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Computer-aided Engineering Market Size, & Share COVID-19 Impact Analysis, By Deployment (Cloud and On-premise), By Type (Finite Element Analysis (FEA), Computational Fluid Dynamics (CFD), Thermal Analysis, Multibody Dynamics, and Others), By End-user (Automotive, Medical devices, Industrial Equipment, Defense & Aerospace, Electronics, and Others) and Regional Forecast, 2022-2029

Region : Global | Format: PDF | Report ID: FBI106891

 

KEY MARKET INSIGHTS

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The global computer-aided engineering market size was valued at USD 5.75 billion in 2021. The market is projected to grow from USD 6.25 billion in 2022 to USD 12.16 billion by 2029, exhibiting a CAGR of 10.0% during the forecast period. Based on our analysis, the global market exhibited an average growth of 7.7% in 2020, as compared to 2019.


The practice of using computer software to simulate performance in order to enhance product designs or assist in the solving of engineering problems for a variety of sectors is known as computer-aided engineering (CAE). This covers the simulation, validation, and improvement of manufacturing tools, products, and processes. Furthermore, the organizations are implementing the hyper-converged infrastructure (HCI) platform for establishing a private cloud that provides advanced storage and computation services which are projected to propel market growth. Moreover, the rising usage of computational fluid dynamics (CFD) software for evaluating temperature and performance and extending battery life in battery units is expected to boost the market growth.


In addition, the growing adoption of CFD, which aids in minimizing the charge of electric vehicles, is anticipated to create a lucrative growth opportunity for the market during the forecast period.


COVID-19 IMPACT


Declined Demand for CAE Software from Several Industries to Hinder Market Growth


The COVID-19 outbreak has disrupted daily life, causing people and businesses to reconsider their activities and goals. These improvements have been shown to drive technological advances and innovation. Companies have invested time and money in developing, promoting, selling, and supporting complete and integrated computer-aided engineering solutions. Although sales have remained steady, the sales growth rate slightly declined in 2020 due to the COVID-19 pandemic.


The declined demand for CAE software from end-use verticals hindered the market growth in the early period of the pandemic. The halt in operations of manufacturing plants and factories led vendors to witness a sharp decline in new orders and CAE software purchases.


Investing in this software help companies identify challenges and opportunities as they arise. It also allows engineers, designers, and analysts to simulate products and process performance in computational fluid dynamics (CFD), finite element analysis (FEA), and multi-body dynamics (MBD), as well as provide design optimization and cost estimation tools.


Hence, businesses are implementing the idea that is an effort to provide agility to the complete lifecycle process of simulation, design, training, and operations to accelerate the engineering cycle


Thus, the companies operating in CAE tried to recoup the losses caused by the COVID-19 pandemic.


LATEST TRENDS


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Rising Adoption of Aircraft Designing to Surge Demand for CAE


The rising sales and production of energy-efficient aircraft and commercial aviation are expected to witness potential demand for CAE solutions during the forecast period.



  • As per the Federal Aviation Administration aerospace forecasts, there will be approximately 34,000 civil airplanes in the world by 2036.

  • According to the Deloitte report 2020, China’s commercial aircraft production reached around 1,900 aircraft in 2020, which is increased by 1,450 aircraft compared to 2019.


In addition, computer-aided engineering solutions are being used to design electrical battery-driven airplane engines and low-emission planes with solar panels on their wings. The most cutting-edge passenger aircraft and the most environmentally friendly next-generation aircraft designs have both been created using this program. For instance,



  • Structural deformation of the A350's wings (designed by CEA) occurs during high-altitude flight, and fuel consumption is based on the aircraft's weight as it balances the flaps to fine-tune its center of gravity.


The A350 uses 25% less fuel than other commercial aircraft, which lowers carbon emissions and the overall carbon footprint of passengers. This is due to increased fan performance in aircraft engines and the efficiencies discovered through CAE simulations. Additionally, noise pollution is decreased because engine audibility is 40% lower than that of equivalent aircraft engines.


Thus, the aforementioned factors are likely to propel the demand for these solutions for aircraft design during the forecast period.


DRIVING FACTORS


Increase in Adoption of IoT and 3D Printing to Fuel Market


The increase in the use of digital technologies such as the Internet of Things (IoT), artificial intelligence (AI), machine learning (ML), automation, cloud, and others in designing products aids in enhancing product quality and durability. Furthermore, to minimize product development time & cost, users are adopting computer-aided engineering solutions that are expected to drive market growth.


The evolving engineering modes such as building information modeling (BIM), 3D printing, and concurrent engineering is expected to influence the CAE trend. 3D printing is a form of additive manufacturing that enables users to print any object as a 3-D image. This technology aids in minimizing production costs and assists in developing new methods of production. Moreover, the ease of use and unlimited customization capabilities are the major factors influencing the 3D printing market, which is further anticipated to positively impact the market.


