The engineering services industry is undergoing a profound and rapid transformation. Far from limiting themselves to the technical execution of projects, companies in the sector are expanding their value proposition to become strategic partners for their clients. This evolution is no accident; global demand, technological changes and public policies are shaping a new paradigm in which engineering is becoming a key player in innovation, sustainability and business competitiveness.
ChatGPT Plus At Baker Tilly, we have prepared a detailed report on the Engineering Services market that analyzes this transformation from a strategic, sectoral, and investment perspective. Below, we share a preview with five of the most relevant trends that we explore in depth in the full report.
Engineering and Consulting: the convergence that shapes the future
Traditionally, engineering and consulting have been separate disciplines. While one focused on technical execution, the other focused on strategic analysis. However, today both worlds are converging.
Engineering firms are incorporating analytical, planning, and project management capabilities that were previously the domain of consulting firms. Why? Because clients are no longer just looking for designs or structural calculations: they need partners who will accompany them throughout the entire life cycle of their assets, from planning to operation.
All of this implies greater integration of digital tools such as BIM or digital twins, the strengthening of data analysis, predictive modelling and optimisation capabilities, and a greater emphasis on project management services, regulatory compliance and access to public funding (Next Gen, PERTEs, PNIEC, etc.).
This fusion of capabilities is giving rise to new hybrid company profiles: technically sound, but also capable of advising on strategy, sustainability, and digital transformation.
Sustainability and green infrastructure: an unstoppable (and funded) wave
The energy transition and the fight against climate change are driving increasing demand for engineering services in areas such as renewable energy, energy efficiency, and electric mobility. The 2023–2030 Integrated National Energy and Climate Plan (PNIEC) forecasts over €308 billion in investments by 2030, with 82% coming from the private sector.
Some specific opportunities highlighted in the report:
- Design and maintenance of solar parks, wind farms and green hydrogen facilities.
- Energy renovation projects for buildings (industrial, public, residential).
- Electric charging infrastructure for vehicles, both public and corporate.
- Development of smart grids and integration of storage and demand management.
These areas are generating a new cycle of intensive investment in engineering, especially in Spain and Europe. And it is not just a question of volume: firms specialising in sustainability are receiving higher valuation multiples in purchasing processes, reflecting their growing strategic importance.
If you want to learn in depth about company valuation by multiples, our article published in the M\&A Academy contains all the details about this method.
Engineering in the age of automation and flexible working
Automation is reshaping the rules of the engineering labor market. According to the World Economic Forum, machines will outperform humans in tasks by 2025, but this will not reduce employment. A net creation of 60 million new jobs is expected annually worldwide.
This change means that there will be increased demand for professionals specialising in flexible systems, automation, control and digitalisation. There will also be growing interest in remote, project-based and part-time working formats, leading to an increased need for profiles capable of combining technical knowledge with digital and management skills.
The report also warns of a worrying gap in Spain: enrolment in engineering studies has fallen by 37% in the last 20 years, and 50% of students drop out before completing their degree. This talent shortage is pushing many companies to seek non-organic solutions, such as alliances or acquisitions.
M&A in engineering: specialisation, scale and private equity
The Engineering Services sector is highly fragmented, with thousands of small and medium-sized players operating in specific niches. This fragmentation, combined with the growing technical demands of customers, has made the market fertile ground for mergers and acquisitions (M&A).
Key trends:
- Operations are focused on highly specialized companies: fire protection, seismic analysis, data center design, and industrial piping.
- Certified companies with an international presence and repeat customers are priority targets.
- Private equity (private equity) accounted for nearly 40% of transactions in 2023 in markets like the U.S., and its role is increasingly significant in Europe.
- Ratings are higher for companies focusing on sustainability, digitalisation, and public works.
In addition, many founders and owners of small firms are choosing to sell due to the difficulty of growing without scale: attracting talent, investing in technology, or taking on international projects requires muscle that they cannot always generate organically.
In Spain, reindustrialisation and digital transformation are driving engineering forward
In Spain, the combination of industrial digitalisation, sustainability goals and European funds is driving a period of profound transformation.
Key data on the sector in Spain (according to the Engineering Observatory):
- More than 700,000 active engineers, but the industry's contribution to GDP has fallen from 19% to 14.7% over two decades.
- In 2022, engineers earned 40% more than the national average, and 60% work in large companies.
- More than 200,000 new engineers will be needed between 2022 and 2032 to meet the expected demand.
This represents a great opportunity to:
- Technical SMEs seeking to partner with or integrate into large groups.
- Consulting firms or engineering companies looking to expand their portfolio into sectors such as clean energy, data centers, or automation.
- Investors interested in consolidating fragmented niches with high growth potential.
Conclusion on the latest trends in the engineering services sector
The Engineering Services market is no longer just a technical sector; it is a strategic space where innovation, sustainability, talent, and capital converge.
Our report delves into the global and local landscape of the sector, including analysis of growth, segments, geographies, and applications. In it, you will find the complete value chain of engineering services, as well as investment and M&A dynamics, including analysis by size, region, and specialisation. Finally, we provide several specific cases and key data on the Spanish market.
Market report Engineering services 2025
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