Computer Aided Engineering Market Innovations In Product Design And Development

The global Computer-Aided Engineering (CAE) market is experiencing significant growth, projected to reach a value of USD 10,175.4 million in 2023. This market is set to expand at a Compound Annual Growth Rate (CAGR) of 12.8% from 2024 to 2030. This growth is primarily driven by the outsourcing of manufacturing processes to emerging economies like China, India, and Russia.

The increasing adoption of integrated CAE software solutions is a major factor contributing to this growth. These solutions eliminate the need for multiple physical prototypes, significantly reducing costs associated with prototyping and product recalls. Additionally, the rising use of Computational Fluid Dynamics (CFD) software for analyzing battery module temperatures and enhancing battery life and performance is further propelling market growth.

The global market is witnessing a substantial shift from traditional on-premise computing to cloud-based computing. Cloud computing offers significant cost advantages by reducing expenses related to hardware acquisition, software licensing, installation, and support. This trend is expected to boost the adoption of CAE software. Furthermore, the implementation of Hyper-Converged Infrastructure (HCI) platforms for building private clouds enables advanced computational and storage services, further accelerating market growth.

Gather more insights about the market drivers, restrains and growth of the Computer Aided Engineering Market

Deployment Model Segmentation Insights

In 2023, the on-premise segment dominated the global market, accounting for over 63% of the market share. This segment is projected to maintain a robust growth trajectory, with an estimated CAGR of nearly 10.5% from 2023 to 2030.

The software industry is characterized by rapid innovation and the timely introduction of new products is crucial for a company's success. To stay ahead of the curve, many companies are actively pursuing mergers and acquisitions to acquire cutting-edge software technologies.

Based on deployment models, the industry is primarily divided into on-premise and cloud solutions. Cloud computing offers a host of advantages, including easy data access, ample storage space, and enhanced security. Furthermore, cloud-based Computer-Aided Engineering (CAE) solutions, delivered as Software-as-a-Service (SaaS), provide tailored applications to CAE users. As a result, the cloud-based deployment model is anticipated to witness significant growth during the forecast period.

Cloud-based deployment offers several benefits, such as faster distribution, minimal maintenance requirements, reduced costs, and increased scalability. While on-premise software implementation may incur higher initial deployment costs and subsequent upgrade expenses, it still held a substantial market share in 2023 due to its early adoption and the perceived convenience of on-site deployment for companies prioritizing data confidentiality. For these reasons, the on-premise segment is expected to retain its dominant position throughout the forecast period.

Order a free sample PDF of the Computer Aided Engineering Market Intelligence Study, published by Grand View Research.