Furthermore, 3D printing is gaining importance in several industry verticals such as consumer electronics, aerospace & defense, automotive, and healthcare. For instance, 3D printing in the healthcare sector has resulted in more robust and customized surgical tools, medical devices, and lab equipment such as eyeglasses, drug delivery devices, hearing aids, exoskeletons, and others. Moreover, additive manufacturing methods also improve the patient-specific and prosthetics implants in dental and orthopedic surgeries, which is increasing the need for CAE solutions.


Further, the Introduction of new solutions and other strategic alliances by the key player creates a lucrative demand for the market. For instance,



  • In May 2022, Intel announced the launch of Intel VTune Profiler to escalate system performance, application performance, and system configuration for cloud, HPC, IoT, storage, media, and more. It aids users in tuning the performance of the complete application.


Therefore, the aforementioned factors, such as an increase in the adoption of IoT and 3D adoption, are expected to boost the computer-aided engineering market growth.


RESTRAINING FACTORS


High Installation Costs and Lack of Technical Expertise to Hinder Market Growth


Open-source platform, such as Linux, is one of the top providers of open architecture software. On the other hand, the CAE software is easily accessible on the Internet. However, CAE solution suppliers charge high for support, customization, and maintenance services which are probable to increase the adoption of open source platforms reducing the market growth. Furthermore, a lack of technical knowledge about the deployment of CAE software is projected to restrain the growth of the market.


Users believe that precise results only appear later in a product design cycle, making it problematic to drive the design of more composite parts. Further, companies are continuously enhancing tools and process developments to address this challenge. The other possible drawbacks with CAE are:



  • Hardware Failure: Computer failure could lead to a loss of work

  • Staff Skills: Training may be mandatory to operate the CAE software

  • Security: Work can be liable to viruses or hacking

  • Updates: Systems may need regular updating

  • Cost of Systems: New systems can be expensive to purchase


Thus, the aforementioned factors are likely to restrict the market growth.


SEGMENTATION


By Deployment Analysis


Cloud Segment to Lead Owing to Swift Digital Transformation


By deployment, the market is divided into cloud and on-premise. Amongst them, the cloud holds the highest market share and is also expected to grow at the highest CAGR in the forecast period as cloud-based deployment enables quicker distribution, a decrease in cost, minimal maintenance, and an increase in scalability.


Though the on-premise software execution augmented the software deployment charge along with up-gradation charges, the on-premise software installation witnessed a noteworthy share in the market in 2021.


By Type Analysis


Finite Element Analysis Segment to Produce Largest Share in Order to Prevent Failures


Based on type, the market is classified into finite element analysis (FEA), computational fluid dynamics (CFD), thermal analysis, multibody dynamics, and others. Finite element analysis (FEA) is expected to dominate the revenue share during the forecast period. Its capabilities, such as higher accuracy, easy access, and prevention of future failures, are expected to boost its application across critical structure engineering. Furthermore, its capability to predict product performance is gaining adoption in various industries.


Multibody dynamics are predicted to witness a rapid growth rate during the forecast period. The low cost of investment in analyzing the virtual prototype against the physical test is expected to fuel the computer-aided engineering market share.


By End-user Analysis


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Automotive to Generate High Revenue Owing to Increase in Need for Evaluating Real Modules


Based on end-user, the market is bifurcated into automotive, medical devices, industrial equipment, defense & aerospace, electronics, and others. Automotive to gain maximum segment share during the forecast period. The increasing need to evaluate the viability of heat dissipation methods such as ventilation, cooling, and aerodynamics in the region is expected to fuel the demand for computer-aided engineering software. The countries such as Brazil and Argentina are the key automotive manufacturer in the region.


Medical devices to gain rapid growth during the forecast period. The government's growing focus on the healthcare system is expected to fuel the manufacturer of medical devices to invest in computer aided engineering software. Its capability to offer accurate products is driving its demand for medical devices.


REGIONAL INSIGHTS


Europe Computer-aided Engineering Market Size, 2021 (USD Billion)

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In terms of region, the market is divided into five key regions: North America, South America, Europe, the Middle East & Africa, and the Asia Pacific. They are further segmented into countries.


Europe accounted for the highest market share in 2021. The presence of key market players across European countries is further expected to boost the market. Similarly, the automotive industry is the key industry across Europe, and this is likely to fuel the computer-aided engineering demand. The increasing developers of virtual vehicles and connected car providers are significantly investing in reliable engineering tools in optimizing the production cost.


Asia Pacific region is projected to witness notable growth in the forecast period due to increasing government spending on manufacturing industry development and increasing the capacity for producing renewable energy. Moreover, the region has shown a rebound in the sales and manufacturing sector, considering the increase in global hardware and device demand.


The countries in the South America such as Argentina, Brazil, Chile, and Colombia are updating the industrial policies to boost the market revenue. The countries are also increasing foreign investments to boost the industrialization in the region. For instance, the agenda for Sustainable Development 2030 has been identified to boost sustainable industrial development. This is expected to fuel the growth opportunities for market in South America.


