Computer Aided Engineering Market Size, Share & Trends Analysis Report By Type (FEA, CFD, Multibody Dynamics, Optimization & Simulation), By Deployment Model, By End-use, And Segment Forecasts, 2021 - 2028

Report Overview

The global computer aided engineering market size was valued at USD 7.99 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 9.1% over the forecast period, owing to the increased outsourcing of manufacturing processes to emerging economies such as China, India, and Russia. 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. As a result, the cost associated with prototyping and product recall strategy is highly reduced. Moreover, the increasing use of CFD software for analyzing temperature in battery modules and extending battery life and performance is anticipated to drive the market growth.

The global market is witnessing a drastic shift from on-premise computing to cloud-based computing. Cloud computing reduces costs related to hardware acquisition and software licensing, installation, and support. This is further expected to increase the use of the Computer Aided Engineering (CAE) software. Additionally, 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 software that supports low-value processes. They are developing alternating pricing and delivering models, like 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. As a result, the growth of VARs is expected to have a positive effect on the growth of the computer aided engineering market over the forecast period.

Covid-19 Impact Insights

The global CAE market has witnessed a rising year-over-year growth for the past five years; however, it is expected to witness a fall between 2019 and 2020. The primary reason for the hindered growth in the short term is the decreased demand for CAE software from automotive and industrial equipment verticals. As the factories and manufacturing plants have halted operations in the Q2 & Q3 of 2020, the vendors witnessed a steep decline in new orders and CAE software purchases. However, as the people are settling in remote work culture, the designing, modeling, and other related operations in the market are resuming. To assist the transition to remote working, numerous software vendors are offering discounts, trial extensions, temporary free access, and licensing changes to support the migration from office to home.

The outbreak of the COVID-19 pandemic has resulted in higher demand for Personal Protective Equipment (PPE) kits, ventilators & respirators, and face shield holders. This has led several companies to leverage Additive Manufacturing Technology, CFD analysis, CAD model with a 3D printing platform to develop and supply this lifesaving equipment. The use of CAE combined with proper knowledge can help bring in rapid and practical solutions to elucidate real-life issues quickly and efficiently.

Type Insights

Based on types, the industry is segmented into Finite Element Analysis (FEA), Computational Fluid Dynamics (CFD), multibody dynamics, and optimization and simulation. In 2020, the FEA segment accounted for a market share of more than 51% and is anticipated to dominate the market over the forecast. FEA is a computational analysis methodology that helps in determining the strength of a product for loading. FEA simulates real components to analyze problems about heat transfer, structural analysis, electromagnetic potential, and mass transport.

Computational fluid dynamics involves the 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. Furthermore, 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 involve the analysis of forces to move the system in a specific way.

End-use Insights

Based on end-use, the industry is segmented into defense and aerospace, automotive, electronics, medical devices, industrial equipment, and others. In 2020, the automotive end-use industry held the largest market share of 30.47% and is expected to exhibit a CAGR of over 7.0% from 2021 to 2028. In the automotive segment, computer aided engineering software is used to analyze the feasibility of heat dissipation techniques such as cooling, ventilation, and aerodynamics. The aerospace end-use is expected to witness a high CAGR over the forecast period, owing to the increasing use of CAE software.

The growing government spending in the defense and 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. Additionally, 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 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 and cancer, and increasing awareness of early diagnosis are the key factors driving the demand for imaging systems in healthcare facilities.

Deployment Model Insights

In 2020, the on-premise segment held a market share exceeding 67% and is expected to exhibit a CAGR of nearly 7.1% from 2021 to 2028. 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 mergers and 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. Moreover, cloud-based CAE, offered as a Software-as-a-Service (SaaS), renders application-specific solutions to the CAE users. Hence, the cloud-based deployment model is expected to exhibit a high CAGR over the projected period.

Cloud-based deployment enables faster distribution, minimal maintenance, reduction in cost, and increase in scalability. Although the on-premise software implementation increased the software deployment cost along with costs for upgrades, the on-premise software installation held the major share in the market in 2020. This high share of the on-premise segment can be attributed to its early adoption. Additionally, deployment of software at the client’s site is considered a more convenient option by several companies where the data confidentiality issues persist. For similar reasons, the on-premise segment is expected to hold the majority share over the forecast period.

Regional Insights

In 2020, Europe dominated the CAE market with a revenue share of 33.08% 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.

Asia Pacific is expected to witness exponential CAGR over the forecast period. This growth can be attributed 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 U.K., the U.S., and Germany, have encouraged manufacturing companies to automate equipment.

Key Companies & Market Share Insights

A few of the major industry players include Autodesk, Inc.; Dassault Systemes; MSC Software Corporation; and Siemens AG. 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 mergers and 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. Some of the prominent players operating in the global computer aided engineering (CAE) market are:

• ANSYS, Inc.

• Altair Engineering

• Autodesk, Inc.

• Bentley Systems, Inc.

• Dassault Systemes

• ESI Group

• Exa Corporation

• Mentor Graphics Corporation (A subsidiary of Siemens AG)

• MSC Software Corporation (A subsidiary of Hexagon AB)

• Siemens AG

Computer Aided Engineering Market 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 2017 to 2028. For this study, Grand View Research has segmented the global computer aided engineering market report based on type, deployment model, end-use, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2028)

  • Finite Element Analysis (FEA)

  • Computational Fluid Dynamics (CFD)

  • Multibody dynamics

  • Optimization & simulation

• Deployment Model Outlook (Revenue, USD Million, 2017 - 2028)

  • On-premise

  • Cloud-based

• End-use Outlook (Revenue, USD Million, 2017 - 2028)

  • Automotive

  • Defense & aerospace

  • Electronics

  • Medical devices

  • Industrial equipment

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Singapore

    • South Korea

  • South America

    • Brazil

  • Middle East & Africa (MEA)