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Computer Aided Engineering (CAE) Software Market

Market Study on CAE Software: Revolutionizing Safety Standards in Automotive Engineering, PMR Envisions an Array of Revenue Generation Prospects for CAE Software Manufacturers Appearing on the Horizon

A Detailed Analysis of the Computer Aided Engineering (CAE) Software Market Based on Smart and Efficient Devices for Enhanced User Experience and Functionality

Computer Aided Engineering (CAE) Software Market

The global computer aided engineering (CAE) software market is forecast to expand at a CAGR of 12.3% and thereby increase from a value of US$9.8 Bn in 2023, to US$22.2 Bn by the end of 2030.

Attributes

Key Insights

Computer Aided Engineering (CAE) Software Market Size (2023E)

US$9.8 Bn

Projected Market Value (2030F)

US$22.2 Bn

Global Market Growth Rate (CAGR 2023 to 2030)

12.3%

Historical Market Growth Rate (CAGR 2018 to 2022)

7.8%

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Market Introduction and Definition

CAE software comprises an array of advanced tools and applications that are specifically engineered to streamline engineering analysis and design procedures through the utilization of computer simulations. By facilitating the modeling and simulation of component and system behavior, these software solutions aid engineers in the optimization of designs, assessment of performance, and detection of potential issues before the construction of physical prototypes.

Computer-aided engineering software encompasses a vast array of fields, such as electromagnetic studies, fluid dynamics, structural analysis, and thermal simulations. Its extensive functionality grants engineers invaluable insights into the longevity and performance of their designs.

The market for CAE software is experiencing substantial expansion due to the growing dependence of industries on simulation and virtual testing to expedite product development cycles and decrease expenses. The market is propelled by the increasing intricacy of engineering designs, rigorous quality criteria, and the requirement for inventive resolutions to improve product functionality and safety in various industries (such as aerospace, manufacturing, aerospace, and electronics). In a technological environment that is undergoing rapid change and where companies prioritize efficiency gains and competitive advantages, demand for CAE software is anticipated to increase significantly.

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Market Growth Drivers

Emphasis on Cost Reduction, and Time Efficiency in Product Development

The proliferation of engineering complexities and the ongoing development of product designs are significant factors propelling the expansion of the CAE software industry. As various industries adopt state-of-the-art technologies and strive for unprecedented levels of innovation, product designs have grown progressively more complex, particularly in the aerospace and automotive sectors.

In this situation, CAE software is indispensable due to its sophisticated simulation and analytical capabilities. Engineers are enabled to utilize these tools to simulate and model intricate behaviors, evaluate the soundness of structures, and forecast performance across a wide range of conditions. The necessity to efficiently navigate complex design challenges drives the demand for CAE software, which enables businesses to introduce technologically advanced, high-quality products to the market more quickly.

The industry-wide focus on cost reduction and time efficacy in product development processes is an additional significant factor driving the CAE Software market. Conventional approaches to physical prototyping and testing are characterized by significant financial investment and considerable time commitment.

By enabling engineers to conduct virtual simulations, CAE software circumvents the requirement for costly physical prototypes and testing iterations. This not only expedites the process of product development but also substantially reduces expenditures related to materials, manufacturing, and testing. To maintain competitiveness in rapidly evolving markets, organizations recognize the significance of implementing CAE software to facilitate time-efficient and economical product development. This, in turn, contributes to the overall growth of the CAE Software market.

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Market Restraints

Substantial Initial Expenditure on Licenses

Notwithstanding its expansion, the market for CAE software encounters obstacles, the most significant of which is the substantial upfront expenses linked to the deployment and incorporation of sophisticated CAE solutions. Specialized computer-aided engineering software frequently necessitates a substantial initial expenditure on licenses, training, and infrastructure, especially when implemented by SMEs. Moreover, the continuous expenditure on maintenance and the requirement for proficient staff serve to augment the financial strain.

The financial obstacle may impede the implementation of CAE software, thereby restricting its market penetration in specific sectors. Furthermore, the presence of interoperability concerns among pre-existing software systems within organizations can present obstacles, thereby complicating the process of achieving seamless integration. In the pursuit of greater market accessibility, it is imperative to confront these integration and cost-related obstacles to fully harness the capabilities of CAE software across a wide range of industries.

Shortage Of Skilled Professionals

The market for CAE software faces numerous obstacles, one of which is the scarcity of proficient professionals who are well-versed in the utilization of sophisticated CAE tools. Widespread adoption of these software solutions is impeded by the scarcity of suitably trained engineers and the specialized knowledge required to operate them. In addition, the dynamic progression of CAE technologies necessitates ongoing professional development to ensure that practitioners are cognizant of the most recent functionalities and features.

