HomeEconomy NewsIndia ER&D market to grow to $42 billion by FY22, says report

India ER&D market to grow to $42 billion by FY22, says report

India's engineering and R&D (ER&D) sector is set to grow to $42 billion by FY2022, helped by increasing focus on new-age technologies like Internet of Things, big data, artificial intelligence and machine learning, IT industry body Nasscom said on Thursday.

Profile image

By PTI November 15, 2018, 11:21:15 PM IST (Updated)

India ER&D market to grow to $42 billion by FY22, says report
India's engineering and R&D (ER&D) sector is set to grow to $42 billion by FY2022, helped by increasing focus on new-age technologies like Internet of Things, big data, artificial intelligence and machine learning, IT industry body Nasscom said on Thursday.


The global ER&D spends continue to be on an upward trajectory and are projected to touch $2 trillion by 2022, as per a report by Nasscom, Strategy& and PWC titled 'Impact of Digital on ER&D'.

Of this, 38 percent is estimated to be contributed by the top 1,000 corporate entities.

"There are six major trends that have been identified that are currently driving digital ER&D across multiple sectors globally.

These are Internet of Things, Big Data Analytics, Artificial Intelligence & Machine Learning, Cybersecurity, Advanced Robotics, Mobile Applications and Digital Reality," it said.

Indian service providers and Global In-house Centres (GICs) are stepping up the value ladder in capturing global opportunities, the report said.

Outsourcers have a positive outlook for offshoring ER&D services work from India across verticals, with the overall market in India expected to grow to about $42 billion by FY2022, it said.

According to information available on a blog on Nasscom's website, engineering R&D (ER&D) segment in India was about $24 billion in size in FY2017.

The key growth drivers for the industry are going to be India's capabilities in the automotive and construction and heavy engineering (C&HE) market, which is being accentuated by local talent and rising domestic demand, the report added.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!