Global Computer Aided Engineering Market by Type (Multibody Dynamics, FEA, CFD, Optimization & Simulation) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

In 2020, the global computer-aided engineering market was worth USD 7.99 billion. The market is expected to grow at a 9.1% compound annual growth rate (CAGR), due to increased outsourcing to emerging economies like China, India, or Russia. The market is expected to experience unprecedented growth in the coming years due to integrated software solutions that eliminate the need for multiple prototypes or product recall concerns. The cost of prototyping and product recall strategies is greatly reduced. CFD software is being used more frequently to analyze temperature in battery modules and extend performance. This will drive market growth.

Globally, the market is experiencing a shift from on-premise to cloud-based computing. Cloud computing lowers hardware and software costs. The Computer Aided Engineering software (CAE), will also be used more often. Companies are also adopting the Hybrid Infrastructure (HCI), platform to build a private cloud that allows advanced storage and computation.

Customers are quantifying the software contributions they make. Companies are prepared to pay high licensing fees for software that supports low value processes. They have developed alternating pricing and delivering model, such as Software as a Service (SaaS), pricing models that allow customers to choose a pay as you go subscription plan. The new pricing model will have an impact on the cash flow, revenue recognition and finance of the software providers.

Over the forecast period, there will be significant growth in the market for Value Added Resellers. VARs can help reduce the gap between end-users, suppliers. To increase their credibility, VARs are given certifications and training by suppliers. The growth of VARs will have a positive impact on the growth in the computer-aided engineering market during the forecast period.

Covid-19 Impact Insights

Over the last five years, the global CAE market saw a rise in year-over-year growth. However, it is likely to see a decline between 2019 and 2020. The main reason for slowing growth is the lower demand from industrial equipment and automotive verticals for CAE software. The vendors saw a sharp decline in orders and purchases of CAE software as factories and manufacturing plants stopped operations in Q2 and Q3 2020. The market is resuming design, modeling, and other related activities as people settle in to remote work cultures. Many software vendors offer discounts, trial extensions and temporary free access to help with the transition from home to work.

There has been a rise in demand for personal protective equipment (PPE), ventilators and respirators as well as face shield holders, due to the COVID-19 pandemic. Many companies have embraced Additive Manufacturing Technology (CFD analysis, CAD model, and a 3D printing platform) to create and distribute this lifesaving equipment. Combining CAE with the right knowledge can lead to practical and quick solutions that solve real-life problems quickly and efficiently.

Type Insights

The industry can be divided into Finite Element Analysis, Computational Fluid Dynamic (CFD), multibody dynamics and optimization and simulacrum based on its types. The market share held by the FEA segment was more than 51% in 2020. It is expected to continue dominating the market through the forecast. FEA, a method of computational analysis that determines the product's load strength, is used to help in this process. FEA simulates real parts to solve problems such as heat transfer, structural analysis, electromagnetic potency, and mass transportation.

Computational fluid dynamics is the quantitative prediction of fluid flow through mathematical modeling and other software tools. CFD can be used to analyze the flow, pressure distribution, and turbulence of liquids and their interactions with different structures. Industry players aim to develop application-specific software that can perform customized functions. The multibody dynamic analysis can be divided into two types: forward dynamics and inverse dynamics. Forward dynamics analysis refers to the movement of individual components through the application of external force. Inverse dynamics is the study of forces that move the system in a particular way.

End-use Insights

The industry can be divided by end-use into automotive, electronics and defense and aerospace. The automotive industry held 30.47% of the market in 2020 and is expected to grow at a CAGR exceeding 7.0% between 2021-2028. Computer-aided engineering software is used in the automotive sector to evaluate the feasibility of heat dissipation methods such as cooling, ventilation, or aerodynamics. Due to increasing use of CAE software, the aerospace end-use will see a high CAGR during the forecast period.

