Global Computer Aided Engineering Market Overview
The Computer Aided Engineering Market was valued at USD 11.09 billion in 2024. The Computer Aided Engineering Market industry is projected to grow from USD 11.83 billion in 2025 to USD 28.78 billion by 2035, exhibiting a compound annual growth rate (CAGR) of 9.3% during the forecast period (2025-2035).
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 are driving the growth of the Computer Aided Engineering Market.
As per the Analyst at MRFR, Increased demand for quicker product development is driven by a number of influencing factors affecting industries globally. One of the primary drivers is the accelerating rate of technological advancements.
As industries such as automotive, aerospace, and electronics are confronted with increasingly shorter lifecycles for products, companies need to innovate quickly in order to remain competitive. Consumer expectations are also a major factor—today's customers seek products that meet their needs more quickly, which places pressure on companies to streamline development processes.
FIGURE 1: COMPUTER AIDED ENGINEERING MARKET VALUE (2019-2035) USD BILLION
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Computer Aided Engineering Market Opportunity
RISING DEMAND IN ELECTRIC AND AUTONOMOUS VEHICLES
The automotive industry is in a state of flux due to the trend towards “CASE” vehicles – Connected, Autonomous, Shared and Electric vehicles. In this rapidly changing environment, manufacturers need to accelerate vehicle development and bring new products to market faster. Almost 14 million new electric cars were registered globally in 2023. The global electric vehicle (EV) market surged to new heights in 2024, marking a 25% year-over-year growth.
Computer-Aided Engineering plays a crucial role in the design and development of electric vehicles (EVs) by facilitating simulations and analysis of various aspects, from initial design to manufacturing planning. It helps optimize designs for efficiency, range, and safety, addressing unique challenges in EV propulsion like battery management and thermal performance. CAE also aids in early identification of potential issues, reducing development costs and time to market.
Companies like SMT, Dassault Systemes and others now offer EV specific software solutions. CAE allows for rapid iteration of designs by simulating their performance under various conditions, enabling engineers to optimize components for weight reduction, strength, and efficiency. CAE tools can model and simulate complex EV systems, such as battery management systems, electric drivetrains, and thermal management systems.
Computer Aided Engineering Market Segment Insights
Computer Aided Engineering by Component Insights
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.
FIGURE 2: COMPUTER AIDED ENGINEERING MARKET SHARE BY COMPONENT 2024 AND 2035 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Computer Aided Engineering by Deployment Model Insights
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.
Computer Aided Engineering by Simulation Type Insights
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.
Computer Aided Engineering by Technology Insights
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.
Computer Aided Engineering by End-User Industry Insights
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.
Computer Aided Engineering Regional Insights
Based on the Region, the global Computer Aided Engineering are segmented into North America, Europe, Asia-Pacific, South America and Middle East & Africa. The Europe dominated the global market in 2024, while the Asia-Pacific is projected to be the fastest–growing segment during the forecast period. 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.
FIGURE 3: COMPUTER AIDED ENGINEERING MARKET VALUE BY REGION 2024 AND 2035 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the countries considered in the scope of the Application Tracking System Market are the US, Canada, Mexico, Germany, UK, France, Russia, Italy, Spain, China, India, Japan, South Korea, Thailand, Indonesia, Brazil, Argentina, GCC Countries, South Africa and others.
Global Computer Aided Engineering Key Market Players & Competitive Insights
Many global, regional, and local vendors characterize the Computer Aided Engineering Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.
The major competitors in the market are Siemens EDA, Autodesk, Inc., Hexagon AB, Dassault Systèmes, PTC Software, ANSYS, Inc., Bentley Systems, Inc., ESI Group, AVEVA Group Ltd, SimScale are among others. The Computer Aided Engineering Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.
Key Companies in the Computer Aided Engineering Market include
- Siemens EDA
- Autodesk, Inc.
- Hexagon AB
- Dassault Systèmes
- PTC Software
- ANSYS, Inc.
- Bentley Systems, Inc.
