Engineering Software Market Report 2026

The engineering software market size has grown rapidly in recent years. It will grow from $64.7 billion in 2025 to $75.34 billion in 2026 at a compound annual growth rate (CAGR) of 16.4%. The growth in the historic period can be attributed to growing reliance on digital engineering tools, early adoption of cad and simulation platforms, increasing use of plm systems for product development, rise of engineering outsourcing models, expansion of software integration capabilities.

The engineering software market size is expected to see rapid growth in the next few years. It will grow to $127.05 billion in 2030 at a compound annual growth rate (CAGR) of 14%. The growth in the forecast period can be attributed to increasing adoption of AI-driven engineering tools, rising demand for cloud-native engineering platforms, growth in immersive design and visualization solutions, expansion of digital twin implementations, increasing integration of IOT-enabled engineering workflows. Major trends in the forecast period include growing demand for advanced simulation and testing tools, increasing adoption of product lifecycle management solutions, rising need for high-precision 3d modeling software, expansion of engineering workflow automation, growing use of integrated engineering collaboration platforms.

The growing trend of automation in manufacturing is expected to drive the expansion of the engineering software market in the coming years. Manufacturing automation involves the use of technology and machinery to carry out tasks or processes with minimal human involvement. The increase in automation is driven by factors such as an aging workforce, skills gaps, labor shortages, the need for customization, and improvements in quality control. Engineering software supports this automation by providing essential tools and capabilities for designing, simulating, analyzing, controlling, and optimizing automated processes. For example, in September 2025, the International Federation of Robotics, a Germany-based non-profit organization, reported that global robot installations are projected to grow by 6% in 2025, reaching approximately 575,000 units, and are expected to exceed 700,000 units by 2028. This increasing automation in manufacturing is driving the growth of the engineering software market.

Key players in the engineering software market are directing their efforts towards developing advanced solutions to cater to the evolving needs of modern manufacturing. One such focus area is digital engineering solutions, encompassing a spectrum of technology-driven approaches and methodologies for engineering product and system design, development, and maintenance. For instance, CAPTURE 3D, a US-based software company specializing in 3D metrology solutions, introduced ZEISS INSPECT in November 2023. This innovative 3D metrology software addresses contemporary manufacturing and engineering challenges by facilitating analysis of 3D, CT, or motion data throughout the inspection workflow from scanning to analysis and reporting. ZEISS INSPECT's versatility allows users to work seamlessly with optical 3D data, volume data, and airfoils, regardless of the metrology method employed for data collection. Notably, it features the Autosurfacing app, which automates the conversion of scan data into high-precision CAD models, streamlining procedures, enhancing efficiency, and mitigating measurement-related challenges.

In July 2023, GlobalLogic Inc., a US-based digital product engineering company, completed the acquisition of Sidero Labs Inc. This strategic move is aimed at bolstering GlobalLogic's portfolio in critical areas such as radio access networks (RAN), self-optimizing networks (SON), and cloud and agile development practices. By integrating Sidero Labs' expertise in cloud-native software development and technology specialization in the communications vertical, GlobalLogic seeks to strengthen its capabilities in the communications technology sector. This acquisition underscores GlobalLogic's commitment to enhancing its offerings and reinforcing its position as a leading player in the digital product engineering landscape.

Major companies operating in the engineering software market are Siemens Ltd, International Business Machines Corporation, General Electric Company, Oracle Corporation, Schneider Electric SE, Honeywell International Inc, SAP SE, ABB Ltd, Emerson Electric Co, HCL Technologies, Rockwell Automation Inc, Dassault Systèmes, Hexagon AB, Keysight Technologies, Synopsys Inc, Autodesk Inc, Ansys Inc, PTC Inc, National Instruments Corporation, Aveva Group Plc, MathWorks Inc, Bentley Systems Inc, Altair Engineering Inc, Altium Limited, Aras Corp, ComplianceQuest.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the engineering software market by raising hardware procurement costs for computing devices, sensors, and integrated systems required to run advanced engineering tools across industries such as automotive, aerospace, and electronics. Regions reliant on imported processors, servers, and specialized workstationsparticularly Asia-Pacific and Europeface higher deployment and upgrade expenses. However, tariffs may accelerate the shift toward cloud-based engineering software and encourage local development of digital engineering ecosystems, strengthening long-term technological resilience.

The engineering software market research report is one of a series of new reports that provides engineering software market statistics, including engineering software industry global market size, regional shares, competitors with an engineering software market share, detailed engineering software market segments, market trends and opportunities, and any further data you may need to thrive in the engineering software industry. This engineering software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Engineering software encompasses specialized computer programs tailored to aid engineers across various fields in tasks such as design, testing, and maintenance of software applications. These tools are indispensable for engineers, facilitating streamlined workflows, increased productivity, and efficient resolution of complex engineering challenges.

The primary components of engineering software comprise software and services. Software encompasses a collection of instructions or programs crafted to execute specific tasks on a computer or electronic device. It can be deployed both in the cloud and on-premises, serving a myriad of applications such as 3D printing, enterprise resource planning, plant layout, drafting and 3D modeling, project management, knowledge management, and product design and testing. This software is utilized across various end-user industries including automotive, aerospace and defense, electronics, medical devices, architecture, engineering, and construction (AEC), among others.North America was the largest region in the engineering software market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the engineering software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the engineering software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The engineering software market includes revenues earned by entities providing services such as software development, product lifecycle management, training and support, and finite element analysis. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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