Computer Aided Engineering Market
Computer Aided Engineering Market By Type (Finite Element Analysis (FEA), Multibody Dynamics, Optimization & Simulation), By Deployment (On-premise, Cloud-based), By End Use (Automotive, Electronics, Medical Devices) & By Region - Global Market Insights 2023 to 2033
Analysis of Computer Aided Engineering Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Computer Aided Engineering Market Outlook (2023 to 2033)
The global computer aided engineering market has reached a size of US$ 9.9 billion in 2023 and is forecasted to exhibit expansion at a high-value 8.6% CAGR over the next ten years. Worldwide demand for computer aided engineering is forecasted to reach a market value of US$ 22.7 billion by 2033-end.
The fields of engineering and design have seen some major revolutions since computers became mainstream devices around the world. Digitization has further bolstered the use of computer aided design (CAD) and engineering software and solutions to enhance productivity and improve overall project outcomes.
Computer aided engineering (CAE) includes simulation, validation, testing, and analysis of different products across several industry verticals. CAE software and solutions eliminate the need for multiple physical prototypes and reduce the overall costs of development for a product, which increases the profitability for manufacturers.
Surging use of computational fluid dynamics and finite element analysis in several industry verticals to design and develop various products is also projected to uplift sales of computer aided engineering software in the future. Increasing awareness regarding the benefit associated with computer aided design and engineering, surging use of CAE solutions to design aircraft, growing penetration of 3D printing and IoT (Internet of Things) technologies, and rapid digitization are key aspects that could favour market growth over the next ten years.
Growing popularity of cloud-based computing is expected to open up new avenues of opportunity for computer aided engineering providers across the forecast period. The cost-effective nature of cloud-based CAE solutions and minimal maintenance are some key benefits that cloud-based solutions offer over on-premise computer aided engineering solutions.
- In October 2022, PTC, a leading American computer software and services organization, launched integrated cloud-based simulation and analysis tools in Onshape.
Contrastingly, the high installation costs and high costs of licenses of computer aided engineering software and solutions are expected to influentially restrain market development in the future. The constant need for new updates and concerns regarding security are also expected to be major challenges that computer aided engineering companies will have to overcome going forward.
The dearth of skilled professionals with adequate technical knowledge to operate and deploy computer aided design and engineering solutions is also expected to constrain market development to some extent.
Computer Aided Engineering Market Size (2023)
US$ 9.9 Billion
Projected Market Value (2033F)
US$ 22.7 Billion
Global Market Growth Rate (2023 to 2033)
Market Share of Computational Fluid Dynamics (CFD) (2033)
North America Market Growth Rate (2023 to 2033)
Market Share of Europe (2022)
Asia Pacific Market Growth Rate (2023 to 2033)
Key Companies Profiled
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How are Start-ups Cementing Their Place in This Industry?
“Development of Novel Computer Aided Technologies”
Aspiring computer aided engineering companies are focusing on developing innovative solutions to simplify computer aided design for different industry verticals. New computer aided engineering providers are also expected to focus on raising new capital to fund their business expansion efforts and hasten the launch of novel CAE solutions.
- In January 2020, SimScale, a SaaS startup based in Munich, Germany, announced that it had raised US$ 29.4 million in a Series C round led by Insight Partners. The company had plans to use this funding to expand the reach of its cloud-based engineering simulation tool.
New computer aided engineering software vendors can also benefit from supportive initiatives launched by established market players and educational institutes to help start-ups advance their business potential.
- In July 2022, Altair, a leading information technology company, announced the launch of a new initiative in partnership with the Foundation for Innovation and Technology Transfer (FITT) at the Indian Institute of Technology Delhi (IITD). The initiative which is called the Altair India incubator outreach will help start-ups by supporting them through mentors and the latest technologies to advance their business scope.
More information on new developments by start-ups and how they alter product standards and pricing trends have been discussed extensively in this latest computer aided engineering market research study by Fact.MR, a market research and competitive intelligence provider.
What’s Enticing Computer Aided Engineering Companies to Invest in Asian Countries?
“Supportive Government Initiatives to Promote Manufacturing Activity”
Governments of the Asian economies have been launching new initiatives to promote industrialization and manufacturing activity to bolster their economic growth for a long time and this has created a highly opportune scenario for computer aided engineering providers in the APAC region. Low costs of production and low costs of labor make China and India preferred countries for various product manufacturers around the world.
The surging popularity of automation in industries and increasing penetration of technology in Asian countries are also anticipated to promote the adoption of computer aided engineering solutions and services in the future.
