NASSCOM-Avasant Engineering and Manufacturing Transformation
NASSCOM-Avasant Engineering and Manufacturing Transformation

Overview
Traditionally, enterprises were reluctant to manage their engineering and manufacturing operations in the cloud because of high complexity and security concerns. This reluctance is gradually fading as the industry and the underlying technologies continue to evolve Enterprises have realized that these operations can be managed more effectively and securely in the cloud. The cloud native applications available for these operations offer pay per use pricing, higher bandwidth, elastic computing, low maintenance costs, and advanced security protocols. Further, with the onset of the pandemic, enterprises have realized the need for seamless remote collaboration and faster time to market. As a result, the global cloud market for engineering and manufacturing operations continues to grow.
The NASSCOM-Avasant report “Engineering and Manufacturing Transformation - Cloudification Approaches Critical Mass” showcases the current state of cloud adoption across different engineering and manufacturing operations and industries. Further, it emphasizes the role of ecosystem players in driving this adoption It also highlights the growth potential of this market in the next 5 7 years and the recommendations to the key stakeholder groups that can benefit from the underlying growth potential.
Key Findings
- Global cloud market for engineering and manufacturing operations is expected to reach over USD 100 bn in 2030. Due to technology and industry developments such as Industry 4.0, 5G, etc., the market will grow at a double-digit CAGR in the next 5–7 years.
- Applications with higher computing and collaboration requirements, such as PLM and design systems, are expected to move faster to the cloud in short to mid-term; manufacturing and operations systems to pick up pace in the long term.
- Industries, like automotive, manufacturing, healthcare and life sciences, with high product innovation requirements, are ahead in adopting the cloud for engineering and manufacturing operations
- The role of service providers has become critical as a key enabler in driving cloud adoption for engineering and manufacturing operations owing to the pressing need for business innovation, faster product roll-out, and cost containment
- 27-32% - Share of services in the global cloud market for engineering and manufacturing operations.
- Despite the willingness to adopt the cloud for engineering and manufacturing operations, enterprises struggle to source talent with the right mix of cloud and domain skills; engaging with service providers will be the way forward
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