To ensure that a proficient workforce is in place, the industry must address this skills deficit by implementing educational initiatives and comprehensive training programs that enable users to fully exploit the capabilities of CAE software. It is imperative to surmount this obstacle to optimize the utilization of CAE tools across various sectors and cultivate enduring market expansion.

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Opportunities

Increasing Adoption Across Emerging Markets, Industry 4.0 Integration, and Smart Manufacturing

One notable prospect for the market of computer aided engineering software pertains to its seamless integration with Industry 4.0 initiatives and the continuous shift toward intelligent manufacturing. Casing the emergence of data-driven decision-making, IoT, automation, and automation, industries may find CAE software indispensable for optimizing manufacturing and design processes.

The incorporation of CAE and Industry 4.0 technologies facilitates the development of more adaptable and responsive manufacturing systems by enabling real-time simulation and analysis. This phenomenon not only serves to optimize operational processes but also fosters the growth of sophisticated, data-centric manufacturing facilities. The convergence of CAE software and Industry 4.0 offers manufacturers an enticing prospect to attain heightened agility, diminish time-to-market, and improve product quality within the paradigm of intelligent manufacturing.

The increasing adoption of computer aided engineering software in emerging markets positions the market for CAE software to experience substantial growth. In light of the swift industrialization and technological progress observed in developing economies, the advantages of CAE software throughout the product development lifecycle are becoming increasingly apparent. The growth of manufacturing sectors, specifically the automotive, aerospace, and energy industries, offers significant opportunities for CAE software providers to expand their operations.

Additionally, the accessibility of cloud-based CAE solutions for businesses in emerging markets is enhanced by their affordability, which allows them to utilize sophisticated engineering simulations without requiring substantial investments in infrastructure. Leveraging the surge in demand within these rapidly expanding markets presents CAE software vendors with a strategic opportunity to expand their international presence and access the unexplored capabilities of various industry verticals.

Analyst’s Viewpoint

The user computer aided engineering software market will experience consistent expansion in the coming years, propelled by several significant factors. As industries continue to place a premium on efficiency and innovation in product development, it is anticipated that the demand for sophisticated simulation and analysis tools will increase. It is anticipated that the incorporation of CAE software with nascent technologies such as artificial intelligence and machine learning will augment the functionalities of these instruments and broaden the range of industries in which they can be utilized.

In addition, developing regions are anticipated to implement CAE solutions at an accelerated rate, as industrialization increases and awareness of the advantages provided by such solutions expands. To attain time-efficient and cost-effective product development while navigating complex engineering challenges, the user CAE software market is positioned for ongoing growth. The trajectory of the market will be influenced by the development of smart manufacturing and the increasing emphasis on safety and sustainability. This will establish CAE software as an indispensable element in the forthcoming engineering and design domain.

Supply-side Dynamics

The supply side of the computer aided engineering software market is marked by fierce competition among software vendors striving to provide state-of-the-art solutions that address the changing demands of industries. Prominent industry participants consistently allocate resources towards research and development endeavors to augment the capabilities of their computational asset modeling (CAE) software. This includes the incorporation of optimization algorithms, real-time simulation, and multi-physics analysis.

The dedication to innovation is motivated by the necessity to maintain a leading position in a technologically swiftly progressing environment and meet the increasing need for simulation tools that are more comprehensive and sophisticated. In addition to acquisitions, partnerships, and strategic collaborations, market leaders engage in these activities to expand their market presence and product lines, thus intensifying competition.

In addition, a significant trend in the supply-side dynamics of the CAE Software market is the transition towards cloud-based deployment alternatives. There is a growing trend among software vendors to provide cloud-based solutions to enhance the flexibility, scalability, and accessibility of their consumers. This action is consistent with the overarching industry phenomenon of digital transformation, which empowers organizations to exploit the benefits of remote collaboration and data storage.

In addition, the supply-side dynamics demonstrate an emphasis on platforms and interfaces that are intuitive for engineers and designers, thereby increasing the accessibility of CAE software to a wider demographic. In general, the CAE software market's supply-side dynamics are characterized by strategic alliances, strategic innovation, and a reaction to the evolving demands of end-users who seek more advanced and efficient engineering simulation solutions.

Market Segmentation

Which is the Topmost Software Category?

