Topics In Demand
Notification
New

No notification found.

Mega trends shaping Engineering R&D sector globally
Mega trends shaping Engineering R&D sector globally

229

0

The global Engineering R&D sector has witnessed an accelerated growth post the pandemic. From approximately USD 1.1-1.5 trillion in 2020, the sector had a CAGR 7-8% growth and is expected to reach USD 1.5-1.8 trillion by the end of the calendar year.

 

ER&D 1

 

The reasons for this steady growth driven by increase in ER&D spend included recovery from the pandemic, which led to improved spending in the sector to bridge market demands, increasing adoption of newer technologies and heightened demand for innovation from consumers.

As the industry is expected to expand and move forward in the coming years, there are some key mega trends which are expected to shape the future of global ER&D spend.

 

ER&D 2

 

  1. Increasing prominence of Digital Engineering – As the industry has evolved over the years, we have witnessed growing integration of digital technologies with traditional products. Companies are increasingly recognizing the improved outcomes both for themselves and their consumers and this has led to increasing business spend. 
  2. Climate change and sustainability ambitions being key drivers for ER&D spend – Globally, the changing climate targets and evolving regulations are driving the agenda for reduction of carbon footprint, building sustainable products and adoption of green energy. This is leading enterprises to be more conscious in their efforts to create green products, incorporate greener methods across their entire value chain, thereby increasing the ER&D spending intensity.
  1. AI augmentation and generative engineering - Generative engineering and the increasing use of AI has automated and optimized design and testing across industries, specially automotive, aerospace, and manufacturing, thereby increasing efficiency, and reducing costs. Growing use of generative AI in engineering has contributed to the growth of the sector.
  1. Service orientation – Shift in engineering models – Shifting orientation towards combining products and services is continuing to gain traction across industries, including heavy equipment, automotive and energy, resulting in a shifting service orientation.
  1. Population & skill inversion: Shifting Skills and talent pools – Globally, many developed economies are faced with the challenges of ageing population and skills gaps. This, in itself, is reshaping the ER&D spend patterns and intensity.

We are witnessing massive shifts in the engineering R&D sector and this growth is only expected to rise over the next few years.

 

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


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


images
Vandhna Babu
Principal Analyst - Research

© Copyright nasscom. All Rights Reserved.