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Engineering Software Market Size (2024 - 2029)

The engineering software market is poised for significant growth, driven by the increasing integration of advanced technologies and the rapid adoption of software-as-a-service models. This expansion is fueled by heightened R&D activities, technological advancements, and the growth of the construction and infrastructure sectors, alongside the enhanced accessibility of cloud-based solutions. The market's evolution is further accelerated by the convergence of engineering and software through innovations like the Internet of Things, digital twins, and virtual reality. The COVID-19 pandemic acted as a catalyst for this transformation, prompting businesses to embrace new technologies and rethink traditional processes.

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Market Size of Engineering Software Industry

Engineering Software Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
CAGR 9.80 %
Largest Market North America
Market Concentration Low

Major Players

Engineering Software Market Major Players

*Disclaimer: Major Players sorted in no particular order

Engineering Software Market Analysis

The Engineering Software Market is expected to grow at a CAGR of 9.8% for the next five years. The growth is mainly driven by the rise of new technologies in the past decade, and the rapid adoption of those technologies is expected in the forecast period.

  • Over the past several years, the need for software engineering has grown significantly globally. The main factor driving the market's expansion are the surge in R&D activities, an uptick in technological advancements and production technique upgrades, a surge in the expansion of the construction and infrastructure sector, and a surge in the accessibility of this software via the cloud.
  • As software-as-a-service (SaaS) has become more prevalent, new options for improving designs while increasing storage independence are presented. The departure from the conventional software paradigm reduces the time needed to install and configure software and is frequently a more economical choice. With the help of innovations, CAD software has evolved from a tool to a crucial workflow component.
  • Most software projects are conceptual in nature, emphasizing developing software solutions that address a variety of customer demands. Developers must completely understand the underlying business idea for even the most straightforward application or product to provide the functionality required to satisfy the ever-increasing customer demands. It is one of the coding difficulties experienced by software engineers.
  • Engineering and software have merged on the back of the Internet of Things (IoT), digital twins, and the cloud. 3D modeling software is changing due to real-time rendering, cloud computing, and virtual reality. Companies in the engineering software sector provide open-source 3D modeling programs that are free to download so that anybody may improve the program's code. To innovate with 3D modeling software, software businesses in the engineering software industry work with developers, artists, and designers.
  • The engineering software market was undoubtedly aided by COVID-19. Companies across the board were compelled to reconsider how manufacturing or construction was done due to supply chain concerns, stay-at-home instructions, and stringent rules. This shift in perspective may have served as the turning point for many businesses to adopt new technology. Also, in the years following the COVID-19 pandemic, software robots are expected to become more prevalent.

Engineering Software Industry Segmentation

Software and package solutions often used in specialized engineering applications are referred to as engineering software. It is a branch of engineering that places a strong emphasis on the development of software applications.

The Engineering Software Market is segmented by Type (Computer-Aided Design (CAD) Software, Computer-Aided Engineering (CAE) Software, Computer-Aided Manufacturing (CAM) Software, Architecture, Engineering, and Construction (AEC), Software Electronic Design Automation (EDA) Software), Application (Design Automation, Plant Design, Product Design & Testing, and Drafting & 3D Modelling), and Geography (North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Type
Computer-Aided Design (CAD) Software
Computer-Aided Engineering (CAE) Software
Computer-Aided Manufacturing (CAM) Software
Architecture, Engineering and Construction (AEC) Software
Electronic Design Automation (EDA) Software
By Application
Design Automation
Plant Design
Product Design & Testing
Drafting & 3D Modeling
Other Applications
By Geography
North America
Europe
Asia Pacific
Latin America
Middle East and Africa
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Engineering Software Market Size Summary

The engineering software market is poised for significant growth, driven by the rapid adoption of new technologies and the increasing demand for software solutions across various sectors. The integration of cloud computing, IoT, and digital twins has transformed traditional engineering software into a more dynamic and essential component of modern workflows. The shift towards software-as-a-service (SaaS) models has facilitated greater design flexibility and cost efficiency, making it a preferred choice for many organizations. The market's expansion is further supported by the growing need for advanced design prototypes and automation in industries such as automotive, aerospace, and construction. The COVID-19 pandemic acted as a catalyst, prompting businesses to embrace these technologies to enhance operational efficiency and address supply chain challenges.

North America is expected to maintain its leadership in the engineering software market, largely due to its early adoption of cloud-based technologies and the presence of major software firms. The region's dominance is attributed to the widespread use of computer-aided design (CAD) software across various industries, including healthcare, media, and entertainment. The United States, as a global technology hub, continues to drive market growth through innovation and the development of new industries. Key players like IBM, Siemens Digital Industries, and Autodesk are actively expanding their product offerings and global presence to capture a larger market share. Collaborations and strategic partnerships are common as companies strive to enhance their technological capabilities and meet the evolving demands of the market.

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Engineering Software Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Impact of COVID-19 on the Engineering Software Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Computer-Aided Design (CAD) Software

      2. 2.1.2 Computer-Aided Engineering (CAE) Software

      3. 2.1.3 Computer-Aided Manufacturing (CAM) Software

      4. 2.1.4 Architecture, Engineering and Construction (AEC) Software

      5. 2.1.5 Electronic Design Automation (EDA) Software

    2. 2.2 By Application

      1. 2.2.1 Design Automation

      2. 2.2.2 Plant Design

      3. 2.2.3 Product Design & Testing

      4. 2.2.4 Drafting & 3D Modeling

      5. 2.2.5 Other Applications

    3. 2.3 By Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia Pacific

      4. 2.3.4 Latin America

      5. 2.3.5 Middle East and Africa

Engineering Software Market Size FAQs

The Engineering Software Market is projected to register a CAGR of 9.80% during the forecast period (2024-2029)

Autodesk, Inc., Siemens Digital Industries Software, Synopsys, Inc., Dassault Systemes, S.A. and Bentley Systems, Inc. are the major companies operating in the Engineering Software Market.

Engineering Software Market Report Snapshots

Engineering Software Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)