Software Category Spearheads on Account of Rising Demand for Advanced Simulation Tools  

The software segment dominates the computer aided engineering software market, primarily due to the rising need for sophisticated simulation and analysis tools to optimize product designs. The increasing intricacy of engineering challenges, in conjunction with the requirement for virtual testing and prototyping, drives the software segment's dominance.

On the contrary, the services sector experiences the most rapid expansion, primarily driven by the increasing prevalence of delegating engineering simulation responsibilities to specialized service providers. Access to domain expertise, cost-effective solutions, and the adaptability provided by service models all contribute to the services segment's accelerated growth in the CAE Software market.

Which is the Most Preferred Deployment Mode?

Cloud-based Deployment Marches Ahead Banking on Higher Preference

The largest market share in computer-aided engineering software is occupied by the cloud-based deployment segment, which is driven by the rising demand for scalable and adaptable computing solutions. The expansion of the cloud-based sector is propelled by cost-effectiveness, remote accessibility, and the capacity to execute intricate simulations with enhanced computational capabilities.

The fastest-growing segment, on the other hand, is on-premises deployment, which is driven by industry-specific demands for enhanced data control and security. Sectors such as aerospace and defense, characterized by critical data sensitivity, prefer on-premise solutions. This preference for on-premises solutions has significantly contributed to the exponential growth of the deployment segment within the CAE software market.

Which is the Commanding End-use Industry Vertical Adopting CAE Software Solutions?

Automotive Industry Records the Highest Adoption, Notable Growth Poised in Medical Devices

The segment is sub-categorized into automotive, defense & aerospace, electronics, medical devices, industrial equipment, and others. The automotive sector arises as the largest market segment for computer aided engineering software, propelled by the rising need for sophisticated simulations to assist in vehicle design, safety optimization, and performance enhancement. The automotive industry's dominance can be attributed to various factors, including the relentless pursuit of petroleum efficiency, adherence to safety regulations, and swift product innovation.

On the contrary, the medical devices industry is the most rapidly expanding sector, driven by an increasing focus on precision engineering and the requirement for comprehensive simulations during the development of medical products. By facilitating adherence to regulatory standards and expediting the design process, the incorporation of CAE software into medical devices drives the exponential expansion of this sector within the CAE software market.

Top Regional Markets

North America’s Primacy Prevails with Sustained Leadership in Research

The CAE software market is most prominently concentrated in North America. This dominance can be attributed to significant technological progress, a well-established industrial sector, and the early acceptance of groundbreaking engineering solutions.

North America's market dominance in CAE software can be attributed significantly to the high-tech engineering demands of the automotive, aerospace, and electronics industries in the region. The expansion of research and development endeavors and the presence of major market participants contribute significantly to the expansion of CAE software adoption in the area.

South Asia, and Oceania Emerge the Most Lucrative

South Asia, and Oceania stands as the most rapidly expanding area, propelled by an upsurge in infrastructure development, heightened industrialization, and an expanding focus on product innovation in nations such as Australia, India, and Southeast Asia.

The rapid growth of the manufacturing industry, specifically in the automotive and electronics sectors, coupled with efforts to improve engineering capabilities, propels the exponential uptake of CAE software in South Asia, and Oceania. As a result, this region is the most rapidly expanding in the worldwide CAE software market.

Competitive Intelligence and Business Strategy

The computer-aided engineering software market is distinguished by the existence of major players who strive to secure a portion of the market via ongoing innovation and strategic endeavors. Prominent industry players, including ANSYS, Altair Engineering, Autodesk, Bentley Systems, Inc, Dassault Systemes, ESI Group, and Exa Corporation., offer an extensive array of CAE solutions that encompass a wide range of engineering disciplines. These sector frontrunners are renowned for their intensive research and development endeavors, which result in the continual introduction of novel attributes and functionalities to meet the evolving needs of industries including aerospace, manufacturing, and automotive.

Furthermore, collaborations, partnerships, and acquisitions to broaden product portfolios and augment global market presence significantly influence the competitive landscape. Emerging competitors, which frequently specialize in niche markets or regional sectors, are gaining traction by emphasizing innovative, industry-specific solutions. Additionally, a trend toward cloud-based offerings is reflected in the competitive landscape, with businesses vying to provide scalable and accessible CAE solutions.

As the market progresses, the competition expands beyond technological proficiency to encompass customer service, support, and the capacity to provide integrated solutions that address the comprehensive requirements of engineering and design procedures. As a consequence, an environment that is both dynamic and competitive emerges, wherein organizations perpetually endeavor to distinguish themselves and secure an expanded portion of the expanding market for computer-aided engineering software.

