North America Aerospace Engineering Services Outsourcing Market – Segmented By Service Type (Design & Engineering Services, Simulation & Analysis Services, Testing & Certification Services, Manufacturing Support Services, Maintenance, Repair & Overhaul (MRO) Services, Others), By End Use Industry (Commercial Aviation, Defense & Military, Space & Satellite), By Outsourcing Type (Offshore Outsourcing, Onshore Outsourcing), By Country, Competition, Forecast & Opportunities, 2020-2030F

Market Overview:

North America Aerospace Engineering Services Outsourcing Market was valued at USD 67.79 Billion in 2024 and is expected to reach USD 115.84 Billion by 2030 with a CAGR of 9.34% during the forecast period. The aerospace engineering services outsourcing market is witnessing strong momentum as companies increasingly look to optimize costs, access specialized expertise, and accelerate product development cycles. Growth is being driven by rising demand for advanced aircraft designs, integration of digital engineering tools, and the need to streamline complex processes through external service providers. Outsourcing partners are enabling aerospace companies to focus on core competencies while leveraging innovation in simulation, testing, and systems integration.

Market Drivers

Increasing Government Spending in Aviation

Government investments in aviation projects are acting as a significant growth driver for aerospace engineering services outsourcing. Public funding directed toward modernizing fleets, upgrading defense systems, and supporting advanced research programs generates consistent demand for specialized engineering services. These initiatives often involve complex projects such as next-generation aircraft development, advanced propulsion systems, and enhanced avionics integration, all of which require diverse technical expertise. Outsourcing partners provide the necessary scale, cost efficiency, and technical know-how to support government-backed programs, ensuring compliance with strict defense and civil aviation standards. For instance, major US airports are undergoing massive upgrades with multi-billion-dollar projects. Los Angeles International is finalizing a $30bn program, including a $2.6bn automated people mover and $1.3bn car rental facility. Salt Lake City International, the first new US hub of the 21st century, is a $4.1bn replacement airport finishing Phase 2 in 2024. San Francisco International is investing $1.36bn in Harvey Milk Terminal 1 and International Terminal upgrades. Portland International’s $1.5bn main terminal features a nine-acre sustainable wood roof, while Pittsburgh International’s $1.4bn terminal opens in 2025. Denver International’s $1.3bn Great Hall project adds new ticketing and security areas, and Houston George Bush Intercontinental is completing the $1.3bn Mickey Leland International Terminal in 2024. Philadelphia International also spent $24m upgrading 30 restrooms.

Increasing Air Traffic

The steady increase in global passenger traffic is fueling demand for aircraft production and fleet expansion, directly boosting the need for aerospace engineering services outsourcing. Airlines are under constant pressure to expand their capacity, upgrade existing fleets, and adopt more fuel-efficient aircraft to meet growing passenger expectations for comfort and reliability. This rise in demand translates into higher workloads for aerospace manufacturers, who often rely on outsourcing partners to manage design, testing, and certification processes at scale. Engineering service providers assist in accelerating development timelines while ensuring compliance with strict safety regulations, allowing manufacturers to respond quickly to market needs. For instance, During the 2025 Spring Festival travel season (Jan 14–Feb 22), China’s civil aviation transported 90.2 million passengers (+7.4% YoY) via 739,000 flights (+8.3% YoY), averaging 2.255 million passengers and 18,500 flights daily. The flight regularity rate reached 94% (+7% YoY). Domestic demand surged across the “4+2+N” route network with strong traffic to Northeast China, Hainan, Urumqi, and Kunming, while international travel expanded with 1,921 daily international flights (+27.1% YoY). The peak single-day traffic hit 2.48 million passengers on Feb 3, the highest ever recorded.

Growing Demand for Aircraft

The global aerospace industry is experiencing a strong surge in demand for new aircraft, driven by expanding airline fleets, retirement of older planes, and increasing requirements for fuel-efficient, technologically advanced models. Meeting this demand requires significant engineering capacity, which often exceeds the internal resources of aerospace manufacturers. Outsourcing engineering services provides a scalable solution, giving companies access to external expertise in areas such as aerodynamics, structural engineering, propulsion systems, and avionics integration. Outsourcing partners contribute to faster design iterations, simulation-driven development, and certification processes, enabling manufacturers to deliver aircraft on schedule while meeting stringent safety and performance standards. In January 2023, Airbus S.A.S., a prominent original equipment manufacturer (OEM), announced a backlog of 7,239 aircraft. Notably, 91% of this backlog consisted of A320 and A220ceo/neo narrow-body models. In comparison, The Boeing Company reported a backlog of 5,430 aircraft, with 79% classified as narrow-body. 

