Digital Manufacturing Software Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast 2024-2028

Digital Manufacturing Software Market Size 2024-2028

The digital manufacturing software market size is forecast to increase by USD 54.09 billion at a CAGR of 19.7% between 2023 and 2028.

• The market is experiencing significant growth due to the increased adoption of these solutions for enhanced traceability in production processes. This trend is driven by the evolving landscape of direct digital manufacturing (DDM), which enables the production of parts directly from digital files without the need for traditional tooling.
• However, the market faces challenges such as the threat of pirated software, which can negatively impact the revenue of manufacturers and compromise the security of their intellectual property. To mitigate this risk, manufacturers are investing in robust security measures and partnering with reputable software companies to ensure the authenticity and reliability of their digital manufacturing software solutions.

What will be the Size of the Digital Manufacturing Software Market During the Forecast Period?

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• The market is characterized by a competitive nature, with numerous players vying for market share. This market has experienced significant accumulation and fragmentation, with key players seeking dominance through strategic business strategies such as amalgamation and acquisitions. The market encompasses various software solutions, including computer 3D visualization, computer-based designing, and simulation tools, which play crucial roles in product design, production planning, process optimization, quality control, and supply chain management. The market's growth is driven by the increasing adoption of digital technologies in manufacturing processes, the need for operational efficiency, and the integration of the Internet of Things (IoT) in manufacturing.
• The deployment mode for digital manufacturing software is shifting towards cloud-based solutions, offering flexibility and scalability for businesses. The component segmentation of the market includes software, services, and platforms, with each segment contributing significantly to the market's growth.

How is this Digital Manufacturing Software Industry segmented and which is the largest segment?

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

• End-user
  • Aerospace and defense
  • Automotive
  • Consumer electronics
  • Industrial machinery
  • Others
• Deployment
  • Cloud
  • On-premises
• Geography
  • North America
    • US
  • Europe
    • Germany
    • UK
  • APAC
    • China
    • Japan
  • Middle East and Africa
  • South America

By End-user Insights

• The aerospace and defense segment is estimated to witness significant growth during the forecast period.

The aerospace and defense industry's transformation through digitalization has significantly impacted manufacturing processes, leading to the widespread adoption of digital manufacturing software. This shift enables original equipment manufacturers and suppliers to enhance operational efficiency, shorten production cycles, and improve product design through computer-based simulation, 3D visualization, and computer-based designing. The digitalization of manufacturing processes also addresses labor challenges by increasing demand for electrical and software engineering expertise. Digital manufacturing software solutions offer various services such as production planning, process optimization, quality control, and component segmentation. Furthermore, these systems facilitate supply chain management, cybersecurity, and environmental impact assessments. The market for digital manufacturing software In the aerospace and defense sector is characterized by fragmentation and dominance, with key players providing cloud-based solutions, IoT integration, AI, and smart factories. Digital twin and process optimization are emerging trends, while cybersecurity and resource utilization remain critical concerns.

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The Aerospace and defense segment was valued at USD 7.11 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• North America is estimated to contribute 31% 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.

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The market in North America is projected to expand steadily due to the increasing adoption of advanced control processes. Simulation capabilities are a significant growth driver in this region. Furthermore, the implementation of IoT and cloud platforms is enhancing digital manufacturing software, fueling market growth. In the industrial sector, the market is poised to gain traction as manufacturing reshoring from overseas to the US and Mexico occurs during the forecast period. Digital manufacturing software solutions enable Product Design, Simulation, Production Planning, Process Optimization, Quality Control, Component Segmentation, and Supply Chain Management. Key offerings include Computer 3D Visualization, Computer-Based Designing, Computer-Based Simulation, and various Services.

Digital Twin, smart factories, and cybersecurity are emerging trends. Companies provide cloud-based solutions and software as part of their offerings. Utilities and processes, aerospace & defense, automotive & transportation, hi-tech electronics, and industrial machinery are major industries utilizing digital manufacturing software. Resource utilization and operational efficiency are key benefits.

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 the adoption of Digital Manufacturing Software Industry?

Increased adoption of digital manufacturing software for improved traceability is the key driver of the market.

• Digital manufacturing software plays a pivotal role In the business strategy of various industries, including Aerospace & Defense, Automotive & Transportation, Hi-tech Electronics, Industrial Machinery, Utilities and Processes, and others. The competitive nature of these sectors necessitates operational efficiency, product design innovation, and supply chain optimization. Digital manufacturing software solutions offer services such as Computer 3D Visualization, Computer-Based Designing, Computer-Based Simulation, and Process Optimization to achieve these objectives. The market for digital manufacturing software is characterized by fragmentation, with numerous players offering specialized solutions. However, some companies have achieved dominance through amalgamation and the deployment of advanced technologies like Artificial Intelligence, Internet of Things, and Smart Factories.
• These technologies enable digital twins, supply chain management, and cybersecurity, ensuring resource utilization and environmental impact reduction. Key components of digital manufacturing software include simulation, production planning, quality control, and component segmentation. Cloud-based solutions offer flexibility and ease of deployment, while software platforms provide a centralized location for managing various manufacturing processes. Companies can leverage these solutions to streamline their operations, improve product design, and enhance production planning and process optimization. In the context of warranty management, digital manufacturing software can significantly reduce the number of product recalls by ensuring traceability in manufacturing processes. By maintaining well-documented historical data, manufacturers can quickly identify the root cause of any issue and take corrective action, minimizing the negative impact on the consumer and the company's bottom line.

