Throughout 2022, headlines concerning the Ukraine-Russia conflict, wage inflation, talent shortages, and the possibility of an impending economic slowdown remained prevalent. Despite these challenges, enterprises demonstrated resilience and increased their expenditures on Engineering Research and Development (ER&D) in areas such as platformization, 5G, digital engineering, and Industry 4.0. As a result, there was a gradual but steady growth in global ER&D spend.
Furthermore, ER&D outsourcing continued to grow, albeit at a slower rate than in 2021, as recessionary headwinds persisted in the latter half of 2022. The need for specialized talent capable of working on rapidly evolving technologies and the drive for shorter innovation cycles and faster time-to-market remained vital ER&D spending growth drivers.
As enterprises and providers adjust to the anticipated economic slowdown in 2023, we examine the key developments expected in ER&D this year.
Scope
Industry: ER&D
Geography: global
Contents
In this report, Everest Group analyzes the key macroeconomic factors that are expected to impact both spending and outsourcing in the ER&D industry throughout 2023.
