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The engineering software market is rapidly evolving as organizations seek advanced tools to enhance innovation, operational efficiency, and competitive positioning worldwide. This report delivers decision-critical insights tailored to senior executives navigating the complexities of digital transformation in the engineering sector.
Market Snapshot: Engineering Software Market Size and Growth
The Engineering Software Market demonstrated robust expansion, growing from USD 44.22 billion in 2024 to USD 49.52 billion in 2025. With a projected CAGR of 12.20%, the market is anticipated to reach USD 111.08 billion by 2032. This sustained growth reflects the rising demand for advanced digital solutions that optimize design, simulation, and manufacturing processes.
Scope & Segmentation
- Software Type: Architecture Engineering Construction for cross-disciplinary collaboration, Computer Aided Design with parametric and interoperability capabilities, Computer Aided Engineering expanding simulation power, Computer Aided Manufacturing supporting real-time toolpath optimization, and Product Lifecycle Management integrating compliance and governance.
- Deployment Model: Cloud (including Hybrid Cloud, Private Cloud, Public Cloud), as well as On-Premises installations for organizations with specific data or regulatory needs.
- End User Industry: Aerospace and Defense, Automotive (Commercial Vehicles, Passenger Vehicles), Construction, Electronics, Energy and Utilities, Healthcare.
- Regions Covered: Americas (United States, Canada, Mexico, Brazil, Argentina, Chile, Colombia, Peru), Europe, Middle East & Africa (United Kingdom, Germany, France, Russia, Italy, Spain, Netherlands, Sweden, Poland, Switzerland, United Arab Emirates, Saudi Arabia, Qatar, Turkey, Israel, South Africa, Nigeria, Egypt, Kenya), Asia-Pacific (China, India, Japan, Australia, South Korea, Indonesia, Thailand, Malaysia, Singapore, Taiwan).
- Leading Companies: Siemens AG, Dassault Systèmes SE, Autodesk, Inc., PTC Inc., ANSYS, Inc., Hexagon AB, Nemetschek SE, Bentley Systems, Incorporated, Altair Engineering Inc., AVEVA Group plc.
Key Takeaways for Engineering Software Decision-Makers
- The sector is shaped by rapid digital innovation, notably cloud platforms, generative design, digital twins, and artificial intelligence, which enable cross-functional engineering teams to collaborate globally and deliver accelerated project results.
- Segmented software offerings empower organizations to address industry-specific use cases, such as predictive grid management for utilities or digital twin modeling in construction, supporting regulatory compliance and operational oversight.
- Cloud-based and hybrid deployments dominate as organizations balance security, local integration, and scalability. Edge computing’s rise is also increasing the relevance of localized analytics in real-time environments.
- Emerging requirements around supply chain resilience and interoperability are driving integrated vendor partnerships, acquisitions, and ecosystem building, with open APIs and third-party extensions supporting tailored workflows.
- Regional growth varies, with the Americas focusing on R&D and digital manufacturing, Europe leading in sustainability, and Asia-Pacific accelerating adoption through government support and digital infrastructure initiatives.
Tariff Impact: Navigating New US Trade Policies
Recent US tariffs on hardware and electronics have indirectly increased costs for engineering software vendors, prompting a shift toward cloud-hosted solutions and diversified supplier strategies. Enterprises are reassessing capital investments, favoring managed cloud environments to reduce exposure to tariff-related hardware price increases, all while prioritizing regulatory compliance and cybersecurity within their technology stacks.
Methodology & Data Sources
This research combines structured interviews with senior industry executives and technical leaders, rigorous secondary research from public filings and industry publications, and quantitative analysis using normalized datasets. An independent expert panel ensured critical peer review and validation for reliable and unbiased market insights.
Why This Report Matters
- Enables evidence-based investment planning and technology adoption aligned with evolving engineering software trends.
- Provides a granular segmentation framework for go-to-market alignment and product development prioritization.
- Helps anticipate regulatory, supply chain, and regional challenges, supporting resilient and adaptive infrastructure strategies.
Conclusion
This report offers a comprehensive, actionable view of the engineering software market, supporting leaders seeking to navigate disruption, maximize innovation, and capture global growth opportunities in a complex operating environment.
Additional Product Information:
- Purchase of this report includes 1 year online access with quarterly updates.
- This report can be updated on request. Please contact our Customer Experience team using the Ask a Question widget on our website.
Table of Contents
3. Executive Summary
4. Market Overview
7. Cumulative Impact of Artificial Intelligence 2025
Companies Mentioned
The companies profiled in this Engineering Software market report include:- Siemens AG
- Dassault Systèmes SE
- Autodesk, Inc.
- PTC Inc.
- ANSYS, Inc.
- Hexagon AB
- Nemetschek SE
- Bentley Systems, Incorporated
- Altair Engineering Inc.
- AVEVA Group plc
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 185 |
| Published | October 2025 |
| Forecast Period | 2025 - 2032 |
| Estimated Market Value ( USD | $ 49.52 Billion |
| Forecasted Market Value ( USD | $ 111.08 Billion |
| Compound Annual Growth Rate | 12.2% |
| Regions Covered | Global |
| No. of Companies Mentioned | 11 |
