Q4 2025 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 17 key verticals considered are:

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

 The 4 key geographies considered are:

North America, EMEA, APAC and Latin America

Growth rates in Q4 2025 are shown in the chart above.

Momentum & Growth Verticals

• Momentum: Infrastructure, Railway, Process, Defense, Aerospace, Energy
• Growth: Defense, Semicon, Energy, BFSI, Hi-Tech,

Momentum & Growth Geographies

• Momentum: Latin America, EMEA
• Growth: Latin America, North America

Interesting Developments

• Defense, and Energy are doing well all around
• Industrial Manufacturing, Travel and Edtech are struggling big time
• Healthcare is starting to struggle. Need to watch out whether this is a temporary blip or the start of a downturn.
• Aerospace is showing a good turnaround.
• Automotive after a gap of many quarters, now shows positive QoQ growth. Is it the beginning of a turnaround?
• Latin America recovered. APAC started showing stress
• EMEA, North America are doing better

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  years, the engineering services industry is facing 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.