- Computer aided engineering demand in the Asia Pacific region is extrapolated to evolve at 8.5% CAGR from 2023 to 2033.
Why is Europe a Hotspot for Computer Aided Engineering Providers?
“Surging Use of Computer Aided Design and Engineering in Automotive Industry”
Europe is home to a robust automotive manufacturing industry, which is anticipated to primarily augment computer aided engineering demand over the next ten years. Increasing use of computational fluid dynamics and finite element analysis to design vehicles and rising investments in the development of novel battery technologies are also projected to bolster market development in European countries over the coming years.
- In 2022, the Europe computer aided engineering market accounted for a 30% share of the global industry landscape.
Surging investments in renewable energy infrastructure development and rising spending in the defense sector are also slated to benefit demand for CAE solutions and services going forward. Germany and the United Kingdom are forecasted to emerge as the most lucrative markets in the European region through 2033.
How Opportune is the Market in the United States?
“Market Players to Benefit from High Spending on Military and Defense Applications”
A substantial amount of the United States’ economic spending is on military and defense applications, which is projected to be a prime prospect for computer aided engineering demand in the future. The rapid adoption of advanced technologies and techniques to improve the operational efficiency of manufacturing facilities is also anticipated to promulgate market growth over the next ten years in the country.
- As per statistics provided by the Office of Management and Budget, United States, the country spend around US$ 754 billion on national defense during the fiscal year of 2021.
Rising demand for innovative military aircraft and the use of finite element analysis tools to test and analyze advanced defense products are also slated to open up new frontiers of opportunity for electronic design automation software providers and CAE software companies going forward. The presence of a robust aircraft manufacturing industry in the country is also a key prospect that is estimated to boost demand for CAD engineering software.
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Which Type of Computer Aided Engineering Solutions are Extensively Used?
“Finite Element Analysis Solutions Account for Authoritative Market Share”
Based on type, the market for computer aided engineering is segmented into computational fluid dynamics (CFD), multibody dynamics, finite element analysis (FEA), and optimization & simulation.
Finite element analysis allows testing and the determination of the strength of the product concerning loading while considering factors such as heat transfer, electromagnetic potential, structural integrity, etc. FEA solutions offer the most realistic simulation for designers and developers to tune their products to the best of their capabilities.
High adaptability of finite element analysis for complex geometrical shapes, accuracy, and ease of modelling are some characteristic features of this type of computer aided engineering solution that is anticipated to bolster its demand in the future.
- At present, FEA solutions account for more than 1/2 of the global market share.
A more comprehensive account of all industry-governing aspects such as local supply, global demand, etc., has been mentioned exclusively in this Fact.MR research report.
Prime computer aided engineering providers are launching new product suites to provide the latest analytical tools and features for designers and developers.
- In February 2023, Amazon Web Services, a subsidiary of Amazon for cloud computing solutions, debuted its new suite for finite element analysis for cloud use. Palace which is the short form for PArallel, Large-scale Computational Electromagnetics, a parallel finite element code for full-wave electromagnetics simulations.
- In October 2022, Ansys, a leading simulation and analysis software provider, announced the launch of Ansys Gateway, which is a cloud-based platform powered by AWS solutions that allow users to easily access and deploy Ansys simulations.
Top computer aided engineering providers are also collaborating and partnering to advance their business scope and hasten the development of novel solutions and software products.
- In June 2022, Ansys announced that it had partnered with SoftInWay, a design and analysis software company to streamline turbomachinery design workflows. This included multi-module, single-stage, and multi-stage turbomachinery designs.
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Key Segments of Computer Aided Engineering Industry Research
By Type :
- Finite Element Analysis (FEA)
- Computational Fluid Dynamics (CFD)
- Multibody Dynamics
- Optimization & Simulation
By Deployment :
By End Use :
- Defense & Aerospace
- Medical Devices
- Industrial Equipment
By Region :
- North America
- Latin America
- FAQs -
As of 2023, the global computer aided engineering market is valued at US$ 9.9 billion.
Demand for computer aided engineering is forecasted to amass a value of US$ 22.7 billion by 2033-end.
Worldwide computer aided engineering demand is extrapolated to increase at 8.6% CAGR over the next ten years.
Demand for computer aided engineering in Asia Pacific is projected to rise at 8.5% CAGR.
ANSYS Inc., Exa Corporation, 3D Systems Corp., ESI Group, and Siemens AG are leading computer aided engineering providers.