Computer Aided Engineering Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 12.21 Billion |
| Market Size (2030) | USD 20.57 Billion |
| CAGR (2025 - 2030) | 11.00% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Computer Aided Engineering Market Analysis
The Computer Aided Engineering Market size is estimated at USD 12.21 billion in 2025, and is expected to reach USD 20.57 billion by 2030, at a CAGR of 11% during the forecast period (2025-2030).
- One of the major trends is the integration of artificial intelligence (AI) and machine learning into simulation processes. AI-powered computer-aided engineering (CAE) tools can predict outcomes more accurately, automate repetitive tasks, and provide design optimization suggestions based on data-driven insights. Additionally, companies are collaborating with established firms to enhance their product offerings. For instance, in March 2024, Ansys announced a partnership with NVIDIA to develop next-generation simulation solutions, leveraging accelerated computing and generative AI.
- Through its collaboration with NVIDIA, Ansys is empowering customers across various industries to shorten design cycles and tackle increasingly complex products by pushing the boundaries of numerics research in high-performance computing. The objective is to augment the Ansys AI+ product family, enabling features like efficient optimization, sensitivity analyses, and robust designs. These advancements are shaping the future of the CAE market.
- Cloud platforms are providing scalable and flexible access to advanced CAE software, making it more accessible for businesses. While many CAE workflows demand substantial computational resources, the cloud's evolution in handling high-performance computing (HPC) workloads has been remarkable. This progress allows engineering teams to leverage the cloud's performance, scalability, and flexibility.
- Google has introduced a computer aided engineering (CAE) solution that integrates cutting-edge technologies for efficient operation of major CAE applications. Leveraging the high-performance computing (HPC) capabilities of Google Cloud, this solution is specifically designed for the simulation and analysis phases of CAE workflows. Such advancements in high-performance cloud computing are propelling the market forward, making CAE technologies increasingly accessible.
- The CAE market, despite its promising trajectory, grapples with significant challenges. A primary hurdle is the steep initial investment required for both acquiring and implementing CAE software. Moreover, cutting-edge CAE tools demand not only a robust computing infrastructure but also skilled personnel for effective operation. These demands can pose substantial barriers for small and medium-sized enterprises, curtailing their ability to embrace CAE technologies.
- The burgeoning global manufacturing sector is having a pronounced influence on the CAE market. With manufacturing increasingly embracing digitization and the principles of smart factories, there's heightened attention on digital twins and Industry 4.0 methodologies. CAE stands at the forefront, facilitating these pivotal transformations.
- Regions like Asia Pacific, with their rapidly evolving manufacturing hubs and robust economic growth, are further amplifying the demand for CAE solutions. Government investments in technology and infrastructure have provided a boost to the market. In light of recent supply chain disruptions, companies are increasingly turning to CAE tools for virtual testing and optimization, further propelling the market's growth.
Computer Aided Engineering Market Trends
Automotive Sector is Expected to Grow with Highest CAGR
- CAE plays a pivotal role in the automotive industry's evolution, enhancing vehicle design, safety, and efficiency. With the industry rapidly shifting towards electrification, autonomous driving, and responding to regulatory pressures, the significance of CAE tools has surged. Globally, numerous nations have committed to phasing out cars solely powered by internal combustion engines.
- The United Kingdom will ban the sale of new internal-combustion-only cars by 2030. By 2035, this ban will extend to the European Union, Japan, and several states in the U.S. Companies are racing against the clock to transition their entire product lines to zero-emissions technology, predominantly through electrification.
- Electric drive systems differ markedly from internal combustion engines, showcasing unique torque and efficiency profiles, distinct noise spectra, varied vibration behaviours, and specific cooling requirements. Consequently, vehicles must be re-engineered to integrate batteries, motors, and other components seamlessly. Engineers leverage CAE to instantly gauge how design modifications influence performance, propelling the market forward. Data from the IEA reveals that in 2023, global venture capitalists poured approximately USD 2.5 billion into electric mobility startups focused on cars. Given the trajectory of these investments, further growth is anticipated, fueling the market's expansion.
