With the continuous advancement in technologies, enterprises have changed the way they used to operate. Businesses are leveraging the power of new-age technologies to create smart, secure, and connected products. In the last few years, India has witnessed tremendous growth in the IT services and product engineering space, driven by increased spending on tech innovation and industrial production.
According to a report by McKinsey & Company, the Indian IT industry is expected to reach about $300-$350 billion revenue mark over the next five years growing 10% a year compared to 7.5% per year in the last 5 years.
India has been the first choice for technology services providers across the world and is now a product engineering hub. India’s prowess in design and product engineering space will create a global brand as a country providing novel ideas and smarter products. Product engineering services encompass the use of various hardware, embedded, software technologies for design and development of products.
On the innovation front, the major growth drivers include new-age technologies like IoT, digital twins, cloud computing, edge computing, artificial intelligence, robotics, AR/VR, and 3D printing. Along with this, product and digital transformation across verticals including industrial automation, finance, healthcare, defense, and many more have boosted the product engineering services industry.
As per Zinnov, in 2019 the global spending on product engineering, also called Engineering R&D, was poised at $1.36 trillion in 2019, which is projected to grow at a CAGR of over 7% to reach $2.2 trillion by 2025.
India is among the largest exporter of ER&D services in the world. The recent NASSCOM report titled “Advantage India: Gateway to Global Engineering and Innovation” projects the Indian ER&D services sourcing market to grow from $31 billion in 2019 to $63 billion in 2025 at a CAGR of 12%.
Despite the effect of the pandemic in the last 2 years, the ER&D exports from India continued to grow owing to the ease of doing business, IP protection, technical excellence, a large pool of engineers, demographic advantages, and quality infrastructure.
Contributed by @Rajni Matta (Mar 2022)
King Group, G.T. Road
Sahnewal, INDIA - 141120
info@kinggroup.in
info@kinggroup.in