Global Digital Product Engineering Services Market 2025 – 2034

As per the Digital Product Engineering Services Market analysis conducted by the BRI Team, the global digital product engineering services market is expected to record a CAGR of 8.54% from 2025 to 2034. In 2025, the market size will be USD 1661.11 Billion. By 2034, the valuation is anticipated to reach USD 3467.92 Billion.

Digital Product Engineering Services Market Overview

The digital product engineering services market is slated to grow on an exponential note due to the rise in demand for digital products, followed by the fact that businesses are undergoing digital transformation. The market, in fact, does offer sizable opportunities to the players that are capable of leveraging digital methodologies and technologies for delivering customer-centric and innovative digital solutions.

The rise of automation and AI unleashes the power of digital product engineering for every orbit of business. The mid- and small-sized companies are now able to use these advancements to their advantage in a better way for staying competitive.

The phases of digital product engineering include ideation and discovery, visual and technical design, minimum viable product (MVP) development and launch, and the build-measure-learn loop.

Faster time-to-market is the biggest advantage offered by digital product engineering. This could be attributed to rapid prototyping as well as validation techniques that allow for quicker production iteration as well as testing. This lets the end-users gather feedback at the earliest, thereby ascertaining that the product meets the needs of the real world and hits the market in a better manner.

Digital Product Engineering Services Market Key Growth Drivers

• Growing Emphasis on Product Design followed by Improvement in Customer Engagement Services

Engineering services are reported to extend support to every activity in the lifecycle of the product’s design, development, testing, re-engineering (if required), and the like. It makes use of sophisticated methodologies for understanding the production and offering comprehensive support across the entire life cycle. The market players, of late, have been focusing on offering faster deliveries for improving customer engagement.

Another factor that is gaining traction is product customization. The customers are actually experimenting with their requirements, which is prompting the need for monitoring as well as analysing the development process on the part of the service providers. Advanced manufacturing uses progressive technology for improving the supply chain processes.

Digital Product Engineering Services Market Key Threats

• Higher Initial Upfront Cost with respect to Designing New Digital Product Engineering Services

Lending monetary support to smart projects is likely to restrain the digital product engineering services market. Higher capital expenditure coupled with mounting IoT infrastructure design upfront, costs of new products, and new product development are expected to adversely affect adoption of the digital product engineering services across several industry verticals. Also, with enterprises running on shoestring budgets, getting them convinced of the intangible and tangible advantages of the advanced product engineering services could hamper the market.

Furthermore, skilled technicians are needed for designing field-level services, replacing the aging infrastructure, integrating existing and new solutions within the legacy systems, and arranging the transmission networks between end-users. It has been reported that even developed economies such as North America and Europe find it difficult to replace their legacy infrastructures with smarter ones.

Digital Product Engineering Services Market Opportunities

• Rise in Demand for Smart City Projects

The concept of smart city is brought into execution through smart governance preceded by smart city infrastructure. IoT engineering services play a vital role in connecting governments and companies with innovative prospects like smart transportation, smart cities, and smart utilities in obtaining real-time (location-based) data.

IoT engineering service providers are likely to get lucrative opportunities in the form of drawing a rough sketch for real-time remote control and management, monitoring of the objects, and analysing data collected from the connected devices like mobile phones, sensors, cameras, and networking devices. Besides, smart city projects are creating opportunities for numerous sectors such as healthcare, energy, transportation, and various other utilities for managing the entire infrastructure efficiently.

What’s trending in Digital Product Engineering Services Market?

Artificial Intelligence (AI) is helping in nipping the risk pertaining to developing and deploying digital product engineering services in the bud. It is also helpful in identifying the areas that can extend support to the lowering of expenses, thereby prompting the major enterprises to invest in technology. Such a collaborative integration does foster enhanced customer satisfaction, efficiency, scalability, and competitiveness.

Digital Product Engineering Services Market Category Wise Insights

By Service

• Design: Digital product engineering services improve the design process by effectively using IT solutions, software’s, and hardware for developing personalized and innovative products. The approach helps businesses to have ideas transformed into solutions that are market-ready to stay competitive. Digital product engineering does encourage experimentation as well as iteration, thereby letting businesses explore new technologies and ideas. This does encourage a culture of innovation, thereby leading to the development of exclusive products and services. Modular as well as maintainable designs enable future customizations and enhancements. As such, the incorporation of AI, IoT, machine learning, and cloud computing creates personalized, smarter products.

• Development: Digital product engineering services are important for development as they ascertain the creation of user-friendly, innovative, and top notch digital products, thereby meeting strict standards as well as consumer expectations. Digital product engineering emphasizes the creation of products that are simple to use and intuitive, thereby ensuring a positive experience on the part of the user. It also incorporates the user feedback for continuously improving the product and ensuring that the consumer goes back happy. Digital product engineering services make use of agile methodologies as well as efficient practices for reducing development cycles, thereby speeding up the launch of the product.

• Testing: The digital product engineering services effectively utilize data analysis, automation, and various other advanced techniques for streamlining as well as enhancing testing practices. This results in quicker testing as well. Digital product engineering services make use of automated testing frameworks as well as tools for running a broad range of tests inclusive of integration tests, unit tests, and performance tests. It also identifies the bugs early and lessens the cost and time linked with manual testing. Digital product engineering services use data analysis for identifying areas where optimization of testing is possible. This could be inclusive of analysing user behaviour data and bug reports for prioritizing testing efforts and focusing on the areas where the probability of occurrence of bugs is the highest.