The growing productivity in the manufacturing industry in Middle East and Africa is expected to boost the opportunity for computer-aided engineering software providers. The manufacturing industries are turning into key economic indicator of MEA countries over few years. As per the World Bank’s World Development Indicators database, the value addition by manufacturing sector in Middle East and Africa has gained steady growth with 12.37% in 2020.


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Furthermore, many companies in the North America such as ANSYS, Inc., Altair Engineering Inc., Dassault Systèmes, and Bentley Systems, Inc., among others put a robust emphasis on digital revolution and are frequently considered among the initial adopters of next-gen technologies, such as IoT, Artificial Intelligence (AI), automation, and cloud. The continual implementation of these technologies by companies in the region is fueling the market in the region.


KEY INDUSTRY PLAYERS


Key Players Emphasize Advanced Computer-aided Engineering to Strengthen their Positions


The global market comprises a vibrant startup ecosystem. Over 100 startups are anticipated to develop and innovate computer-aided engineering solutions for customers in the market. Such a market is projected to build robust competition, imposing current organizations to continuously update and implement new advances in product offerings.


List of Key Companies Profiled:



KEY INDUSTRY DEVELOPMENTS:



  • In June 2022: Ansys & SoftInWay, an analysis and design software supplier for 1D-2D designs, partnered to simplify the design workflow for multi-stage, single-stage, and multi-module turbomachinery.

  • In May 2022: Siemens launched Simcenter Femap which is an enhanced simulation application for editing, creating, and reviewing finite element models of complex systems or products.

  • In July 2021: Dassault Systèmes launched DELMIAworks for manufacturing firms, which delivers real-time control and visibility over the complete manufacturing supply chain. It is a collaborative environment of Enterprise Resource Planning (ERP) & Manufacturing Execution System (MES) suite of applications aiding manufacturers to report on end-to-end manufacturing processes.

  • In March 2020: Hexagon AB declared the purchase of CAEfatigue Limited, a supplier of mechanical fatigue simulation solutions used to enhance manufacturing product quality, design, and reliability.

  • In January 2020: SimScale raised USD 32 million in Series C funding to increase its cloud-driven engineering simulation tool.


REPORT COVERAGE


An Infographic Representation of Computer-aided Engineering Market

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The study on the market includes prominent areas worldwide to get a better knowledge of the industry. Furthermore, the research provides insights into the most recent industry and computer-aided engineering market trends, as well as an analysis of technologies that are being adopted quickly worldwide. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.


REPORT SCOPE & SEGMENTATION






















































  ATTRIBUTE



  DETAILS



Study Period



2018-2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2029



Historical Period



2018-2020



Unit



Value (USD billion)



Segmentation



Deployment; Type; End-user and Region



By Deployment




  • Cloud

  • On-premise



By Type




  • Finite Element Analysis (FEA)

  • Computational Fluid Dynamics (CFD),

  • Thermal Analysis

  • Multibody Dynamics

  • Others (Mechanical Event Simulation, etc.)



By End-user




  • Automotive

  • Medical Devices

  • Industrial Equipment

  • Defense & Aerospace

  • Electronics

  • Others (Energy, Consumer Goods, etc.)



By Region




  • North America (By Deployment, By Type, By End-user and By Country)

    • U.S. (End-user)

    • Canada (End-user)

    • Mexico (End-user)



  • South America (By Deployment, By Type, By End-user and By Country)

    • Brazil (End-user)

    • Argentina (End-user)

    • Rest of South America



  • Europe (By Deployment, By Type, By End-user and By Country)

    • Germany (End-user)

    • France (End-user)

    • Italy (End-user)

    • Spain (End-user)

    • Russia (End-user)

    • Benelux (End-user)

    • Nordics (End-user)

    • Rest of Europe



  • Middle East & Africa (By Deployment, By Type, By End-user and By Country)

    • Turkey (End-user)

    • Israel (End-user)

    • GCC (End-user)

    • South Africa (End-user)

    • North Africa (End-user)

    • Rest of the Middle East & Africa



  • Asia Pacific (By Deployment, By Type, By End-user and By Country)

    • China (End-user)

    • India (End-user)

    • Japan (End-user)

    • South Korea (End-user)

    • ASEAN (End-user)

    • Oceania (End-user)

    • Rest of Asia Pacific





Frequently Asked Questions

The market is projected to reach USD 12.16 billion by 2029.

In 2021, the market stood at USD 5.75 billion.

The market is projected to grow at a CAGR of 10.0% in the forecast period (2022-2029).

By deployment, the cloud is likely to lead the market.

Increase in Adoption of IoT and 3D Printing to Fuel the Market

ESI Group, Siemens AG, Hexagon AB, Aveva Group, SimScale, ANSYS, Inc., Altair Engineering Inc., Autodesk, Inc., Bentley Systems, Inc., Dassault Systèmes are the top players in the market.

Europe is expected to hold the highest market share.

By end-user, the medical devices is expected to grow with the highest CAGR.

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