Computer Aided Engineering Market To Reach $32.87 Billion By 2033

Computer Aided Engineering Market Growth & Trends

The global computer aided engineering market size is expected to reach USD 32.87 billion by 2033, registering a CAGR of 12.8% from 2026 to 2033, according to a new report by Grand View Research, Inc. Rapid growth of the wearable industry is likely to increase the use of CAE software in the electronics industry. The major players in the market are in search of new sources of revenue as the smartphone market is in the maturity stage. As a result, the demand for wearable technology has increased the demand during the forecast period.

The growing penetration of IoT, tablets, and smartphones is expected to boost the CAE market growth. Owing to the growth of IoT, wearable devices, used in the fields of medicine, fitness, transportation, education, entertainment, and gaming, are increasing; paving way for the growth of the CAE market. Miniaturization of electronic devices and sensors and persuasive connectivity with lowered costs have immensely contributed to the growth of wearable technology devices.

Government regulations, mandating applications, such as collision avoidance, parking assistance systems, wireless communication technology, and interactive infotainment systems, in the upcoming car technologies to increase driver safety, are anticipated to raise the demand for CAE software. Additionally, technological advancements in the automotive sector, including driverless cars and semi-autonomous cars, are further anticipated to boost the industry demand.

The emerging new engineering modes such as 3D printing, building information modeling, and concurrent engineering is likely to influence the market. 3D printing is a form of additive manufacturing that allows users to print any object as a 3-D image. The technology helps in reducing production costs and developing new methods of production. Ease of use and unlimited customization capabilities are the key factors driving the 3D printing market which is further expected to positively impact the computer aided engineering market demand.

The prevailing open-source software is anticipated to restrain the market growth over the projected period. They are available for free on the web; however, the vendors charge for support, customization, and maintenance services. Linux has been leading the open architecture software market. Open-source software has been a boon for small software vendors, due to which, the large enterprises have been facing negative impacts. The major drivers of open-source technology are the minor flaws and bugs that can be tested and fixed immediately.

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Computer Aided Engineering Market Report Highlights

• The software segment dominated the market and accounted for a revenue share of 70.9% in 2025, driven by the increasing complexity of modern engineering designs and the expanding requirement for high-fidelity simulation tools

• The on-premise segment dominated the market and accounted for the largest revenue share in 2025, driven by organizations’ need for high security and data control

• The automotive segment dominated the market and accounted for the largest revenue share in 2025, driven by the increasing demand for lightweight and fuel-efficient vehicles.

• The defense and aerospace segment is expected to grow at a significant CAGR over the forecast period owing to the growing emphasis on lightweight materials and fuel efficiency.

• North America computer aided engineering market dominated the global market with the largest revenue share of 32.8% in 2025 due to the rapid adoption of high-performance computing (HPC) and simulation-driven design in engineering and manufacturing sectors

Computer Aided Engineering Market Segmentation

Grand View Research has segmented the global computer aided engineering market report based on component, deployment, end use, and region:

Computer Aided Engineering Component Outlook (Revenue, USD Billion, 2021 - 2033)

• Software

  • Finite Element Analysis (FEA)

  • Computational Fluid Dynamics (CFD)

  • Multibody dynamics

  • Optimization & simulation

• Services

  • Development Service

  • Training, Support & Maintenance

Computer Aided Engineering Deployment Outlook (Revenue, USD Billion, 2021 - 2033)

• On-premise

• Cloud-based

Computer Aided Engineering End Use Outlook (Revenue, USD Billion, 2021 - 2033)

• Automotive

• Defense & aerospace

• Electronics

• Medical devices

• Industrial equipment

• Others

Computer Aided Engineering Regional Outlook (Revenue, USD Billion, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

• Latin America

  • Brazil

• Middle East & Africa

  • UAE

  • Saudi Arabia

  • South Africa

List of Key Players in the Computer Aided Engineering Market

• Altair Engineering

• ANSYS, Inc.

• Autodesk, Inc.

• Bentley Systems, Inc.

• Dassault Systemes

• ESI Group

• Exa Corporation

• Hexagon AB

• Keysight Technologies

• Siemens