Q3 2024 Engineering Services Providers Growth Rates by Verticals & Geographies

Which industry verticals and geographies are growing for engineering services? Which industry verticals and geographies have momentum?

To address above questions and identify current trends, we analyzed results from leading engineering service providers across various regions.

The 15 key verticals considered are:

Defense, EdTech, Railways, Healthcare, Aerospace, Travel, Hi-Tech, Automotive, Retail, Energy & Utilities, Industrial Manufacturing, Telecom. BFSI, Process Industry & Construction

The 4 key geographies considered are:

North America, EMEA, APAC and Latin America

Growth rates in Q3 2024 are shown in the chart above.

Momentum & Growth Verticals

• Momentum: Edtech, Hi-Tech, BFSI
• Growth: Edtech, Defense, Healthcare, Railways, Process, Aerospace

Momentum & Growth Geographies

• Momentum: APAC
• Growth: APAC, North America

Interesting Developments

· Automotive QoQ decline continued for second quarter in a row.

·BFSI continues to have positive QoQ growth second quarter in a row highlighting turnaround

·Hi-tech first time in QoQ positive growth zone after many quarters

·Aerospace, Healthcare, Travel, and Defense entered in negative QoQ after many quarters of positive growth. Their YoY growth is still good so need to watch out whether this is temporary blip or start of downturn

Why Is This Important?

The engineering services market is unique because it encompasses multiple markets across various verticals and geographies, each with its own growth and moderation cycles.

To make informed decisions, engineering executives and investors need timely information and data-driven insights. These insights allow them to leverage these cycles, benchmark performance, plan operations, and make strategic investments.

This is especially crucial now. After experiencing hypergrowth over the past three years, the engineering services industry is beginning to face challenges in certain verticals and regions. At the same time, some verticals and geographies are performing better than before.

Sometimes these changes are fads or quarterly blips, and other times they could be the start of a medium-term trend. It is a good idea to track these vertical and regional growth dynamics regularly and consistently. Insight. Change. Transform.