Computer Aided Engineering Market Report and Forecast 2025-2034

The global computer aided engineering market size reached a value of nearly USD 9.14 Billion in 2024. The market is projected to grow at a CAGR of 9.10% between 2025 and 2034, reaching a value of around USD 21.84 Billion by 2034.

Global Computer Aided Engineering Market Trends

Computer aided engineering refers to the use of software to simulate performance. This is done to improve product designs or assist engineers in resolving engineering challenges across a range of diverse end-use sectors, including electronics and automotive, among others.

Computer-aided engineering is becoming a standard in businesses where product development is done using design tools. This technology enables testing and simulations of the product's physical attributes without the requirement for a physical prototype.

• The rising utilisation of advanced technologies in product designs, such as the Internet of things (IoT), artificial intelligence, machine learning, automation, and cloud, among others, to improve the quality of products has significantly propelled the demand for computer-aided engineering.
• Users are increasingly embracing computer-aided engineering solutions to reduce the time and cost associated with product development.
• The growing implementation of 3D printing technology in various industry verticals such as consumer electronics, aerospace and military, automotive, and healthcare is likely to favour the growth of the market for computer aided engineering.

The rising use of 3D printing in the healthcare sector is leading to the development of stronger and more specialised surgical instruments, medical gadgets, and lab equipment. Computer-assisted engineering solutions are also widely deployed in healthcare applications for improved patient outcomes, such as specialised prosthetic implants for orthopaedic and dental operations.

Global Computer-Aided Engineering Market Opportunities and Challenges

The computer-aided engineering market is anticipated to be positively influenced by developing engineering techniques, including building information modelling (BIM), 3D printing, and concurrent engineering.

CAE solutions are widely implemented to create electrical battery-driven aircraft engines and low-emission aircraft. This technology is also aiding in the development of the next-generation aircraft designs for the most advanced and environmentally friendly passenger aircraft.

However, the high investment costs to obtain commercial licenses and procure advanced equipment can be a disrupting factor for the market.

Global Computer Aided Engineering Market Segmentation

The report titled “Computer Aided Engineering Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Finite Element Analysis (FEA)
• Computational Fluid Dynamics (CFD)
• Multibody Dynamics
• Optimisation and Simulation

Market Breakup by Deployment Model

• On-premise
• Cloud-based

Market Breakup by End-Use

• Automotive
• Defence and Aerospace
• Medical Devices
• Electronics
• Industrial Equipment
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Computer Aided Engineering Market Share by Type

FEA is anticipated to account for a significant portion of the market share during the forecast period. Its capabilities, including greater accuracy, accessibility, and the avoidance of subsequent failures, are anticipated to expand the scope of its application in critical structure engineering. Its capacity to forecast product performance is also gaining popularity across a range of sectors, which is likely to drive its adoption.

The multibody dynamics segment is expected to register a remarkable growth rate due to its low cost of investment as compared to the virtual prototype to the real test.

The Automotive Segment to Witness A Healthy Growth in the Computer Aided Engineering Market

The defence and aerospace segment is anticipated to witness a rapid growth throughout the forecast period owing to the growing usage of CAE software. Furthermore, rising concerns about security and monitoring in public areas are expected to surge the utilisation of CAE solutions in the aerospace and defence sector in the coming years.

With the robust growth of the defence and aerospace sector owing to the rising government spending on improving anti-terrorist technology and reducing security flaws, the deployment of CAE software to develop innovative and advanced defence solutions is likely to rise in the forecast period.

Market Share by Region

Due to rapid technological developments and the rising use of automation in manufacturing activities, developed economies like those in North America and Europe are anticipated to provide lucrative growth opportunities to the overall computer aided engineering market.

Europe is expected to grow robustly as a result of the growing awareness about greenhouse gas emissions and advancements in battery technology. Additional factors driving the usage of CAE software in the region include the extensive deployment of the IoT and rising defence spending.

Over the projected period, the Asia Pacific market for computer aided engineering is anticipated to observe exponential expansion. The rapid growth of the regional market can be owed to the increasing government investments to expand the manufacturing sector and fuel the capacity expansion of renewable energy generation.

Competitive Landscape

The comprehensive report provides an in-depth assessment of the market based on Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global computer aided engineering market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

ESI Group

ESI Group is a software development company which was established in 1973, and its headquarter is located in Rungis, France. The company is a pioneer and a global leader in providing virtual prototyping while keeping into account the physics of the materials. The company specialises in various fields such as simulation, virtual prototyping, physics, manufacturing, CAE, and virtual reality, among many others. ESI has developed an extensive suite of coherent and industry-oriented applications to precisely adjust production procedures and replicate a product's behaviour during testing.

SimScale GmbH

SimScale GmbH was founded in 2012 and the headquarter is located in Munich, Germany. It is a software development company focused on computer aided engineering, high-performance computing, engineering simulation, finite element analysis (FEA), computational fluid dynamics (CFD), thermodynamics, SaaS, and cloud, among others. The company provides millions of consumers across the world immediate access to fluid, thermal, and structural modelling by following a subscription-based pricing model.

NovaStar Solutions

NovaStar Solutions has been serving hundreds of businesses in the manufacturing, automotive, aerospace, medical, power generation, and university sectors since 1998. The company is among the leading providers of best-in-class tools such as IT hardware, IT asset management, engineering software, equipment calibrations, and 3D printer sales and services, among others.

Other market players include Autodesk Inc., Dassault Systèmes S.E., Hexagon AB, Altair Engineering Inc., ANSYS, Inc, and Siemens AG, among others.