Computer Aided Engineering Market Research, 2031
The global computer aided engineering market size was valued at $8 billion in 2021, and is projected to reach $19.2 billion by 2031, growing at a CAGR of 9.4% from 2022 to 2031.
Computer-aided engineering (CAE) is the use of computer software to simulate performance to improve product designs or assist in the resolution of engineering problems for a wide range of industries. This includes simulation, validation and optimization of products, processes, and manufacturing tools. As integrated software solutions eliminate the need for multiple prototype and product recall concerns. As a result, the cost associated with prototyping and product recall strategy is highly reduced. Customers are increasingly quantifying their software contributions. As a result, companies are willing to pay high license fees for the software that supports low-value processes. They are developing alternating pricing and delivering models, alike Software as a Service (SaaS) pricing models, enabling customers to opt for a pay-as-you-go subscription plan.
However, the new pricing model is expected to affect the software providers’ cash flow, revenue recognition, and finance. Computer aided engineering systems can provide support to businesses. This is achieved by the use of reference architectures and their ability to place information views on the business process. Reference architecture is the basis from which information is modeled, especially product and manufacturing models. Moreover, the increase in use of CFD software for analyzing temperature in battery modules and extending battery life & performance is anticipated to drive the Computer Aided Engineering Market Growth.
The computer aided engineering market is segmented into Type, Deployment Model and End User.
Computer aided engineering market scope covers market segmentation on the basis of types, deployment model, end user, and region. Based on type, it is segmented into finite element analysis, computational fluid dynamics, multibody dynamics, and optimization and simulation. By deployment model, it is divided into on-premises and cloud. Based on End User, the market is categorized into automotive, electronics, defense, healthcare, industrial equipment, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific and LAMEA.
On the basis of deployment model, the on-premise segment captured the largest Computer Aided Engineering Market Share in 2021 and is expected to continue this trend during the forecast period. The on-premise CAE deployment provides complete control and visibility over data as well as strong authentication security measures. In addition, easy scale to meet business demand and increase efficiency with built-in redundancy, which drives the growth of this segment. However, the cloud segment is expected to witness the highest growth in the upcoming years, owing to rise in adoption of cloud-based computer aided engineering (CAE), due to low cost and easier maintenance, which is projected to propel the growth of the computer aided engineering market in the upcoming years.
Region wise, the North America dominates the computer aided engineering market in 2021. Industry players in this region are persistently adopting techniques and measures to increase operational efficiency by concentrating resources on primary production of their core businesses, which, in turn, is expected to drive demand for computer aided engineering software in this region. However, LAMEA is expected to witness exponential growth during the forecast period. Owing to rise in government investments in developing the manufacturing sector and expanding the capacity of renewable energy generation. In addition, adoption of numerous strategies by key vendors of the market to offer enhanced product offerings has created lucrative opportunities for the market growth in this region.
COVID-19 Impact Analysis
The COVID-19 outbreak has low impact on the growth of computer aided engineering market, as the adoption of computer aided engineering solutions has increased in the face of unprecedented circumstances. With the world currently in the grip of the coronavirus pandemic, CAE has moved to the forefront to provide crucial training for healthcare personnel, so that diagnoses can be quickly formulated, and treatment administered. One of the best examples of how CAE is supporting this effort is with a brand-new Lung Simulator which has been developed to help train clinicians in the techniques which are generally used in lung ultrasounds. For instance, U.K. Precision Inc. adopted Mastercam CAD/CAM software from CNC Software Inc. during the pandemic to respond to surge in demand for medical equipment
In order to fulfil the increased need for automation during the pandemic, market participants have also released upgraded CAM software packages. This element fuels market expansion. For instance, ESPRIT 2020, a substantial product update for DP Technology's computer-aided manufacturing (CAM) software, was released in April 2020.
