Share
Engineering Software Market Size, Share, and Analysis, By Type (Computer-Aided Design (CAD) Software, Computer-Aided Engineering (CAE) Software, Computer-Aided Manufacturing (CAM) Software, Electronic Design Automation (EDA), and Others), By Deployment (Cloud, On-Premise), By Application (Design Automation, Plant Design, Product Design & Testing, and Drafting & 3D Modelling), By Industry (Automotive, Aerospace & Defense, Manufacturing, Semiconductor & Electronics, and Others), and By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2024-2034
Engineering Software Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 16% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 39.5 billion and is projected to reach USD 202.9 billion by the completion of 2034.
Engineering software is a specialized tool that aids engineers in various aspects of their work, such as design, analysis, simulation, and project management across several engineering disciplines, including civil, mechanical, electrical, and software engineering. These programs consist of multiple applications for drafting and visualizing designs, which allows for precise creation of complex structures and systems. They usually include advanced computation, simulation, and testing capabilities to evaluate performance, durability, and practicality of a design. Additionally, engineering software assists in project management, documentation, and collaboration among teams. Therefore, this software is used to enhance the process of engineering by improving efficiency, accuracy, and innovation across a wide range of industries.
Engineering Software Market is projected to achieve USD 202.9 billion during the forecast period, owing to improvements in technology and escalating demand for modern engineering solutions across different industries. The increasing focus on cloud-based platforms that provide scalability and better collaboration among teams is responsible for driving this growth. Moreover, integrations of augmented reality (AR) and virtual reality (VR) within engineering software have drastically improved design and simulation operations, benefiting sectors like manufacturing, construction, automotive, aerospace, and healthcare. Additionally, organizations are adopting advanced software for design, simulation, data analysis, and project management. These companies are aligning themselves with emerging trends that involve integrating AI and machine learning (ML), with the aim to simplify forecasting abilities and other operations with the help of automation. Hence, as companies focuses on digital transformation, the engineering software market is expected to grow by providing solutions that enhance productivity and encourage innovations in product development across various sectors.
Source: Fatpos Global
Based on Type, Engineering Software Market is segmented into Computer-Aided Design (CAD) Software, Computer-Aided Engineering (CAE) Software, Computer-Aided Manufacturing (CAM) Software, Electronic Design Automation (EDA) Software, and Others. Computer-Aided Design (CAD) Software segment is expected to maintain its dominance due to its essential aspects. For instance, CAD provides the ability to craft accurate 2D drafts and complex 3D models, which are crucial for product designing, architecture, and manufacturing processes. It minimizes design repetitions, accelerates development timelines, and eliminates errors, which leads to cost-cutting and time saving. Furthermore, due to its dependence on computers, continuous improvements, such as cloud-based collaboration and AR integration, expands the functionality and accessibility of CAD software. Therefore, the dominance of CAD comes from its fundamental position, which allows engineers, architects, and designers to develop imaginative concepts and effectively transfer them into creative realities without compromising accuracy or efficiency.
By Application, the Engineering Software Market is divided into Design Automation, Plant Design, Product Design & Testing, and Drafting & 3D Modelling. The product design & testing segment holds a dominant position within the engineering software market, owing to its important role in ensuring product quality, innovation, and maintaining operational efficiency. This dominance is due to significant contribution of engineering software to improve the process of product development. For instance, modern engineering software enables businesses to virtually construct, improve, and repeat on designs, which reduces the need for expensive physical prototypes. This accelerates the cycle of product development and provides greater flexibility to meet evolving consumer demands. Therefore, the increased emphasis on producing high-quality goods drives the demand for effective product design and testing engineering software.
Source: Fatpos Global
Adoption of Industry 4.0 and Digital Transformation Will Fuel Market Growth
Digital transformation across industries and the wide acceptance of Industry 4.0 principles is contributing to the growth of engineering software market. Companies are actively integrating advanced software solutions to automate operations, create simulations, and use data analytics for making informed decisions. This growth in digitization is experienced across manufacturing, logistics, and service sectors, which leads to more demand for advanced engineering software. Furthermore, technologies such as IoT, AI, and cloud computing plays a major role in automation of operations, thereby requiring software that is capable of managing complicated data analysis, forecast modeling, and real-time monitoring. Therefore, industries seeking to improve their operations and cut expenses have raised the demand for innovative solutions designed to meet industry requirements.
Global Emphasis on Infrastructure Development Will Create Growth Opportunities
Rising focus on infrastructure development is responsible for driving the growth of engineering software market. The market is witnessing increasing modernization and rising demand for sustainability under various projects such as smart cities, renewable energy, transportation networks, and advanced manufacturing facilities. This requires the use of modern engineering solutions that can provide accurate design and organized project management. Additionally, the need for sustainable and scalable solutions is rapidly increasing, which further accelerates the demand for engineering software across multiple domains. Therefore, as governments and private entities continue to invest in large infrastructure projects, engineering software market will continue to thrive, with the objective to provide technology-driven solutions for modern challenges.
