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Key cloud adoption drivers for engineering activities
Key cloud adoption drivers for engineering activities

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The global market for cloud for engineering activities is expected to cross USD 50 bn by 2027 and USD 106 bn by 2030. In the next 3-5 years, until 2027, Industry 4.0 and product servitization expected to drive cloud adoption, with cloud security and 5G likely to mitigate latency and security concerns.

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  1. 5G – By 2025, out of the total 12 billion connections globally, 35% are expected to be 5G connections. 5G is expected to reduce latency and provide high bandwidth on the cloud and enable real time data exchange and accurate predictive and prescriptive analytics.
  1. Product servitization is predicted to drive better integration - Bundling services with products is expected to become commonplace in the next few years. Enterprises will need to better integrate customer data in design and production cycles. Moving engineering and manufacturing to the cloud will be critical for seamless integration with ERPs and CRMs.
  1. Industry 4.0 is expected to accelerate digital transformation - Industry 4.0 is expected to expedite enterprises to automate manufacturing and engineering processes and drive adoption of IoT, AR/VR/XR, and drones, and the cloud will act as a strategic enabler.
  1. Cloud security is predicted to become a key adoption driver and is expected to continue to improve with periodic posture assessments and upgrades. Security of OT systems will become a strategic priority for cloud ecosystem players. So far, security is inhibiting enterprises but will eventually drive them to the cloud.

 

In the long run, until 2030, SaaS applications, sustainable engineering, and quantum computing are expected to revolutionize engineering and manufacturing operations in the long run.

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  1. Quantum computing is expected to have a significant impact on the manufacturing, high tech, and construction industries. It will also likely improve accuracy of product design and simulation by accurately calculating system loads. It is also predicted to support control and governance by supporting multivariable analysis in production flows and scheduling.
  1. SaaS applications - The industry will continue to move towards the adoption of SaaS solutions across the product development and manufacturing cycle. Ecosystem players are expected to collaborate, build more customizable solutions, and integrate technologies such as IoT and AR/VR to solve emerging use cases. In the long run, both enterprises and ISVs will need to strike a balance between traditional customizations in engineering applications and the standardized SaaS applications.
  2. Sustainable manufacturing and engineering are fast becoming a strategic priority for enterprises and need operational data for better insights. Engineering applications on the cloud will help enterprises better track and exchange information in real time for resource, energy, and material consumption.

 

To know more about cloudification of engineering and manufacturing applications, read our reports from the links below –

NASSCOM Community – https://community.nasscom.in/communities/nasscom-insights/nasscom-avasant-engineering-and-manufacturing-transformation

NASSCOM Website - https://nasscom.in/knowledge-center/publications/nasscom-avasant-engineering-and-manufacturing-transformation


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Vandhna Babu
Principal Analyst - Research

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