Computer Aided Engineering Market Forecasts to 2028 – Global Analysis By Type (Finite Element Analysis (FEA), Computational Fluid Dynamics (CFD), Multibody dynamics and Other types), By Deployment (On-Premise and Cloud-based), By End User (Automotive, Def

Computer Aided Engineering Market Forecasts to 2028 – Global Analysis By Type (Finite Element Analysis (FEA), Computational Fluid Dynamics (CFD), Multibody dynamics and Other types), By Deployment (On-Premise and Cloud-based), By End User (Automotive, Defense & Aerospace, Electronics and Other End Users) and Geography

According to Stratistics MRC, the Global Computer Aided Engineering Market is accounted for $6.44 billion in 2022 and is expected to reach $12.71 billion by 2028 growing at a CAGR of 12% during the forecast period. Computer-aided engineering is the practise of using computer software to simulate performance in order to improve product designs or assist in the solution of engineering problems in a variety of industries (CAE). This includes manufacturing tool, product, and process simulation, validation, and improvement.

According to Cisco, by 2022, machine-to-machine (M2M) connections that support IoT applications will account for more than half of the world's 28.5 billion connected devices. Furthermore, the key player's introduction of new solutions and other strategic alliances creates a lucrative demand for the market.

Market Dynamics:

Driver:

Increased Shift from On-Premise Computing to Cloud-Based Computing

Increased adoption of smartphones and tablets, a surge in internet penetration, and the prevalence of innovative technologies such as the Internet of Things are expected to drive the growth of the global computer aided engineering market. Furthermore, fine tuning of electronic devices and sensors, as well as lower connectivity costs, are expected to open up new opportunities for the industry. This is expected to increase the use of CAE software. Hyper-Converged Infrastructure (HCI) platform to build a private cloud that enables advanced computation and storage services are expected to provide lucrative opportunities for market growth during the forecast period.

Restraint:

High Installation Costs and Lack of Technical Expertise

One of the leading providers of open architecture software is the open-source platform Linux. CAE software, on the other hand, is easily accessible via the Internet. However, CAE solution providers charge exorbitant fees for support, customization, and maintenance services, which is likely to increase the adoption of open source platforms, slowing market growth. Furthermore, a lack of technical knowledge about the deployment of CAE software is expected to limit market growth.

Opportunity:

Surge in Implementation of IoT and 3D Printing

The increased use of digital technologies in product design, such as the Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), automation, cloud, and others, helps to improve the final product's quality and longevity. Customers are also implementing computer-aided engineering solutions, which are expected to drive market expansion, in order to reduce the time and cost associated with product development. This is expected to boost the growth of the computer-aided engineering market over the next few years.

Threat:

Declined Demand for CAE Software from Several Industries

Companies have spent time and money developing, marketing, selling, and supporting fully integrated computer-aided engineering solutions. Although sales have remained stable, the rate of sales growth has slightly slowed since the COVID-19 pandemic, causing a decline in demand for computer aided systems software that may hamper market growth. However, cloud computing, artificial intelligence, and machine learning are being used by market participants to create new business models that are gaining traction with customers.

Covid-19 Impact

Because of the occurrence of lockdowns in various countries around the world, the outbreak of COVID-19 has had a positive impact on the growth of the global computer-aided engineering market. Lockdowns facilitated innovation and resulted in the rapid adoption of computer-aided engineering solutions as a result of unprecedented global situations. With the world currently in the grip of a coronavirus pandemic, CAE has risen to the fore to provide critical training for healthcare personnel, allowing diagnoses to be made quickly and treatment to be administered. As a result, various companies around the world effectively use computer-aided engineering to respond to the surge in demand during the pandemic.

The Finite Element Analysis (FEA) segment is expected to be the largest during the forecast period

The Finite Element Analysis (FEA) segment accounted is expected to be the largest segment during the forecast period. Finite Element Analysis (FEA) is a computational analysis methodology used to determine the strength of a product in relation to loading. Finite Element Analysis (FEA) simulates real components to analyse heat transfer, structural analysis, electromagnetic potential, and mass transport problems. Its capabilities, such as higher accuracy, ease of access, and failure prevention, are expected to expand its application across critical structure engineering. Furthermore, its ability to predict product performance is gaining traction across a wide range of industries. The low investment cost in comparing the virtual prototype to the physical test is expected to drive the computer aided engineering market share.

The Defense and Aerospace segment is expected to have the highest CAGR during the forecast period

Because of the increasing use of computer aided engineering software, the defence and aerospace segment is estimated to register the highest CAGR growth during the forecast period. The increasing government spending in the defence and aerospace segments for modernising anti-terror equipment and mitigating security lapses is expected to drive the segment's growth. Furthermore, growing concerns about public security and surveillance are likely to influence segment demand.

Region with largest share:

Europe is expected to have the largest share during the forecast period due to growing concerns about greenhouse gas emissions and the presence of major automotive companies in countries such as Germany, Romania, and Russia. Europe had the largest market share for computer-aided engineering. Furthermore, the automotive industry is a key industry in Europe, which is likely to fuel demand for computer aided engineering. Growing numbers of virtual vehicle developers and connected car providers are investing heavily in dependable engineering tools to reduce production costs.

Region with highest CAGR:

The Asia Pacific region is expected to grow at the fastest CAGR during the forecast period, owing to increased government investments in developing the manufacturing sector and expanding renewable energy generation capacity. The increasing automation of industrial equipment will most likely drive industry demand. Furthermore, the region has seen a rebound in the sales and manufacturing sectors, owing to an increase in global hardware and device demand, which is fueling the region's market.

Key players in the market

Some of the key players profiled in the Computer Aided Engineering Market include ANSYS, Inc., Altair Engineering Inc., Autodesk, Inc., Bentley Systems, Inc., Dassault Systemes, ESI Group, Siemens AG, Hexagon AB, Aveva Group, SimScale, Exa Corporation, Numeca International and Simerics Inc.

Key Developments:

In June 2022, Ansys & SoftInWay, an analysis and design software supplier for 1D-2D designs, artnered to simplify the design workflow for multi-stage, single-stage, and multi-module turbomachinery

In May 2022, Siemens launched Simcenter Femap which is an enhanced simulation application for editing, creating, and reviewing finite element models of complex systems or products

In July 2021, Dassault Systèmes launched DELMIAworks for manufacturing firms, which delivers real-time control and visibility over the complete manufacturing supply chain. It is a collaborative environment of Enterprise Resource Planning (ERP) & Manufacturing Execution System (MES) suite of applications aiding manufacturers to report on end-to-end manufacturing processes.

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

Deployment Covered:
• On-premise
• Cloud-based

End Users Covered:
• Automotive
• Defense & aerospace
• Electronics
• Medical devices
• Industrial equipment
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements