The global computer aided engineering market size is anticipated to reach USD 14.9 billion by 2027, according to a new report by Grand View Research, Inc., registering a 9.3% CAGR over the forecast period. The rapid growth of the wearable industry is likely to increase the use of computer-aided engineering (CAE) software in the electronics industry. With the smartphone market in its maturity stage, major players are in search of new sources of revenue. As a result, wearable technology is likely to witness a surge in demand over the forecast period.
The growing penetration of IoT, tablets, and smartphones is expected to boost the CAE market. Increasing usage of wearable devices in a host of industries, such as medicine, fitness, transportation, education, entertainment, and gaming, is also paving the way for market growth. Miniaturization of electronic devices and sensors, persuasive connectivity, and lowered costs have significantly contributed to the growth of wearable devices, thereby impacting the growth of computer-aided engineering.
Looking to increase driver and passenger safety in vehicles, government regulations have mandated the application of technologies such as collision avoidance systems, parking assistance systems, wireless communication technology, and interactive infotainment systems in upcoming car technologies. This is anticipated to spur the demand for computer-aided engineering software. Additionally, technological advancements in the automotive sector, including driverless cars and semi-autonomous cars, are likely to boost demand for computer aided engineering software.
Emerging new engineering modes such as 3D printing, building information modeling, and concurrent engineering are likely to influence the computer-aided engineering market. 3D printing is a form of additive manufacturing that allows users to print any object as a three-dimensional image. The technology helps in reducing production costs and developing new methods of production. Ease of use and unlimited customization capabilities are the key factors driving the adoption of 3D printing across industries, which is further expected to positively impact the demand for computer aided engineering.
Prevailing open-source software is anticipated to restrain the adoption of computer-aided engineering software and solutions over the projected period. This software is available for free on the web; however, vendors charge for support, customization, and maintenance services. Another major advantage of open source technology is that minor flaws and bugs can be tested and fixed immediately. Linux has been leading the open architecture software market. Open-source software has been a boon for small software vendors. However, it has proven to be a restraint for large enterprises.
Further key findings from the report suggest:
- The Finite Element Analysis (FEA) segment dominated the market for CAE solutions in 2019. FEA simulates real components to analyze problems pertaining to heat transfer, structural analysis, electromagnetic potential, and mass transport
- The cloud-based deployment model is expected to register the fastest growth over the projected period, on the basis of the deployment model. Cloud-based deployment enables faster distribution, minimal maintenance, reduction in cost, and an increase in scalability
- The automotive segment held the dominant share in 2019, by way of end-use. In this sector, CAE software is used to analyze the feasibility of heat dissipation techniques such as cooling, ventilation, and aerodynamics. The aerospace sector is expected to witness a high growth rate over the forecast period
- Asia Pacific and South America are poised to emerge as lucrative regional markets for CAE software over the forecast period. Rising government investments in the manufacturing sector and growing automation of industrial equipment are major factors driving these markets
- Key players in the market include Siemens AG (Germany), Exa Corporation (U.S.), MSC Software Corporation (U.S.), and ESI Group (France). Industry players are constantly investing in R&D to develop differentiated products and stay ahead of the competition.