Computer Aided Engineering (CAE) Market Size, Growth 2024-2032
Computer Aided Engineering (CAE) Market Size, Growth 2024-2032

Computer Aided Engineering (CAE) Market Share, Size, Trends, Industry Analysis Report, By Type (Computational Fluid Dynamics, Finite Element Analysis, Multibody Dynamics, Thermal Analysis, Others); By Deployment; By End-user; By Region; Segment Forecast, 2024 - 2032

  • Published Date:Feb-2024
  • Pages: 116
  • Format: PDF
  • Report ID: PM1460
  • Base Year: 2023
  • Historical Data: 2019 - 2022

Report Outlook

The global computer-aided engineering market was valued at USD 8.53 billion in 2023 and is expected to grow at a CAGR of 11.5% during the forecast period.

Computer-aided engineering (CAE) refers to the utilization of computer software that helps in simulating product performance. This technique helps in improving product designs or resolving engineering issues in various industries. CAE includes validation, simulation, and optimization of products, processes, and manufacturing tools. The process of CAE usually involves three steps: preprocessing, solving, and post-processing.

The market is experiencing rapid growth, largely due to the increasing popularity of wearable technology. The demand for CAE software is also being driven by the widespread use of IoT (Internet of Things) devices such as smartphones, tablets, and other smart devices. These devices are used in various fields, including fitness, medicine, entertainment, gaming, education, and transportation. Additionally, the trend towards miniaturization of sensors and electronic devices has further fueled the growth of the CAE market. Government regulations in the automotive industry, such as those about parking assistance systems, collision avoidance, interactive infotainment systems and wireless communication technology, have also contributed to the market growth. The development of advanced technologies like semi-autonomous and driverless cars is also expected to have a positive impact on the growth of the market.

Computer Aided Engineering (CAE) Market Size

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The market faces several challenges that hinder its growth, such as the high cost of implementing CAE software and hardware, which can be prohibitively expensive for small and medium-sized businesses. In addition, the lack of standardization in CAE tools and data formats can make it difficult for companies to integrate CAE systems into their existing workflows. Another challenge is the need for specialized skills and training to use CAE software effectively, which can lead to a shortage of skilled professionals in the field.

Growth Drivers

  • The rising popularity of IoT devices drives market growth.

As more and more devices become connected to the internet, there is a growing need for advanced software tools that can simulate, analyze, and optimize their performance. CAE software provides engineers with the ability to design, test, and validate these devices virtually before they are even built. This allows for faster product development cycles, reduced prototyping costs, and improved product quality.

Also, IoT devices often generate vast amounts of data, which can be leveraged by CAE software to improve simulation accuracy and provide real-time insights into device performance. This enables engineers to make informed decisions about how to optimize their designs, leading to better overall performance and efficiency. The integration of IoT devices with CAE software opens up new possibilities for remote monitoring and predictive maintenance, allowing companies to detect potential issues before they occur and minimize downtime. Owing to these factors, the computer-aided engineering market witnessed significant growth and is expected to continue to grow over the forecast period.

Computer Aided Engineering (CAE) Market Size

Report Segmentation

The market is primarily segmented based on type, deployment, end-user, and region.

By Type

By Deployment

By End-user

By Region

  • Computational Fluid Dynamics (CFD),
  • Finite Element Analysis (FEA)
  • Multibody Dynamics
  • Thermal Analysis
  • Others
  • Cloud
  • On-premise
  • Automotive
  • Defence & Aerospace
  • Electronics
  • Industrial Equipment
  • Medical Devices
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia. South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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By Type Analysis

  • The finite element analysis (FEA) held the largest market share in 2023.

The finite element analysis dominated the market since FEA imitates real components to explore structural analysis, heat transfer, electromagnetic potential, and mass transport problems. FEA is a computational analysis methodology used to determine the strength of a product in relation to loading. Finite element analysis is used to increase the accuracy of any physical stress that affects the design. It also helps to increase productivity and revenue since FEA software enables developers to manufacture higher-quality products in a quicker design cycle while also using minimal material.

FEA has been widely adopted across various industries, including automotive, aerospace, construction, and industrial equipment, due to its ability to predict the behavior of complex systems under various conditions accurately. In the automotive industry, for example, FEA is used to simulate crash tests, vibration analysis, and durability testing of vehicles. In the aerospace industry, it is used to analyze the stress and strain on aircraft structures, as well as the aerodynamic performance of aircraft and spacecraft. All these factors have caused the dominance of the FEA segment in the global market.

