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, 2023-2030

The global computer-aided engineering market size was valued at USD 7.23 billion in 2022 and is projected to grow from USD 8.01 billion in 2023 to USD 17.68 billion by 2030, exhibiting a CAGR of 12.0% during the forecast period.

The practice of using computer software to simulate performance to enhance product designs or assist in the solving of engineering problems for a variety of sectors is known as computer-aided engineering (CAE). It 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 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 2023-2030.

COVID-19 IMPACT

Declined Demand for CAE Software from Several Industries Hindered Market Growth

The COVID-19 outbreak 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 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 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 helps 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 implemented 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 in Aircraft Designing to Boost Demand for CAE

The rising sales and production of energy-efficient aircraft and commercial aviation are expected to generate 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 an increase of 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. These factors will augment the market growth over the forecast duration.

DRIVING FACTORS

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

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.

New CAE solutions are being introduced by market players. 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, an increase in the adoption of internet of things (IoT) and 3D adoption will boost the computer-aided engineering market growth.

RESTRAINING FACTORS

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

Open-source platforms, 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 of 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.

These factors could hamper CAE adoption and demand to some extent.

SEGMENTATION

By Deployment Analysis

Cloud Segment to Lead Owing to Swift Digital Transformation

By deployment, the market is divided into cloud and on-premise. The cloud segment dominates the market share and will record the highest CAGR over 2023-2030. Cloud enables faster distribution, cost cuts, lower maintenance, and enhanced scalability.

On the other hand, the on-premise held a notable market share in 2021. The deployment model augments the deployment charge of software and upgradation charges.

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 2023-2030. 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 over 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 Segment to Lead Led by Rising Demand for Evaluating Real Modules

Based on end-user, the market is segmented into automotive, medical devices, industrial equipment, defense & aerospace, electronics, and others. Automotive to gain maximum segment share during 2023-2030. The increasing need to evaluate the viability of heat dissipation methods such as ventilation, cooling, and aerodynamics in the Asia Pacific 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 over the projected period. The government's growing focus on the healthcare system is expected to fuel the manufacturer of medical devices to invest in this software. Its capability to offer accurate products is driving its demand for medical devices.

REGIONAL INSIGHTS

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In terms of region, the market is divided into five key regions: North America, Europe, South America, Asia Pacific, and the Middle East & Africa. 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 expected to capture a notable market share 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 South America such as Argentina, Brazil, Chile, and Colombia are updating their industrial policies to boost the market revenue. The countries are also increasing foreign investments to boost 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 the market in South America.

The growing productivity in the manufacturing industry in the Middle East and Africa is expected to boost the opportunity for computer-aided engineering software providers. The manufacturing industries are turning into key economic indicators of MEA countries over few years.

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Furthermore, many companies in North America such as ANSYS, Inc., Altair Engineering Inc., Dassault Systèmes, and Bentley Systems, Inc., among others put a robust emphasis on the 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 the Key Companies Profiled:

• ESI Group (France)


• Siemens AG (Germany)


• Hexagon AB (Sweden)


• Aveva Group (U.K.)


• SimScale (Germany)


• ANSYS, Inc. (U.S.)


• Altair Engineering Inc. (U.S.)


• Autodesk, Inc. (Germany)


• Bentley Systems, Inc. (U.S.)


• Dassault Systemes (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2023: Avient Corporation introduced computer-aided engineering capabilities to provide accurate predictions about fiber-reinforced polymer materials in structural metal replacement applications to enhance the performance of fiber composites by eliminating repetitive designs.


• 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.


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


• 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.


• May 2021: ESI Group collaborated with Bentley to enhance the Flying Spur through a sustainable design process. 

REPORT COVERAGE

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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 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.

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