Computer Aided Engineering (CAE) Market Analysis By Type (FEA, CFD, Multibody Dynamics, Optimization & Simulation), By Deployment Model (On-Premise, Cloud), By End-use, And Segment Forecasts, 2018 - 2025

Industry Insights

The global Computer Aided Engineering (CAE) market size was valued at USD 5.23 billion in 2015, owing to the increased outsourcing of manufacturing processes to emerging economies. The market is poised for unprecedented growth over the forecast period, as integrated software solutions eliminate the need for multiple prototypes and product recall concerns. The increasing use of CFD software, for analyzing temperature in battery modules and extending battery life and performance, is anticipated to drive the industry growth.

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. Companies are adopting the Hyper-Converged Infrastructure (HCI) platform for building a private cloud that enables advanced computation and storage services.

U.S. CAE market, by type, 2014 - 2025 (USD Million)

Customers are increasingly quantifying their software contributions. As a result, companies are willing to pay high license fees for the software that support low-value processes. They are developing alternating pricing and delivering models, alike Software as a Service (SaaS) pricing models, enabling customers to opt for a pay-as-you-go subscription plan. However, the new pricing model is expected to affect the software providers’ cash flow, revenue recognition, and finance.

The market for value added resellers (VAR) is expected to have significant growth over the projected period. VARs will help in reducing the gap between the end-users and suppliers. VARs receive certifications and training from suppliers to increase their credibility.

Type Insights

Based on types, the industry is segmented into Finite Element Analysis (FEA), Computational Fluid Dynamics (CFD), multibody dynamics, and optimization & simulation. The FEA segment dominated the industry, in terms of revenue, in 2015.

FEA is a computational analysis methodology that helps in determining the strength of a product with respect to the loading. FEA simulates real components to analyze problems pertaining to heat transfer, structural analysis, electromagnetic potential, and mass transport.

Computational fluid dynamics involves qualitative prediction of fluid flow using mathematical modeling and software tools. CFD is used in analyzing turbulence, flow, and pressure distribution of gasses & liquids and their interaction with different structures. The industry players are aiming at developing application-specific software for customized process functions.

The multibody dynamic analysis is of two types: Inverse dynamics and forward dynamics. Forward dynamics analysis is the movement of individual components by the application of external forces. Inverse dynamics involves the analysis of forces to move the system in a specific way.

Deployment Model Insights

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 merger & 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. The cloud-based deployment model is expected to portray high growth rate over the projected period.

Cloud-based deployment enables faster distribution, minimal maintenance, reduction in cost, and increase in scalability. Cloud CAE, offered as a Software-as-a-Service, renders application-specific solutions to the CAE users.

End-use Insights

Based on end-uses, the industry is segmented into defense & aerospace, automotive, electronics, medical devices, industrial equipment, and others. The automotive end-use dominated the segment, in terms of revenue, in 2015. In the automotive segment, the CAE software is used to analyze the feasibility of heat dissipation techniques such as cooling, ventilation, and aerodynamics.

CAE market, by deployment model, 2015 (USD Million)

The aerospace end-use is expected to witness high growth rate over the forecast period, owing to the increasing use of CAE software. The growing government spending in the defense & aerospace segment, for modernizing anti-terror equipment and mitigating security lapses, is anticipated to increase the growth of the segment. Further, the growing concerns about security & surveillance, in public places, are likely to influence the segment demand.

Advanced technologies, such as Color Noise Reduction (CNR) for truer colors, Backside Illumination (BSI) for high sensitivity, and High Dynamic Range (HDR) for smooth and crisp videos, are anticipated to provide opportunities for electronics segment growth.

The medical imaging market is gaining traction in the market owing to its efficiency in diagnosing complex medical conditions. The rising prevalence of critical and chronic diseases, such as cardiovascular diseases & cancer, and increasing awareness of early diagnosis are the key factors driving the demand for imaging systems in healthcare facilities.

Regional Insights

The European CAE market dominated (in terms of revenue) in 2015 and is expected to continue its dominance over the forecast period. Developed economies, such as North America and Europe, are expected to witness significant growth, owing to the presence of bio-diverse cultures and increasing automation in the manufacturing sector.

The rising concerns toward greenhouse gas emissions and the evolving battery technologies are anticipated to spur the European regional market. Additionally, rapid penetration of IoT and increasing expenses for defense are a few factors influencing the Europe regional market share.

The APAC regional market is expected to witness exponential growth over the forecast period, owing to the rising government investments for developing the manufacturing sector and expanding the capacity of renewable energy generation.

The growing automation of industrial equipment is likely to drive the industry demand. The increasing labor costs in developed countries, such as the UK, the U.S., and Germany, have encouraged manufacturing companies to automate equipment.

Competitive Insights

A few of the major industry players include BenQ Corporation (Taiwan), Casio Computer Co., Ltd. (Japan), Dell Technologies, Inc. (U.S.), NEC Display Solutions, Ltd. (Japan), and Seiko Epson Corp. (Japan). The industry players are constantly investing in R&D to develop differentiated products and stay ahead of the competition.

Companies are obtaining new software technologies through merger & acquisitions. They are aiming to create a strong customer base by investing in sales and marketing. With an established customer base, the existing players are constantly improving products through R&D; restricting start-ups and small companies from penetrating the market.

The companies are offering specialized products and services to their customers at premium prices. This is expected to maintain the low bargaining power of the buyers. They are aiming to create a strong customer base by investing in sales and marketing.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global Computer Aided Engineering (CAE) market based on types, deployment models, end-uses, and regions:

• Type Outlook (Revenue, USD Million; 2014 - 2025)

  • Finite Element Analysis (FEA)

  • Computational Fluid Dynamics (CFD)

  • Multibody dynamics

  • Optimization & simulation

• Deployment Model Outlook (Revenue, USD Million; 2014 - 2025)

  • On-premise

  • Cloud-based

• End-use Outlook (Revenue, USD Million; 2014 - 2025)

  • Automotive

  • Defense & aerospace

  • Electronics

  • Medical devices

  • Industrial equipment

  • Others

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • Middle East and Africa (MEA)