Top Facts You Didn’t Know About Computer Aided Engineering market & Impact of COVID- 19

Posted by Mrudula Karmarkar on October 10th, 2022

The global computer aided engineering market size is anticipated to reach USD 19.19 billion by 2030, registering a CAGR of 8.8%, according to a new report by Grand View Research, Inc. Rapid growth of the wearable industry is likely to increase the use of CAE software in the electronics industry. The major players in the market are in search of new sources of revenue as the smartphone market is in the maturity stage. As a result, the demand for wearable technology has increased the demand during the forecast period.

The growing penetration of IoT, tablets, and smartphones is expected to boost the CAE market growth. Owing to the growth of IoT, wearable devices, used in the fields of medicine, fitness, transportation, education, entertainment, and gaming, are increasing; paving way for the growth of the CAE market. Miniaturization of electronic devices and sensors and persuasive connectivity with lowered costs have immensely contributed to the growth of wearable technology devices.

Government regulations, mandating applications, such as collision avoidance, parking assistance systems, wireless communication technology, and interactive infotainment systems, in the upcoming car technologies to increase driver safety, are anticipated to raise the demand for CAE software. Additionally, technological advancements in the automotive sector, including driverless cars and semi-autonomous cars, are further anticipated to boost the industry demand.

The emerging new engineering modes such as 3D printing, building information modeling, and concurrent engineering is likely to influence the market. 3D printing is a form of additive manufacturing that allows users to print any object as a 3-D image. The technology helps in reducing production costs and developing new methods of production. Ease of use and unlimited customization capabilities are the key factors driving the 3D printing market which is further expected to positively impact the computer aided engineering market demand.

The prevailing open-source software is anticipated to restrain the market growth over the projected period. They are available for free on the web; however, the vendors charge for support, customization, and maintenance services. Linux has been leading the open architecture software market. Open-source software has been a boon for small software vendors, due to which, the large enterprises have been facing negative impacts. The major drivers of open-source technology are the minor flaws and bugs that can be tested and fixed immediately.

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https://www.grandviewresearch.com/industry-analysis/computer-aided-engineering-cae-market/request/rs1

Customers are increasingly quantifying their software contributions. As a result, companies are willing to pay high license fees for the software that supports low-value processes. They are developing alternating pricing and delivering models, alike Software as a Service (SaaS) pricing models, enabling customers to opt for a pay-as-you-go subscription plan. However, the new pricing model is expected to affect the software providers’ cash flow, revenue recognition, and finance. The market all over the globe is witnessing a drastic shift from on-premise computing to cloud-based computing. Cloud computing reduces costs related to hardware acquisition and software licensing, installation, and support. This is further expected to increase the use of the CAE software. Additionally, companies are adopting the Hyper-Converged Infrastructure (HCI) platform for building a private cloud that enables advanced computation and storage services.

Computer Aided Engineering Market Highlights

• The intellectual property protection of software is crucial, as most of the modern manufacturing organizations rely on computer technology
• The computational fluid dynamics segment is anticipated to witness a high growth rate during the forecast period
• Testing and simulation are the important aspects of a design cycle that help the end-users in achieving profitability and faster time-to-market
• The On-premise segment dominated the market in terms of revenue in 2021 and is anticipated to remain dominant over the projected period
• Simulation software is used to analyze the effect of casing materials on IC performance, thermal management, and electrical signal performance
• The increasing adoption of lithium-ion batteries in consumer electronics applications will also enhance the industry demand during the projected period
• Asia Pacific and South America are poised to emerge as lucrative regional markets over the forecast period with high compounded annual growth rates

The outbreak of the COVID-19 pandemic has resulted in higher demand for Personal Protective Equipment (PPE) kits, ventilators & respirators, and face shield holders. This has led several companies to leverage Additive Manufacturing Technology, CFD analysis, and CAD model with a 3D printing platform to develop and supply this lifesaving equipment. The use of CAE combined with proper knowledge can help bring in rapid and practical solutions to elucidate real-life issues quickly and efficiently.

A few of the major industry players include Autodesk, Inc., Dassault Systemes, MSC Software Corporation, and Siemens AG. The industry players are constantly investing in R&D to develop differentiated products and stay ahead of the competition. Companies are obtaining new software technologies through mergers & acquisitions. They are aiming to create a strong customer base by investing in sales and marketing. With an established customer base, the existing players are constantly improving products through R&D; restricting start-ups and small companies from penetrating the market. The companies are offering specialized products and services to their customers at premium prices. This is expected to maintain the low bargaining power of the buyers. They are aiming to create a strong customer base by investing in sales and marketing. Some of the prominent players in the global computer aided engineering market include:

• ANSYS, Inc.  
• Altair Engineering
• Autodesk, Inc.
• Bentley Systems, Inc.
• Dassault Systemes
• ESI Group
• Exa Corporation
• Mentor Graphics Corporation (A subsidiary of Siemens AG)
• MSC Software Corporation (A subsidiary of Hexagon AB)