Engineering Software Market By Software Type (Computer-Aided Design, Computer-Aided Engineering, Product Lifecycle Management, Enterprise Resource Planning), By End-User Industry (Automotive, Aerospace and Defense, Industrial Manufacturing, Consumer Electronics, Construction), By Deployment Mode (On-Premises, Cloud-Based), By Organization Size (Small and Medium Enterprises, Large Enterprises), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Engineering Software Market was valued at USD 50.0 billion in 2023 and will surpass USD 97.3 billion by 2030; growing at a CAGR of 10.0% during 2024 - 2030.

The engineering software market is rapidly growing as industries worldwide embrace digital transformation to improve operational efficiency, streamline product development, and optimize design processes. The market encompasses various software types such as computer-aided design (CAD), computer-aided engineering (CAE), and product lifecycle management (PLM), all of which play pivotal roles in enhancing the efficiency of engineering processes. The increasing demand for automation, precision, and advanced analytics across industries such as automotive, aerospace, and industrial manufacturing is significantly driving market growth. Furthermore, the shift toward cloud-based solutions, which offer flexibility and scalability, is poised to further accelerate the market in the coming years.

CAD Segment Is Largest Owing to Widespread Adoption in Product Design

The computer-aided design (CAD) segment is the largest in the engineering software market, driven by its widespread application in the design and development of products across multiple industries. CAD systems are crucial tools for engineers and designers, enabling the creation, modification, analysis, and optimization of designs. The automotive, aerospace, and industrial manufacturing industries are particularly reliant on CAD tools, as they facilitate intricate design work and help reduce time-to-market.

One of the key factors driving CAD adoption is the growing demand for complex and customizable products. CAD software allows manufacturers to efficiently create detailed 2D and 3D models, enabling them to visualize components and systems before actual production. With the introduction of advanced tools like 3D printing integration and real-time collaboration features, CAD systems are increasingly becoming indispensable in product development processes, further solidifying their position as the largest segment in the engineering software market.

Automotive Industry Is Largest End-User Industry Due to High Demand for Innovation

The automotive industry is the largest end-user of engineering software, particularly CAD and CAE tools. The industry's focus on innovation, design optimization, and manufacturing efficiency drives the demand for advanced engineering software solutions. From the design of vehicle components to testing the performance of new technologies like electric vehicles (EVs) and autonomous driving systems, automotive companies rely on engineering software to stay competitive and meet consumer demands for more efficient, eco-friendly, and high-performance vehicles.

The need for more sustainable and energy-efficient solutions is encouraging automotive manufacturers to invest in cutting-edge simulation and design software. Engineering software enables manufacturers to test various scenarios, predict performance, and iterate quickly, all while reducing material waste and ensuring compliance with safety standards. As the automotive industry continues to evolve with new technological advancements, engineering software solutions will remain integral to the development of next-generation vehicles.

Cloud-Based Deployment Mode Is Fastest Growing Owing to Scalability and Flexibility

The cloud-based deployment mode is the fastest growing in the engineering software market. Cloud solutions offer several advantages, including scalability, flexibility, and reduced infrastructure costs, making them highly attractive to companies of all sizes. This is especially true for small and medium-sized enterprises (SMEs), which benefit from the low upfront investment and the ability to scale resources as needed without the complexity of maintaining on-premises infrastructure.

Cloud-based engineering software allows for real-time collaboration and access to software from virtually any location, which is particularly beneficial in a globally connected workforce. The growing shift toward cloud adoption across industries, driven by the need for more flexible work environments and improved collaboration, is propelling the rapid expansion of the cloud-based segment. As companies seek to streamline their operations and leverage advanced technologies such as artificial intelligence (AI) and big data, the demand for cloud-based engineering software is expected to continue rising.

SMEs Segment Is Fastest Growing Organization Size Due to Cost-Effective Solutions

The small and medium enterprises (SMEs) segment is the fastest growing in the organization size category within the engineering software market. SMEs are increasingly adopting engineering software solutions, particularly cloud-based platforms, due to their cost-effectiveness and the ability to level the playing field with larger competitors. These businesses can now access powerful design, simulation, and management tools without the need for significant upfront investments or maintaining extensive IT infrastructure.

As SMEs look to innovate and improve their product development processes, the adoption of engineering software helps them compete in an increasingly technology-driven landscape. Cloud-based engineering solutions allow SMEs to integrate advanced technologies into their operations, ensuring they can stay competitive in industries like automotive, manufacturing, and consumer electronics. This trend is expected to continue, making SMEs one of the fastest-growing segments in the engineering software market.

North America Is Largest Region Due to Technological Advancements

North America is the largest region in the engineering software market, primarily due to its established technological infrastructure, high levels of innovation, and strong demand across key industries such as automotive, aerospace, and industrial manufacturing. The presence of major players such as Autodesk, Dassault Systèmes, and Siemens in the region further strengthens its market position. Additionally, the growing adoption of cloud computing and AI technologies in the region is driving the demand for advanced engineering software solutions.

The North American market benefits from a well-developed industrial ecosystem, which includes automotive giants, aerospace leaders, and cutting-edge technology firms, all of which require advanced engineering tools. The rapid digitalization of manufacturing processes and the increasing focus on Industry 4.0 are further boosting the demand for engineering software in North America, making it the largest and most mature market globally.

Competitive Landscape: Leading Companies Shaping the Future

The engineering software market is highly competitive, with several global companies leading the charge in innovation and market share. Companies like Autodesk, Dassault Systèmes, Siemens AG, PTC Inc., and ANSYS dominate the market, offering comprehensive solutions across CAD, CAE, PLM, and ERP software. These players continue to invest in research and development to enhance their product offerings and maintain a competitive edge.

The competitive landscape is also shaped by strategic partnerships, acquisitions, and collaborations aimed at expanding product portfolios and entering new markets. For example, Dassault Systèmes’ recent acquisitions have allowed it to expand its cloud-based capabilities and integrate new tools for digital manufacturing. As the market continues to evolve, companies are also focusing on providing integrated solutions that cater to the growing need for digital transformation in industries like automotive, aerospace, and industrial manufacturing. With technological advancements and the increasing focus on AI and automation, the competitive dynamics in the engineering software market are expected to remain intense in the coming years

Recent Developments:

• Autodesk unveiled a new cloud-based CAD solution aimed at improving design collaboration and streamlining product development processes for teams working remotely.
• Dassault Systèmes announced its acquisition of Netvibes, an AI-driven analytics platform, to bolster its digital twin and IoT solutions in the engineering and manufacturing sectors.
• Siemens and Bentley Systems entered into a strategic partnership to combine their expertise in engineering and software solutions for digital construction and infrastructure management.
• PTC introduced its latest version of Windchill, an advanced product lifecycle management software, with enhanced AI and IoT capabilities to accelerate digital transformation in manufacturing.
• Altair Engineering expanded its cloud simulation offerings, introducing an upgraded version of its HyperWorks suite to allow businesses to leverage AI and machine learning in their product development processes

List of Leading Companies:

• Autodesk, Inc.
• Dassault Systèmes SE
• Siemens AG
• PTC Inc.
• Altair Engineering, Inc.
• Ansys, Inc.
• SAP SE
• Bentley Systems, Inc.
• Hexagon AB
• Oracle Corporation
• IBM Corporation
• Microsoft Corporation
• Cadence Design Systems, Inc.
• IBM Corporation
• Dassault Systemes

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