Interoperability Concerns in Engineering Software Could Stifle Market Growth
Compatibility and interoperability issues among different software solutions is a major limitation in the engineering software market. The absence of a standard transition format and smooth compatibility among various engineering software platforms affects data exchange and collaborative efforts across various teams. Moreover, engineers often use multiple software tools to perform different functions. These tools might not consistently communicate with each other, which leads to data loss or requires manual intervention for data transfer. This interoperability challenge results in increased time consumption and potential errors during data handling processes. It obstructs smooth workflow and collaborative synergy among teams that impacts overall productivity and project timelines.
Engineering Software Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. North America's dominance in the engineering software market is due to its importance as the key center for technological innovation, which is supported by a strong industrial base, early adoption of technology, highly skilled workforce, and major investments in research and development activities. The presence of leading tech firms and active adoption of modern solutions have positioned North America as a leader in engineering software development and implementation in various sectors such as automotive, aerospace, and manufacturing. Simultaneously, Asia Pacific is expected to exhibit high growth rate, owing to increasing investments in the region from both governmental and private enterprises, which are aimed at raising the adoption of Artificial Intelligence (AI) and cloud technologies across the region. This rapid adoption increases the demand for advanced engineering software solutions throughout the Asia Pacific region.
Source: Fatpos Global
COVID-19 pandemic had a major impact on the engineering software market. Various disruptions in supply chains caused delays in software updates and installation of modern solutions due to limited access to hardware components. Furthermore, the adoption of remote work model demanded upgrades in software implementation and tools for better collaboration among teams. Economic recession resulted in budget restrictions, that made certain industries to cut their spending on non-essential technologies such as engineering software. However, industries such as healthcare and pharmaceuticals observed an increase in demand for engineering software to support R&D efforts. Thus, the pandemic resulted in reduced spending on engineering software, while highlighting the significance of quick and convenient solutions to meet changing requirements during the pandemic.
|
ATTRIBUTE |
DETAILS |
|
Study Period |
2018-2034 |
|
Base Year |
2023 |
|
Forecast Period |
2024-2034 |
|
Historical Period |
2019-2022 |
|
Growth Rate |
CAGR of 16% from 2024-2034 |
|
Unit |
Value (USD Billion) |
|
Segmentation |
Main Segments List |
|
By Type |
|
|
By Deployment |
|
|
By Application |
|
|
By Industry |
|
|
By Region |
|
Engineering Software Market size was values at USD 39.5 billion in 2023 and is projected to reach the value of USD 202.9 billion in 2034, exhibiting a CAGR of 16% during the forecast period.
The engineering software market comprises digital tools used in designing, analyzing, and managing engineering projects, aiding industries like manufacturing, construction, and technology in optimizing processes and enhancing product development.
The Computer-Aided Design (CAD) Software and the Product Design & Testing segment accounted for the largest Engineering Software Market share.
Key players in the Engineering Software Market include Autodesk, Dassault Systèmes, Siemens PLM Software, PTC, Bentley Systems, ANSYS, Hexagon AB (Intergraph), Trimble, AVEVA, Altair Engineering, Nemetschek Group, Cadence Design Systems, MSC Software Corporation, ETAS, MathWorks, and Other Prominent Players.
Adoption of industry 4.0 and digital transformation, along with global emphasis on infrastructure development are the factors driving the engineering software market.
Select License Type
Select License Type
FATPOS CLIENT Appriciation DURING THE PROJECT
Working with Fatpos Global, allowed us to take advantage of their knowledge and easy approach, allowing us to collect important data utilizing a variety of techniques. The results were clearly presented and explained, and FG responded to our questions with speed and expertise.
|
Swiss-based global building materials manufacturer |
The analyses and presentations Fatpos Global have produced for us have been of a very high caliber and have allowed us to proactively improve our customer relationship management. They have also done so while maintaining complete anonymity. Without any doubt, we suggest Fatpos Global to you.
|
|
Tech-powered construction company |
We appreciate the team’s punctuality, flexibility in terms of report modification, post report purchase support and pleasant reaction all around. Overall, my experience with this company was nothing but positive, and I couldn't be more grateful for their excellent service. Thank you for all that you do!
|
|
American global management consulting firm |
We are able to concentrate on the topics and implications that are most important to our clients thanks to the adaptability and responsiveness of the team at Fatpos Global. We would highly recommend this company to anyone in need of their services, and I will certainly be using them again in the future.
|
|
Headquartered in Zug, Switzerland, leading supplier of medical and surgical instrument |
To better study our client demographics, develop the ideal product-price architecture, and enhance our target marketing initiatives, we hired Fatpos Global. Every component of the project was completed, and we are very happy with the useful insights and actionable results.
|
|
Kosovan company, A leading organic fertilizers producer |
Thank you for your team's generous assistance, The final report was delivered to me, and I find it to be really helpful. Also, you may be sure that I will get in touch with you if I ever require fresh materials for market research. Gratitude once more.
|
|
German specialty chemicals company based in Cologne, Germany |
