APAC Computational Fluid Dynamics (CFD) Market Analysis - Size and Forecast 2024-2028

APAC Computational Fluid Dynamics (CFD) Market Size 2024-2028

The APAC computational fluid dynamics (CFD) market size is forecast to increase by USD 393.6 million at a CAGR of 10.87% between 2023 and 2028.

• The market is witnessing significant growth due to the increasing utilization of computing technology in various industries. The expansion of high-performance computing (HPC) clusters and the demand for scalability and flexibility in on-premises infrastructure are key drivers for the market. The versatility of CFD solutions is increasingly being recognized in sectors such as automotive manufacturing and the energy sector. The adoption of cloud-based CFD software packages and high-performance computing resources is driving the growth of the market.
• In the automotive industry, CFD simulations are being used to optimize vehicle designs for improved fuel efficiency and reduced emissions. In the energy sector, CFD is being utilized to enhance the performance of power plants and wind turbines. The latest versions of CFD software offer more affordable pricing, user-friendly interfaces, and automation features, making it an essential tool for organizations in sectors such as automotive manufacturing and energy. However, a lack of awareness among end-users in APAC represents a challenge for market growth. To address this challenge, companies are focusing on automating CFD processes and providing user-friendly solutions to increase adoption. This market analysis report provides an in-depth assessment of the growth factors, trends, and challenges influencing the CFD market in APAC.

What will be the size of the APAC Computational Fluid Dynamics (CFD) Market during the forecast period?

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• The Computational Fluid Dynamics (CFD) market in the Asia Pacific region is experiencing significant growth due to the increasing demand for efficient and sustainable designs in various industries. CFD simulation technology is increasingly being adopted for applications in aerospace, energy, chemical processing, and electrical and electronics sectors. CFD technology enables the analysis of fluid flow and associated phenomena in complex systems, providing insights into optimization and cost reduction. In the aerospace industry, CFD is used for aerodynamic design and optimization of aircraft, reducing the need for physical testing and experimentation.
• In the energy sector, CFD is utilized for the design and optimization of power plants, wind turbines, and other energy infrastructure. The chemical processing industry relies on CFD for process optimization and reactor design, ensuring efficient and cost-effective production. In the electrical and electronics sector, CFD is used for cooling system design and optimization, ensuring efficient heat dissipation and reliability. Sustainable practices are also becoming increasingly important, with CFD being used to optimize fluid flow in sustainable energy systems and reduce the environmental impact of industrial processes.
• The innovation in CFD technology continues to expand, with applications in emerging fields such as healthcare, biotechnology, and electric vehicles. Service offerings from CFD solution providers are also evolving to meet the changing needs of industries, providing consulting and customized solutions to clients. Physical testing and experimentation are still important in certain applications, but CFD simulation is becoming an essential tool for design and optimization. The cost savings and efficiency gains from using CFD technology are driving its adoption in various industries, making it an indispensable tool for innovation and growth. The Computational Fluid Dynamics market in the Asia Pacific region is experiencing significant growth due to the increasing demand for efficient and sustainable designs in various industries. CFD technology provides insights into fluid flow and associated phenomena, enabling optimization and cost reduction in aerospace, energy, chemical processing, and electrical and electronics sectors. The adoption of cloud-based software packages and high-performance computing resources, as well as the expansion of applications in emerging fields, is driving the growth of the market.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• End-user
  • Automotive industry
  • Aerospace and defense industry
  • Electrical and electronics industry
  • Others
• Deployment
  • Cloud
  • On-premises
• Geography
  • APAC
    • China
    • Japan
    • South Korea

By End-user Insights

• The automotive industry segment is estimated to witness significant growth during the forecast period.

In the APAC region, the automotive industry's reliance on Computational Fluid Dynamics (CFD) has experienced substantial growth due to the increasing demand for energy-efficient vehicles and stricter emission norms. CFD software packages are extensively utilized in the automotive sector for applications such as aerodynamics, thermal management, and internal combustion engine optimization. The burgeoning automotive markets in countries like China, Japan, South Korea, and India have accelerated the adoption of CFD tools. These tools play a crucial role in reducing prototype expenses, improving vehicle functionality, and expediting product development cycles. Furthermore, the shift towards electric and autonomous vehicles has intensified the requirement for sophisticated CFD simulations.

By employing CFD, automakers can optimize their designs, enhance fuel efficiency, and ensure regulatory compliance. Data security is a paramount concern for companies during the product development cycle, and CFD software providers offer strong solutions to safeguard sensitive information. CFD simulation and visualization tools have become indispensable in the automotive industry, enabling organizations to make informed decisions and stay competitive in the market.

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The automotive industry segment was valued at USD 128.70 million in 2018 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of APAC Computational Fluid Dynamics (CFD) Market?

Growth in the smartphone industry is the key driver of the market.

