Global Computer Aided Engineering (CAE) Market Size, Share & Industry Analysis Report By Deployment Model (On-premise, and Cloud-based), By Component (Software, and Services), By End-use Industry (Automotive, Defense & Aerospace, Electronics, Industrial E

The Global Computer Aided Engineering Market size is expected to reach USD 22.64 billion by 2032, rising at a market growth of 9.9% CAGR during the forecast period.

Key Highlights:

• The North America Computer Aided Engineering market dominated the Global Market in 2024, accounting for a 32.90% revenue share in 2024.
• The US Computer Aided Engineering market is expected to continue its dominance in North America region thereby reaching a market size of 5.14 billion by 2032.
• Among the various End-use Industry segments, the Automotive dominated the global market contributing a revenue share of 53.4% in 2024.
• In terms of Component segmentation, the Software segment is projected to dominate the global market with the projected revenue share of 71.17% in 2032.
• On-premise led the Deployment Model segments in 2024, capturing a 61.77% revenue share and is projected to continue its dominance during projected period.

Computer aided engineering involves the usage of advanced software tools like CFD, FEA, and multibody dynamics to simulate, analyze, and optimize engineering designs before physical production. Initially developed for defense & aerospace applications, computer aided engineering has developed into a core component of digital product development across sectors, including energy, infrastructure, automotive, and manufacturing. Advancements in government-backed research programs, computing power, and wider industrial adoption have allowed engineers to decrease development risks, accelerate innovation, and reduce prototyping costs. With time, computer aided engineering has transformed from a specialized analysis function to a foundational technology supporting smart manufacturing, Industry 4.0, and lifecycle-based engineering.

The computer aided engineering market is being driven by artificial intelligence, digital twin technologies, and cloud computing. AI-driven simulation surges analysis, enhances accuracy, and automates data exploration, whereas cloud-based platforms democratize access to high-performance simulation by reducing infrastructure costs and allowing global collaboration. Further, digital twins extend CAE from design into real-time operational optimization by combining simulation with IoT data. Key market players like Siemens, ANSYS, Altair, and Dassault Systemes compete in AI innovation, industry-specific solutions, cloud scalability, and integrated engineering ecosystems, creating an increasingly connected, intelligent, and competitive computer aided engineering landscape.

COVID 19 Impact Analysis

The COVID-19 pandemic hurt the CAE market, especially during the first lockdowns when factories, cars, and planes all had to stop working. Due to budget problems and uncertainty about demand, a lot of businesses put off or canceled their purchases of CAE software and simulation projects. Disruptions in the supply chain and limited access to high-performance computing on-site slowed down engineering and simulation work. Companies that provide CAE services and consulting firms had fewer clients and projects that took longer to finish. Problems with collaboration and restrictions on physical testing made simulation workflows even more difficult. Small and medium-sized businesses were hit the hardest, putting advanced engineering tools lower on their list of priorities. Overall, drops in important end-use industries caused a temporary slowdown in the growth of the CAE market, even though interest in digital engineering grew later.

Deployment Mode Outlook

Based on deployment model, the computer aided engineering (CAE) Market is characterized into  on-premise and cloud-based. The cloud-based segment attained 38% revenue share in the computer aided engineering (CAE) market in 2024.  Cloud-based deployment has established a substantial presence in the global Computer Aided Engineering (CAE) market, supported by increasing demand for flexibility, scalability, and cost efficiency. This model enables organizations to access advanced simulation tools and high-performance computing resources on demand, reducing the need for significant upfront investment in infrastructure.

Component Outlook

On the basis of component, the computer aided engineering (CAE) market is classified into software and services. The services segment recorded 27% revenue share in the computer aided engineering (CAE) market in 2024.  The segment plays a critical role in enabling effective adoption and long-term utilization of simulation technologies. CAE-related services include consulting, system integration, customization, development services, training, technical support, and maintenance. These services help organizations tailor CAE solutions to specific industry requirements, manage complex simulation projects, and build internal engineering expertise.

