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Global Engineering R&D industry growth
Global Engineering R&D industry growth

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The global engineering R&D industry has witnessed steady growth and is seen as one of the sectors which are expected to continue to have significant growth in the future as well.

 

ER&D 3

 

 

Right off the pandemic, the industry grew at a CAGR of 7-8% as the industry emerged out of uncertainty. This growth was largely driven by slower economy in 2020, followed by uncertainty and large push on digitization triggered due to COVID-19.

In the second phase, from 2023-2027, the industry is expected to grow at a CAGR of 8-9% as the industry stabilizes and undergoes transformation. While the industry is expected to continue to manage current economic uncertainties, this is expected to be followed by continued focus on innovation in digital & AI across sectors (e.g., mass AI adoption, xEV growth in automotive, digitization across sectors, etc.).

In phase 3, from 2027-2030, the industry’s growth is expected to leapfrog into high single digit and double-digit growth rates, reaching 9-10% CAGR. This phase is expected to witness sustained growth, owing to the strong global economic outlook and increasing spend in digital technologies across all sectors.

As part of the survey conducted while researching this report, over 70% leaders interviewed wanted to either continue with the same spend or even increase their ER&D spending in 2024, despite the global macro-economic uncertainties. 100% of the CXOs interviewed in the Healthcare and Medical devices domain wanting to maintain or increase their ER&D spend as a % of revenue. This is followed by CXOs from Aerospace and Defence, Telecom, Software, and Semiconductor sectors, where over 85% of the CXOs maintain that belief.

ER&D sector is expected to continue be the silver lining among all the sectors in this financial year and the coming years to come.  

 

To read more about the Engineering R&D sector globally and in India, check the links below.

Nasscom Community - https://community.nasscom.in/communities/engineering-research-design/nasscom-bcg-seizing-erd-advantage-frontiers-2030

Nasscom website - https://nasscom.in/knowledge-center/publications/nasscom-bcg-seizing-erd-advantage-frontiers-2030

 


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Vandhna Babu
Chief of Staff - President's Office

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