• Maintenance: Digital product engineering services ensure the ongoing functionality, security, and performance. They imply activities such as bug fixing, optimization of performance, and regular updates for keeping products competitive and relevant. Such services aid the businesses in adapting to the altering user expectations. By providing such maintenance services, digital product engineering helps businesses ascertain that the products stay functional, competitive, and secure all through their lifecycle.

• Support: Digital product engineering services extend support to businesses by helping them in creating as well as managing digital products, right from getting ideated to deployed and the maintenance that follows thereafter. Digital product engineering services are capable of helping the businesses brainstorm the ideas, go ahead with market research, and also develop product vision clearly. They can also offer flexible QA functions inclusive of performance engineering, test automation, and regression testing.

By Vertical

• Automotive: Digital product engineering services provide tools and expertise for designing, developing, and deploying the automated processes and systems. This is inclusive of streamlining workflows, automating tasks, and integrating digital technologies such as IoT and AI for creating innovative and more efficient solutions. They also help the companies in integrating AI and ML into processes and products, facilitating personalized experiences and automation. Cloud-based solutions are generally used for facilitating scalability and automation, thereby letting businesses adapt to changing needs.

• Consumer Electronics: Digital product engineering services help companies bring products to the market faster, thereby reducing the time and increasing the agility. The services facilitate creating optimized products meeting specific user requirements, thereby resulting in an enjoyable and seamless user experience. They can also help in modernizing the legacy systems, ascertaining that they are compatible with the existing technologies. Also, new gaming accessories and consoles can be developed using these services. Innovative video and audio products could be developed as well.

• Healthcare: Digital product engineering services help in designing and manufacturing the medical devices along with being cost-competitive. They can also help in the development of apps that can make healthcare affordable and simple. They could be inclusive of emergency response systems, real-time patient monitoring systems, and the like.

How does Generative AI affect Digital Product Engineering Services Market?

The way products are designed, comprehended, developed, and handled is undergoing a noticeable transformation due to technological progression. Generative AI is among the innovative paradigms alluring to the potential of transforming product engineering services in their entirety. It does streamline the process of product development and aids in improvement of customer experience, time-to-market, and productivity of employees.

The applications of Generative AI with regard to the digital product engineering services market include user interface design (modernizing UI design by generating alternative styles as well as layouts to aid engineers in exploring design choices), automated testing (software engineers could create synthetic test data by facilitating automated testing to thoroughly examine diverse scenarios, thereby improving the precision and efficiency of the testing process), and code generation (automating repetitive coding tasks and helping the team focus on speeding up the development process and emphasize high-level problem solving.

Report Scope

Digital Product Engineering Services Market Regional Perspective

The digital product engineering services market is classified into North America, Europe, Asia Pacific, and LAMEA.

• Asia Pacific: Asia Pacific is expected to witness the highest CAGR in the digital product engineering services market during the forecast period. This could be attributed to the rise in demand for personalized products coupled with the rise in investment in technology. Governments of India, Japan, China, and others are into the implementation of several initiatives and policies for promoting technological innovation. India is likely to lead the digital product engineering services market in the Asia Pacific due to nearly 1,300 global organizations turning out to be a part of India’s capability center sector.

• North America: North America Holds the largest market share with growing demand for the services that support production cost and time. The verticals such as aerospace & defense, manufacturing, retail, BFSI, and the like are increasingly investing in raising the customer satisfaction ratio through time-efficient product development solutions.

• Europe and LAMEA: Europe is witnessing an increase in automation and digitalization with several players expanding into the European countries. The LAMEA is expected to display a noticeable growth with verticals such as automotive, aerospace & defense, BFSI, and likewise expand at an exponential rate. Increase in demand results in an increase in production, with digital product engineering services paving the way.

Digital Product Engineering Services Market  Key Developments

The digital product engineering services market is witnessing a constructive turbulence with respect to organic as well as inorganic growth. Some of the developments include –

• In June 2024, Cognizant inked a partnership agreement with Gentherm (a medical patient temperature management system company) with the objective of providing product engineering services. As such, Cognizant is into the provision of model-based development as well as validation and has come up with a test facility for conducting research for the latter’s products.

• In June 2024, Capgemini inked a collaboration agreement with D+I (a product development and design consultancy based out of Australia) for enhancing its engineering capabilities by delivering various innovative products to Australia’s consumer and industrial sectors.

• In March 2024, Jaguar Land Rover announced that it had partnered with Tata Technologies to bring digital transformation across the manufacturing, logistics, purchasing, finance, and supply chain modules all across Jaguar. The former’s integrated enterprise Resource Planning (ERP) platform aids in revolutionizing performance of modern-day luxury vehicles.

• In May 2023, Encora, a next-generation product engineering service provider, launched generative AI-powered digital engineering services in order to offer higher productivity as well as quality to clients.

Digital Product Engineering Services Market Competitive Landscape

The digital product engineering services market is highly competitive, with a large number of product providers globally. Some of the key players in the market include:

• Accenture
• Capgemini
• TCS Ltd.
• Wipro Ltd.
• GlobalLogic
• HCL Tech
• Infosys Technologies Ltd.
• LTIMindTree
• LTTS
• Cognizant
• Hexaware
• Happiest Minds Technologies
• AKKA Technologies
• Alten Group
• AVL List GmbH
• Encora
• FPT Corporation
• Others

These firms apply a sequence of strategies to enter the market, including innovations, mergers and acquisitions, as well as collaboration.

The global digital product engineering services market is shaped by the presence of diversified players that compete based on product innovation, regional reach, vertical integration, and cost efficiency.

The Digital Product Engineering Services Market is segmented as follows:

By Service

• Design
• Development
• Testing
• Maintenance
• Support

By Vertical

• Automotive
• Consumer Electronics
• Healthcare

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America