Economy

Engg analytics spending to touch $27 bn by 2017: Zinnov

PTI Mumbai | Updated on August 13, 2013 Published on August 13, 2013

Bouyed by strong demand from industries like automobiles, aerospace and healthcare, the global engineering analytics (EA) market is poised to touch $27 billion by 2017, research firm Zinnov Management Consulting said today.

The spending on engineering analytics, which refers to derivation of meaningful insights by processing information from physical machines, was estimated to be about $12.6 billion in 2012.

“Across the globe, use of EA has aided verticals such as the automotive, aerospace, healthcare, energy and industrial verticals and has transformed the way their businesses operate, contributing to increased revenue and efficiency,” Zinnov Management Consulting Director Sidhant Rastogi said.

Using EA, companies streamline their supply chain and logistics through improved connectivity. Also, since they can improve asset utilisation, there is a significant impact on efficiency and overall expenses are also reduced.

EA spending can be classified into three categories —— Engineering spending (investments made towards addressing the potential opportunity), which is the biggest segment with nearly 60 per cent ($7.1 billion) share.

The spend on analytics (investment on infrastructure like data warehousing, software licensing, software maintenance and analytics services and consulting) stood at $3.7 billion, while that on System Integration services was at 41.8 billion in 2012.

According to the study, EA—related benefits are currently estimated to be close to $250 billion and expected to rise to nearly $500 billion by 2017, primarily in the area of improved efficiency.

Published on August 13, 2013
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