India’s data engineering market share is likely to increase four times to $42.4 billion by 2025 from the current $10.6 billion, according to management consulting firm Zinnov.
The global digital engineering services market stands at $29 billion in FY2019 and is expected to touch $106 billion in 2025, it said, adding that India would account for 41% of the market addressed by ER&D service providers and global capability centres (GCCs).
The Silicon Valley headquartered firm, in a study titled Digital Engineering Services Landscape 2020, aims to enable business leaders across industries analyse transformative trends and make informed decisions on their digital engineering priorities.
“Digital engineering capabilities are key for companies to stay relevant during these times of metamorphosing industry landscapes. Future global engineering research and development (ER&D) spends will be fuelled by digital engineering initiatives of enterprises across verticals. Nearly half of the global ER&D spend will be from digital engineering initiatives in the next five years,” Pari Natarajan, CEO of Zinnov, said.
The study estimates that the global ER&D spend by organisations worldwide stands at $1.4 trillion in FY2019 and is expected to grow at a compound annual growth rate (CAGR) of 8% to hit $2.2 trillion by 2025.
Of the $404 billion digital engineering spend worldwide, the software and internet vertical currently accounts for $160 billion, and will eventually account for 46% or $185.44 billion of all digital engineering spend by 2025.
India will drive digital engineering delivery through both GCCs and service providers due to a combination of factors like the country’s new-age digital talent pool, along with an ecosystem of GCCs and ER&D service providers, the study said.
“Enterprises are increasingly seeking to tap into global digital engineering talent chains and ecosystems to drive transformative initiatives. India’s growing new-age talent pool with capabilities across disruptive technologies such as artificial intelligence, machine learning, internet of things, advanced analytics and platform engineering will enable it to account for the lion’s share of the global digital engineering addressed market by 2025,” CEO Natrajan said.