multinational companies are well placed to win contracts in most markets. For more information, visit IBISWorld’s Global Engineering Services industry report page.
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IBISWorld industry Report Key Topics
Establishments in this industry apply physical laws and principles of engineering in the design, development and use of machines, materials, instruments, structures, processes and systems. The assignments may involve the provision of advice, preparation of feasibility studies, preparation of preliminary and final plans and designs, the provision of technical services on construction and project evaluation.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
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Barriers to Entry
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