Computer-aided Engineering Market

Computer-aided Engineering Market Outlook from 2024 to 2034

The global Computer-Aided Engineering Market size is estimated to be worth USD 10,978.9 million in 2024. The market is projected to surpass USD 29,126.2 million by 2034, registering a promising CAGR of 10.2% over the forecast period.

Key Market Highlights

• The deployment of computer-aided engineering (CAE) is projected to rise in the defense and aerospace sectors. Continued growth in this sector, owing to increasing government spending to modernize anti-terror equipment and reduce security lapses, is projected to open new doors for providers of CAE solutions.
• The advantages of computer-aided engineering like decreased product development time and cost, with enhanced product durability and quality are increasing its application cases across multiple industries.
• The increasing utilization of process management and integrated CAE data to increase its capacity to effectively leverage performance insights and enhance designs to a wider community.
• The rising trend of CAE is predicted to be influenced by advancing engineering modes like building information modeling (BIM), concurrent engineering, and 3D printing.

Attributes	Details
Computer-aided Engineering Market Size (2024)	USD 10,978.9 million
Computer-aided Engineering Industry Forecasted Size (2034)	USD 29,126.2 million
Projected Value CAGR (2024 to 2034)	10.2%

Computer-aided Engineering Market Trends

• Increasing complexity in modern products are raising the demand for CAE. Various industries like consumer electronics, automobiles, and industrial machinery, have many integrated systems and intricate designs.
• By using CAE tools, engineers simulate and analyze complex systems comprehensively. Additionally, rising demand for innovative and differentiated products in various sectors is propelling the adoption of computer-aided engineering.
• Surging use of CAE to reduce the requirement of physical prototypes is catalyzing market growth. CAE tools enable significant time and cost savings during product development. Engineers are thus increasingly using CAE to conduct many design iterations inexpensively and quickly and optimize product designs for efficiency and performance.
• The cost-effectiveness of CAE is predicted to be crucial for enterprises with tight budgets like startups and small-to-medium enterprises.

Key Opportunities for Leading Players of Computer-aided Engineering Solutions

• The establishment of robust CAE platforms like DEP MeshWorks 2023, is poised to revolutionize product development in the automotive industry. DEP Meshworks, in particular, is a fully-equipped suite of CAE modules with advanced toolsets customized for forward-looking engineering needs, like support for ADAS and EV application development.
• The rising adoption of simulation-based design throughout different industries is providing opportunities to leading players. It includes the usage of CAE tools to simulate product behavior under different scenarios and enhance designs based on these simulations. These solutions are especially useful in industries where reliability and safety are of significant concern like healthcare and aerospace. By simulating real-world situations and stress testing, engineers can ascertain that products adhere to strict safety and quality standards.
• Robust use of cloud-based computer-aided engineering can help capitalize on problem solvers by giving them the ability to solve bigger, real-world problems to realistically conduct and set up design of experiments.

Computer-aided Engineering Market Analysis by Region

North America and Europe are the leading contenders in the computer-aided engineering market. These regions together capture a substantial market share. Key forces that are impelling growth in these regions include an increasing concentration of CAE technology companies and CAE software developers as well as a rising availability of complex CAE solutions.

Growth in Asia Pacific is predicted to increase at an impressive rate. Several players are thus anticipated to head toward this region for lucrative growth. Further, the changed dynamics in this region like the “localization” strategy adopted by China are predicted to encourage domestic developers to rise up and give competition to foreign players.

Country	CAGR (2024 to 2034)
The United States	7.1%
Germany	9.7%
China	10.8%
Australia	13.8%
Japan	11.5%

Future Market Outlook of Computer-aided Engineering in the United States

Deployment of CAE in the United States is projected to rise at a moderate CAGR of 7.1% through 2034. The given factors are propelling sales of CAE software:

• Increasing presence of bio-diverse cultures and surging automation in the manufacturing sector is boosting the market in the United States.
• Robust proliferation of the Internet of Things (IoT) and growing expenses in the defense sector are predicted to enhance the scope of CAE in the near term.
• Several businesses are relying on cloud-based CAE to run their complex simulations that entail powerful computing effectively. Thus, elevating the potential of CAE in the cloud.

Scope of Computer-aided Engineering in Germany

In Germany, the computer-aided engineering market is projected to increase at a CAGR of 9.7% through 2034. The market is driven by:

• Increasing count of manufacturers are employing CAE to swiftly develop more efficient designs.
• Manufacturers are also investing in technology to empower them with better decision-making capabilities to make the development process cost-efficient with less expensive changes.
• Rising availability of different variety of CAE software products is predicted to enhance the market scope.

Australia to Attract Stakeholders and Investors of Computer-aided Engineering

The computer-aided engineering market in Australia is projected to register a CAGR of 13.8% from 2024 to 2034. The deployment rate of CAE in the country is propelled by:

• Key players in the market are providing computer-aided engineering solutions to enable the automotive industry to accelerate their shift to sustainable and futuristic technologies.
• Market players like Siemens are ensuring that the software is always up-to-date with their continual development cycle.
• Surging use of CAE in different industries to ensure reliability and robustness of designs via analysis and simulation, thus decreasing the likelihood of expensive product failures and recalls.