- CAE software providers are forging partnerships to bolster their offerings for automotive clients. For example, in December 2023, Hexagon’s Manufacturing Intelligence division teamed up with JSOL Corporation, aiming to speed up the virtual prototyping of electrified powertrains via multi-physics simulation. This collaboration is an extension of their long-standing technical alliance, which has been delivering precise and high-efficiency virtual prototyping for intricate electro-mechanical systems on a global scale.
- This new alliance allows clients to merge Hexagon's comprehensive engineering simulation software with JSOL's JMAG electromagnetic field analysis tool. This integration promises quicker, more thorough, and cost-effective solutions to a wide range of system design challenges in the virtual realm, surpassing the capabilities of traditional physical prototyping. Such collaborations are propelling the market forward.
- Moreover, numerous automotive firms are collaborating with cloud giants like Amazon Web Services (AWS) to establish a more adaptable and scalable simulation framework. A case in point is Toyota Gazoo Racing Europe (TGR-E), which transitioned its HPC tasks to AWS. Leveraging AWS, TGR-E can now handle intricate workloads with greater speed and reduced costs. These upgraded simulation capabilities have not only expedited motorsport design but have also played a pivotal role in crafting faster, more efficient, and superior vehicles.
Asia Pacific Region Growing at a Significant Rate
- Swift industrialisation and urban development in the region are driving up the demand for CAE tools. The push to optimise designs and processes across large-scale construction, infrastructure projects, and manufacturing is accelerating the adoption of CAE technologies.
- In the APAC region, the automotive industry, especially in China and India, is undergoing a significant shift, emphasising electric and autonomous vehicles. Concurrently, the aerospace sector is witnessing growth, buoyed by rising investments in new aircraft and satellite technologies.
- As India embraces the Industrial Revolution 4.0, enterprises are increasingly prioritizing the development of smart technological products, aiming to enhance consumer and end-user experiences. India's ER&D exports are on the rise, fueled by factors such as improved business conditions, robust IP protection, technical prowess, a vast engineering talent pool,
demographic benefits, and top-notch infrastructure. This growth is further propelled by the expanding CAD/CAM and CAE markets in the country. - Regional institutes are collaborating with CAE software firms to introduce computer-aided engineering courses. For example, NIT Andhra Pradesh has teamed up with BETA CAE Systems, equipping students with industry-relevant knowledge. They are training students on the ANSA pre-processor and META post-processor, ensuring they are well-prepared for careers in engineering simulation.
- Fueled by ongoing industrial growth, technological advancements, and rising investments, the CAE market in the APAC region is poised for a bright future. With the region's industries evolving, the appetite for advanced CAE tools is set to surge. Given APAC's status as a manufacturing powerhouse and a beacon for future technological innovations, its prominence in the global CAE market is assured.
Computer Aided Engineering Industry Overview
The market is fragmented driven and driven by rapid technological advancements and the incrasing complexity of product design across industries. Established players like Ansys, Autodesk Inc., Seimens AG, Altair Engineering Inc., and Dassault Systemes dominate the market with comprehensive software portfolios, while new entrants and niche players focus on specialised solutions or innovative technologies like AI-driven simulation and cloud-based platforms. The need for continuous innovation and integration of IoT and digital twins also fuels intense competition.
- In March 2024, Luminary Cloud, a frontrunner in real-time engineering, officially emerged from stealth mode. As a computer-aided engineering (CAE) SaaS platform, Luminary accelerates design cycles, enabling engineers to craft superior products in significantly less time, with backing from Sutter Hill Ventures, which spearheaded its USD 115 million funding round. The platform claims to execute simulations up to 100 times faster than traditional desktop computers. Dubbed a "cloud supercomputer" by its creators, Luminary positions itself as a formidable alternative to established CAE applications.