What are the market trends shaping the Digital Manufacturing Software Industry?

Evolution of direct digital manufacturing (DDM) is the upcoming market trend.

• The market is characterized by a competitive nature, with numerous players offering various Business Strategies to gain dominance. The market is witnessing an accumulation of technologies, including Computer 3D Visualization, Computer-Based Designing, Computer-Based Simulation, and Digital Twins, to enhance Process Optimization, Product Design, and Production Planning. The market is fragmented, with key areas of application including Aerospace & Defense, Automotive & Transportation, Hi-tech Electronics, Industrial Machinery, Utilities and Processes, and Supply Chains. The market's growth is driven by the need for Operational Efficiency, Simulation, and Quality Control. Component Segmentation and Deployment Mode, including Cloud-Based Solutions and Internet of Things, are also significant trends.
• Smart Factories and Cybersecurity are crucial aspects of the market, ensuring Resource Utilization and Environmental Impact. Key Services offered include Software Solutions, Process Optimization, and Supply Chain Management. Artificial Intelligence and Platforms are integral to the market's development. The market's competitive landscape is shaped by factors such as Amalgamation and Key Company Profiles. The market's future will be shaped by advancements in Simulation, Production Planning, and Process Optimization.

What challenges does the Digital Manufacturing Software Industry face during its growth?

Threat of pirated software is a key challenge affecting the industry growth.

• The market is characterized by a competitive nature, with key players continually striving to accumulate a larger market share through business strategies such as amalgamation and dominance. The market is fragmented, with numerous software solutions available for various industries, including aerospace & defense, automotive & transportation, hi-tech electronics, industrial machinery, utilities and processes, and supply chains. These software solutions offer services such as computer 3D visualization, computer-based designing, and computer-based simulation, enabling operational efficiency and product design. The market is driven by the need for process optimization, quality control, and component segmentation in production planning. Digital manufacturing software solutions are increasingly being deployed in cloud-based modes, facilitated by the Internet of Things, artificial intelligence, and smart factories.
• Digital twins and supply chain management are also gaining popularity, offering cybersecurity and environmental impact benefits. However, piracy issues pose a significant challenge to companies, leading to a decrease in revenue. The Software Alliance, among other trade groups, has taken steps to raise awareness about the risks of using pirated software, which can result in data loss, data security breaches, increased expenses, and loss of proprietary information. Despite these challenges, the market is expected to continue growing, driven by the need for operational efficiency and the increasing adoption of digital technologies in manufacturing processes.

Exclusive Customer Landscape

The digital manufacturing software 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 digital manufacturing software market 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, digital manufacturing software market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• ABB Ltd.
• Amazon.com Inc.
• ANSYS Inc.
• Autodesk Inc.
• Cadence Design Systems Inc.
• Dassault Aviation SA
• General Electric Co.
• Intel Corp.
• International Business Machines Corp.
• Microsoft Corp.
• Oracle Corp.
• Persistent Systems Ltd.
• Rockwell Automation Inc.
• SAP SE
• Schneider Electric SE
• Siemens AG
• Symphony Innovation, LLC
• Synopsys Inc.
• Tata Sons Pvt. Ltd.
• The MathWorks Inc.

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 industry 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 market is characterized by a dynamic business landscape, driven by the ongoing evolution of technology and the increasing demand for efficient and agile manufacturing processes. The market's competitive nature is marked by the accumulation of various players offering a range of software solutions to cater to diverse industry requirements. The fragmentation of the market is a notable trend, with key players focusing on niche applications and specific industries. Dominance In the market is not solely determined by market share, but also by the ability to provide comprehensive solutions that address the complexities of modern manufacturing processes. The software solutions in this domain encompass a range of applications, including computer 3D visualization, computer-based designing, and computer-based simulation.

These solutions are utilized across various industries such as aerospace & defense, automotive & transportation, hi-tech electronics, industrial machinery, utilities and processes, and supply chains. Operational efficiency is a primary driver for the adoption of digital manufacturing software. Product design, simulation, production planning, process optimization, quality control, component segmentation, and deployment mode are some of the key areas where these solutions provide significant value. Cloud-based solutions are gaining traction In the market due to their flexibility and scalability. The Internet of Things (IoT) and artificial intelligence (AI) are also transforming the digital manufacturing landscape, enabling smart factories and digital twins.

Supply chain management is another area where digital manufacturing software plays a crucial role. Cybersecurity and environmental impact are increasingly becoming important considerations for manufacturers, and software solutions are being developed to address these concerns. Resource utilization is a key focus for manufacturers, and digital manufacturing software solutions are helping to optimize processes and reduce waste. The market is expected to continue growing as more manufacturers embrace digitalization and automation to remain competitive. In conclusion, the market is a dynamic and evolving landscape, driven by the ongoing digitalization of manufacturing processes and the increasing demand for operational efficiency and agility.

The market is characterized by a competitive nature, with players offering a range of solutions to cater to diverse industry requirements. The adoption of cloud-based solutions, IoT, AI, and other emerging technologies is transforming the market, and resource utilization and supply chain management are key areas of focus. Cybersecurity and environmental impact are also becoming increasingly important considerations for manufacturers, and software solutions are being developed to address these concerns.

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What are the Key Data Covered in this Digital Manufacturing Software Market Research and Growth Report?

• CAGR of the Digital Manufacturing Software industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the digital manufacturing software market growth of industry companies

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