In 2022, amidst geopolitical tensions and economic challenges, global Digital Engineering (DE) spending surged to USD 810 Bn, propelled by pandemic-induced digitalization initiatives. Despite macroeconomic uncertainties, DE spend is projected to reach USD 1.6 Tn by 2026. Hi-tech-led verticals dominate, with a 20% faster growth rate. Asia Pacific edges past Western Europe in ER&D spending, while North America remains a DE spending powerhouse. Key drivers include Generative AI, Industrial Metaverse, Digital Thread, and Hyperscalers. Sustainability emerges as a strategic priority, with USD 6 Bn invested in Hydrogen-based startups. Service Providers play a crucial role in meeting evolving enterprise demands for Digital Engineering skillsets.