Regional Outlook

Region-wise, the computer aided engineering (CAE) market is analyzed across North America, Europe, Asia Pacific, and LAMEA.  The North America segment recorded 33% revenue share in the computer aided engineering (CAE) market in 2024.  The computer aided engineering (CAE) market is expected to grow at a substantial rate in North America and Europe. This is because of its strong industrial base in aerospace, defense, automotive, and advanced manufacturing. The United States is witnessing adoption with substantial R&D investment, widespread usage of cloud-based simulation platforms, and digital twin, and regulatory drivers that support product compliance and precision engineering. Robust ecosystem of research institutions and vendors, and rising digital transformation continue to sustain stable regional computer aided engineering market growth. Moreover, Europe market is also witnessing expansion. The adoption is largely supported by aerospace engineering and automotive, with the rising emphasis on eco-design, sustainability, and advanced material simulation. Smart manufacturing initiatives and Industry 4.0, along with regulatory compliance for safety and emissions, further support the region’s investments in CAE technologies.

In Asia Pacific and LAMEA, the computer aided engineering market is projected to capture prominent growth. This is because of expanding electronic and automotive industry, rapid industrialization, and strong government support for smart manufacturing and digitalization. Japan, South Korea, India, and China are leading adopters, using CAE tools to accelerate time-to-market, enhance product quality, and support innovation in semiconductor design, robotics, and EVs. Furthermore, the LAMEA computer aided engineering market is growing, supported by oil & gas and energy projects, infrastructure modernization, and automotive and defense sectors, especially in nations such as Mexico, UAE, Brazil, Egypt, and South Africa. These regions are largely investing in digital engineering tools to support economic diversification and infrastructure development, thereby offering growth opportunities in the LAMEA computer aided engineering market.

Recent Strategies Deployed in the Market

• Dec-2024: Hexagon AB acquired the Geomagic software portfolio from 3D Systems, an engineering company. This acquisition strengthens Hexagon's software offerings, enhancing its leadership in 3D metrology and reengineering. Geomagic’s suite, including Design X and Control X, automates 3D scan data processing, aiding in product manufacturing, design, and quality control.
• Nov-2024: ANSYS, Inc. announced the partnership with IonQ, a quantum computing hardware and software company to integrate quantum computing into the CAE market, enhancing simulations, reducing development time, and improving high-fidelity design. Ansys will leverage IonQ’s quantum capabilities for structural, optical, and electromagnetic simulations, while IonQ expands into CAE, supporting enterprises like Airbus and Hyundai with quantum-driven solutions.
• Sep-2024: Bentley Systems, Inc. acquired Cesium, a leading 3D geospatial company, to enhance its iTwin Platform for infrastructure digital twins. The integration enables seamless 3D geospatial data alignment with engineering, subsurface, IoT, and enterprise data, providing improved digital twin experiences for infrastructure professionals and expanding Cesium’s developer platform capabilities.
• Mar-2024: ANSYS, Inc. announced the partnership with NVIDIA, a computer manufacturer corporation to advance CAE using accelerated computing and AI. The partnership focuses on 6G telecom, AI-driven simulations, digital twins, and enhanced graphics. Ansys integrates NVIDIA GPUs and AI tools to optimize solutions, while NVIDIA leverages Ansys software to improve hardware design and performance.
• Oct-2022: Dassault Systemes SE acquired Diota, a software company to enhance its 3DEXPERIENCE platform with augmented reality (AR) for digital manufacturing. Diota’s technologies, including AR, AI, and computer vision, assist in assembly, quality control, and operational efficiency. Integration boosts productivity, reduces errors, and improves traceability in industrial operations, enhancing the platform’s capabilities.
• Apr-2022: Siemens AG teamed up with Pasqal, Pioneers of Neutral Atoms Quantum Computing focused on quantum computing applications in computer-aided engineering. The collaboration aims to enhance Siemens’ software solutions for product design and testing, particularly in the automotive, aerospace, and energy sectors, by utilizing Pasqal’s quantum methods to solve complex nonlinear differential equations.

List of Key Companies Profiled

• ANSYS, Inc.
• Altair Engineering Inc.
• Autodesk, Inc.
• Bentley Systems, Inc.
• Dassault Systemes SE
• ESI Group (Keysight Technologies, Inc.)
• Hexagon AB
• Siemens AG
• PTC, Inc.
• The MathWorks, Inc.

Global Computer Aided Engineering Market Report Segmentation

By Deployment Model

• On-premise
• Cloud-based

By Component

• Software
• Finite Element Analysis (FEA)
• Computational Fluid Dynamics (CFD)
• Multibody Dynamics (MBD)
• Optimization & Simulation / Others
• Services
• Development Services
• Training, Support & Maintenance

By End-use Industry

• Automotive
• Defense & Aerospace
• Electronics
• Industrial Equipment
• Medical Devices
• Other End-use Industry

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

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