Global Computer-Aided Engineering (CAE) Software Market Overview
The key driver impacting the computer-aided engineering software market is the rapidly growing automotive sector, and the growing demand for electric vehicles is boosting the CAE software demand in the forecast period. CAE software is majorly used to analyze the feasibility of heat dissipation techniques such as ventilation, cooling, and aerodynamics in the automotive sector. For instance, As per Crescendo Worldwide Organization, the global automobile production in 2019 was estimated as 92 MN Vehicles, and it is anticipated to grow by a CAGR of 20.78% by 2028, and it is estimated to reach $ 9 trillion by 2030. Electric vehicle makers are majorly utilizing computational fluid dynamics to drop the cost of electric vehicles and to predict thermal conditions. The growing EV sales are likely to create a positive impact on the CAE market. According to IEA, Electric cars account for 2.6% of global car sales, and it registered a 40% year-on-year rise. Sales of electric vehicles recorded 2.1 million worldwide in 2019, surpassing 2018. Moreover, the emergence of advanced technologies such as backside illumination (BSI) for high sensitivity, color noise reduction (CNR) for truer colors, and high dynamic range (HDR) for smooth and crisp video is also estimated to be a major determinant that adding growth to the market.
According to Value Market Research, the global computer-aided engineering software market was valued at around USD 6750 million in 2020 and is estimated to grow at a CAGR of about 10% during the forecast period of 2021 to 2027.
The high prevalence of critical and chronic medical conditions like cardiovascular diseases and cancer creates a massive demand for medical imaging for early diagnosis, which is estimated to augment market demand in the forecast period. As CAE software and solutions are very efficient in diagnosing complex medical conditions. For instance, According to World Health Organization, Cardiovascular diseases (CVDs) are the leading cause of death worldwide, taking an expected 17.9 million lives every year. Cancer is the second-most cause of death after cardiovascular diseases and accounts for 9.6 million deaths worldwide in 2018. There is one in six deaths happened due to cancer. However, it is open-source software, and companies evade making investments in obtaining the commercial licenses of CAE solutions, which may hamper the global computer-aided engineering market in the long run. The current industry trends, such as rising concerns about security and surveillance in public places, and rapid adoption of computational fluid dynamics, which reduce electric vehicles' cost, are expected to provide profitable market opportunities for the market players.
The computer-aided engineering market is vast, with many local and global players. The key leaders follow several strategies to develop their market position, such as mergers, contracts, acquisitions, expansions, extending product portfolio, product innovations to improve their market share globally. The known players included in the report are Siemens Product Lifecycle Management Software Inc., Dassault Systemes, Altair Engineering, Inc., CD-adapco, Mentor Graphics, Inc., AspenTechnology, Inc., MSC Software Corporation, ESI Group, Computational Engineering International Inc., Exa Corporation, and Bentley Systems Incorporated.
In this research report, the computer-aided engineering software market is segmented by deployment model, type, end-user, and region.
Analysis by Deployment Model:
By deployment model, the report is categorized into On-premise and Cloud-based. The cloud-based model dominates the deployment model segment with over 55% share in 2020. It is due to the numerous benefits associated with cloud computing, such as vast space for data storage, easy access to data, and high security. Moreover, the cloud-based CAE, presented as a Software-as-a-Service (SaaS), provides application-specific solutions to CAE users, thus contribute to the cloud-based CAE growth in the forecast period.
Analysis by Type
By type, the report is categorized into Computational Fluid Dynamics (CFD), Finite Element Analysis (FEA), multibody dynamics, and optimization and simulation. The Finite Element Analysis (FEA) dominate the deployment segment with over 35% share in 2020. It is widely used in many engineering and research fields to do capable and precise modeling of the behavior of thermal, mechanical, or other complex systems. Moreover, growing applications such as energy absorption tests of a vehicle rollover protection structure and analyzing problems concerning heat transfer, electromagnetic potential, structural analysis, and mass transport contribute to the enormous market demand in the forecast period.
Analysis by End-User:
By end-user, the report is categorized in automotive, defense and aerospace, medical devices, electronics, industrial equipment, and others. The automotive dominate the end-user segment with over 30% share in 2020. It is growing usage of CAE software in analyzing the practicability of heat dissipation techniques such as cooling, aerodynamics, and ventilation. Moreover, the rapidly rising demand for vehicles worldwide contributes to the vast market demand from the automotive sector in the forecast period.
Analysis by Region:
In the regional outlook of the global computer-aided engineering software market, the Europe region dominates with a 30% market share during the forecast period. It is due to the increasing automation in the manufacturing sector across developing economies, high spending on defense, and rapid penetration of IoT in numerous industries in the region. Moreover, the rising concerns regarding greenhouse gas emissions and evolving battery technologies contribute to the development of the computer-aided engineering market across Europe.
Market Segmentation covered in the Report:
By Deployment Model
- Finite Element Analysis (FEA)
- Computational Fluid Dynamics (CFD)
- Multibody Dynamics
- Optimization & Simulation
- Defense & Aerospace
- Medical Devices
- Industrial Equipment
- North America
- the Asia Pacific
- Latin America
- The Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.