United States Engineering Industry Market Research Report 2025

INTRODUCTION

Research Scope & Methodology

This report provides an in-depth analysis of the US engineering industry in 2025, covering market dynamics, growth patterns, workforce trends, competitive landscape, and future outlook. The findings are based on data from government agencies, market research firms, and industry studies including Grand View Research, Deloitte, BLS, and Polaris Market Research.

Objectives

• Analyze market size and growth trends

• Identify key sectors driving industry expansion

• Examine workforce dynamics and employment patterns

• Profile major industry players

• Assess technological and market disruptions

• Outline challenges facing the industry

• Review the educational landscape supporting engineering talent

INDUSTRY OVERVIEW

Definition & Scope

The engineering industry in the US spans consulting, design and development, construction management, maintenance, and specialized services. Disciplines include civil, mechanical, electrical, chemical, aerospace, software, environmental, and emerging fields such as bioengineering and semiconductor engineering.

Industry Structure

Key service categories:

• Design & Development

• Consulting Services (largest segment, 19.2% revenue share in 2024)

• Construction & Project Management

• Maintenance & Support

• Specialized Engineering Services

• Technology Integration Services

Economic Significance

Engineering underpins infrastructure development, innovation, and manufacturing competitiveness, supporting industries from energy and healthcare to aerospace, defense, and telecommunications.

MARKET SIZE & GROWTH

Global Market

• $3.42T in 2024 → $4.72T in 2030 (5.7% CAGR, 2025–2030)

• Alternative estimates: $1.15T in 2025 → $1.32T in 2029 (3.5% CAGR), reflecting narrower definitions of “engineering services.”

US Market

• Strong growth across civil, mechanical, electrical, and software engineering.

• Certain segments project CAGR up to 8.75% through 2032 (Polaris).

Growth Drivers

• Federal infrastructure spending (Infrastructure Investment & Jobs Act)

• Favorable financing conditions from lower inflation/interest rates

• Private and public investment in construction, utilities, and manufacturing

• Demand for specialized engineering in semiconductors, robotics, and AI

• Digital transformation across industries

KEY SECTORS & APPLICATIONS

Primary Disciplines

• Civil Engineering: Infrastructure, transportation, water management, urban planning.

• Electrical Engineering: Power, telecom, electronics, renewable energy, smart grids.

• Mechanical Engineering: Manufacturing, aerospace, automotive, energy; growth from automation and advanced manufacturing.

• Software & Systems Engineering: Embedded systems, software development, cybersecurity, systems integration.

Emerging Specializations

• Environmental Engineering: Renewable energy, waste management, remediation.

• Bioengineering & Biotechnology: Medical devices, pharma, biotech innovations.

• Semiconductor Engineering: Critical to domestic chip manufacturing and supply chain resilience.

WORKFORCE & JOB MARKETS

Employment Statistics

• ~2.1 million engineers employed in 2024 (BLS, architecture & engineering occupations).

• ~195,000 annual openings projected (growth + workforce replacement).

Job Growth Areas

• Information security analysts: +32% growth

• Software developers: +26% growth

• Manufacturing engineers: 30,000+ new jobs by 2029

Salaries & Compensation

• Median annual wage: $97,310 (May 2024), ~2× national average.

• Engineer salaries up ~7% in five years; compensation remains key to recruitment/retention.

Work Arrangements

• 61% of engineers fully on-site

• 26% hybrid

• 13% fully remote

• Most large firms require ~3 days/week in-office, with return-to-office mandates increasing.

In-Demand Skills

• Semiconductor engineering

• Robotics and automation

• Advanced manufacturing

• Cybersecurity

• AI & machine learning

• Environmental & sustainability engineering

MAJOR COMPANIES

Leading Firms

1. AECOM – Transportation, environmental remediation, water systems, urban planning

2. Jacobs Solutions Inc. – Defense, aerospace, smart infrastructure, cybersecurity

3. Tetra Tech – Water, environment, renewable energy, climate adaptation

4. WSP USA – Transportation, urban development, energy & utilities

5. Fluor Corporation – Oil & gas, mining, nuclear, advanced manufacturing

EMERGING TRENDS

• Digital Transformation & Industry 4.0: BIM, digital twins, AI, cloud platforms.

• Sustainability & Green Engineering: Carbon reduction, renewable systems, sustainable design.

• Automation & Robotics: Growth in manufacturing, construction, infrastructure maintenance.

• Remote & Hybrid Work Models: Flexible structures supported by digital collaboration tools.

• Interdisciplinary Collaboration: Integrated cross-functional engineering teams.

• AI & Machine Learning: Applied in design optimization, predictive maintenance, and project planning.

CHALLENGES

• Talent Shortages: High demand for semiconductor, robotics, and AI engineers.

• Aging Workforce: Retirement-driven succession challenges.

• Return-to-Office Mandates: Potential retention risks for engineers seeking flexibility.

• Regulatory Complexity: Environmental, safety, and compliance requirements.

• Supply Chain Disruptions: Impacting project costs and timelines.

• Cybersecurity Risks: Growing vulnerabilities with digital/cloud adoption.

• Competition for Talent: Rising salaries strain smaller firms.

• Economic Uncertainty: Financing costs tied to inflation and interest rate shifts.

EDUCATIONAL LANDSCAPE

• Universities & Colleges: Hundreds of accredited engineering programs nationwide.

• STEM Initiatives: Federal/state programs to expand engineering pipelines.

• Industry–Academia Partnerships: Internships, co-ops, research collaborations.

• Continuing Education: Certifications and CPD through professional bodies.

• Diversity & Inclusion Efforts: Expanding participation among underrepresented groups.

• Alternative Pathways: Coding bootcamps, online platforms, certifications for software/system engineering careers.

CONCLUSION

The US engineering industry in 2025 is marked by strong fundamentals, positive growth prospects, and strategic importance to national competitiveness. Federal infrastructure investments, digital transformation, and emerging technologies will continue to drive expansion.

However, the sector must urgently address talent shortages, succession planning, and the integration of new technologies. Firms that prioritize digital adoption, sustainability, interdisciplinary collaboration, and workforce development will be best positioned for long-term success.

The industry’s central role in innovation, infrastructure, and economic growth ensures its continued importance. By tackling current challenges, the US engineering sector can reinforce its global leadership and secure sustainable growth through 2030 and beyond.