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Key Market Challenges

Data Security and Intellectual Property Concerns

One of the most pressing challenges in aerospace engineering services outsourcing is ensuring the protection of sensitive data and intellectual property. Aerospace projects involve highly confidential designs, defense-related technologies, and proprietary systems that must be safeguarded against unauthorized access or misuse. Sharing such data with external service providers creates vulnerabilities that can lead to potential breaches, theft of trade secrets, or non-compliance with regulatory mandates. The complexity of global supply chains further intensifies the risk, as data may pass through multiple layers of subcontractors and digital platforms. Companies must invest heavily in secure communication channels, encryption technologies, and contractual frameworks to mitigate these risks. Even with safeguards, the concern over loss of control remains a barrier to outsourcing.

Compliance and Quality Management

Aerospace engineering operates under some of the most stringent quality and safety regulations of any industry. Outsourcing adds complexity to compliance management, as service providers must meet strict standards set by aviation authorities and clients. Maintaining traceability, documentation, and quality assurance across outsourced projects can be difficult, especially when work is distributed across different teams and geographies. Any lapse in compliance may lead to costly delays, project rejections, or safety risks. Companies must ensure that external partners not only possess relevant certifications but also follow rigorous processes aligned with aerospace industry benchmarks. Quality management requires constant monitoring, audits, and integration of outsourced work into the larger project framework without compromising safety or reliability.

Key Market Trends

Increasing Demand for Fighter Jets

Rising defense modernization programs and strategic military priorities are driving demand for fighter jets, requiring specialized engineering support for design, testing, upgrades, and maintenance. Outsourced services help defense manufacturers manage the technical complexity of advanced avionics, stealth technology, and weapons integration. Engineering providers are increasingly offering end-to-end solutions, including performance analysis, structural modifications, and certification assistance. The focus on rapid deployment and mission readiness is encouraging the use of simulation, digital twins, and predictive maintenance tools. This trend is creating significant opportunities for service providers to offer scalable, high-precision engineering solutions that align with stringent defense requirements. The U.S. Air Force’s 2026 budget cuts F-35 purchases to 24, adds 21 F-15EXs, and allocates $3.5 billion to the new F-47 sixth-generation fighter. B-21 production is accelerated, 162 A-10s will retire early, and F-22 upgrades continue. F-35 funds focus on Block 4 upgrades and spares, while F-15EX buys support long-range capabilities.

Integration of Artificial Intelligence in Engineering Services

Artificial intelligence is transforming aerospace engineering services by enhancing design efficiency, predictive analytics, and maintenance processes. Outsourcing partners are increasingly leveraging AI tools to automate repetitive engineering tasks, optimize design parameters, and analyze complex datasets with speed and precision. AI enables faster iterations of prototypes, early identification of design flaws, and improved decision-making in system integration. In maintenance operations, AI-driven predictive models help forecast component failures, reducing downtime and improving aircraft reliability. Outsourced service providers with expertise in AI applications are becoming indispensable, as aerospace firms seek to harness machine learning algorithms for tasks such as flight data analysis, materials optimization, and real-time performance monitoring. The integration of AI is also advancing sustainability initiatives by enabling more energy-efficient designs and reducing waste in production cycles.

Growth of Model-Based Systems Engineering (MBSE)

Model-Based Systems Engineering is gaining prominence as aerospace projects become increasingly complex and interconnected. Traditional document-based engineering is being replaced by digital models that serve as the single source of truth for system design, validation, and lifecycle management. Outsourcing partners are playing a pivotal role in adopting and implementing MBSE frameworks, offering expertise in developing and managing digital models that integrate multiple subsystems seamlessly. By leveraging MBSE, companies can improve collaboration, reduce errors, and accelerate design validation across teams. Outsourced engineering providers are helping organizations transition to model-centric processes, which ensure consistency and traceability across the development cycle.

Segmental Insights

Service Type Insights

In 2024, design and engineering services hold the dominant position in North America aerospace engineering services outsourcing market, driven by the growing complexity of modern aircraft development and the rising emphasis on innovation. Aerospace manufacturers face mounting pressure to produce fuel-efficient, lightweight, and technologically advanced aircraft, which requires specialized expertise in aerodynamics, avionics integration, materials science, and propulsion systems. Outsourcing design and engineering functions allows companies to leverage external partners with advanced digital tools, simulation capabilities, and domain knowledge, enabling faster development cycles and reduced reliance on costly in-house infrastructure. The increasing adoption of digital engineering, including model-based systems engineering and digital twins, further reinforces the importance of outsourced design services, as external providers bring agility and flexibility in implementing these advanced frameworks.

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Country Insights

In 2024, the United States dominates North America aerospace engineering services outsourcing market, supported by its advanced aerospace ecosystem and continuous investment in research, development, and innovation. The region’s strong demand for next-generation aircraft, modernization of defense programs, and emphasis on adopting digital engineering tools are fueling the growth of outsourced engineering services. Companies in the United States increasingly rely on external partners to support complex design, simulation, and testing activities, allowing them to shorten development cycles while maintaining compliance with stringent aviation standards. The widespread integration of digital twins, artificial intelligence, and model-based systems engineering within outsourced services further strengthens the country’s leadership in this market segment.

Canada represents the second largest market for aerospace engineering services outsourcing in 2024, benefiting from its skilled workforce, established aerospace manufacturing base, and rising demand for engineering support in aircraft systems and maintenance. Canadian aerospace firms turn to outsourcing partners to manage design and certification requirements while focusing in-house resources on core activities. The country’s growing emphasis on sustainability and development of energy-efficient technologies is also creating opportunities for outsourced engineering services in specialized domains such as lightweight materials and green propulsion systems.

Recent Developments

• ​In 2024, Cognizant acquired Belcan for around $1.3 billion, expanding its presence in aerospace and defense. Belcan’s 6,500+ engineers enhance Cognizant’s capabilities across commercial aerospace, defense, space, and industrial sectors. The acquisition is expected to generate $100 million in annual revenue synergies within three years and strengthen Cognizant’s service offerings, combining Belcan’s ER&D expertise with its digital engineering capabilities to drive innovation and meet growing client demands.
• In 2025, Hyderabad-based Cyient Ltd expanded its partnership with Deutsche Aircraft, securing a multi-year contract to manage technical documentation for the 40-seater D328eco turboprop.
• In August 2024, Boeing partnered with India’s AIESL to enhance MRO capabilities for the Navy’s 12 P-8I maritime surveillance aircraft. The collaboration enabled India’s first in-country P-8I landing gear overhaul at INS Rajali, supporting skill development and MSME participation under the Boeing India Repair Development and Sustainment program, strengthening the nation’s defense MRO ecosystem.
• In 2025, Lufthansa Technik launched a dedicated Used Serviceable Material (USM) business in the U.S., with operations centered in Miami and parts stored in Fort Lauderdale and Tulsa. The initiative streamlines sourcing by cutting out middlemen, offering airlines faster, cost-effective access to certified surplus components. It includes a 25,000 ft² expansion in Tulsa to support repairs and up to 500 new jobs, alongside plans for a new engine shop in Calgary by 2027.
• In 2025, Hanwha Aviation, a subsidiary of Hanwha Aerospace, completed the acquisition of a U.S.-based aircraft engine maintenance, repair, and overhaul (MRO) facility, marking a strategic expansion of its global service network and reinforcing its position in the international aerospace support market.
• In 2025, Georgia is solidifying its role as a U.S. East Coast aerospace hub, with the industry contributing $57 billion to the state economy and supporting over 200,000 jobs. The state’s ecosystem spans advanced air mobility startups, the nation’s largest MRO operations, and strong academic partnerships, positioning Georgia as a key center for aerospace growth and innovation.

Key Market Players

• Northrop Grumman Corporation
• Accenture plc
• L&T Technology Services
• Altran Technologies (now part of Capgemini)
• IBM Corporation
• Siemens AG
• Boeing Global Services
• Lockheed Martin Corporation
• Raytheon Technologies Corporation
• General Electric Aviation

Report Scope:

In this report, North America Aerospace Engineering Services Outsourcing Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•           North America Aerospace Engineering Services Outsourcing Market, By Service Type:

o    Design & Engineering Services

o    Simulation & Analysis Services

o    Testing & Certification Services

o    Manufacturing Support Services

o    Maintenance, Repair & Overhaul (MRO) Services

o    Others

•           North America Aerospace Engineering Services Outsourcing Market, By End Use Industry:

o    Commercial Aviation

o    Defense & Military

o    Space & Satellite

•           North America Aerospace Engineering Services Outsourcing Market, By Outsourcing Type:

o    Offshore Outsourcing

o    Onshore Outsourcing

•           North America Aerospace Engineering Services Outsourcing Market, By Country:

o    United States

o    Canada

o    Mexico

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in North America Aerospace Engineering Services Outsourcing Market.

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North America Aerospace Engineering Services Outsourcing Market report with the given market data, Tech Sci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

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