- In January 2024, Gamma Technologies (GT), a global frontrunner in multi-physics system simulation software announced the establishment of GammaTech Engineering (GTE), an advanced methods team. In tandem, GT has acquired Powertech Engineering S.r.l (PWT), a premier service provider renowned for its profound expertise in computer-aided engineering (CAE). These strategic moves empower industry innovators to harness advanced methods for intricate systems, pivotal for steering towards a sustainable future.
Computer Aided Engineering Market Leaders
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ANSYS, Inc
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Dassault Systemes
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Siemens Digital Industries Software (Siemens)
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Altair Engineering Inc.
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Autodesk Inc.
- *Disclaimer: Major Players sorted in no particular order
Computer Aided Engineering Market News
- August 2024: Nullspace, Inc. unveiled the latest version of Nullspace ES. This software stands out as the sole commercial solution globally, tailored for the swift and precise design and analysis of ion traps, pivotal for quantum computing. The newly launched Nullspace ES, paired with its companion tool Nullspace Prep, which specializes in CAD design and meshing, boasts a revamped meshing algorithm that's both faster and more efficient.
- May 2024: Cadence Design Systems, Inc. announced a definitive agreement to acquire BETA CAE Systems International AG, a provider of multi-domain engineering simulation solutions. Integrating BETA CAE’s established technologies and expertise will bolster Cadence’s Intelligent System Design strategy, broadening its multiphysics system analysis offerings and paving the way into the structural analysis domain.
Computer Aided Engineering Industry Segmentation
Computer-Aided Engineering (CAE) employs software tools to simulate, analyze, and enhance the performance of products or systems. This approach enables engineers to virtually test and refine designs prior to constructing physical prototypes. It is widely used across various end-use industries to enhance product quality, reduce development costs and speed up time to market. By providing insights into factors like structural integrity, fluid behaviour and thermal performance, CAE enables informed decision-making during the design process.
The study tracks the revenue generated from the sale of computer-aided engineering products and services by various companies worldwide. It also tracks the key market parameters, underlying growth influencers, and major manufacturers operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.
The computer-aided engineering market is segmented by software type (finite element analysis, computational fluid dynamics, multibody dynamics, and optimization and simulation), by deployment (on-premise, and cloud based), by end user vertical (automotive, aerospace and defense, electronics and electrical, industrial equipment, healthcare, energy and utilities, and others) and by geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Software Type | Finite Element Analysis, |
| Computational Fluid Dynamics | |
| Multibody Dynamics | |
| Optimization and Simulation | |
| By Deployment | On-Premise |
| Cloud Based | |
| By End User Vertical | Automotive |
| Aerospace and Defense | |
| Electronics and Electrical | |
| Industrial Equipment | |
| Healthcare | |
| Energy and Utilities | |
| Others | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Computer Aided Engineering Market Research Faqs
How big is the Computer Aided Engineering Market?
The Computer Aided Engineering Market size is expected to reach USD 12.21 billion in 2025 and grow at a CAGR of 11% to reach USD 20.57 billion by 2030.
What is the current Computer Aided Engineering Market size?
In 2025, the Computer Aided Engineering Market size is expected to reach USD 12.21 billion.
Who are the key players in Computer Aided Engineering Market?
ANSYS, Inc, Dassault Systemes, Siemens Digital Industries Software (Siemens), Altair Engineering Inc. and Autodesk Inc. are the major companies operating in the Computer Aided Engineering Market.
Which is the fastest growing region in Computer Aided Engineering Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Computer Aided Engineering Market?
In 2025, the North America accounts for the largest market share in Computer Aided Engineering Market.
What years does this Computer Aided Engineering Market cover, and what was the market size in 2024?
In 2024, the Computer Aided Engineering Market size was estimated at USD 10.87 billion. The report covers the Computer Aided Engineering Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Computer Aided Engineering Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Computer Aided Engineering Industry Report
Statistics for the 2025 Computer Aided Engineering market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Computer Aided Engineering analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
