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:
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- Leaders: Accenture, Capgemini, Cognizant, HCLTech, Infosys, L&T Technology Services, and TCS
- Innovators: Cyient, IBM, Tata Elxsi, Tech Mahindra, UST, and Wipro
- Disruptors: Akkodis, EPAM, eInfochips, and Infinite Computer Solutions
- Challengers: ACL Digital, Happiest Minds, ITC Infotech, Sasken, Sedin Technologies, Softdel, and VVDN Technologies
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:
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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.
“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.)