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.
Why read this Market Insights?
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.
Methodology
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.
Table of contents
About the report (Page 3)
Executive summary (Pages 5–8)
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- Defining the scope of digital engineering services
- Key digital engineering trends shaping the market
- In this report’s companion study, Digital Engineering Services 2025–2026 RadarView, 24 service providers were recognized
Digital engineering: State of the market (Pages 9–13)
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- Enterprises are focusing on engineering process optimization to drive efficiency and competitiveness amid ongoing global volatility.
- Rising digital risks put asset integrity and data protection at the forefront of connected product strategies.
- Increasing customer expectations push enterprises to accelerate engineering R&D and deliver hyper-personalized and innovative offerings.
- Digital-first green engineering initiatives continue gaining momentum as enterprises pursue sustainable, long-term business value.
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.