It is expected that the segment will grow due to increased government spending on defense and aerospace. This includes modernizing anti-terror gear and mitigating security breaches. The segment's demand will be influenced by the increasing concerns regarding security and surveillance in public places. There are also opportunities for growth in the electronics segment, such as advanced technologies like Color Noise Reduction (CNR), Backside Illumination(BSI) to increase sensitivity and High Dynamic Ranges (HDR) to produce crisp and smooth video. Medical imaging is growing in popularity due to its ability to diagnose complex medical conditions. Rising prevalence of chronic and critical diseases such as cancer and cardiovascular disease, and increased awareness of early diagnosis, are key factors that drive the demand for imaging systems within healthcare facilities.

Deployment Model Insights

The on-premise segment held 67% market share in 2020 and is expected to grow at a CAGR close to 7.1% between 2021-2028. Software industry is fast-paced. It is crucial that products are introduced to the market quickly and developed in a timely manner. Mergers and acquisitions are used by companies to acquire new software technologies. The industry can be divided into two types based on the deployment model: cloud and on-premise. Cloud computing allows for easy data access, large storage space, and security. Moreover, cloud-based CAE, offered as a Software-as-a-Service (SaaS), renders application-specific solutions to the CAE users. The cloud-based deployment model is projected to show a high CAGR during the forecast period.

Cloud-based deployment allows for faster distribution, less maintenance, lower cost, and greater scalability. Despite the fact that on-premise software implementation incurred higher software deployment costs and added costs for upgrades, on-premise software still held the largest share of the market in 2020. The early adoption of on-premise software can explain the high market share. Many companies consider it more convenient to deploy software at their client's location, especially if data confidentiality concerns persist. Similar reasons are behind the expectation that the largest share will be held by the on-premise segment over the forecast period.

Regional Insights

With a 33.08% revenue share in 2020, Europe was the dominant CAE market and will continue to be so for the forecast period. North America and Europe are expected to experience significant growth due to the increasing use of automation in the manufacturing sector and bio-diverse cultures. European market growth is expected to be fueled by rising concerns about greenhouse gas emissions and new battery technologies. The European regional market share is also affected by the rapid penetration of IoT, and rising defense costs.

Asia Pacific will experience an exponential CAGR during the forecast period. This is due to rising government investment in the development of the manufacturing sector and the expansion of the renewable energy generation capacity. Industry demand will be driven by the increasing automation of industrial equipment. Increasing labor costs in developed nations, such as the U.K. and the U.S. have prompted manufacturing companies to automate their equipment.

Market Share Insights & Key Companies

Autodesk, Inc., Dassault Systemes, MSC Software Corporation, and Siemens AG are just a few of the industry leaders. To develop new products and keep ahead of their competitors, industry players invest in R&D. Through mergers and acquisitions, companies are able to acquire new software technologies. They want to build a customer base through investments in marketing and sales. The existing players have a strong customer base and are continually improving their products through R&D, which prevents start-ups from entering the market. These companies offer specialized services and products at high prices to their customers. This will ensure that buyers have a low bargaining power. They want to build a customer base through sales and marketing. The following are some of the most prominent players in the global market for computer-aided engineering (CAE).

• ANSYS, Inc.

• Altair Engineering

• Autodesk, Inc.

• Bentley Systems, Inc.

• Dassault Systemes

• ESI Group

• Exa Corporation

• Mentor Graphics Corporation (A Siemens AG subsidiary)

• MSC Software Corporation (A Hexagon AB subsidiary)

• Siemens AG

Up Market Research published a new report titled “Computer Aided Engineering Market research report which is segmented by Type (Multibody Dynamics, FEA, CFD, Optimization & Simulation), By Players/Companies ANSYS Inc, Bentley Systems Inc, Autodesk Inc, Exa Corporation, Dassault Systemes, MSC Software Corporation (A subsidiary of Hexagon AB), Altair Engineering, Siemens AG, ESI Group, Mentor Graphics Corporation (A subsidiary of Siemens AG)”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Computer Aided Engineering Market Report Segments:

The market is segmented by Type (Multibody Dynamics, FEA, CFD, Optimization & Simulation).

Computer Aided Engineering Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Computer Aided Engineering Market

Overview of the regional outlook of the Computer Aided Engineering Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Computer Aided Engineering Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Computer Aided Engineering Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Multibody Dynamics

                2. FEA

                3. CFD

                4. Optimization & Simulation

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Computer Aided Engineering Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Computer Aided Engineering Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.