Engineering Software Market Size, Share & Trends Analysis Report By Component (Software, Services), By Deployment (Cloud, On-premises), By Application, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Engineering Software Market Size, Share & Trends Analysis Report By Component (Software, Services), By Deployment (Cloud, On-premises), By Application, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Engineering Software Market Growth & Trends

The global engineering software market size is anticipated to reach USD 125.5 billion by 2030, expanding at a CAGR of 18.8% from 2023 to 2030, according to a new report by Grand View Research, Inc. The growth of the market for engineering software is driven by increasing demand for advanced tools to enhance productivity, automation, and digitization across various industries. These technological advancements have created a number of engineering software with heightened capabilities, offering increased power and versatility.

The robust growth of the engineering software industry is fueled by several factors, including the need for manufacturers to cut product development expenses and accelerate timelines. Outsourcing engineering tasks and adopting computer-aided simulations for testing further contribute to the market's expansion. Industries globally acknowledge the value of advanced engineering software, automation, and digitization, enhancing operational efficiency and precision. Integrating these solutions reduces errors, optimizes resource utilization, and saves costs across the product lifecycle.

Technological advancements, such as AI-driven design optimization, propel market growth by attracting new users and facilitating innovative solutions. As companies seek efficiency and innovation, engineering software is poised to reshape product development processes and drive cross-industry collaboration. Moreover, as industries like aerospace, automotive, and architecture progress, design intricacy has notably escalated. This evolution has translated into more intricate engineering projects, necessitating the application of sophisticated software tools capable of effectively managing and analyzing substantial datasets.

Engineering software empowers engineers to simulate and model intricate systems virtually, perform virtual tests, and scrutinize data for informed decision-making. As engineering projects become more complex, the anticipated growth in demand aligns with the need for advanced software solutions. A surge in construction activities in developing countries such as China, India, South Africa, Brazil, and South Korea, driven by urbanization and infrastructure development, is a significant catalyst for the market growth for engineering software. For instance, as per data provided by India’s National Investment Promotion & Facilitation Agency, the country’s construction sector is expected to reach a market valuation of USD 1.4 trillion by 2025.

Additionally, escalating demand for energy-efficient buildings and the adoption of rapid construction techniques are instrumental factors driving the expansion of the engineering software segment within the construction sector. Engineering software is essential in creating designs that adhere to sustainable and energy-efficient principles, meeting the growing need for environment-conscious structures. Additionally, as construction timelines shorten with the integration of rapid construction methods, engineering software aids in managing complex projects, optimizing designs for efficiency, and ensuring seamless collaboration among stakeholders. This synergy between engineering software, sustainable construction practices, and swift construction methodologies contributes significantly to market growth.

The market is competitive and is populated with several key players. Prominent companies are adopting strategies such as partnerships and collaborations to gain a competitive edge. For instance, in February 2023, Ansys, Inc. strengthened its strategic partnership with Microsoft to expedite virtual product design by providing wider cloud-based access to Ansys Inc.’s simulation solutions and computer-aided engineering (CAE) tools. Building upon this collaboration, the company is working on an offering to empower customers to launch Ansys products using Microsoft Azure enrollment while also facilitating smoother integration with third-party tools.

Engineering Software Market Report Highlights

• The cloud deployment model segment is expected to witness the highest CAGR of 20.1% over the projected period in the market
• The software segment dominated the market in 2022, driven by the increasing recognition of the advantages of digital solutions in manufacturing, offering streamlined operations, efficient resource management, improved decision-making through data analytics, enhanced planning, and increased productivity and profitability
• North America dominated the market for engineering software, accounting for a revenue share of 33.1% in 2022, owing to significant investments in research and development (R&D) and the presence of a diverse and robust industrial base in the region, including in sectors such as aerospace, automotive, energy, and electronics

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