- ESI Group
- AVEVA Group Ltd
- SimScale
Computer Aided Engineering Market Industry Developments
March 2025: Siemens acquires Altair to create the most complete AI-powered portfolio of industrial software
March 2024: Luminary Cloud Inc. is launching out of stealth with $115 million in funding and a computer-aided engineering platform delivered as a service that it says can run simulations up to 100 times faster than is possible on a desktop computer. The company calls its platform a cloud supercomputer and positions it as an alternative to mainstream CAE applications from providers such as Ansys Inc., Siemens AG and Dassault Systemes SA, which run on desktop workstations. Through a partnership with Nvidia Corp., the company said, it can make a nearly limitless amount of graphics processing unit power available on demand for computationally intensive simulations.
February 2023: Ansys Inc. and Microsoft extended their longstanding strategic partnership to expedite virtual product design. This collaboration entails expanding cloud-based accessibility to Ansys Inc.' simulation solutions and computer-aided engineering (CAE) tools, aiming to enhance the design process.
March 2020: SimScale, the provider of the world’s first production-ready SaaS application for computer-aided engineering (CAE), released enhanced collaboration features and a multi-user licensing package to support design, engineering, and architecture teams with multiple people who use simulation in medium and large enterprises.
Computer Aided Engineering Market Segmentation
Computer Aided Engineering by Component Outlook
Computer Aided Engineering by Deployment Model Outlook
- On-premise Solutions
- Cloud-based Solutions
- Hybrid Solutions
Computer Aided Engineering by Simulation Type Outlook
- Static Simulation
- Dynamic Simulation
- Linear Nonlinear Simulation
- Real-time Simulation
Computer Aided Engineering by Technology Outlook
- 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
Computer Aided Engineering by End-User Industry Outlook
- Automotive
- Aerospace & Defense
- Electronics
- Energy & Utilities
- Healthcare & Medical Devices
- Consumer Goods
- Industrial Equipment
- Transportation
- Mining
- Infrastructure
- Others
Computer Aided Engineering Regional Outlook
- North America
- Europe
- Germany
- UK
- France
- Russia
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Malaysia
- Thailand
- Indonesia
- Rest of Asia-Pacific
- South America
- Brazil
- Argentina
- Rest of South & Central America
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of the Middle East & Africa
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Report Attribute/Metric
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Details
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Market Size 2024
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USD 11.09 Billion
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Market Size 2025
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USD 11.83 Billion
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Market Size 2035
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USD 28.78 Billion
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Compound Annual Growth Rate (CAGR)
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9.3% (2025-2035)
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Base Year
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2024
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Forecast Period
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2025-2035
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Historical Data
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2019-2023
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Forecast Units
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Value (USD Billion)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Segments Covered
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By Component, By Deployment Model, By Simulation Type, By Technology, By End-User Industry
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Geographies Covered
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North America, Europe, Asia Pacific, South America, Middle East & Africa
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Countries Covered
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The US, Canada, Mexico, Germany, UK, France, Russia, Italy, Spain, China, India, Japan, South Korea, Thailand, Indonesia, Brazil, Argentina, GCC Countries, South Africa
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Key Companies Profiled
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Siemens EDA, Autodesk, Inc., Hexagon AB, Dassault Systèmes, PTC Software, ANSYS, Inc., Bentley Systems, Inc., ESI Group, AVEVA Group Ltd, SimScale
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Key Market Opportunities
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· Rising demand for electric and autonomous vehicles
· Adoption of artificial intelligence in CAE tools
· Rising demand for sustainable and lightweight designs
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Key Market Dynamics
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· Increased demand for automation and growing adoption of simulation driven design
· Growing demand for faster product development
· Expansion of industry 4.0 and smart manufacturing
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Frequently Asked Questions (FAQ) :
USD 11.09 Billion is the Computer Aided Engineering Market in 2024
The Software segment by Material holds the largest market share and grows at a CAGR of 9.0 % during the forecast period.
Europe holds the largest market share in the 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 are prominent players in the Computer Aided Engineering Market.
The On-premise Solutions segment dominated the market in 2024.
