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Current state of cloud adoption across various engineering and manufacturing industries
Current state of cloud adoption across various engineering and manufacturing industries

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In the last 2-3 years, the mindset of companies regarding cloud has drastically changed. Cloud adoption has become imperative for survival now.

Engg cloud 4

*Indicative not exhaustive

 

There are various industries where we have witnessed higher adoption of cloud, while some are still exploring the full extent of the advantages that cloud offers. However, there are some industries in the Engineering R&D (ER&D) industry, that are slow to adopt cloud.

High adopters include automotive, healthcare & life sciences, and manufacturing industries. Automotive industry, as a whole, has complex design and product innovation requirements. Automotive has been able to adopt cloud by moving crucial design and simulation activities to cloud. Similarly, manufacturing sector too has high design and simulation workloads and reliance on IT and OT systems. Hence this sector too has been shifting its applications on cloud for better collaboration and ease of operation. Post pandemic, healthcare and life sciences sector has realised the need to access data from anywhere. Hence during Covid, the sector picked up its cloud adoption to focus on providing remote healthcare and monitoring.

Moderate adopters include heavy equipment manufacturers, telecom, retail & CPG, and utilities sectors. Heavy equipment manufacturers have relatively high design and simulation workloads and reliance on both IT and OT systems, and hence are already ahead in cloud adoption for product design and life cycle. However, they are slow to move OT to the cloud. Telecom sector has a relatively short product life cycle, therefore there is limited deployment of PLM systems. Companies present in this sector face high competition and to stand apart and be profitable they require high product innovation through better design and simulation on the cloud. For Retail and CPG, the sector has relatively high product life cycle management requirements, but low design and simulation workloads due to less emphasis on 2D/3D designs, leading to medium cloud adoption. Utilities sector has widespread infrastructure spread across plants, resource generation, and distribution networks. However, the companies in this sector are still reluctant to move to the cloud because of growing cyberattacks on the utilities industry.

Low adopters include aerospace and defence, agriculture, and construction and engineering sectors. Aerospace and defence sector is a highly regulated industry, leading to low cloud adoption. Agriculture sector is yet to identify the potential cloud use cases. Enterprises are reluctant to move systems such as for crop monitoring to the cloud. While construction and engineering sector have stable workloads, leading to reluctance in shifting these workloads to cloud.

While many sectors are still on their path to adopt cloud, the traditional reluctance to adopt cloud for engineering and manufacturing operations is fast fading, and growth is fast-tracking and is expected to continue at a steady pace.

 

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
Chief of Staff - President's Office

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