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Model-based Enterprise Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 125 Pages
  • August 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 5239376
The model-based enterprise market (henceforth referred to as the market studied) was valued at USD 11.84 billion in 2021, and it is expected to reach USD 30.54 billion by 2027, registering a CAGR of 16.77% during the period of 2022-2027 (henceforth referred to as the forecast period).
  • The increasing adoption of 3D technology across multiple industry verticals for catering to the growing demand for emerging applications, ranging from shape analysis, 3D modeling, and many more, has given rise to the development and adoption of model-based enterprise solutions that can gauge product shapes in real-time.
  • The technology offers a plethora of opportunities in the design and production processes and performance of novel architectural forms, construction systems, and many more. It is an innovative, faster, and more agile method of product development and production.
  • Digital technologies are being adopted across various manufacturing industries due to the rapidly evolving capabilities of the software, further boosting market growth.
  • The industries are witnessing increased adoption of reverse engineering for the rapid prototyping abilities and accuracy it offers for the production of new parts. Reverse engineering requires a strong and robust image acquisition system that can acquire data with a high level of accuracy. The deployment of 3D technology and solutions could enable manufacturers to achieve such objectives, thus, boosting the market growth.
  • The objective for migrating from a traditional on-premise enterprise data warehouse to the cloud is cost savings. The total cost includes the direct cost of owning or licensing data center equipment and third-party service costs, maintenance and management, training, and policy. These indirect costs can account for a large amount of the price of operating on-premise data centers.
  • Further, space, construction, energy, air conditioning, hardware procurement, operating systems, networking, physical security, and more are required to maintain on-premise computing infrastructure. Instead, model-based enterprise vendors are outsourcing these expenses to a cloud service provider and saving costs. Many companies that have data infrastructure on their premises are concerned about security. Having a data center within the perimeter gives rise to challenges in terms of security and control, thus, resulting in a shift to cloud model-based enterprise platforms.
  • The COVID-19 pandemic increased digitalization across end-use verticals with a more significant deployment of Machine Learning, Artificial Intelligence, and the Internet of Things, which has caused applications and data to spread across multiple clouds progressively. Thus, increased adoption of cloud model-based enterprise platforms across various end-user verticals is primarily focused on rationalizing the data stored on multiple clouds. ​

Key Market Trends

Automotive Segment Expected to Hold Largest Market Share

  • Automobiles are an essential part of human lives as a primary mode of transportation. Currently, there are over 1.3 billion motor vehicles on the road globally, with that number expected to rise to 1.8 billion by 2035. Passenger cars comprise roughly 74% of these statistics, while the light commercial vehicles and heavy trucks, buses, coaches, and mini-buses make up the remaining 26% (Source: Worldometers).
  • The model-based design allows enhanced design, faster releases, and better reliability in automotive embedded systems. Also, software modeling and simulation tools can improve automotive systems if they continue to demonstrate benefits and become more common in the industry.
  • Moreover, globally, automobile manufacturers are increasingly adopting model-based design for the development of vehicle electronics, ranging from the transmission and engine controllers to the body controllers and battery management modules.
  • Further, the automotive sector is currently in a state of flux with rapidly emerging technology and rapidly blurring boundaries between stakeholders, which is rapidly transforming the industrial landscape. Moreover, the increasing demand for personalized products and rich experience, increasing quality standards, and the reduction of operating costs are the significant challenges faced by the industry.
  • Several players in the market are facing an ongoing challenge primarily to remain competitive and set themselves apart to move ahead of competitors. Automotive manufacturers can currently adopt technology and improve their business processes, thus, driving the market.

