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.
Both demand- and supply-side trends are covered in Avasant’s Digital Engineering Services 2025–2026 Market Insights™ and Digital Engineering Services 2025–2026 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 53 providers using three dimensions: practice maturity, investments and innovation, and partner ecosystem. Of the 53 providers, we identified 24 that have brought the most value to the market over the past 12 months.
The report recognizes service providers in four categories:
Figure 1 below from the full report illustrates these categories:
“Amid consistent economic pressures and increasingly dynamic customer expectations, enterprises are using digital engineering to optimize the life cycle and accelerate innovation,” said Michael Wheeler, partner at Avasant. “AI-driven engineering, combined with digital twins and cloud-based solutions, is now pivotal to sustaining growth.”
The full report provides a number of findings, including the following:
“Engineering enterprises are at a crossroads, needing to balance productivity needs with advancements in R&D,” said Rohan Sahoo, senior analyst at Avasant. “Integrating digital technologies such as AI, AR/VR, and cybersecurity across the life cycle becomes necessary to navigate the challenges and stay competitive.”
The Digital Engineering Services 2025–2026 RadarView™ also features detailed profiles of 24 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 Avasant’s Digital Engineering Services 2025–2026 Market Insights™ and Digital Engineering Services 2025–2026 RadarView™. (Click for pricing.)
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.
Login to get free content each month and build your personal library at Avasant.com
