Computer Aided Engineering (CAE) Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, Germany, China, France, Japan - Size and Forecast 2024-2028

Computer Aided Engineering Market Size 2024-2028

The computer aided engineering (CAE) market is estimated to grow by USD 4.69 billion at a Compound annual growth rate (CAGR) of 9.45% between 2023 and 2028.  The Computer Aided Engineering (CAE) market expansion is influenced by several key factors. Primarily, the burgeoning smartphone industry drives market growth, as CAE solutions are increasingly utilized in mobile device design and development. Additionally, the need for efficient large-scale project management solutions in various industries is propelling the CAE market forward. Furthermore, advancements in CAE technology have led to significant reductions in product design time and cost, making it an indispensable tool for businesses seeking to streamline their engineering processes.

What will be the size of the Market During the Forecast Period?

To learn more about this report, Request Free Sample

Market Dynamics and Customer Landscape

The market is experiencing profound growth driven by the adoption of hyper-converged infrastructure platforms and cloud-based computing solutions. Value-added resellers play a pivotal role in delivering CAE solutions tailored to the needs of various industries, including defense, aerospace, and electric vehicles. Finite Element Analysis and Computational Fluid Dynamics are integral components of CAE software, facilitating product lifecycle management and concurrent engineering. The market witnesses significant demand from small-to-medium enterprises and startups, leveraging cloud-based CAE for problem-solving and time-to-market acceleration. CAE technology companies offer complex solutions that integrate with the Internet of Things, enabling predictive modeling and decision-making capabilities. Integration with enterprise resource planning and software-as-a-service models allows for pay-as-you-go subscriptions and localization strategies. 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.

Key Market Driver

The growth of the smartphone industry is notably driving market growth. The electrical and electronics industry is a major end-user of FEA software. In the past, end-users used to access the internet on their desktops. However, consumers now prefer to access the internet without any time and location constraints. Consumers need web applications for purposes such as viewing multimedia content, browsing, video calling, gaming, and social networking. These facilities are supported by smartphones with an enhanced HD viewing experience on a small screen and web surfing capabilities. Tablets and smartphones fulfill both the entertainment and business-related needs of end-users, leading to their increased adoption among end-users. 

Smartphone and tablet providers are using new technologies, hardware, and software to launch innovative products in the market. They adopt simulation software to analyze several parameters of product development. For instance, ANSYS simulation software, including FEA, is used to analyze the structural weakness of a tablet casing and the effect of different casing materials on thermal management and IC performance and check for electronic signal performance. This has increased the demand for FEA software in the smartphone industry. Hence, such factors are expected to boost the growth of the global CAE market during the forecast period.

Significant Market Trend

CFD in battery design is an emerging market trend. CFD is mainly used to analyze the temperature in a battery module. Proper battery temperature maintenance helps to increase battery life and performance. Engineers are using CFD to design air-cooled systems rather than liquid-cooled systems because air-cooled systems are lighter and more reliable. They help reduce cost, which also makes them ideal for compact and economical vehicles. CAD-embedded CFD is used to predict thermal conditions, including temperature distribution and the average temperature of the battery.

Engineers worldwide are conducting several research programs on batteries with different electrodes. CFD software helps to reduce the cost of such programs by eliminating the need for prototypes by providing simulations. The temperature, current density, and electrochemical flow can be easily analyzed using CFD solutions. One of the instances where CFD solutions are used for battery designing includes CFD software ANSYS Fluent was used to analyze the fluid thermal performance of the battery cells used in Ford Fusion. Hence, such factors are expected to drive market growth and trends during the forecast period.

Major Market Challenge

The high cost of CAE software is a major challenge impeding market growth. The high initial investment required for the development of FEA and CFD software acts as a major challenge to the growth of the overall market. Though large enterprises are increasingly adopting commercial simulation software to reduce their operational costs and improve their product quality, SMEs are reluctant to adopt this software due to the high initial investments and the lack of technological expertise.

The cost involved in vibration analysis and stability analysis is prohibitively high for many end-users. FEA and CFD software are deployed to enhance the efficiency of the product using simulations during the design phase. Therefore, this software is made available with a high number of features, which requires the end-users to be trained to use it. Training in the upgrading of the software is also essential to achieve optimal performance, but it is expensive. This discourages some companies from investing in software, which, in turn, hinders the market growth. Hence, factors like these will negatively impact the growth of the global CAE market during the forecast period. 

Key Customer Landscape

The market growth analysis 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 market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Who are the Major Market Companies?

Companies 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.

Autodesk Inc. - The key offerings of the company include CAE and CAD. 

The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Altair Engineering Inc.
• ANSYS Inc.
• Bentley Systems Inc.
• BETA CAE Systems
• Cadence Design Systems Inc.
• Ceetron AS
• COMSOL AB
• Dassault Systemes SE
• ESI Group SA
• Fidesys LLC
• Flow Sciences Inc.
• Hexagon AB
• Parametric Designs and Solutions
• PTC Inc.
• Seiko Epson Corp.

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.

Market Segmentation

The market share growth by the FEA segment will be significant during the forecast period. FEA software helps evaluate the functionality of a given product design even before its prototype is produced. It is used in several manufacturing industries for the estimation of structural strength and behavior, simulation, modeling, and design optimization.

