As per a recent report by Zinnov, India will be accounting for 41 per cent of the global digital engineering services market by 2025.
At present, India accounts for $10.6 billion of the digital engineering market share which is further expected to increase by four-fold in five years.
According to the report, the global engineering research and development (ER&D) spend by organisations worldwide stood at $1.4 trillion in financial year (FY) 2019, and is expected to grow at a compound annual growth rate (CAGR) of 8 per cent to cross $2.2 trillion by 2025. During the period, digital engineering spend is expected to grow to $1.2 trillion and account for 53 per cent of the overall ER&D spend.
Further, the report added that India will be a powerhouse to drive digital engineering delivery through both global contact centres (GCCs) and service providers due to a combination of factors like the country’s new-age digital talent pool, coupled with a strong ecosystem of GCCs, ER&D service providers, and burgeoning start-ups in the space.
According to the study, software and internet vertical accounts for $160 billion of the $404 billion digital engineering spend, and will eventually account for 46 per cent of all digital engineering spend by 2025.
In addition to focusing on building new-age products and platforms, software and internet firms seek to expand to areas that were non-core to them before now. As a consequence, they continue to invest in building capabilities around artificial intelligence (AI)/ machine learning (ML), augmented reality (AR)/virtual reality (VR), big data analytics, and blockchain, the report added.