Global investments in engineering and R&D to grow at 10% CAGR despite downturn

Global investments in engineering and R&D to grow at 10% CAGR despite downturn

- Tech layoffs could fill talent gap in ER&D companies

Dubai, United Arab Emirates – Businesses’ global investments in engineering, and on research and development in the engineering (ER&D) sector, are set to rise strongly over the next five years, expanding at a double-digit compound annual growth rate (CAGR) of 10% up to 2026 despite currently uncertain economic conditions, Bain & Company’s latest research reveals.

A ramped-up pace of investment by industry in digital engineering and related capabilities, as businesses accelerate spending on digitalization, is central to the strong projected trend in overall investment. Digital investments are set to register a CAGR of 19% from 2022 to 2026 – almost double the overall investment growth rate for ER&D spending, Bain’s survey of more than 500 senior executives globally shows.

Bain & Company’s findings, in its latest Global Engineering and R&D report, reveal that majority of the senior executives surveyed plan to increase ER&D spending despite present economic upsets and turbulence. Industries still planning to increase such spending include automotive and mobility, aerospace and defense, medical devices, advanced manufacturing and services, energy and natural resources and telecommunications.

“Companies today view ER&D as a strategic capability that will determine their future success and shape new business