Computer Aided Engineering Market Expected to Reach $19.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Computer Aided Engineering Market," The computer aided engineering market size was valued at $8 billion in 2021, and is estimated to reach $19.2 billion by 2031, growing at a CAGR of 9.4% from 2022 to 2031.

Computer aided engineering software optimizes engineering tasks. These tools are generally used to analyze the performance and robustness of assemblies and components. Computer aided engineering is used in many areas, such as aviation, space, automation, and shipbuilding. Furthermore, the key factors that drive the computer aided engineering (CAE) market trends include penetration of IoT, increased shift from on-premise computing to cloud-based computing, and increase in investment on R&D activities primarily drive the growth of the global computer aided engineering market. However, high costs of investments in obtaining commercial licenses may hamper the market growth to some extent. On the other hand, increase in adoption of cloud-based solutions is expected to provide lucrative opportunities for the market growth during the forecast period.

On the basis of type, the finite element analysis segment held the largest Computer Aided Engineering Market Forecast and is anticipated to dominate the market during the forecast period. It is a popular method for numerically solving differential equations arising in engineering and mathematical modeling. It assists to solve the problem in such areas includes traditional fields of structural analysis, heat transfer, fluid flow, mass transport, and electromagnetic potential. However, the optimization and simulation segment is expected to grow at the highest rate during the forecast period. The optimization and stimulation refer to using computer algorithms to search the design space of a computer model. The design variables are adjusted by an algorithm in order to achieve objectives and satisfy constraints. Such benefits drive the growth of this segment during the forecast period.

Region-wise, the computer aided engineering market size was dominated by North America in 2021, and is expected to retain its position during the forecast period, owing to rapid penetration of IoT and increasing expenses for defense are a few factors that influencing the North America regional market share. However, LAMEA is expected to witness significant growth during the forecast period. Rise in expansion trend among key market players to increase their market presence in LAMEA primarily drives growth of the market in this region. Middle East and South Africa have witnessed increase in adoption of digitalized engineering and industrialization, which has increased demand for computer-aided engineering market growth in this region.

The COVID-19 pandemic does not have major negative impact on growth of the market, the outbreak of COVID-19 will surely provide numerous opportunities for the market to grow during the forecast period. These opportunities include rise in digital transformation trend in manufacturing and automotive enterprises, surge in demand for computer aided engineering solutions that are hosted or managed on cloud, and rapid increase in problems due to disruption of supply chain in the manufacturing sector.  Moreover, due to COVID-19, computer aided engineering market has bolstered many opportunities for SME players operating in the market. In addition, rise in remote working has proliferated the digital computer aided engineering industry as the end users were locked down at their homes. In addition, rise in demand for medical device manufacturing has created lucrative growth opportunities for CAE Market during the COVID-19 disruption.

KEY FINDINGS OF THE STUDY

• By Type, the finite element analysis segment accounted for the largest CAE Market in 2021.
• On the basis of deployment model, the on-premise segment accounted for the largest computer aided engineering market share in 2021.
• Region wise, North America generated highest revenue in 2021.
• Depending on Automotive, the BFSI generated the highest revenue in 2021.

The key players that operate in the computer aided engineering market analysis are Ansys, Inc., Altair Engineering, Autodesk, Inc., Bentley Systems, Inc., Dassault Systemes, ESI Group, Mentor Graphics Corporation, MSC Software Corporation, Seiko Epson Corporation, and Siemens AG. These players have adopted various strategies to increase their market penetration and strengthen their position in the computer aided engineering industry.