Global Model-Based Enterprise Market - Forecasts from 2022 to 2027

Model-based enterprise or MBE is an engineering method that tries to explain design intent during the manufacturing process by employing a 3D model-based definition that encompasses all product and manufacturing process information relevant to the product's fabrication. The main goal of the model-based enterprise is to increase overall efficiency and generate higher quality products while cutting costs. One of the most significant advantages of model-based enterprise is eliminating inefficient and costly paper-based solutions. 3D models have emerged as the new industry standard for product tooling, design, and manufacturing processes. Many larger suppliers, including major OEMs, have moved to a model-centric approach, where 3D models are developed and used downstream.



The global model-based enterprise market is primarily driven by the rising use of digital technologies in design and manufacturing. Rising Internet of Things (IoT) usage and evolving software capabilities across industries propel the model-based enterprise market forward. Development prospects of digitization in industry verticals such as the automotive industry and aerospace and defense industry are expected to generate potential opportunities. Factors such as improving software capabilities, rising cloud-based platforms, and cloud-based MBE capable of cutting costs by eliminating the need for infrastructure investments will contribute to significant growth. According to a Deloitte report on digital manufacturing, leading manufacturers who have implemented digital transformation projects have seen quality improve by up to 35 percent while cutting costs by 20 to 30 percent.

Restraints

The global model-based enterprise market's growth may be hampered by the delayed transition from on-premise to cloud-based platforms. The threat to data protection, on the other hand, will hinder market expansion. In addition, rising complexity, the need for change in management and inability to adapt, a lack of acceptance of sophisticated model-based development approaches, and regulatory concerns are all stifling the worldwide model-based enterprise market's growth.

Key Developments

YKK AP, a manufacturer of architecture goods, chose the Aras, a platform supplier for digital industrial applications, to support sustainable business growth through variant, project, and code management in November 2019. Furthermore, the Digital Manufacturing and Design Innovation Institute stated in February 2019 that the US Department of Defense (DOD) has set aside $10 million in funding to support manufacturing's digital transformation. As a result of these measures in the region, the market is expected to develop even more.

By offering, the global model-based enterprise market can be segmented into services and solutions and is expected to capture the largest market share.

Cloud-based solutions, for instance, are becoming increasingly popular among businesses around the world.

By deployment, the global model-based enterprise market can be segmented into on-premise and cloud.

The cloud segment is expected to grow significantly over the projected period. The cloud-based manufacturing approach is gaining traction due to its potential to boost performance, reliability, and high data security.

By end-user industry vertical, the global model-based enterprise market can be segmented into food and beverages, aerospace and defense, construction, power and energy, automotive, and retail.

The aerospace and defense segment has a sizable market share, whereas the automotive segment is expected to show significant growth prospects owing to the fact that model-based design is rapidly being used in the creation of vehicle electronics, spanning from transmission and engine controllers to battery management modules and body controllers.

By geography, the global model-based enterprise market is segmented into five regions North America, Europe, South America, the Middle East and Africa, and Asia Pacific regions.

Because of the presence of key players like GE, PTC, Autodesk, and Aras in the region, the North American region is expected to account for the highest proportion of the global model-based enterprise market. These businesses are pursuing a variety of growth tactics aimed at bolstering their market position. The Asia Pacific market is also expected to show significant growth prospects.

COVID-19 Insights

Due to the COVID-19 pandemic, lockdown measures were placed in various countries worldwide. The coronavirus pandemic is predicted to have a negative influence on manufacturing demand, as manufacturers are expected to reassess their expenditure strategy due to lower worldwide demand and a disrupted supply chain. More than a transition to digital connectivity and automation, the constraints posed by the COVID-19 epidemic pushed many significant trends as the industry explored ways to sustain operations with fewer employees on site.

Market Segmentation:

By Offering

• Solution
• Service

By Deployment

• On-premise
• Cloud

By Industry Vertical

• Aerospace & Defense
• Automotive
• Construction
• Power & Energy
• Retail
• Food and Beverage

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others