• In the Asia Pacific (APAC) region, the Computational Fluid Dynamics (CFD) market plays a significant role in the electrical and electronics industry. The escalating production and demand for advanced technologies, such as smartphones, smart wearables, and tablets, have driven the need for CFD software in APAC. Traditional methods of physical testing and experimentation have become less effective and costly in meeting the requirements of sustainable designs, efficient fluid flow, and heat transfer. With stringent regulations in place to minimize the environmental footprint, CFD simulations have become a cost-effective solution for evaluating product designs and optimizing performance. The shift towards web applications and the convenience of accessing the internet on mobile devices have further fueled the demand for CFD software in APAC.
• By utilizing CFD simulations, companies can ensure the functionality and reliability of their products while reducing the time and resources required for physical testing. This not only leads to cost savings but also enables businesses to bring their products to market faster. The increasing demand for smart devices and the need for sustainable and efficient designs have created a significant opportunity for the CFD market in APAC. By adopting CFD simulations, electrical and electronics companies can streamline their design processes, reduce costs, and meet the evolving demands of consumers. This not only benefits the businesses but also contributes to a more sustainable and eco-friendly future.

What are the market trends shaping the APAC Computational Fluid Dynamics (CFD) Market?

Increasing adoption of CFD in the automotive industry is the upcoming trend in the market.

• In the automotive industry of APAC, there is a growing emphasis on reducing carbon emissions in line with increasing environmental regulations. Governments in countries such as South Korea are implementing stricter emission standards, which may be based on European or US regulations depending on the vehicle type. For instance, light-duty gasoline vehicles adhere to US emission standards, while heavy-duty vehicles like trucks and buses follow European regulations. As a result, automotive manufacturers in APAC are investing significantly in research and development to produce more fuel-efficient vehicles. Compliance with these emission standards is a critical requirement for vehicle deployment in the region.
• Moreover, the shift towards electric vehicles is gaining momentum, necessitating advanced computational fluid dynamics (CFD) simulations to optimize vehicle designs and improve aerodynamics. Remote collaboration tools are increasingly being used to facilitate cross-functional teams in working together on CFD projects, enabling more efficient design iterations and faster time-to-market. In summary, the increasing demand for fuel-efficient and electric vehicles, coupled with stricter emission standards, is driving the adoption of CFD technology in the APAC automotive industry. Remote collaboration tools are also becoming essential for efficient project execution.

What challenges does APAC Computational Fluid Dynamics (CFD) Market face during the growth?

Lack of awareness among end-users in APAC is a key challenge affecting the market growth.

• In the Asia Pacific (APAC) region, the Computational Fluid Dynamics (CFD) market has seen significant growth due to the increasing adoption of advanced computing technology in various industries. HPC clusters have become a popular choice for organizations seeking scalability and flexibility in their on-premises infrastructure. The versatility of CFD software is particularly beneficial for sectors such as automotive manufacturing and energy, where complex fluid dynamics simulations are essential. Historically, CFD software was associated with high costs, reaching approximately USD 20,000 per year for a lease. Additionally, the expertise required to effectively utilize the software was a significant investment for companies. The software itself was notoriously complicated, necessitating a strong mathematical background in CFD. Consequently, extensive training costs were incurred to develop a skilled workforce.
• However, modern CFD software addresses these challenges by offering more affordable pricing models and user-friendly interfaces. Expertise is no longer a prerequisite for effective usage, as the software now includes automation features and pre-built models. This shift towards more accessible and cost-effective solutions is driving the growth of the CFD market in APAC. The APAC CFD market is experiencing a growth in demand due to the increasing importance of advanced computing technology in various industries. By addressing historical challenges, the market is poised for continued growth in the region.

Exclusive APAC Computational Fluid Dynamics (CFD) Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Altair Engineering Inc.
• ANSYS Inc.
• Autodesk Inc.
• Cadence Design Systems Inc.
• COMSOL AB
• Convergent Science Inc.
• CPFD Software LLC
• Dassault Systemes SE
• ESI Group SA
• Fluidyn Group
• Hexagon AB
• HitechDigital Solutions LLP
• Mechartes Researchers Pvt. Ltd.
• PTC Inc.
• Siemens AG
• Synopsys Inc.
• The MathWorks Inc.
• ZeusNumerix Pvt. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The Computational Fluid Dynamics (CFD) market in the Asia Pacific (APAC) region is witnessing significant growth due to the increasing demand for efficient and sustainable product development in various industries. CFD simulation and visualization are becoming essential tools for sectors such as aerospace, defense, electrical and electronics, energy, material, chemical processing, electric vehicles, and manufacturing and engineering. The integration of CFD with high-performance computing, cloud computing, and artificial intelligence is enabling operational excellence and innovation in these industries. CFD software packages help in reducing testing time and physical prototypes, thereby reducing costs and improving efficiency. Moreover, the focus on sustainability projects, carbon footprints, and environmental issues is driving the adoption of CFD in the APAC region.

Moreover, the renewable energy sector is a significant contributor to the growth of the CFD market, with the need for efficient design and optimization of wind turbines and solar panels. The deployment model for CFD solutions is shifting towards cloud-based infrastructure, providing scalability, flexibility, and on-premises infrastructure for organizations with stringent compliance requirements. The versatility of CFD software is also being leveraged in automotive manufacturing and healthcare, where operational excellence and efficiency are critical. The APAC CFD market is witnessing strong growth due to the increasing demand for efficient and sustainable product development, the integration of advanced technologies, and the focus on sustainability and regulatory compliance.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across APAC
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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