• Engineering opportunities in Asia include specialised and outsourced services as well as precision engineering solutions
• The outsourced engineering market size in Asia surpassed USD800 million in 2023
• Many engineering companies active in the region fail to take full advantage of available opportunities

Asia needs engineering. The region is growing across the board, and that has created a demand for everything from design and development to consulting and specialised services. Many local organisations rely on overseas companies to assist in areas where they may lack experience or would prefer to have an international standard of engineering involved. Asian Insiders Managing Partner, Jari Hietala, takes a look at the possible opportunities on offer.

Any overview of engineering opportunities in Asia must first address a very important point. No two countries are the same in terms of entry requirements, operational permission, market needs, or any other number of issues. Additionally, existing firms with a regional presence may not be tapping into the full potential this provides.

Both situations can be tricky for different reasons. International engineering firms considering Asian expansion need to identify suitable markets, as well as what areas of business to focus on, and then address the various challenges that arise during the entrance process.  

The latter situation can prove just as painful. It is not unusual to see existing foreign engineering organisations operating in Asia shoehorned into areas of expertise. In-house sales teams then focus on proven products and services at the expense of new opportunities. While this allows for short-term success, it also caps long-term potential in Asia.    

Sector at a glance

A lot is happening across Asia, leading to increasing demand for engineering solutions. A significant amount of infrastructure investment spanning from construction and renewables to digitisation is driving much of this. Additionally, partnerships with international engineering firms provide a level of prestige and credibility for local firms in select markets.

A noticeable trend being seen is an uptick in demand for outsourced engineering services. Cost-efficiency and access to specialised expertise are major reasons for this. Overseas entities boasting a proven track record of success are sought after.

The outsourcing market size in Asia surpassed USD800 million in 2023, and the projected compound annual growth rate between now and the end of the decade is 24 percent. India is predicted to see the largest increases, but the sector will grow in the majority of countries.

However, outsourced service is not the only area where firms can enjoy success. Engineering outfits with proprietary technologies should not overlook how these could be utilised in Asia. Thorough research can uncover new and lucrative opportunities.  

Overview of engineering opportunities in Asia

Several large multinational firms now have a widespread presence and are active in many sectors. Competition in Asia is certainly fierce, especially with the arrival of Chinese engineering companies, who may possess access to lower costs and cheaper financing. That being said, there are still numerous opportunities available.

As mentioned above, outsourced engineering services are becoming increasingly in demand. So too are specialised services in renewables, healthcare, transportation, data centres, and other fields.

Activities in all four sectors are predicted to grow for the foreseeable future. There will also be a demand for cutting-edge engineering capabilities.

Precision engineering is another segment to watch. Experts believe it could see significant growth due to the number of countries reliant on the manufacturing of high-precision components for products such as electric vehicles, aerospace parts, and advanced medical devices, found throughout the region. Improving output reliability and performance is a priority.

An important figure to take note of: Asia accounts for almost half of the current precision engineering market which is expected to surpass USD300 billion in 2025. Companies with expertise here should explore opportunities in the region.

For engineering organisations already active in Asia, local expansion is a possibility. There may be products or services that are successful in other markets but, for whatever reason, haven’t gained a foothold in Asian countries.

In some cases, opportunities for these exist, but local sales and marketing teams may not know where to look. Identifying possible gaps and finding a distributor capable of tapping into demand is the easiest way to increase sales.

Why do engineering companies fail?

The most common pain point for engineering companies, both those entering Asia and ones with an existing presence, is failing to recognise what the market needs. Too often, assumptions drive business decisions.

Even if this doesn’t lead to outright failure, it does limit the scope of success a firm can potentially have. A mistake sometimes made by engineering businesses is assuming there isn’t a demand for certain activities or products in their portfolio and deemphasising these.

Unfortunately, the decision is made based on assumptions or basic observations and not thorough research. Avoiding this trap is crucial to avoiding failure in Asia.

Final thoughts

There are a lot of engineering opportunities for foreign companies in Asia. The industry is also among the most challenging to break into. Whether you are a newcomer looking to make inroads or an existing player hoping to expand, a partnership with Asian Insiders can help you avoid obstacles and identify pathways for success.

For firms considering market entrance, Asian Insiders is able to identify where products and services will be most in demand and then ensure you have the right strategy in place to find success.

For engineering companies wanting to scale up activities, we conduct detailed market research to help you understand what opportunities may be available in existing Asian markets. At that point, it is possible to develop potential sales channels, including introductions to partners.

At the end of the day, many engineering companies fail to reach their full sales potential in Asia. Working with Asian Insiders can ensure it doesn’t happen to your business. Our team of in-country experts has the on-the-ground knowledge and experience to place you on the road to success.

Want to know more about the opportunities in Asia that are now available to engineering companies? Schedule a no-obligation call with Jari Hietala, Managing Partner: jari.hietala (at)asianinsiders.com