North America Expected to Hold a Significant Market Share

  • The North American region is anticipated to hold a significant share of the overall model-based enterprise market, primarily due to various major players in the region, including GE, PTC, Autodesk, and Aras, among others. These companies have been adopting various growth strategies that are majorly focused on strengthening their position in the market.
  • Moreover, institutes such as the Digital Manufacturing and Design Innovation Institute (DMDII) possess the ability, innovative spirit, and collaborative expertise that is being used to transform the American manufacturing sector by aiding organizations and helping in the digital revolution.
  • Modern manufacturing facilities in the US have been relying on newer technologies and innovations to produce high-quality products at a faster rate, with lower costs. Owing to the early adoption of these advanced technologies, such as IoT, big data, 3D modeling, DevOps, and mobility, manufacturers in the country have been integrating these advanced technologies to streamline their processes and use their deeper insights.
  • The US is also one of the biggest automotive markets globally and is home to more than 13 major automotive manufacturers. Automotive manufacturing has been one of the largest revenue generators for the country in the manufacturing sector, further helping the market’s growth in the region.
  • Canada is a major country taking significant steps toward implementing Industry 4.0 and is expected to contribute to the market growth during the forecast period.
  • As stated by the Canadian government, the country aims to increase manufacturing sales by 50%, to reach USD 1 trillion by 2030, and exports by 50%, reaching USD 540 billion by 2030. This is expected to boost the manufacturing sector; therefore, the penetration of advanced automated technologies is set to boost the market growth.

Competitive Landscape

The model-based enterprise market is competitive owing to the presence of several large players operating in the domestic and international markets. The market appears to be moderately concentrated, with the major players in the market adopting strategies like product innovation, mergers and acquisitions, and strategic partnerships primarily to enhance their product offerings, extend their geographical reach, and stay ahead of the competition. Some of the major players in the market are Siemens AG, Dassault Systèmes SE, SAP SE, and Autodesk Inc., among others.
  • In February 2022, Siemens Digital Industries Software launched the latest release of its industry-leading NX software, part of the Xcelerator portfolio of software and services. The new NX Topology Optimizer helps create parts based purely on functional and design space requirements, resulting in fully editable convergent bodies that would be almost impossible to design and engineer manually.
  • In November 2021, in Formnext 2021, GE Electric Company announced the Amp process management software platform. From mid-November 2021, the company also announced a limited release of print models, simulations, and corrections for the first two modules for the Concept Laser M2 machine. A broader release is planned for the second quarter of 2022.
  • In November 2021, iBASEt, an Indian company, announced the launch of a Model-based Enterprise (MBE) offering that could accelerate a manufacturer's Industry 4.0 journey. The first version, based on Solumina iSeries i050, provides a way for manufacturers to start operating as a "Validated, Model-Centric" enterprise.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of COVID-19 on the Market
5.1 Market Drivers
5.1.1 Evolving Software Capabilities
5.1.2 Rising Adoption of IoT and Cloud-based Platforms
5.2 Market Restraints
5.2.1 Slow Transition from On-premise to Cloud-based Platform
6.1 By Offering
6.1.1 Solutions
6.1.2 Services
6.2 By Deployment Mode
6.2.1 On-premise
6.2.2 Cloud
6.3 By End User
6.3.1 Aerospace and Defense
6.3.2 Automotive
6.3.3 Construction
6.3.4 Power and Energy
6.3.5 Retail
6.3.6 Other End Users
6.4 By Geography
6.4.1 North America
6.4.2 Europe
6.4.3 Asia-Pacific
6.4.4 Latin America
6.4.5 Middle-East and Africa
7.1 Company Profiles
7.1.1 Siemens AG
7.1.2 General Electric Company
7.1.3 PTC Inc.
7.1.4 Dassault Systèmes SE
7.1.5 SAP SE
7.1.6 Autodesk Inc.
7.1.7 HCL Technologies Limited
7.1.8 Oracle Corporation
7.1.9 Aras Corporation
7.1.10 Anark Corporation

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Siemens AG
  • General Electric Company
  • PTC Inc.
  • Dassault Systèmes SE
  • SAP SE
  • Autodesk Inc.
  • HCL Technologies Limited
  • Oracle Corporation
  • Aras Corporation
  • Anark Corporation