This report identifies key demand-side trends in the digital engineering space that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in the digital engineering space based on Avasant’s assessment.
Enterprises are responding to persistent economic headwinds by accelerating engineering life cycle optimization. AI-enabled engineering, cloud platforms, and digital twins are being adopted to sustain efficiency and competitiveness. As organizations build connected digital threads, securing data and assets has become critical, prompting the integration of cybersecurity frameworks and AI-driven threat management. Evolving customer expectations are also reshaping R&D priorities, with enterprises using analytics, generative AI, and AR/VR to deliver personalized and innovative products. At the same time, sustainability remains central, with digital technologies helping improve product design, reduce environmental impact, and optimize resource use for long-term growth.
The Digital Engineering Services 2025–2026 Market Insights™ aids enterprises in identifying important market trends and challenges for any digital engineering project they participate in.
The industry insights presented in this report are based on the following: our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.
About the report (Page 3)
Executive summary (Pages 5–8)
Digital engineering: State of the market (Pages 9–13)
Key contacts (Page 14)
Read the Research Byte based on this report. Please refer to Avasant’s Digital Engineering Services 2025–2026 RadarView™ for detailed insights on the service providers and supply-side trends.
Avasant’s research and other publications are based on information from the best available sources and Avasant’s independent assessment and analysis at the time of publication. Avasant takes no responsibility and assumes no liability for any error/omission or the accuracy of information contained in its research publications. Avasant does not endorse any provider, product or service described in its RadarView™ publications or any other research publications that it makes available to its users, and does not advise users to select only those providers recognized in these publications. Avasant disclaims all warranties, expressed or implied, including any warranties of merchantability or fitness for a particular purpose. None of the graphics, descriptions, research, excerpts, samples or any other content provided in the report(s) or any of its research publications may be reprinted, reproduced, redistributed or used for any external commercial purpose without prior permission from Avasant, LLC. All rights are reserved by Avasant, LLC.
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