By End-user Analysis

  • The automotive segment dominated the market in 2023.

The automotive segment emerged as the dominant segment in the market, accounting for a significant share of the total market revenue. This dominance is due to several factors, including the increasing demand for advanced vehicle design and simulation technologies, growing emphasis on reducing product development time and costs, and the need to meet stringent safety and regulatory requirements. CAE solutions enable automotive manufacturers and suppliers to optimize their design processes, improve product quality, and reduce the number of physical prototypes required during development.

Along with this, the use of CAE tools allows for the simulation of various driving scenarios, environmental conditions, and other factors that can impact vehicle performance, thereby helping companies identify potential issues early in the development cycle and mitigate risks associated with costly recalls or warranty claims. As a result, the adoption of CAE solutions has become an essential part of the automotive industry's digital shift, particularly in the areas of electric vehicles, self-driven, and connected cars.

Computer Aided Engineering (CAE) Market size

Regional Insights

  • North American region dominated the computer-aided engineering market in 2023.

The North American region dominated the global market in 2023 due to the presence of well-established industries such as automotive, aerospace and defense, and industrial equipment, which are major users of CAE software and services. The region has a strong foothold of leading CAE vendors, such as Autodesk, Dassault Systemes, and Siemens PLM Software, who have their headquarters or major operations in the region. These companies have been useful in driving innovation and adoption of CAE technologies in various industries. Also, the region has a large number of small and medium-sized enterprises (SMEs), which are also increasingly adopting CAE solutions to enhance their product design and development processes.

The Asia Pacific region is expected to witness significant growth in the computer-aided engineering (CAE) market over the forecast period due to the increasing demand for advanced technologies in the region's manufacturing sector, particularly in countries such as China, Japan, and South Korea. These countries have well-established manufacturing industries that are adopting CAE software and services to improve their product design, simulation, and testing processes. Also, governments in these countries are actively promoting the adoption of digital technologies, including CAE, through initiatives such as Industry 4.0 initiatives. These supportive government policies and investments in digital technologies are expected to drive the growth of the CAE market in the Asia Pacific region.

Computer Aided Engineering (CAE) Market Size

Key Market Players & Competitive Insights.

In the computer-aided engineering (CAE) market, manufacturers play an important role in providing software and hardware solutions to various industries. These industries include automotive, aerospace, electronics, and industrial equipment, among others. Manufacturers in the CAE market focus on developing and distributing software tools that enable engineers to design, analyze, and simulate products digitally before they are built physically. Also, CAE manufacturers provide services such as consulting, implementation, training, and support to ensure the successful deployment of their software.

  • Some of the major players operating in the global market include:
  • Altair Engineering Inc.
  • Autodesk Inc.
  • Bentley Systems
  • Casio Computer Co. Ltd.
  • Dassault Systemes
  • ESI Group
  • Exa Corporation
  • Siemens AG
  • SimuTech Group

Recent Developments

  • In April 2023, Avient Corporation announced the availability of its newly enhanced advanced computer-aided engineering (CAE) capabilities. Avient's enhanced capabilities enable customers to more accurately predict the conduct of fiber-reinforced polymer materials in structural metal replacement applications, resulting in fewer design iterations and a faster time to market.
  • In September 2022, Tech Soft 3D, a manufacturer of engineering software development toolkits, provided an array of toolkits to support computer-aided engineering (CAE) workflows.

Computer Aided Engineering (CAE) Market Report Scope

Report Attributes


Market size value in 2024

USD 9.49 Billion

Revenue Forecast in 2032

USD 22.68 Billion


11.5% from 2024 – 2032

Base year


Historical data

2019 – 2022

Forecast period

2024 – 2032

Quantitative units

Revenue in USD Billion and CAGR from 2024 to 2032

Segments Covered

By Type, By Deployment, By End-user, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa


Report customization as per your requirements concerning countries, regions, and segmentation.


Computer Aided Engineering (CAE) Market Size Worth USD 22.68 Billion By 2032

The global Computer Aided Engineering (CAE) Market key players include Altair Engineering Inc., Autodesk Inc., Bentley Systems, Casio Computer Co. Ltd

North American contribute notably towards the Computer Aided Engineering (CAE) Market.

The global computer-aided engineering market and is expected to grow at a CAGR of 11.5% during the forecast period.

Computer Aided Engineering (CAE) Market report covering key segments are type, deployment, end-user, and region.