Global Computer Aided Engineering Market By Type (Computational Fluid Dynamics (CFD), Finite Element Analysis (FEA), Optimization & Simulation, and Multibody Dynamics), By End-Use (Electronics, Automotive, Medical devices, Defense & Aerospace, and Industrial Equipment), By Deployment Model (Cloud-Based and On-Premise), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032

Computer Aided Engineering Market Overview

The global computer-aided engineering market accounted for USD 8,852.01 million in 2021. It is projected to grow at an 8.95% CAGR from 2023 to 2032 due to increased outsourcing to emerging markets like India, China, and Russia. As integrated software solutions make it possible to eliminate multiple prototypes and avoid product recall issues, the computer-aided engineer (CAE) market will experience unprecedented growth over the forecast period. The cost of prototyping and product recall strategies is significantly reduced. The rising usage of CFD software to examine temperature in battery modules and lengthen battery life is anticipated to fuel market expansion.

Global Computer Aided Engineering Market Scope:

Type Analysis

The industry can be divided into Finite Element Analysis, Computational Fluid Dynamic (CFD), multibody dynamics, and optimization & simulacrum based on its types. The market share held by the FEA segment was more than 51.3% in 2021. It is expected to be the dominant market segment during the forecast period. FEA, a computational analysis method determining the product’s strength about its loading, is called an FEA. FEA simulates fundamental components to analyze heat transfer, structural, and mass transport problems.

Computational fluid dynamics is the quantitative prediction of fluid flow through mathematical modeling and other software tools. CFD can analyze liquids’ flow, pressure distribution, and turbulence and their interactions with different structures. Industry players aim to develop application-specific Software that can perform customized functions. The multibody dynamic analysis can be divided into two types: forward dynamics and inverse dynamics. Forward dynamics analysis refers to the movement of individual components through external force. Inverse dynamics is the study of muscles that move the system in a particular way.

End-Use Analysis

The industry can be divided by end-use into automotive, defense & aerospace, electronics, medical devices, industrial gear, and others. The automotive industry held 31.1% of the global market in 2021 and is expected to grow at a CAGR close to 7.6% between 2023 to 2032. The CAE software can be used in the automotive segment to evaluate the feasibility of heat dissipation methods such as cooling, ventilation, and aerodynamics.

Due to the increasing use of CAE software, the defense and aerospace segment is expected to experience the fastest growth rate at 11.1% during the forecast period. The segment is expected to grow due to increased government spending on defense and aerospace. This segment is responsible for modernizing antiterrorism equipment and mitigating security breaches. The segment will be influenced by growing security and surveillance concerns in public places.

There are also opportunities for electronics segment growth with advanced technologies like Color Noise Reduction (CNR), Backside Illumination(BSI) to increase sensitivity, and High Dynamic Ranges (HDR), which allow for smooth and crisp video. Because of its ability to diagnose complex medical conditions, the medical imaging market is gaining popularity. The rising prevalence of chronic and critical diseases such as cancer and cardiovascular disease, along with increasing awareness about early diagnosis, are key factors that drive the demand for imaging systems within healthcare facilities.

Deployment Model Analysis

The on-premise segment had a market share of 67.1% in 2021. It is projected to grow at a CAGR of 6.4% between 2023 and 2032. The software industry is fast-paced. It is crucial that products are introduced to the market quickly and developed promptly. Companies use mergers and acquisitions to acquire new software technologies. The industry can be divided into two types based on the deployment model. Cloud computing allows for access to data and large storage space. It also offers security and privacy. Additionally, cloud-based CAE provides customers with application-specific solutions through its Software-as-a-Service (SaaS) model. Over the projection period, the cloud-based deployment approach is expected to increase rapidly.

Cloud-based deployment allows for faster distribution, minimal maintenance, and cost reductions. While the cost of software deployment and up-gradation was higher for on-premise, it still held a large market share in 2021. Its early adoption can explain the high on-premise share. Many companies consider deploying Software at their client’s location more convenient, especially if data confidentiality concerns persist. Similar reasons are behind the expectation that the on-premise segment will hold the largest share during the forecast period.

Кеу Маrkеt Ѕеgmеntѕ

By Type

• Computational Fluid Dynamics (CFD)
• Finite Element Analysis (FEA)
• Optimization & simulation
• Multibody dynamics

By End-Use

• Electronics
• Automotive
• Medical devices
• Defense & aerospace
• Industrial equipment
• Other End-uses

By Deployment Model

• Cloud-based
• On-premise

Market Dynamics:

All over the world, there is a shift in the market from on-premise to cloud-based computing. Cloud computing lowers hardware and software acquisition costs, support, installation, and maintenance fees. The use of CAE software will also increase. Companies are also using the Hyper-Converged Infrastructure platform to build a private cloud that allows advanced storage and computation.

Customers are quantifying the software contributions they make. Companies are willing to shell out a lot of money for Software that supports low-value tasks in terms of license costs. They have developed alternate pricing and delivery model, similar to Software as a Service (SaaS) pricing models. This allows customers to choose a pay-as-you-go subscription plan. The new pricing model will impact the software providers’ cash flow, revenue recognition, and finance.

Over the forecast period, there will be significant growth in the market for value-added resellers (VAR). VARs can help reduce the gap between end-users and suppliers. To increase their credibility, VARs are given certifications and training by suppliers. The growth of VARs will have a positive impact on the growth of the computer-aided engineering market during the forecast period.

Due to the COVID-19 pandemic, there has been a greater demand for Personal Protective Equipment (PPE), ventilators and respirators, and face shield holders. Several businesses have turned to additive manufacturing technology, CFD analysis, and a CAD model incorporating a 3D printing platform to produce and distribute this life-saving equipment. With the appropriate knowledge and CAE, issues in real-world applications may be resolved swiftly and effectively.

Regional Analysis

With a 33.71% market share, Europe was the dominant CAE market in 2021. It is expected to maintain its position during the forecast period. North America and Europe are expected to experience significant growth due to the increasing use of automation in the manufacturing sector and bio-diverse cultures. European market growth is expected to be fueled by rising concerns over greenhouse gas emissions and new battery technologies. The European regional market share is also affected by the rapid penetration of IoT and rising defense costs.

Over the forecast period, APAC’s regional market will experience exponential growth. This is due to rising government investment in the development of the manufacturing sector and increasing the capacity for renewable energy generation. The increasing automation of industrial equipment will drive industry demand. Increasing labor costs in developed nations, such as the U.K. and the U.S., have prompted manufacturing companies to automate their equipment.

Key Regions and Countries covered іn thе rероrt:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

Autodesk, Inc., Dassault Systemes, MSC Software Corporation, and Siemens AG are just a few industry leaders. To develop new products and keep ahead of their competitors, industry players invest in R&D. Through mergers and acquisitions, companies can acquire new software technologies. They want to build a customer base through investments in marketing and sales. The existing players have a strong customer base and continually improve their products through R&D, preventing start-ups from entering the market. These companies offer specialized services and products at high prices to their customers. This will ensure that buyers have low bargaining power. Through marketing and sales, they aim to build a loyal customer base.

Маrkеt Кеу Рlауеrѕ:

• ANSYS, Inc.
• Autodesk, Inc.
• Altair Engineering
• Dassault Systemes
• Exa Corporation
• Bentley Systems, Inc.
• ESI Group
• MSC Software Corporation
• Mentor Graphics Corporation
• Other Key Players

For the Computer Aided Engineering Market research study, the following years have been considered to estimate the market size: