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Computer Aided Engineering (CAE) - Global Market Trajectory & Analytics

  • ID: 5139748
  • Report
  • January 2021
  • Region: Global
  • 288 pages
  • Global Industry Analysts, Inc
With Manufacturing Collapsing, Engineering Design Services are Recording an Unprecedented Slowdown. Computer Aided Engineering (CAE) Market Records $513.2 Million Erosion in Revenues

The global market for Computer Aided Engineering (CAE) is expected to plummet by -8.9% in the year 2020 and thereafter recover and grow to reach US$ 9.6 billion by the year 2027, trailing a post COVID-19 CAGR of 9.1% over the analysis period 2020 through 2027. Global manufacturing industry is facing its worst ever recession with PMI plummeting to 35.4 index points, the lowest in recent industry. The impact on manufacturers will mean crunch on capital resources; workforce layoffs/reduction and loss in productivity; supply chain disruptions; difficulties with funding; and increase in cybersecurity risks and fraud. Unlike IT services where work is being carried out remotely via internet and cloud platforms, for the manufacturing industry, plant activities and production cannot be carried remotely and therefore remains worst affected. The slower economic activity means reduced demand for industrial and consumer goods and lower manufacturing orders. Plant closures both full and partial are expected to continue into the coming months. Manufacturers, especially automotive producers with complex supply chains will be hard hit as transportation, trade and movement of goods continue to remain crippled. Industrial output remains weak with the 1Hlaf of 2020 recording double digit declines in volume output. With plants shuttered and new manufacturing orders dwindling, OEM outsourcing of product design and development projects has significantly slowed. Muted activity in Industries such as power & energy; heavy & structural; consumer & industrial; automotive means lower innovation & new product development activity. With finances needed for supporting innovation drying up there is a hiatus in new product development. Used widely for 3D modeling/visualization, rapid prototyping, modelling, tool design and development & product platform/architecture design, Computer Aided Engineering is slumping in-line with the slowdown in engineering services demand.

In the post COVID-19 period, growth will be led by recovering manufacturing activity and re-focus once again on innovation and new product development. Computer-aided engineering (CAE) refers to the use of computer and software solutions to design, analyze and generate processes and products. CAE broadly incorporates computer aided design (CAD) as well as computer aided manufacturing (CAM) capabilities for providing assistance in engineering analysis processes. CAE is typically utilized for referring to software utilized for simulation and analysis of product, assembly and system designs. CAE is used in all industries that design products. Automotive, plant engineering, aerospace, energy, HVAC and consumer goods industries are a few major end-users of CAE solutions. In these industries, products ranging from small parts to huge and complicated structures are being designed and tested using the CAE approach. Examples include a crane's structural integrity for carrying specific loads and assessing a concert hall's acoustic design. In such applications, simulation is critical as it makes huge and at times life-saving difference when the final product is created. In the manufacturing industry, CAE offers many benefits, foremost among which is the flexibility in product analysis and prevention of expensive errors.

Continued reduction in prices of CAE software and licensing fees will help stimulate market growth. Companies will continue to offer newer delivery models for their products and services. For instance, CAE as a service is already a fast growing approach where customers can choose the pay-as-you-go plan. Cloud computing helps bring down costs of licensing, deployment as well as maintenance. Also, organizations are seeking HCI (Hyper Converged Infrastructure) platforms for creating private cloud which enables advanced computation as well as storage. CAE companies have and will continue to offer CAD software as an in-built feature in CAE tools. Since mobile access has now become important to almost all technologies, even CAE companies are trying to offer means for accessing data about product analysis on mobile platforms. Designers can now access data on smartphones. Cloud software deployment allows designers and developers to easily upload analysis about products on cloud platforms. Cloud deployment of the software offers many advantages including higher mobility and easier software upgrade among others. Such user-friendly advancements will significantly contribute to market growth. Companies are also leveraging advanced technologies like machine learning and artificial intelligence for creating advanced CAE tools. The market for CAE will also be positively influenced by emerging engineering modes like building information modeling, concurrent engineering and 3D printing. A key trend that will gain momentum in the post COVID-19 period is CAD/CAE integration. Given that CAD and CAE files are different, it is difficult to produce a model in CAD software that can be utilized for finite element analysis in CAE software. This is however changing with new types of software being developed that enable testing of design and analysis in integrated CAD/CAE environment. Another notable trend will be the growing use of machine learning for accelerating the pace of engineering simulations primarily by enabling accurate predictions. With computers able to learn and create better data using tools such as statistical learning, it is possible to speed up the process of optimal product design. For instance, in simulations, ML tools can understand that changes that need to be made for making automobiles safety without any adverse impact on design integrity.

Select Competitors (Total 105 Featured):
  • Altair Engineering, Inc.
  • SimuTech Group
  • Dassault Systèmes SE
  • Dell Inc.
  • ESI Group
  • Hexagon AB
  • Mentor Graphics, Inc.
  • NEC Display Solutions, Ltd.
  • Numeca International
  • Siemens Industry Software Inc.
  • Simerics Inc.
  • Symscape
  • Synopsys, Inc.
Note: Product cover images may vary from those shown


  • Impact of COVID-19 Pandemic and the Looming Global Recession
  • Pandemic Crisis Weakens Economic Environment, Triggering Negative Tide in GDP
  • EXHIBIT 1: World Economic Growth Projections (Real GDP, Annual % Change) for 2019, 2020 & 2021
  • Industrial Activity to Remain Subdued in the Immediate Term
  • EXHIBIT 2: Global PMI Index Points for the Years 2018, 2019 & 2020
  • Computer Aided Engineering (CAE): A Prelude
  • CAE Software
  • Global Market Prospects & Outlook
  • Finite Element Analysis (FEA) Segment Leads Global Market
  • Cloud Deployment Model to Witness High Growth
  • Automotive Industry Emerges as the Major End-Use Segment
  • Developed Regions Lead, Developing Economies to Spearhead Future Growth
  • Competition
  • World Brands
  • Recent Market Activity

  • Trend towards Outsourcing of Manufacturing Processes to Emerging Economies Fuels Demand for CAE Solutions
  • Benefits of Integrated CAE Software Solutions in Reducing Prototyping Cost & Product Recalls
  • Finite Element Analysis Market: Poised for Healthy Growth
  • Growing Use of Computational Fluid Dynamics Augurs Well for the Market
  • Rising Adoption of 3D Printing Augurs Well for CAE Market
  • EXHIBIT 3: Global 3D Printing Market Size (in US$ Billion) for the Years 2019, 2022 and 2025
  • Cloud Deployment Model Continues to Gain Traction in CAE Market
  • Adoption of Hyper-Converged Infrastructure (HCI) Platform for Private Clouds Bodes Well for the Market
  • CAE Simplifies Engineering Design
  • Expanding Role of CAE in Product Development
  • Automotive Industry Leads the CAE Market
  • Recovery in Automotive Industry Post COVID -19 to Support Demand
  • EXHIBIT 4: World Automobile Production in Million Units: 2008-2022
  • While Short-term Outlook Remains Challenged due to Pandemic, Aerospace Sector Poised to Witness Healthy Growth in the Long Run
  • EXHIBIT 5: COVID-19 Pandemic Dents Airline Revenues: Commercial Airline Revenue Growth (in %) for 2010-2020E
  • EXHIBIT 6: Global Airlines Performance by Region: 2020 Vs 2019
  • Adoption of Advanced Technologies in Electronics Industry Presents Opportunities for CAE Software Market
  • Virus Led Economic Recession Impacts Current Prospects for Electronics Industry
  • EXHIBIT 7: Supply Chain Disruptions Impact a Large Number of Electronic Manufacturers: % Share of Companies Impacted by Supply Chain Delays Due to COVID-19 Worldwide as of May 2020
  • EXHIBIT 8: Rapidly Eroding Consumer Confidence Thwarts Hopes for a Quick Recovery: Global Consumer Confidence Index Points for 4Q2019, 1Q2020 & 2Q2020
  • Efficiency Advantages to Boost Demand for CAE Solutions in Medical Imaging
  • AI in CAE to Address Challenges of Engineering Processes
  • Value Added Resellers (VAR) Positively Impact CAE Market in Varied End-Use Industries
  • Challenges Confronting CAE Market
  • Availability of Open Source Software Restrains CAE Market Growth

  • Market Overview
  • Market Analytics
  • Total Companies Profiled: 121
Note: Product cover images may vary from those shown