Computational Fluid Dynamics (CFD) Market by End-user, Deployment and Geography - Forecast and Analysis 2023-2027

Computational Fluid Dynamics (CFD) Market Forecast 2023-2027

The computational fluid dynamics (CFD) market size is forecast to increase by USD 972.93 million at a CAGR of 8.22% between 2022 and 2027. The growth of the market depends on several factors, including the growing need for a reduction in product design time and cost, the high adoption of electric vehicles, and the growth in the number of unconventional exploration and production projects. CFD is an essential tool for the analysis of complex systems in industries. With advances in CFD, complex systems such as separation systems, pipeline component interferences, and heat exchangers result in a precise estimate of the projected flow properties. The market size is calculated based on the revenue generated from the software and services specific to CFD. The software license revenue includes both perpetual and periodic licenses or subscriptions. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Computational Fluid Dynamics (CFD) Market During the Forecast Period?

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The market caters to diverse industries such as aerospace, automotive manufacturing, energy sector, industrial machinery, and material and chemical processing. With a focus on efficient product design and optimization, CFD solutions leverage high-performance computing (HPC) and cloud-based platforms to address complex simulation challenges. These capabilities enable industries to minimize manufacturing costs, enhance hardware performance, and mitigate environmental concerns. From healthcare to renewable energy and biotechnology, CFD plays a crucial role in advancing innovation and sustainability across various sectors, offering simulation capabilities that drive advancements in product design and performance optimization.

Market Dynamics and Customer Landscape

The market is at the forefront of efficient product design and optimization, leveraging high-performance computing (HPC) and cloud-based solutions. With simulation capabilities, industries like healthcare, renewable energy, and biotechnology enhance sustainability while addressing environmental concerns. CFD finds applications in diverse sectors such as aerospace, automotive manufacturing, energy, electrical and electronics, and industrial machinery. Its role extends to material and chemical processing, particularly in electric vehicles and industrialization initiatives. By utilizing computational fluid codes, CFD contributes significantly to fluid mechanics advancements, driving innovation in the automobile sector and ensuring efficient design processes across industries.

Key Market Driver

The growing need for reduction in product design time and cost is driving market growth. By reducing the product development cycle and increasing the speed of product design by using software-generated simulations, CFD helps reduce the time to market. Reliable and accurate results as well as cost-effectiveness and the elimination of developing several physical prototypes by using these tools are boosting the market growth of the market.

Hence, numerous companies from manufacturing industries across the globe are adopting these solutions. For instance, one of the largest Indian steel vendors, the Steel Authority of India Limited (SAIL) intensively uses the ANSYS Fluent Software. This helps them reduce unnecessary costs incurred by plant-scale experiments and testing. A global manufacturer of oil, gas, water, and steam boilers company, Weil-McLain also uses ANSYS simulation software and it helps save up to more than six months' time compared to the build-and-test method. Hence such factors will drive market growth during the forecast period. 

Significant Market Trends

The increasing shift toward cloud-based CFD is a key trend in the market. In developing countries, factors like increased digitization, improving connectivity, and increased R&D investment is boosting the growth of the market. Cloud-based CFD software has numerous benefits including automatic installation and upgradation, and zero start-up time. and do not require IT system setups or license activation. One of the major vendors in the computational fluid dynamics market is the OpenFOAM Foundation Ltd. which offers CFD directly from the Amazon Web Services cloud computing platform.

Moreover, it helps support operational efficiency by offering a guided workflow and a smooth learning curve. Cloud-based are also user-friendly and can help in the correct completion of advanced CFD simulations by following a simple step-by-step approach. If required, constant online support is also present which gives it an edge over traditional software. Such advantages are a key reason the computational fluid dynamics market is being increasingly adopted by numerous companies. Hence such factors will propel the market growth during the forecast period.  

Major Market Restrain

The growing concerns about software and data privacy are challenging market growth. To address such security concerns, vendors are focusing on data security policies that govern OpenStack cloud models. CFD vendors primarily face the challenge that clients might not confirm the server's CA credential prior to the execution of a secure socket layer connection. Hence fears of data leakage which could hamper the security of the business by revealing confidential data limit the growth of the market.

Moreover, despite the higher accessibility of cloud computing increasing the convenience of operations, it also leaves the risk of data being mishandled by the service provider, a third party. Cloud storage of data can be easily hacked or infected by malware. Cloud-based control also results in limited control over business data, which is seriously hampering the growth of the market. Despite the increasing security of cloud-based solutions, distributed denial-of-service (DDoS) attacks, data breaches, data loss, and account hijacking can still occur. Hence such factors hinder market growth during the forecast period. 

Customer Landscape

The market 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 growth strategies.

Customer Landscape

Market Segmentation

This market report extensively covers market segmentation by end-user (aerospace and defense industry, automotive industry, electrical and electronics industry, and others), deployment (cloud and on-premise), and geography (North America, Europe, APAC, South America, and Middle East and Africa). The market caters to diverse industries like aerospace, energy, automotive, and manufacturing. Aerospace utilizes CFD to optimize aerodynamics, reducing costs and enhancing safety. Energy firms optimize power plant and wind turbine designs for efficiency. In the automotive sector, CFD aids in vehicle aerodynamics and electric vehicle battery cooling. Across industries, CFD aids in process optimization, reducing manufacturing costs. Hardware advancements and cloud-based solutions make CFD more accessible. Artificial intelligence integration automates simulations, accelerating analysis for various sectors.

