Computer Aided Engineering Market Size & Share Analysis - Growth Trends & Forecast (2024 - 2029)

Computer Aided Engineering Market Analysis

The Computer Aided Engineering Market size is estimated at USD 11 billion in 2024, and is expected to reach USD 21 billion by 2029, growing at a CAGR of 11% during the forecast period (2024-2029).

• One of the major trends is the integration of artificial intelligence (AI) and machine learning into simulation processes. AI-powered computer-aided engineering (CAE) tools can predict outcomes more accurately, automate repetitive tasks, and provide design optimization suggestions based on data-driven insights. Additionally, companies are collaborating with established firms to enhance their product offerings. For instance, in March 2024, Ansys announced a partnership with NVIDIA to develop next-generation simulation solutions, leveraging accelerated computing and generative AI.
• Through its collaboration with NVIDIA, Ansys is empowering customers across various industries to shorten design cycles and tackle increasingly complex products by pushing the boundaries of numerics research in high-performance computing. The objective is to augment the Ansys AI+ product family, enabling features like efficient optimization, sensitivity analyses, and robust designs. These advancements are shaping the future of the CAE market.
• Cloud platforms are providing scalable and flexible access to advanced CAE software, making it more accessible for businesses. While many CAE workflows demand substantial computational resources, the cloud's evolution in handling high-performance computing (HPC) workloads has been remarkable. This progress allows engineering teams to leverage the cloud's performance, scalability, and flexibility.
• Google has introduced a computer aided engineering (CAE) solution that integrates cutting-edge technologies for efficient operation of major CAE applications. Leveraging the high-performance computing (HPC) capabilities of Google Cloud, this solution is specifically designed for the simulation and analysis phases of CAE workflows. Such advancements in high-performance cloud computing are propelling the market forward, making CAE technologies increasingly accessible.
• The CAE market, despite its promising trajectory, grapples with significant challenges. A primary hurdle is the steep initial investment required for both acquiring and implementing CAE software. Moreover, cutting-edge CAE tools demand not only a robust computing infrastructure but also skilled personnel for effective operation. These demands can pose substantial barriers for small and medium-sized enterprises, curtailing their ability to embrace CAE technologies.
• The burgeoning global manufacturing sector is having a pronounced influence on the CAE market. With manufacturing increasingly embracing digitization and the principles of smart factories, there's heightened attention on digital twins and Industry 4.0 methodologies. CAE stands at the forefront, facilitating these pivotal transformations. 
• Regions like Asia Pacific, with their rapidly evolving manufacturing hubs and robust economic growth, are further amplifying the demand for CAE solutions. Government investments in technology and infrastructure have provided a boost to the market. In light of recent supply chain disruptions, companies are increasingly turning to CAE tools for virtual testing and optimization, further propelling the market's growth.

Computer Aided Engineering Market Trends

Automotive Sector is Expected to Grow with Highest CAGR

Computer Aided Engineering Industry Segmentation

Computer-Aided Engineering (CAE) employs software tools to simulate, analyze, and enhance the performance of products or systems. This approach enables engineers to virtually test and refine designs prior to constructing physical prototypes. It is widely used across various end-use industries to enhance product quality, reduce development costs and speed up time to market. By providing insights into factors like structural integrity, fluid behaviour and thermal performance, CAE enables informed decision-making during the design process.

The study tracks the revenue generated from the sale of computer-aided engineering products and services by various companies worldwide. It also tracks the key market parameters, underlying growth influencers, and major manufacturers operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.

The computer-aided engineering market is segmented by software type (finite element analysis, computational fluid dynamics, multibody dynamics, and optimization and simulation), by deployment (on-premise, and cloud based), by end user vertical (automotive, aerospace and defense, electronics and electrical, industrial equipment, healthcare, energy and utilities, and others) and by geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.