Top Impacting Factors
Increased Shift from On-Premise Computing to Cloud-Based Computing:
The market all over the globe is witnessing a drastic shift from on-premise computing to cloud-based computing. Cloud computing reduces costs related to hardware acquisition and software licensing, installation, and support. This is further expected to increase the use of the computer aided engineering software. In addition, companies are adopting the Hyper-Converged Infrastructure (HCI) platform for building a private cloud that enables advanced computation and storage services. Furthermore, the market for value added resellers (VAR) is expected to have significant growth over the projected period. VARs will help in reducing the gap between the end-users and suppliers. VARs receive certifications and training from suppliers to increase their credibility. As a result, the growth of VARs is expected to have a positive effect on the growth of the computer aided engineering industry during the forecast period.
Penetration of IoT:
Surge in penetration of IoT and the increase in adoption of tablets & smartphones are projected to boost the growth of the CAE market. The increase in use of the IoT and wearable devices in medicine, fitness, transportation, entertainment, education, and gaming are opening up new opportunities for the growth of the CAE market. Miniaturization of the electronic devices and sensors, along with the lower connectivity costs, has immensely contributed toward the growth of wearable technology devices and the CAE software used to design those devices.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the Computer Aided Engineering Market Forecast, Computer Aided Engineering Market Trends, estimations, and dynamics of the computer aided engineering market analysis from 2021 to 2031 to identify the prevailing computer aided engineering market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the computer aided engineering market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as Computer Aided Engineering Industry, key players, market segments, application areas, and market growth strategies.
Computer Aided Engineering Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 19.2 billion |
 Growth Rate | CAGR of 9.4% |
 Forecast period | 2021 - 2031 |
 Report Pages | 320 |
 By Type |
|
 By Deployment Model |
|
 By End User |
|
 By Region |
|
 Key Market Players | Dassault Systemes, MSC Software Corporation, Mentor Graphics Corporation, Altair Engineering, Seiko Epson Corporation, ESI Group, ANSYS, Inc., Bentley Systems, Inc., Siemens AG, Autodesk, Inc. |
Analyst Review
In accordance with the insights by the CXOs of leading companies, the computer aided engineering market is projected to witness prominent growth, especially in LAMEA and Asia-Pacific region. This growth is attributed to the growing number of mobile phone users and the rise of social media and penetration of electronic commerce, suppliers across various industries are now able to interactively provide information to their customers, hence increase their sales. There are two important factors driving the computer aided engineering market are the advancement of Internet of things (IoT) and Big Data.
In the digital era where computers and smartphones are monopolizing a person’s communication and life, there seems to be a comparatively less growth rate of traditional marketing than digital marketing. Customers are measuring the value of their software contributions more frequently. In order to support low-value procedures, organizations are willing to pay expensive license costs for the software. In order to give clients the option of a pay-as-you-go subscription plan, they are exploring other pricing and delivery mechanisms that are similar to Software as a Service (SaaS) pricing models. The new pricing model, however, is anticipated to have an impact on the software providers' cash flow, revenue recognition, and financial position. In industries such as aerospace and power generation, medical devices have been catching up with latest technologies in a spectacular way.
On the other hand, The COVID-19 pandemic outbreak has increased demand for face shield holders, ventilator & respirator kits, and personal protective equipment (PPE). This has prompted a number of businesses to design and supply this life-saving equipment using additive manufacturing technology, CFD analysis, and CAD models with 3D printing platforms. With the right expertise and the usage of CAE, problems with real-world applications can be clarified quickly and effectively. CXOs further added that the computer aided engineering market is competitive and comprises a number of regional and global vendors competing based on factors such as cost of solutions, reliability, and support services.
In recent years, there is an increase in partnership and mergers and acquisitions (M&A) between original computer aided engineering providers and resellers as well as between resellers. This is leading to an increase in the presence of a large number of value-added resellers (VARs), which is expected to boost the growth of the computer aided engineering market.
North America is the largest regional market for Computer Aided Engineering
The global computer aided engineering market was valued at $7,971.7 million in 2021, and is projected to reach at $19,185.8 million by 2031, growing at a CAGR of 9.4% from 2021 to 2031.
The key players operating in the computer aided engineering market include Ansys, Inc., Altair Engineering, Autodesk, Inc., Bentley Systems, Inc., Dassault Systemes, ESI Group, Mentor Graphics Corporation, MSC Software Corporation, Seiko Epson Corporation, and Siemens AG. Furthermore, it highlights the strategies of the key players to improve the market share and sustain competition. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
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