Global Engineering Software Market (2023 Edition): Analysis By Deployment Type (On-Premise, Cloud), Enterprise Size (Large, Small, Medium), End User Industry: Market Insights and Forecast (2018-2028)
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What is Engineering Software?
Engineering Software are dedicated for development, design and simulation of the product post manufacturing it. These Software is being actively used for computer aided design and Co-ordinated manufacturing by automation through robotics.
These Engineering Software are being used in variety of industry such as automobile, construction for building infrastructure projects like bridges and high-rise building. They have wide spread application in Aerospace industry for making state of the art combat aircraft and passenger aircraft.
Due to development in technology like Internet of Things (IOT), Cloud computing and Integration of AI and ML technologies in simulation software, which is helping industry move towards Industry 4.0.
Global Engineering Software Market Overview
The Engineering Software market showcased growth at a CAGR of 7.17% during 2018-2021. The market was valued at USD 10.36 Billion in 2021 which is expected to reach USD 84.52 Billion in 2028. The growing need for the infrastructure development due to urbanization and advance manufacturing techniques due demand for high quality products with cost-effective and efficient planning with sustainable development around the globe are contributing to the increasing interest in Engineering Software.
The Global Engineering Software Market is expected to grow in the forecast period and register a market value of USD 84.52 Billion in 2028 at a CAGR of 8.75% during the forecast period. Growing prevalence of additive manufacturing over conventional source of manufacturing methods like 3D Printing, due to which engineering software growth has propelled. Additive manufacturing technique works with complex geometry which requires advance software to deal with such complexities which is making industries to adopt to advance engineering software.
Rapid Implementation of AI and ML Technology in latest Engineering Software
The impact of artificial intelligence (AI) and machine learning (ML) on simulation software is significant, as these technologies can enhance the accuracy and speed of simulations, and enable engineers to quickly analyse complex data. Simulation has emerged as a critical technology for helping businesses shorten time-to-market and lowering design costs. Many organizations are improving their simulation capabilities by incorporating artificial intelligence (AI) into their model-based design. Historically, these two fields have been separated, but create significant value for engineers and researchers when used together effectively. These technologies’ strengths and weaknesses are perfectly aligned to help businesses solve three primary challenges.
Artificial Intelligence (AI) Market was valued approximately USD 59.67 Billion in 2021 and is projected to reach to roughly USD 422.37 Billion by 2028 and North America led the global artificial intelligence (AI) market in 2021, accounting for about 43 percent of overall revenue. AI and ML algorithms can help to improve the accuracy of simulations by identifying patterns in data and making predictions based on those patterns. AI and ML algorithms can help engineers to quickly run simulations and analyse results. This can lead to significant time savings, as engineers can quickly identify and solve problems.
Rising Number of Data Security Concerns
Engineering software can be vulnerable to cyber attacks, which can compromise sensitive data and lead to significant financial and reputational damage. As cloud computing is becoming technology to reckon with in engineering software, unlike an organization’s on-premises infrastructure, their cloud-based deployments are outside the network perimeter and directly accessible from the public Internet. While this is an asset for the accessibility of this infrastructure to employees and customers, it also makes it easier for an attacker to gain unauthorized access to an organization’s cloud-based resources. Improperly-configured security or compromised credentials can enable an attacker to gain direct access, potentially without an organization’s knowledge.
Data stored on engineering software systems may not always be encrypted, leaving it vulnerable to unauthorized access and theft which makes latest designs and simulation expose to their competitor in the market and may affect company’s growth in the market. The number of attacks on these platforms has increased rapidly. Incidentally, cloud cyber attacks accounted for 20% of all cyber attacks in 2020, making cloud computing platforms the third most-targeted cyber environment.
Segment-Wise Insights
In the End User Industry segment, Automotive and Transportation accounted for USD 15.04 billion in 2022
Global Engineering Software Market, By Automotive and Transportation segment, was valued at USD 13.37 Billion in 2021 and is expected to grow at a CAGR of 10.78% during 2023-2028.
Engineering software allows automotive engineers to design and test these complex systems more efficiently. Engineering software can automate many repetitive tasks, allowing engineers to focus on more complex design and analysis.
Incorporating advanced technologies such as electric powertrains, autonomous driving features, and advanced safety systems. Engineering software allows automotive engineers to design and test these complex systems more efficiently and accurately and Engineering software can automate many repetitive tasks, allowing engineers to focus on more complex design and analysis work. This can help automotive companies increase their efficiency and productivity.
Cloud Deployed Software registered the fastest growth in Engineering Software Market
Global Engineering Software Market, By Cloud segment was valued at USD 14.78 Billion in 2021 and is expected to grow at a CAGR of 13.15% during 2023-2028.
The Cloud-based software can be accessed from anywhere with an internet connection, making it more convenient for teams working in different locations or on the go and user can access the latest updated software which is integrated with latest technology. The growth of Cloud based Engineering software is increasing due to wide scale penetration of internet which helps user to access the software from anywhere, which makes it more convenient and hassle free.
Regional Insights
According to Azoth Analytics Estimates, Americas accounts for the largest revenue share in 2022. Americas is consortium of developed and developing countries where internet penetration is rapidly advancing and demand for high quality good are also in huge demand which are main drivers for the growth of the engineering software market in Americas.
Due to rising population in Americas there is growth in demand for the automobiles for daily transportation and transportation of good and services which require more faster and better production technology which is increasing demand for engineering software throughout Americas. Moreover, rising internet penetration in the region of Americas and high data generation and cost related to maintaining that data, companies are shifting towards cloud deployed engineering software.
Competitive Landscape
Global Engineering Software Market is fragmented with top 10 companies accounting for a significant revenue share in the year 2022. Leading companies and brands in the market are executing different strategies and partnerships to strengthen the foothold and increase the competitiveness and product offerings in the market.
Dassault Systemes, AutoDesk Inc., Cadence Design Systems, ANSYS Inc., Bentley Systems Inc., Aspen Technologies, Siemens AG amidst others are the leading companies in the Global Engineering Software Market.
Leading companies in the Global Engineering Software Market include:
Dassault Systemes
AutoDesk Inc.
Cadence Design Systems
ANSYS Inc.
Synopsys Inc.
Bentley Systems Inc.
Aspen Technologies
Siemens AG
PTC Inc.
Hexagon AB
Recent Developments in the Engineering Software Market
Segmentations in the Report
By Deployment Type
By End User Industry Type
By Enterprise Size
By Region
Frequently Asked Questions
What is the expected market value of Engineering Software Market in 2028?
Global Engineering Software Market is expected to be valued at USD 84.52 Billion in 2028.
At what growth rate is Engineering Software Market expected to grow in the forecast period?
During 2023-2028, Engineering Software Market is expected to grow at CAGR of 8.75%.
Which Region dominates the Engineering Software Market?
Americas contributes the largest revenue share in the Engineering Software Market in 2021 and is expected to continue in the forecast period as well.
Which are the leading companies in the Engineering Software Market?
Dassault Systemes, AutoDesk Inc., Cadence Design Systems, ANSYS Inc., Bentley Systems Inc., Aspen Technologies, Siemens AG amidst others are the leading companies in the Global Engineering Software Market.
At what rate will China Engineering Software Market Grow?
During 2023-2028, China’s Engineering Software Market is expected to grow at a CAGR of 14%.
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