India ER&D market to grow to USD 42 bn by FY22: Report

India's engineering and R&D (ER&D) sector is set to grow to USD 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 Thursday.

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

Of this, 38 per cent 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 USD 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 USD 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.