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The computer aided engineering (CAE) market is estimated to grow at a CAGR of 9.04% between 2022 and 2027. The size of the market is forecast to increase by USD 4,137.6 million. The growth of the market depends on several factors, including the growth of the smartphone industry, increasing requirements for large-scale project management, and the reduction in product design time and cost.
This report extensively covers market segmentation by type (FEA and CFD), end-user (automotive, aerospace and defense, electrical and electronics, and others), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growth of the smartphone industry is notably driving the market growth, although factors such as the high cost of CAE software may impede the market growth. Our researchers analyzed the data with 2022 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 Computer Aided Engineering (CAE) 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 Computer Aided Engineering (CAE) Market Trend
CFD in battery design is an emerging trend in the market. 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 the growth of the global CAE market during the forecast period.
Major Computer Aided Engineering (CAE) 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 Computer Aided Engineering (CAE) Market Customer Landscape
The 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.
Global Computer Aided Engineering (CAE) Market Customer Landscape
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.
Autodesk Inc. - The company operates under one segment. The company under this segment offers customers with productive business solutions through powerful technology products and services. The key offerings of the company include CAE and CAD.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
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.
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.
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The FEA segment was valued at USD 3,228.86 million in 2017 and continued to grow until 2021. 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.
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to vendors 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 vendors have set up their manufacturing units in Germany. The country has the presence of many automobile OEMs and suppliers. These vendors 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.
The outbreak of COVID-19 in 2020, negatively impacted the regional market. However, in 2021, factories, warehouses, and other facilities of regional vendors reopened due to large-scale vaccination drives. As a result, local vendors were able to meet the increased demand of end-user industries such as the construction, automotive, and packaging industries. In addition, the integration of IoT and cloud computing applications can help enhance software services offered by multiple stakeholders. This helps technology vendors and service providers to support many end-users in a reliable and decentralized manner, which, in turn, facilitates the creation of smart environments such as smart homes, smart cities, and smart energy. Thus, the rising demand for industrial automation is expected to drive market growth. Hence, these factors will drive the growth of the regional market during the forecast period.
The 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.
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Computer Aided Engineering (CAE) Market Scope |
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Report Coverage |
Details |
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Page number |
184 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.04% |
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Market growth 2023-2027 |
USD 4,137.6 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
7.87 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 44% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Altair Engineering Inc., ANSYS Inc., Autodesk 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., Siemens AG, Simerics Inc., SimScale GmbH, and Symscape |
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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. |
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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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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