Computer Aided Engineering (CAE) Market Size, Share & Trends Analysis Report By Type (FEA, CFD, Multibody Dynamics, Optimization & Simulation), By Deployment Model, By End Use, And Segment Forecasts, 2019 - 2025

Industry Insights

The global Computer Aided Engineering (CAE) market size was valued at USD 6.65 billion in 2018. It is projected to witness a CAGR of 9.8% during the forecast period. Increased outsourcing of manufacturing processes to emerging economies is anticipated to drive the growth. The market is poised for unprecedented growth, as integrated software solutions eliminate the need for multiple prototypes and product recall concerns. Rising use of CFD software, for analyzing temperature in battery modules and extending battery life and performance, is anticipated to further drive the 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.

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, such as 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 cash flow, revenue recognition, and finance of software providers.

The market for Value Added Resellers (VAR) is expected to have significant growth over the projected period. VARs will help bridge the gap between end-users and suppliers. VARs receive certifications and training from suppliers to increase their credibility. This factor is anticipated to bode well for the CAE market in the forthcoming years.

Type Insights

Based on types, the Computed Aided Engineering (CAE) market is segmented into Finite Element Analysis (FEA), Computational Fluid Dynamics (CFD), multibody dynamics, and optimization and simulation. The FEA segment led, in terms of revenue, in 2018. FEA is a computational analysis methodology that helps determine 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 and liquids and their interaction with different structures. The market players are aiming at developing application-specific software for customized process functions.

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

End Use Insights

Based on end use, the CAE market is segmented into defense and aerospace, automotive, electronics, medical devices, industrial equipment, and others. Automotive led, in terms of revenue, in 2018. In automotive segment, the computer aided engineering software is used to analyze the feasibility of heat dissipation techniques such as cooling, ventilation, and aerodynamics. This factor is projected to drive the segment growth in the forthcoming years.

Aerospace is expected to witness high CAGR over the forecast period, owing to the increasing use of the software. Growing government spending in defense and aerospace segment, for modernizing anti-terror equipment and mitigating security lapses, is anticipated to further boost the growth. Growing concerns about security and surveillance, in public places, are likely to positively influence the segment demand in near future.

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 video, are anticipated to provide growth opportunities for electronics segment.

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

Deployment Model Insights

Software is a fast-paced industry and timely development and introduction of products are vital for the organizations to attain success. As a result, companies operating in the CAE market are obtaining new software technologies through business strategies such as merger and acquisitions.

Based on deployment models, the market is segmented into cloud and on-premise. Cloud computing offers easy access to data, vast space for data storage, and security. The cloud-based deployment model is expected to portray high CAGR over the projected period. Cloud-based deployment enables faster distribution, minimal maintenance, reduction in cost, and increased scalability. Cloud CAE, offered as Software-as-a-Service, renders application-specific solutions to the CAE users.

Regional Insights

Europe led the global market, in terms of revenue, in 2018 and is expected to continue leading 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.

Rising concerns regarding greenhouse gas emissions and the evolving battery technologies are anticipated to spur the Europe market. Additionally, rapid penetration of IoT and increasing defense expenses are a few factors influencing the regional market positively.

Asia Pacific 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.

Growing automation of industrial equipment is likely to drive the regional demand for computer aided engineering software. Increasing labor costs in developed countries, such as U.K., U.S., and Germany, have encouraged manufacturing companies to automate equipment.

Computer Aided Engineering (CAE) Market Share Insights

Few of the major market 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 companies are constantly investing in R&D to develop differentiated products and to stay ahead of competition.

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

The companies offer 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 industry 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 report based on type, deployment model, end use, and region:

• 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

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • Middle East and Africa (MEA)