Get a glance at the market contribution of various segments Request a PDF Sample

The FEA segment was valued at USD 3.43 billion in 2018 and continued to grow until 2022. FEA software helps develop virtual prototypes of products that are designed to carry out simulations and thus helps reduce the costs involved in designing a physical prototype. It also helps minimize warranty and product return costs. High R&D investments are among the major factors contributing to the growth of the global FEA market. R&D investments are used to purchase new technologies, hardware, software, and services for the development of new and innovative products. The global electrical and electronics industry is heavily dependent on FEA. The simulation process provides a risk-free environment for product testing, reduces development costs, and allows multitasking.

The adoption of FEA software in the electrical and electronics industry helps engineers to solve complex problems related to the reduction in power consumption, electronic signal quality check, and improvement of bandwidth. High R&D investments and stringent government regulations are the factors that drive the growth of the global FEA market in the electrical and electronics industry. Furthermore, during the forecast period, the market will be driven by the availability of cloud-based FEA solutions, which are cost-effective for the end-users. The adoption of cloud-based FEA solutions will increase among end-users in the key regions during the forecast period because of their benefits, such as flexibility and scalability. Therefore, such factors are expected to drive the growth of the FEA segment of the global CAE market during the forecast period.

Regional Analysis

For more insights on the market share of various regions Request PDF Sample now!

APAC is estimated to contribute 32% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to Companies is Europe. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

Europe is home to several aerospace and defense companies that specialize in R&D. The CAE software is mainly used in R&D in the aerospace and defense industry. The growth in the R&D in the aerospace and defense industry will be a major driver for the FEA market in Europe. The European Space Agency was one of the major end-users of the CFD software in Europe. CFD is used in live projects such as experiments and studies involving the Large Hadron Collider under CERN. CFD was used mainly for construction-related activities such as temperature regulation in buildings. The automotive industries in Germany and France are the major end-users of CFD in Europe.

Furthermore, the major automotive Companies have set up their manufacturing units in Germany. The country has the presence of many automobile OEMs and suppliers. These Companies adopt FEA solutions to design, simulate, and analyze their products, which contributed to the growth of the FEA software market in the automotive industry in Germany. Another major area where CAE software sees high demand in Germany is the aerospace and defense industry. Germany is one of the major players in European space programs. It supplies many system components for Galileo, the global navigation satellite system developed by the EU and the European Space Agency. In addition, Europe plays a major role in initiating emission standards across the world. Manufacturers must design efficient engines to comply with emission standards. The CFD software is widely used to design such low-emission engines. Therefore, these factors will drive the growth of the market in the region during the forecast period. 

Segment Overview

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

• Type Outlook 
  • FEA
  • CFD

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

• 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
    • Chile
    • Brazil
    • Argentina

You may also interested in below market reports:

• Computer-Aided Design (CAD) Market: Computer-Aided Design (CAD) Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Japan, Germany, UK - Size and Forecast 
• Computer Integrated Manufacturing Market: Computer Integrated Manufacturing Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast 
• 3D Computer Aided Design (CAD) Software Market: 3D Computer Aided Design (CAD) Software Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Japan, Germany, UK - Size and Forecast

Market Analyst Overview

The market is witnessing significant growth fueled by the adoption of hyper-converged infrastructure platforms and cloud-based solutions in various industries such as aerospace and defense, healthcare, and consumer electronics. Value-added resellers play a crucial role in delivering CAE solutions to enterprises, ensuring compliance with regulations like the General Data Protection Regulation (GDPR). CAE software developers leverage advanced technologies such as machine learning and artificial intelligence to enhance product quality and accelerate time-to-market for complex engineering projects. With a focus on product durability and process management, CAE solutions support simulation-based design and optimization algorithms, enabling engineers to make informed decisions and reduce design iterations.

In the aerospace sector, CAE technologies facilitate the design of energy-efficient aircraft and low-emission planes, integrating components such as electrical battery-driven engines and solar panels. Additionally, CAE solutions are vital for structural analysis, noise pollution reduction, and fuel consumption optimization in next-generation aircraft designs. The market caters to diverse industry verticals, offering integrated software solutions for thermal analysis, medical devices, industrial equipment, and defense applications. With the advent of cloud-based CAE and open-source platforms, companies can access high-performance computing services and streamline engineering workflows, driving innovation and efficiency across various sectors.

In the aerospace and defense sectors, CAE solutions address structural deformation, high-altitude flight, and carbon emissions reduction. The market landscape depends on the Value added resellers, Computer software, Validation, Integrated software solution, Licensing fees, Software as a Service, Modelling information, Defense and aerospace sectors, Integrated CAE data, Engineering modes, Building information modeling, 3D printing. They enhance fan performance and support the development of electrical battery-driven airplane engines. Additionally, CAE plays a critical role in composite parts manufacturing and mitigating hardware failures through multibody dynamics analysis. Overall, the CAE market continues to evolve, driven by advancements in digital technologies, automation, and cloud-based solutions, catering to the diverse needs of industries worldwide.

Request PDF sample

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 growth of the market between 2023 and 2028.
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across Europe, North America, APAC, South America, and Middle East and Africa
• Our market trends and analysis report includes a thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market forecast analysis of factors that will challenge the growth of companies

We can help! Our analysts can customize this report to meet your requirements. Get in touch