Digital Engineering – An Opportunity Unparalleled
The digital engineering market landscape, as brought out in the report, reflects the continued progress and interest the sector has drawn globally. Digital engineering has become the prime priority for enterprises across industries, with a significant portion of global ER&D spending going into creation of smart, connected, and intelligent products. In parallel, leverage of modern technology in the core engineering processes has also been increasing. With India’s aspirational pursuit of ~US$100 billion share in the ER&D sourcing market by 2025, digital engineering spend would be a key component fuelling the next wave of ER&D growth for businesses. This would also impact traditional engineering activities that will find decreasing relevance with enterprises.
Looking ahead, it will be a year of some reckoning for digital initiatives across industries and verticals such as Healthcare, Industry 4.0, Connected vehicles etc. There would be rapid scaling for digital adoption that would be driven by organizations ready to shift from traditional engineering activities. India’s rich engineering capability legacy also echoes across embracing a digital transformation. The shift from legacy is reshaping the engineering landscape. Product-based business models are being disrupted by service-based business models, addressing the digital skills gap and innovation success depends on the effectiveness of an organization’s open ecosystem. In this environment, traditional approaches to product innovation and engineering need to change and meet the realities of a digitized environment. Investments in AI/chatbots, APIs, analytics, cloud, IoT, mobile and social media from service providers along with Global Capability Centres are driving the ER&D services. However, accelerated investments and initiatives in digital engineering will be required to put India on the accelerated growth trajectory and maintain the digital continuity for product innovation.