Market Size & Trends

The global computer aided engineering market size was valued at USD 10,175.4 million in 2023 and is expected to grow at a CAGR of 12.8% from 2024 to 2030, owing to the increased outsourcing of manufacturing processes to emerging economies such as China, India, and Russia, among others. The computer aided engineering (CAE) market is poised for unprecedented growth during the forecast period, as integrated software solutions eliminate the need for multiple prototypes and product recall concerns. As a result, the cost associated with prototyping and product recall strategy is highly reduced. Moreover, the increasing use of CFD software for analyzing temperature in battery modules and extending battery life & performance is anticipated to drive the market growth.

The market all over the globe is witnessing a drastic shift from on-premise computing to cloud-based computing. Cloud computing reduces costs related to hardware acquisition and software licensing, installation, and support. This is further expected to increase the use of the CAE software. Additionally, companies are adopting the Hyper-Converged Infrastructure (HCI) platform for building a private cloud that enables advanced computation and storage services.

Gather more insights about the market drivers, restrains and growth of the Global Computer Aided Engineering market

Detailed Segmentation

Component Insights

Based on component, the market is segmented into software and services. The software segment accounted the major market share in 2023 and is anticipated to continue its dominance in the coming years. The segment growth can be attributed to benefits such as data safety, reliability, and uninterrupted testing. The software optimizes the engineering tasks and are majorly used to examine the robustness and performance of the components and assemblies.

Deployment Model Insights

In 2023 the on-premise segment held a market share exceeding 63% in the global market and is expected to exhibit a CAGR of nearly 10.5% from 2023 to 2030. The software industry is a fast-paced industry and timely development and introduction of products to the market are vital to a firm’s success. Companies are obtaining new software technologies through mergers & acquisitions. Based on deployment models, the industry is segmented into on-premise and cloud. Cloud computing offers easy access to data, vast space for data storage, and security. Moreover, cloud-based CAE, offered as a Software-as-a-Service (SaaS), renders application-specific solutions to the CAE users. Hence, the cloud-based deployment model is expected to portray a high growth rate during the projected period.

End-use Insights

Based on end-use, the industry is segmented into defense & aerospace, automotive, electronics, medical devices, industrial equipment, and others. In 2023, the automotive industry held the largest market share of more than 29% in the global market and expected to exhibit a significant CAGR from 2024 to 2030. In the automotive segment, the utilization of Computer-Aided Engineering (CAE) software brings significant value by enabling engineers to analyze and optimize heat dissipation techniques, such as cooling, ventilation, and aerodynamics. This enhances the overall design and performance of vehicles. Moreover, CAE software plays a pivotal role in Computer-Aided Engineering (CAE) drawing and Computer-Aided Engineering (CAE) design, empowering engineers to simulate and refine designs before physical prototypes are produced.

Regional Insights

In 2023, North America dominated the CAE market with a market share of more than 33.0% and is expected to continue its dominance over the forecast period owing to the presence of bio-diverse cultures and increasing automation in the manufacturing sector. The rising concerns about greenhouse gas emissions and the evolving battery technologies are anticipated to spur the North American regional market. Additionally, rapid penetration of IoT and increasing expenses for defense are a few factors influencing the North America regional market share.

Key Companies & Market Share Insights

Some of the key players operating in the market include Siemens Group, and Rockwell Automation among others.

• Siemens Group is a multinational conglomerate comprising Siemens AG as the parent company and its subsidiaries. The company has several production facilities, sales offices, distribution centers, and R&D centers located across the globe. Siemens Group operates through various divisions, including gas & power, energy management, wind power & renewable, mobility, digital factory, process industries, building technology, power generation services, healthcare, and financial services.
• Rockwell Automation specializes in delivering a comprehensive range of industrial automation power, control, and information systems. The company's extensive offerings include connected components, asset and consultancy management, midrange architecture systems, front-end engineering and design, engineered packages and panels integration, manufacturing intelligence, integration services, and on-machines solutions.   

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Key Computer Aided Engineering Companies:

The following are the leading companies in the computer aided engineering market. These companies collectively hold the largest market share and dictate industry trends. Financials, strategy maps & products of these computer aided engineering companies are analyzed to map the supply network. 

• ANSYS, Inc.
• Altair Engineering
• Autodesk, Inc.
• Bentley Systems, Inc.
• Dassault Systemes
• ESI Group
• Exa Corporation
• Mentor Graphics Corporation (A subsidiary of Siemens AG)
• Hexagon AB
• Siemens

Computer Aided Engineering Market Segmentation

Grand View Research has segmented the global computer aided engineering market based on component, deployment models, end-uses, and region

Computer Aided Engineering (CAE) Component Outlook (Revenue, USD Million; 2017 - 2030)

• Software
• Services

Computer Aided Engineering (CAE) Deployment Model Outlook (Revenue, USD Million; 2017 - 2030)

• On-premise
• Cloud-based

Computer Aided Engineering (CAE) End-use Outlook (Revenue, USD Million; 2017 - 2030)

• Automotive
• Defense & aerospace
• Electronics
• Medical devices
• Industrial equipment
• Others

Computer Aided Engineering (CAE) Regional Outlook (Revenue, USD Million; 2017 - 2030)

• North America
• U.S.
• Canada
• Mexico
• Europe
• Germany
• U.K.
• France
• Italy
• Spain
• Russia
• Asia Pacific
• China
• India
• Japan
• Singapore
• South Korea
• South America
• Brazil
• Middle East and Africa (MEA)
• KSA
• UAE
• South Africa

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Recent Developments

• In February 2023, Ansys Inc. and Microsoft extended their longstanding strategic partnership to expedite virtual product design. This collaboration entails expanding cloud-based accessibility to Ansys Inc.' simulation solutions and computer-aided engineering (CAE) tools, aiming to enhance the design process.
• In March 2023, Altair Engineering Inc.announced the expansion of its Finnish channel partner, CaeTek, into Norway. CaeTek, which already provides Altair technology in Finland, Denmark, Iceland, and the Baltic region, has now extended its services to Norway as well. The Norwegian division of CaeTek receives support from cDynamics, a Norwegian consultancy with extensive expertise in Altair's software portfolio, particularly in structural and hydrodynamics simulation for the marine and telecommunication sectors.

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