Computer Aided Engineering Market Analysis Report By Type, By Deployment Model, By End Use And Segment Forecasts From 2020 To 2027

Industry Insights

The global computer-aided engineering market size was worth USD 7.3 billion in 2019. It is projected that the market is market would register a 9.3% CAGR from 2020 to 2027. The rise in the outsourcing of manufacturing processes in developing countries such as China, India, Russia, and Brazil is attributing to the growth of the market. The integrated CAD software solution eliminates issues such as product recall and multiple prototypes. In addition, the rising use of computational fluid dynamics (CFD) is likely to spur market growth.

In the recent past, there has been a significant change in the market as cloud adoption is gaining traction. Cloud offers various benefits such as hardware acquisition & software licensing, support and installation. Thus, these benefits are further anticipated to augment segment growth. In addition, the adoption of Hyper-Converged Infrastructure (HCI) has gained traction in the recent past as it helps in building a private cloud, thereby, ensuring advanced computation along with storage service. With the growing popularity of Software as a service (SaaS) models, consumers are increasingly opting for pay-as-you-go models.

Value-added resellers (VAR) are likely to register considerable growth from 2020 to 2027. The increasing popularity of this system is attributed to the ability to bridge the gap between suppliers and end-users. An increase in VRS popularity is estimated to positively affect market growth.

Type Insights

Depending on the type, the market is classified into Computational Fluid Dynamics (CFD), optimization & simulation, multibody dynamics, and Finite Element Analysis (FEA). Among them, the FEA segment held the largest share in the market in 2019. This segment determines product strength under loading. In addition, the FEA helps in simulating the real components in order to analyze structural analysis, mass transport, heat transfer, and electromagnetic potential.

On the other hand, CFD facilitates qualitative estimation of low fluid using software tools and mathematical modeling. This technique is used to determine the pressure distribution, flow, and turbulence of liquids and gases along with their interaction with various structures. Market players are emphasizing the development of the customized solutions, which will further proliferate the adoption.

End-use Insights

Depending on the end-use, the CAE market is categorized into electronics, industrial equipment, automotive, aerospace & defense, automotive, medical devices, and others. In 2019, the automotive segment accounted for the highest share in the market. Computer-aided engineering software is used to analyze the viability of different techniques like ventilation, aerodynamics, and cooling.

On the other hand, the aerospace end-use segment is likely to register significant growth over the forecast duration. Increasing investment by the government in the modernization of aerospace and defense equipment is supplementing the growth of the market. Further, there has been a rise in the focus on ensuring safety in public places, where CAE can play a vital role.

The electronic industry is projected to witness the significant demand for technologies such as High Dynamic Range (HDR) and Color Noise Reduction (CNR). CAE plays a vital role in these technologies, thereby, gaining traction in the electronics industry. The use of CAE in medical imaging techniques is also gaining traction as it is used to diagnose intricate medical conditions.

Deployment Model Insights

By deployment, the market is classified into cloud-based and on-premise. Cloud offers various advantages such as easy deployment, easy accessibility, high security, and large space for storage. In addition, the cloud offers a Software-as-a-Service (SaaS) option, which further attracts a significant number of consumers. Owing to the aforementioned benefits, cloud deployment is likely to register the fastest growth over the forecast duration.

The on-premise segment accounted for the highest share in the market in 2019. Early adoption of the on-premise system is the key factor behind its highest share. Despite the high cost in deployment and up-gradation, the segment continued to maintain a prominent share in the market. On-premise provides enhanced security solutions; as a result, it is popular among enterprises where data confidentiality is critical. It is predicted that the on-premise segment would continue to lead from 2020 to 2027.

Regional Insights

In 2019, Europe accounted for the highest share in the market by revenue and is likely to retain its share over the forecast duration. Rapid automation in the manufacturing sector and developed automotive sector are attributing to the growth of this region. Further, a rise in defense spending by the major European countries and IoT integration in manufacturing technology are likely to supplement the market growth.

The Asia Pacific is estimated to register steady growth from 2020 to 2027. Rapid industrialization and government spending on automation in the manufacturing sector is driving regional growth. In addition, countries such as China and India have increased their defense spending considerably, thereby, attributing to the growth of the regional CAE market.

Impact of COVID-19

The computer-aided engineering market has witnessed a significant decline in its demand owing to the COVID-19 outbreaks. Various end-use industries such as automotive, aerospace, manufacturing, and electronics, where CAE is mostly used, were forced to close. Disruption in industrial operation has led to a decline in the demand for CAE software from various end-use industries. However, the medical sector has witnessed robust demand for CAE software owing to the increasing adoption of this software in medical imaging technologies. Further, the resumption of industrial operations is likely to help the market to recover over the next few years.

Computer-Aided Engineering Market Share Insights

Key industry players operating in the market are NEC Display Solutions, Dell Technologies, BenQ Corporation¸ Seiko Epson Corp, and Casio Computer among others. Market players have increased their spending on the development of the new product to remain competitive and garner a larger market share. Other strategic initiatives such as merger & acquisition and strengthening sales & marketing are also gaining traction among market players. In addition, companies are also offering customized products at a premium price, which helps them in gaining a larger market share.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global computer-aided engineering (CAE) market report based on type, deployment model, end-user, and region:

• Type Outlook (Revenue, USD Million, 2016 - 2027)
    • Finite Element Analysis (FEA)
    • Computational Fluid Dynamics (CFD)
    • Multibody Dynamics
    • Optimization & Simulation

• Deployment Model Outlook (Revenue, USD Million, 2016 - 2027)
    • On-premise
    • Cloud-based

• End-use Outlook (Revenue, USD Million, 2016 - 2027)
    • Automotive
    • Defense & Aerospace
    • Electronics
    • Medical Devices
    • Industrial Equipment
    • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • The U.K.
        • France
        • Italy
        • Spain
        • Russia
    • The Asia Pacific
        • China
        • India
        • Japan
        • Singapore
        • South Korea
    • South America
        • Brazil
    • Middle East and Africa (MEA)