Key Recent Developments

New Project Launch

Detroit Engineered Products, a Michigan-based provider of engineering solutions and software products, will commence construction in Chennai in April 2023. The organization, which established its software development center in Chennai in 2000, is allocating an unspecified financial investment towards the construction of an additional 35,000-40,000 square feet of space. DEP stated that one-third of this space will be devoted to R&D laboratories.

Market Impact: The expanding prominence of the Chennai facility of Detroit Engineered Products indicates the region's increasing significance in the market for CAE software. The allocation of funds towards the expansion of physical facilities, specifically research and development laboratories, indicates a dedication to fostering innovation and is indicative of the promising trajectory and potential market expansion of CAE solutions.

(Source: Times of India)

Collaboration
Spatial Corp, the leading 3D software creation toolkit provider for design, manufacturing, and engineering solutions, and Luminary Cloud, the revolutionary new cloud-native Computer-Aided Engineering (CAE) platform, announced today in September 2023 a collaboration intended to empower CAD/CAE Engineers and their management with cutting-edge capabilities, enabling the seamless ingestion of commercial and open-source CAD models onto Luminary's CAE platform.

Market Impact: The partnership between Spatial Corp, and Luminary Cloud signifies a substantial progression within the market for computer-aided engineering (CAE) software. By incorporating advanced functionalities for the smooth ingestion of CAD models onto Luminary's platform, operational effectiveness is improved, facilitating innovation and user-friendliness for CAD/CAE engineers. This has the potential to stimulate greater acceptance and utilization of their cloud-native CAE solution.

(Source: Business Wire)

Agreement
Altair, a multinational technology corporation specializing in data analytics, high-performance computing (HPC), and product development, unveiled a technical partnership agreement with Ducati Corse, the renowned Italian motorcycle manufacturer's racing division, for several years. Ducati intends to enhance its utilization of Altair's computer-aided engineering (CAE) software for product development, thereby granting Ducati Corse engineers a critical competitive advantage as they strive for success at speeds exceeding 200mph/320kph on the racetrack. The squad will be sponsored by Altair during the MotoGP World Championship, which commenced on July 17, 2020, in Spain.

Market Impact: By utilizing computer-aided engineering (CAE) software, Altair and Ducati Corse have maintained a multi-year technical partnership that highlights the critical role CAE plays in enhancing performance in highly competitive industries. This partnership indicates an increasing dependence on sophisticated CAE tools to enhance product development in high-speed domains, which may have an impact on the wider CAE software market's adoption rate.

(Source: Altair)

Computer Aided Engineering (CAE) Software Market Report Scope

Attribute

Details

Forecast Period

2023 to 2030

Historical Data Available for

2018 to 2022

Market Analysis

US$ Million for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • South Asia & Pacific
  • East Asia
  • The Middle East & Africa  

Key Countries Covered

  • United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa  

Key Market Segments Covered

  • Software
  • Deployment
  • End-use Industry
  • Region

Key Companies Profiled

  • ANSYS
  •  Altair Engineering
  •  Autodesk
  • Bentley Systems, Inc
  • Dassault Systems
  • ESI Group
  • Exa Corporation
  • Mentor Graphics Corporation
  • MSC Software Corporation

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Computer Aided Engineering (CAE) Software Market Research Segmentation

By Software:

  • Software
    • Finite Element Analysis (FEA)
    • Computational Fluid Dynamics (CFD)
    • Multibody dynamics
    • Optimization & simulation
  • Services
    • Development Service
    • Training, Support & Maintenance

By Deployment:

  • On-Premises
  • Cloud-Based

By End-use Industry:

  • Automotive
  • Defense & Aerospace
  • Electronics
  • Medical Devices
  • Industrial Equipment
  • Others

By Region:

  • North America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Latin America
  • Middle East & Africa

- Companies Covered in This Report -

  • ANSYS
  •  Altair Engineering
  •  Autodesk
  • Bentley Systems, Inc
  • Dassault Systems
  • ESI Group
  • Exa Corporation
  • Mentor Graphics Corporation
  • MSC Software Corporation

- Frequently Asked Questions -

The CAE software market is anticipated to grow at a CAGR of 12.3% during the projected period, 2023 - 2030.

The computer aided engineering (CAE) software market was valued at US$9.8 Bn in 2023.

The US held the largest market share in the year 2023.

Some of the prominent players in this market are ANSYS, Altair Engineering, Autodesk, Bentley Systems, Inc., Dassault Systemes, ESI Group, Exa Corporation, Mentor Graphics Corporation, and MSC Software Corporation.

The geothermal energy segment is expected to grow at the fastest growth during the forecast period.

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