High rise: Recovery in private investment will drive industry's return to growth

IBISWorld’s Industry Market Report on Engineering Services is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.


Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Annual Growth
Annual Growth

Industry Threats & Opportunities

  • Consumer sentiment now favors green building and clean energy projects, which presents an opportunity for the industry to expand
  • Federal spending cutbacks as a result of the Bipartisan Budget Act negatively affected the industry
  • More businesses are willing to commit to large projects that require engineering services
  • Industry Analysis & Industry Trends

    Over the past five years, industry revenue has continued to decline due to weak public spending on large infrastructure projects, as well as relatively weak private investment in new facilities. In the five years to 2022, the industry is anticipated to grow as increasing corporate profit allows businesses to commit to long-term construction projects. Growth is expected to be driven by demand from private nonresidential construction.

    Industry Report - Industry Locations Chapter

    The industry’s geographic spread generally corresponds with the distribution of economic activity and population. There is a disproportionately high representation of engineering consulting activity in major metropolitan areas, transport hubs and areas with a high concentration of heavy industry and natural resources.


    The Southeast accounts for the largest share of engineering activity, with an estimated 25.2% of industry establishments. This proportion closely mirrors the Southeast’s 25.6% share of the US population. However, the Southeast generates a smaller share of revenue than other regions, likely due to the nonspecialized nature of engineering operations in this region. Dem

    Additional Insights for the Engineering Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Engineering Services Industry are

  • Having contacts within key markets
  • Fast adjustments made to changing regulations
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Value of private nonresidential construction and Value of utilities construction in the Engineering Services industry impact industry performance..

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    Industry Products

    What is the Engineering Services Industry?

    Industry operators apply the physical laws and principles of engineering in designing, developing and using machines, materials, instruments, structures, processes and systems. These services may involve providing advice, preparing feasibility studies, preparing plans and designs, providing technical services during construction or development, inspecting and evaluating engineering projects and providing other related services.

    Industry Products
    Industrial and manufacturing projects
    Energy projects
    Project management services
    Commercial, public and institutional projects
    Transportation projects
    Municipal utility projects
    Telecom projects
    Other projects and services
    Industry Activities
    Providing design and management services for construction and engineering infrastructure projects
    Providing design and management services for environmental projects
    Providing design and management services for industrial processes and equipment
    Providing construction management services
    Process management (e.g. assessing engineering and product problems)
    Project planning and economic assessments
    Asset management, including life cycle asset management and management systems
    Feasibility studies, including environmental impact assessment and community consultation
    Quality management assessment and accreditation

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Value of private nonresidential construction
  • Value of utilities construction
  • Local and state government investment
  • Demand from mining
  • Value of residential construction
  • Yield on 10-year Treasury note

  • Current Performance
  • Oil, gas and mining activity
  • Chart: Revenue Growth

  • Industry Outlook
  • Private investment spurs growth
  • Green building emphasis grows
  • Profit margins and employment
  • Table: Engineering Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Engineering Services Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Mining
  • Utilities
  • Construction
  • Rail Transportation
  • Public Administration

  • Key Selling Industries
  • Accounting Services
  • Construction
  • Finance and Insurance
  • Law Firms
  • Professional, Scientific and Technical Services
  • Tax Preparation Services

  • Products & Services
  • Industrial and manufacturing projects
  • Other projects and services
  • Energy projects
  • Transportation projects
  • Commercial, public and institutional projects
  • Project management services
  • Municipal utility projects
  • Telecom projects
  • Chart: Engineering Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private businesses
  • Government bodies
  • Engineering firms
  • Architectural firms
  • Construction firms
  • Individuals
  • Nonprofit organizations
  • Chart: Major Market Segmentation for the Engineering Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesDepreciation and other
  • Chart: Cost Structure Benchmarking – Sector vs Engineering Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Engineering Services Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Engineering Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Engineering Services Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Value of private non-residential construction (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Chemical Engineering
  • Engineering that is focused on the design, construction and operation of plants and processes for producing acids, dyes, drugs, plastics and synthetic materials.
  • Civil Engineering
  • Engineering that is focused on the planning, designing, construction and maintenance of infrastructure, including highways and bridges, dams and irrigation, and mass-transit facilities.
  • Computer-Aided Design (Cad)
  • The use of computer technology to aid the design and drafting of a part or product using software tools that can create two-dimensional drawings or three-dimensional models.
  • Industrial Engineering
  • Engineering that is focused on managing efficient production, involving the design of production methods, plant analysis, the application of labor and materials, and the control of inventory.
  • Nonemployer Establishment
  • A sole proprietor or partnership with no payroll employees.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Engineering Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Engineering Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Engineering Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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