Digital Engineering Services: Driving Future Engineering Growth through Digital Technology

In the rapidly evolving landscape of digital engineering, enterprises are navigating economic, technological, and consumer-driven forces that are reshaping their priorities. Macroeconomic uncertainty is driving innovation and R&D to maintain competitiveness. There is a growing demand for connected products and new revenue streams, focusing on operational efficiency and evolving business models. Sustainability and regulatory compliance are crucial, especially for asset-heavy industries, which are reevaluating product engineering approaches. Evolving customer preferences are steering companies toward hyperpersonalization and sustainable products, reflecting a shift toward customized and eco-friendly solutions.

Both demand- and supply-side trends are covered in Avasant’s Digital Engineering Services 2024 Market Insights™ and Digital Engineering Services 2024 RadarView™, respectively. These reports present a comprehensive study of digital service providers in the digital engineering space, including top trends, analysis, and recommendations. The reports also closely examine the leaders, innovators, disruptors, and challengers in this market.

Avasant evaluated 39 providers using three dimensions: practice maturity, investments and innovation, and partner ecosystem. Of the 39 providers, we recognized 23 that brought the most value to the market during the past 12 months.

The report recognizes service providers in four categories:

• • Leaders: Accenture, Capgemini, HCLTech, Infosys, L&T Technology Services, and TCS
  • Innovators: Cognizant, Cyient, IBM, Tata Elxsi, Tech Mahindra, UST, and Wipro
  • Disruptors: Akkodis, EPAM, eInfochips, HARMAN, and Infinite Computer Solutions
  • Challengers: ACL Digital, Brillio, Happiest Minds, Persistent Systems, and VVDN Technologies

Figure 1 below from the full report illustrates these categories:

“With economic uncertainty and disruptions, enterprises, especially in capital-intensive sectors, face the challenge of reinvention. Combining engineering and technology is key to innovation and cutting costs,” says Michael Wheeler, partner at Avasant. “Digital engineering plays a pivotal role by merging OT-IT environments for sustained growth.”

The full report provides a number of findings, including the following:

• • With market softness due to macroeconomic uncertainty, especially in manufacturing, automotive, and healthcare and life sciences industries, the focus is on innovation and investments in ER&D. This proactive approach is essential to prepare for
    future business opportunities and maintain a competitive edge.
  • As operational efficiency becomes more critical, enterprises are shifting toward “platformization” and connected digital threads. By utilizing advanced networks, IoT, and automation, they aim to boost efficiency and cut costs throughout the product life cycle.
  • Traditional enterprises are seeking new revenue sources as digital-native competitors disrupt established norms. By integrating hardware and software engineering and leveraging AI, 5G, and edge computing, they aim to create new revenue streams in industries such as automotive, telecom, aerospace, and defense.
  • Asset-heavy industries are rethinking the product engineering approach due to an increased focus on sustainability and regulatory changes. By leveraging digital and emerging industrial technologies, companies aim to improve engineering processes, comply with regulations, and meet sustainability goals.
  • As customer preferences shift toward hyperpersonalization and sustainability, enterprises are leveraging AI, ML, and analytics. This enables them to create tailored experiences in areas such as infotainment, resource management, and smart building management solutions.

“Technology is driving the next stage of engineering evolution, with connected platforms and service-based offerings leading business conversations,” says Rohan Sahoo, senior analyst at Avasant. “Combining next-generation technologies such as generative AI, digital twins, and AR/VR/XR is crucial for delivering engineering value.”

The Digital Engineering Services 2024 RadarView™ also features detailed profiles of 23 service providers, along with their solutions, offerings, and experience in assisting enterprises in their digital engineering journey.

This Research Byte is a brief overview of the Digital Engineering Services 2024 Market Insights™ and Digital Engineering Services 2024 RadarView™ (click for pricing).