By End-user

The market share growth by the aerospace and defense industry segment will be significant during the forecast period. The increased demand for operational efficiency, cost reduction, compliance standards, product efficiency, and resource management across every stage of the manufacturing chain increases the scope for growth of the market. Prior to CFD, manufacturing companies used wind tunnel testing and flight-testing methods which can now be replaced by numerical simulation methods. These simulation methods are based on the Navier-Stokes equation which describes the motion of fluids using Newton's second law of motion. CFD has increased the bypass ratio which improves fuel efficiency and also reduced the blade number due to more efficient turbines.

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The aerospace and defense industry segment was valued at USD 508.77 million in 2017 and continue to grow by 2021. The entire aerospace design process can be streamlined by reducing the number of necessary physical prototypes. A major vendor, SimScale offers powerful cloud-based platforms that can provide powerful CFD simulations. Additionally, modern aircraft systems require compliance with electrical design requirements for which a vendor Mentor offers its Capital Load Analyzer software. It can simplify electrical design compliance and certification through automated simulations and digital data continuity. Hence such factors will increase the growth of this segment of the market during the forecast period.

Regional Overview

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North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Within North America, the US is the largest revenue generator in the global market due to the growing manufacturing, automotive, and aerospace industries as well as the high defense expenditure on defense aircraft by the US government. Numerous vendors conduct operations in this region due to numerous advantages like the abundant natural resources, political stability, highly educated and productive workforce, and business-conducive environment.

Moreover, the aerospace, automobile, and housing industries are among the largest end-users of CFD software. Automotive manufacturers are increasingly innovating new models which are lightweight and fuel-efficient while most American aircraft companies use CFD software intensively for manufacturing aircraft components. Hence such factors will contribute to the growth of the regional market during the forecast period. 

Who are the Major Market Companies?

Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Altair Engineering Inc. - The company offers computational fluid dynamics software such as Altair AcuSolve, Altair nanoFluidX, and Altair ultraFluidX.

ANSYS Inc. - The company offers computational fluid dynamics software such as Ansys Fluent and Ansys CFX and Ansys Chemkin Pro.

Autodesk Inc. - The company offers computational fluid dynamics software such as Autodesk Cfd.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:

• Bentley Systems Inc.
• Cadence Design Systems Inc.
• COMSOL AB
• Convergent Science Inc.
• CPFD Software LLC
• Dassault Systemes SE
• Flow Science Inc.
• Fluidyn Group
• Hexagon AB
• Kitware Inc.
• Mechartes Researchers Pvt Ltd.
• PTC Inc.
• Siemens AG
• SimScale GmbH
• Synopsys Inc.
• The MathWorks Inc.
• ZeusNumerix Pvt. Ltd.

Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The market is witnessing significant growth driven by the demand for efficient product design and optimization across various industries such as aerospace industry, automotive manufacturing, and industrial machinery. With the advent of High-Performance Computing (HPC) and advanced simulation capabilities, CFD solutions are increasingly utilized to tackle complex challenges in fluid mechanics and computational fluid codes. Industries are leveraging CFD for reducing manufacturing costs, enhancing energy efficiency, and addressing environmental concerns, particularly in the energy sector and renewable energy applications. The integration of artificial intelligence further enhances CFD's capabilities, making it indispensable in biotechnology, healthcare, and material and chemical processing, thus contributing to sustainability and industrialization efforts.

The market is experiencing rapid expansion driven by the integration of hardware advancements and the adoption of sustainability initiatives across various industries. CFD applications are extensively utilized in industry applications, particularly in the automobile sector and aerospace and aeronautics industries, to optimize designs and enhance product's real-world performance. The market is segmented based on deployment model, including cloud-based model and on-premises model, catering to diverse industry needs. With the growth in developed economies, there's a rising demand for these solutions to streamline the manufacturing process and accelerate the product design cycle. Moreover, CFD software packages offer advanced equation solving capabilities, reducing testing time and analysis time while ensuring cybersecurity measures are in place.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook 
  • Aerospace and defense industry
  • Automotive industry
  • Electrical and electronics industry
  • Others

• Deployment Outlook 
  • Cloud
  • On-premise

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Scope
Report Coverage	Details
Page number	179
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.22%
Market growth 2023-2027	USD 972.93 million
Market structure	Fragmented
YoY growth 2022-2023(%)	7.76
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 32%
Key countries	US, Canada, China, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Altair Engineering Inc., ANSYS Inc., Autodesk Inc., Bentley Systems Inc., Cadence Design Systems Inc., COMSOL AB, Convergent Science Inc., CPFD Software LLC, Dassault Systemes SE, Flow Science Inc., Fluidyn Group, Hexagon AB, Kitware Inc., Mechartes Researchers Pvt Ltd., PTC Inc., Siemens AG, SimScale GmbH, Synopsys Inc., The MathWorks Inc., and ZeusNumerix Pvt. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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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 2023 and 2027
• Precise estimation of the size of the market and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Market forecasting of factors that will challenge the growth of market vendors

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