Japan to Emerge as the Hotbed in the Computer-aided Engineering Industry

The market in Japan is anticipated to expand at a CAGR of 11.5% through 2034. The use of computer-aided engineering is predicted to rise on account of:

• Increasing government investments in fortifying the manufacturing sector by integrating computer-aided engineering.
• Leading companies are entering Japan to empower automotive companies, medical device manufacturers, electronics companies, etc., which are utilizing CAE to mitigate risks and reduce costs. This provides them with a competitive advantage.

China to Exhibit Promising Growth Prospects for Leading Players

In China, the computer-aided engineering market is projected to record a CAGR of 10.8% through 2034. During this timeline, the market is assessed to be driven by:

• In China, the foreign vendors of CAE software enjoy a leading position, enhancing the market dynamics. The top three players in this market are Siemens, Ansys, and Dassault Systèmes, which hold more than 50% share of the Chinese market.
• Local companies in China have a low degree of recognition for self-developed products. The local Chinese suppliers are presently seen substituting overseas vendors in specialized areas like government agencies, the defense industry, etc.
• Rapid automation of industrial equipment.
• Increasing democratization of computer-aided engineering for its widespread integration is also fueling market growth. The use of tools to customize intuitive interfaces for non-experts in small and medium-sized enterprises stimulates market expansion.

Computer-aided Engineering Industry Analysis by Category

Rising Use of CAE Software to Analyze Performance and Optimize Designs

Attributes	Details
Top Type	Software
Market Share in 2024	54.3%

The software segment is predicted to generate higher revenues for the market players. In 2024, the segment is projected to account for a market share of 54.3%. the following factors are propelling the segment growth:

• Increasing product complexity across different industries in terms of sophisticated functionalities, intricate designs, and multi-material compositions is increasing the demand for CAE software.
• CAE software allows engineers to identify potential failures, analyze performance, and optimize designs before the physical manifestation of prototypes.
• Surging deployment of CAE to allow engineers to automate repetitive tasks, shorten development cycles, and reduce physical testing expenses. This is projected to lower production costs, enhance product quality, and expedite time-to-market. This is propelling the adoption of CAE software in virtually all industries.

Cloud-based Deployment Model Commands a Significant Market Share

Attributes	Details
Top Deployment Model	Cloud-based
Market Share in 2024	51.1%

The cloud-based deployment model is estimated to procure a market share of 51.1% in 2024. The segment is predicted to be driven by the following factors:

• Leading manufacturers are prioritizing the development of cloud-based solutions to give users access to software and exercise simulations from anywhere with internet connectivity. Thus, empowering users with enhanced flexibility and scalability.
• Increasing use of high-performance cloud computing services in smaller companies without significant investment in purchasing and maintaining their expensive hardware.

Competitive Strategies of Computer-aided Engineering Providers

Key players are financing research and development activities to increase their software offerings. For this, leading players are also focusing on enhanced user interfaces, optimizing algorithms, and adding new features to make their tools user-friendly, more powerful, and efficient.

Several players are incorporating software with the latest technologies like machine learning (ML) and artificial intelligence (AI) to offer more accurate simulations, automate repetitive tasks, and enable predictive modeling. Players surfacing in emerging economies are focusing on a “localization” strategy to increase their share in the market.

Notable Developments in the Computer-aided Engineering Market

• In 2022, Intel launched Intel® VTune™ Profiler to enhance system performance, application performance, and system configuration for HPC, IoT, cloud, storage, media, and more. The solution assists in tuning the performance of the overall application using GPU, CPU, and FPGA.
• In May 2022, Siemens launched Simcenter Femap, which is a complex simulation application for editing, creating, and inspecting finite element models of sophisticated systems and products. The advanced workflows in Simcenter Femap can be used to model assemblies, components, or systems to regulate a model’s behavioral response in real-world conditions.

Key Computer-aided Engineering Suppliers and Producers

• ANSYS Inc.
• Altair Engineering
• Autodesk Inc.
• Bentley Systems Inc.
• Dassault Systemes
• ESI Group
• Exa Corporation
• Siemens AG
• MSC Software Corporation (Hexagon AB)

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
• 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type
  • 5.1. Finite Element Analysis (FEA)
  • 5.2. Computational Fluid Dynamics (CFD)
  • 5.3. Multibody Dynamics
  • 5.4. Optimization & Simulation
• 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Deployment Model
  • 6.1. On-Premise
  • 6.2. Cloud-Based
• 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use
  • 7.1. Automotive Industry
  • 7.2. Defence & Aerospace Industry
  • 7.3. Electronics Industry
  • 7.4. Medical Devices
  • 7.5. Industrial Equipment
  • 7.6. Other End Uses
• 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
  • 8.1. North America
  • 8.2. Latin America
  • 8.3. Western Europe
  • 8.4. Eastern Europe
  • 8.5. South Asia and Pacific
  • 8.6. East Asia
  • 8.7. Middle East and Africa
• 9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 16. Key Countries Market Analysis
• 17. Market Structure Analysis
• 18. Competition Analysis
  • 18.1. ANSYS Inc.
  • 18.2. Altair Engineering
  • 18.3. Autodesk Inc.
  • 18.4. Bentley Systems Inc.
  • 18.5. Dassault Systems
  • 18.6. ESI Group
  • 18.7. Exa Corporation
  • 18.8. Siemens AG
  • 18.9. MSC Software Corporation (Hexagon AB)
• 19. Assumptions & Acronyms Used
• 20. Research Methodology