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The Digital Manufacturing Software Market size is estimated to grow at a CAGR of 15.9% between 2022 and 2027. The market size is forecast to increase by USD 35.32 billion. The growth of the market depends on several factors, including the increased adoption of digital manufacturing software for improved traceability, the availability of cloud-based services, and the rise in awareness about the use of big data, IoT, and analytics in manufacturing sites. Digital manufacturing software helps manufacturing companies enhance their productivity in planning and production processes in various ways, such as enabling product, process, plant, and resource information to be associated, viewed, and taken through change processes with a comprehensive and consistent approach to production design.
This digital manufacturing software market report extensively covers market segmentation by end-user (aerospace and defense, automotive, consumer electronics, industrial machinery, and others), deployment (cloud and on-premises), and geography (North America, Europe, APAC, Middle East and Africa, and South America). 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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One of the key factors driving the digital manufacturing software market growth is the increased adoption of digital manufacturing software for improved traceability. One of the major challenges faced by several industries is warranty management. Even though it offers customer satisfaction and increases customer confidence in the product, certain aspects of warranty management, including product recall, have a negative impact on the consumer.
Therefore, one of the main solutions that are significantly adopted by manufacturers in order to reduce or eliminate product recalls is traceability. It can be referred to as the process of verifying the systems or products with the help of well-documented historical data. There is an increasing adoption of digital manufacturing software to improve traceability in manufacturing processes. The main advantage of this software is that it warns the management in case of any inconsistency. and offers detailed data regarding the list of operations performed by a particular part and the products manufactured using those parts.
A key factor shaping the digital manufacturing software market growth is the evolution of direct digital manufacturing (DDM). DDM comprises the extensive use of additive fabrication processes to manufacture products quickly and accurately. The main advantage of DDM is that it needs little time for manufacturing when compared to traditional manufacturing methods.
Moreover, it minimizes the time to market by manufacturing the product the same day the design is completed. Additionally, by leveraging DDM, short-term manufacturing, and on-demand manufacturing can be carried out easily. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
The threat of pirated software is one of the key challenges hindering the digital manufacturing software market growth. One of the major challenges faced by the market players is the piracy issues associated with digital manufacturing software resulting in a decrease in their revenue. Software piracy can also include the sharing of a purchasing license of a single end-user with other end-users.
Moreover, this pirated software constitutes hostile software or malware, which causes severe issues during installation including loss of data and data security breaches, the increase in expense and time to clean the system after it is affected by malware, and the loss of proprietary information. Hence, such factors can negatively impact the market. Therefore, it is expected to hinder the market growth during the forecast period.
The aerospace and defense segment is estimated to witness significant growth during the forecast period. There is rapid development in the aerospace and defense segment due to the advancements in technology. The emergence of digitalization has facilitated Industry 4.0, which has fuelled digital manufacturing software in the aerospace and defense industry, such as original equipment manufacturers, to small suppliers. There is an increasing shift towards digital manufacturing software by the aerospace and defense industry.
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The aerospace and defense segment was the largest segment and was valued at USD 6.28 billion in 2017. The main advantage of adopting digital manufacturing software in the aerospace and defense industries is that it offers solutions to recruitment and retention challenges. As a result of this new system, it will generate more demand for electrical and software engineers. Therefore, digital manufacturing software will result in the enforcement of the skilled workforce in the aerospace industry, thereby providing productivity and product quality advantages through various processes involved in digital manufacturing software, such as 3D printing. Hence, such factors are fuelling the growth of the market which in turn will drive the market growth during the forecast period.
The cost efficiency of the cloud segment will increase the market growth during the forecast period. There is an increasing focus by several market players on minimizing the adoption cost of product lifecycle management (PLM), thereby fuelling the adoption of cloud-based PLM software. Several PLM service providers are implementing PLM on the cloud for various end-users. One of the prominent global information technology, consulting, and outsourcing firms, Wipro is offering cloud-based PLM services for Siemens PLM Software solution, Teamcenter. Hence, there is increasing adoption of this segment as it helps to reduce upfront costs for implementation and the total cost of ownership (TCO) which in turn will drive the market growth during the forecast period.
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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. One of the main factors that is significantly fuelling the growth of the digital manufacturing software market in North America is the rise in the adoption of advanced control processes. Additionally, several Simulation capabilities are expected to positively impact the market in the region. There is a growing popularity for the digital manufacturing software market in the industrial sector in North America as the reshoring of manufacturing from overseas back to the US, and Mexico is expected to take place in the coming years.
Moreover, there is an increasing focus by several manufacturers to set up factories in North America in order to ensure that they are near to end-user market. Therefore, such factors coupled with the increasing implementation of IoT and cloud platforms are fuelling the market growth in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global digital manufacturing software market witnessed a significant slowdown due to the halt in the production of industries, including automotive, aerospace, and defense in North America. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the restoration of operations in end-user industries. Such factors are expected to drive the market during the forecast period.
The digital manufacturing software 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.
Global Digital Manufacturing Software Market Customer Landscape
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.
ABB Ltd: The company offers digital manufacturing software solutions such as Smart manufacturing solutions which include optimized factories, innovative production methods, and innovative business models.
Amazon.com Inc: The company offers digital manufacturing software such as AWS cloud technology to optimize productivity, quality, and sustainability. The benefits of AWS technology are improved operations, enhanced security, and innovation in faster and lower IT and OT costs.
ANSYS Inc: The company offers digital manufacturing software such as Digital Twin Software
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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.
The digital manufacturing software 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.
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Digital Manufacturing Software Market Scope |
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Report Coverage |
Details |
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Page number |
174 |
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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 15.9% |
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Market growth 2023-2027 |
USD 35.32 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
14.67 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 31% |
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Key countries |
US, Japan, China, Germany, and the UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
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., and The MathWorks Inc. |
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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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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