Growing demand for faster product development and Expansion of industry 4.0 and smart manufacturing are driving the growth of the Computer Aided Engineering Market at a CAGR of 9.3% during the forecast period 2025 to 2035

Market Research Future (MRFR) has published a cooked research report on the “Global Computer Aided Engineering Market” that contains the information from 2019 to 2035.

The Global Computer Aided Engineering Market is estimated to register a CAGR of 9.3 % during the forecast period of 2025 to 2035.

MRFR recognizes the following companies as the key players in the Global Computer Aided Engineering Market — Siemens EDA, Autodesk, Inc., Hexagon AB, Dassault Systèmes, PTC Software, ANSYS, Inc., Bentley Systems, Inc., ESI Group, AVEVA Group Ltd, SimScale and others.

The Global Computer Aided Engineering Market accounted for registering a CAGR of 9.3 % during the forecast period and is estimated to reach USD 28.78 billion by 2035.

This is due to the need for shorter product development cycles, cost savings, and improved product performance. Engineers can detect possible problems prior to physical prototyping by incorporating simulation tools in the early stages of the design, resulting in time and cost savings. For example, simulation-based design allows detection of design faults early in the cycle, lessening the need for repeated prototypes and speeding time-to-market. This development is also helped by growing manufacturing processes to emerging economies where integrated software packages eliminate the requirement of multiple prototypes and help with concerns over product recalls. Government legislation also shapes this market. 

In the USA, the Department of Defense encourages simulation software in defense systems design and testing to validate safety and reliability. Similarly, the European Union's product safety and environmental impact regulations persuade manufacturers to deploy simulation-driven design to meet tight standards. Recent developments in industry include Altair's launch of HyperWorks 2023, a platform that integrates AI-powered tools to enhance simulation and design processes. Cadence Design Systems' acquisition of BETA CAE Systems for $1.24 billion is to build its portfolio in the automotive and aerospace design software space. Some of the key industries driving this driver are automotive, aerospace, defence and military, consumer electronics and others.

Segmental Analysis

The Global Computer Aided Engineering Market has been segmented based on Component, by Deployment Model, by Simulation Type, by Technology, by End-User Industry.

Based on Component, this segment includes Software and Services. The Software segment dominated the global market in 2024, while the Services segment is projected to be the fastest–growing segment during the forecast period. CAE software allows engineers to execute complex analyses such as finite element analysis (FEA), computational fluid dynamics (CFD), and multibody dynamics (MBD) helping in product design, optimization, and validation. CAE software is applied in numerous industries to model physics-based performance to enhance product designs or aid in solving engineering issues. Cloud-based CAE platforms and AI integration are also driving the growth of this segment. Most CAE simulations are computationally demanding and are benefited by parallel processing on HPC clusters or cloud environments. These simulations are based on mathematical solvers and mesh-based models to simulate real-world conditions. CAE software seamlessly integrates with CAD platforms and Product Lifecycle Management (PLM) systems, allowing for efficient data exchange and design iteration.

Based on the Deployment Model, this segment includes On-premise Solutions, Cloud-based Solutions, and Hybrid Solutions. The On-premise Solutions segment dominated the global market in 2024, while the Cloud-based Solutions segment is projected to be the fastest–growing segment during the forecast period. On-premise CAE solutions are deployed locally within an organization's infrastructure, offering full control over software, data, and security. This model is preferred by industries with strict data confidentiality requirements, such as aerospace, defense, and automotive. It allows for greater customization and integration with internal systems but typically requires significant upfront investment in hardware and ongoing maintenance. Organizations with in-house IT teams often favor this model for its stability and performance, especially for running high-complexity simulations.

Based on Simulation Type, this segment includes Static Simulation, Dynamic Simulation, Linear Nonlinear Simulation, Real-time Simulation. The Static Simulation segment dominated the global market in 2024, while the Linear Nonlinear Simulation segment is projected to be the fastest–growing segment during the forecast period. Static simulation analyzes structures or systems under steady-state conditions, where loads are applied slowly and do not change with time. It is primarily used to determine stress, strain, and deformation in mechanical components when subjected to constant forces or pressures. This type of analysis assumes equilibrium and is ideal for evaluating structural integrity, component sizing, and material strength in applications like bridges, machine parts, or housings.

Based on Technology, this segment includes Finite Element Analysis (FEA), Computational Fluid Dynamics (CFD), Multibody Dynamics (MBD), Discrete Element Method (DEM), Smoothed Particle Hydrodynamics (SPH), Boundary Element Method (BEM), Meshless Methods. The Finite Element Analysis (FEA) segment dominated the global market in 2024, while the Smoothed Particle Hydrodynamics (SPH) segment is projected to be the fastest–growing segment during the forecast period. FEA is a computational method where a complex system or object is broken down into smaller simpler parts, and by calculation, its behavior under different loads, stresses, and others can be determined. FEA tools are widely used in sectors such as automotive, aerospace, civil engineering, consumer electronics, and biomedical device design, where safety, durability, and performance underload are critical. FEA plays a key role in structural and thermal analysis, fatigue prediction, crashworthiness simulation, and so forth. It allows engineers to analyze and prove their designs virtually, prior to manufacturing physical prototypes, saving on development costs and time-to-market. FEA is particularly important in structural analysis and is applied by various industries such as automotive, aerospace, and civil engineering to confirm the strength and safety of parts and assemblies.

