With key industrial sectors undergoing massive technological disruption, investment in ER&D has become necessary to develop new products, solutions or transform operating models. The global business Engineering, Research & Development (ER&D) industry is expected to go from $1.5-1.8T in 2023 to $2.5-3.3T in 2030, growing at a CAGR of 8-9%. India remains a major destination for ER&D outsourcing with $44-45B spend in 2023, and in the future it is expected to retain its strong position with expected spend of $130-170B in 2030.
A co-publication with Nasscom, this report titled 'Seizing the ER&D Advantage: Frontiers for 2030,' looks at the trends that will drive this growth, as well as India’s potential to become a global leader in this space. As part of the study, we conducted a survey with 280+ executives across 9 sectors to understand the outlook on ER&D intensity, preferred and potential outsourcing locations, challenges being faced by companies looking to outsource their ER&D as well as specific skillsets that the industries foresee to be in demand in the next 5-7 years.