Based on End-User Industry, this segment includes Automotive, Aerospace & Defense, Electronics, Energy & Utilities, Healthcare & Medical Devices, Consumer Goods, Industrial Equipment, Transportation, Mining, Infrastructure, Others. The Automotive segment dominated the global market in 2024, while the Healthcare & Medical Devices segment is projected to be the fastest–growing segment during the forecast period. CAE allows engineers to simulate and test vehicle designs under various conditions, such as crash tests, fuel efficiency, and aerodynamic performance, without needing physical prototypes. CAE provides tools to analyze and optimize design parameters so that vehicles meet performance requirements while minimizing weight, improving fuel efficiency, and enhancing overall safety. Also, CAE tools are used to analyze vehicle crashworthiness, occupant safety, and pedestrian safety helping engineers to design safer vehicles that meet regulatory standards. Ford, BMW and many other automakers use such software in vehicle design.

Regional Analysis

Geographically, the Global Computer Aided Engineering Market has been segmented into North America, Europe, Asia-Pacific, South America, Middle East & Africa.

Major demand factors driving the Europe market are the increased demand for automation and growing adoption of simulation driven design and growing demand for faster product development and expansion of industry 4.0 and smart manufacturing. The Computer-Aided Engineering (CAE) market in Europe is experiencing significant growth, driven by the increasing demand for advanced simulation tools across various industries, including automotive, aerospace, and electronics. A notable example of CAE application in Europe is Dassault Systèmes, a French company renowned for its 3D design and simulation software. In 2025, Dassault Systèmes partnered with Apple to integrate its industrial 3D software into Apple's Vision Pro device. This collaboration aims to enhance "digital twins" technology, enabling real-time and remote collaboration on 3D models through a new app called "3DLive," set to release in the summer of 2025. The primary drivers of this market growth include the increasing adoption of advanced driver-assistance systems (ADAS) and autonomous driving solutions, which require sophisticated simulation tools for development and testing.

The Computer-Aided Engineering (CAE) market in North America is experiencing significant growth, driven by advancements in simulation technologies and increased demand across various industries. In 2024, Ansys, a leading CAE software provider, reported a revenue of $2.54 billion, reflecting a 12% year-over-year growth. This growth is attributed to the company's AI-powered simulation tools, which are widely used in sectors such as automotive, aerospace, and electronics. A notable development in the industry is Cadence Design Systems' acquisition of BETA CAE Systems for $1.24 billion. This strategic move enhances Cadence's capabilities in structural analysis, expanding its portfolio to serve industries like automotive and aerospace. BETA CAE's software is utilized by major companies, including Honda, General Motors, and Lockheed Martin, to analyze designs of cars and jets.

The Computer-Aided Engineering (CAE) market in the Asia-Pacific region is experiencing significant growth, driven by the integration of Industry 4.0 technologies and a rising demand for simulation-based testing across industries like automotive, aerospace, and electronics. A real-time example is the ESI Group, a global leader in virtual prototyping, which provides advanced CAE solutions to companies across Asia to virtually test and optimize product designs before physical production. For instance, leading automotive manufacturers in Japan and South Korea use ESI's simulation tools to enhance crash safety and vehicle performance, cutting down on prototyping costs and development time. Two major drivers fueling this growth include the increasing adoption of smart manufacturing and the need for highly accurate, efficient engineering processes. However, a key challenge remains the high initial investment required for sophisticated CAE software and systems, which can limit access for small and medium enterprises.

The computer-Aided Engineering (CAE) market in South America is steadily expanding, driven by increased demand for advanced simulation tools in industries such as automotive, aerospace, and manufacturing. A notable example is AETHRA Componentes Automotivos, a Brazilian company that integrates CAE technologies into its operations. AETHRA utilizes CAE software to design and test automotive components, ensuring precision and efficiency in production. This application of CAE tools allows AETHRA to optimize product designs, reduce development time, and enhance the quality of its automotive systems. Countries like Brazil and Argentina are significant automotive manufacturers, driving demand for CAE software to enhance vehicle design and performance The aerospace sector leverages CAE tools for design optimization and simulation, contributing to market growth.

The Computer-Aided Engineering (CAE) market in the Middle East and Africa is steadily gaining momentum, driven by the integration of AI and machine learning into simulation tools and the surge in infrastructure development projects across the region. These advancements are fueling demand for precise and efficient design solutions, especially in aerospace, automotive, and construction sectors. A real-time example is CAE Inc., a global leader in simulation technologies, which operates extensively in the region by providing flight simulators and pilot training programs to major airlines such as Emirates. Their solutions play a crucial role in enhancing operational safety and efficiency. Despite this progress, the high cost of implementing advanced CAE tools remains a challenge, particularly for small and medium enterprises.

Key Findings of the Study

• The Global Computer Aided Engineering Market is expected to reach USD 28.78 billion by 2035, at a CAGR of 9.3% during the forecast period.


• The Europe region accounted for the fastest-growing global market.


• Based on the Component, the Software segment was attributed to holding the largest market in 2024.


• Siemens EDA, Autodesk, Inc., Hexagon AB, Dassault Systèmes, PTC Software, ANSYS, Inc., Bentley Systems, Inc., ESI Group, AVEVA Group Ltd, SimScale are some of the players in the market.