According to the new research report published by The Insight Partners, titled “Engineering Software Market - Global Analysis and Forecast to 2025”, the global engineering software market is expected to reach US$ 44.54 billion in 2025, registering a CAGR of 7.2% during the forecast period 2016 to 2025.
In 2016, Europe accounted for the largest revenue share around one-third of the total market share, closely followed by North America.
The growth of engineering software is also highly dependent upon the growth of industries such as oil & gas, chemical, power, mining, refining and other manufacturing industries. Apart from these industries, the engineering software are used in electronics, paper & pulp etc. Globally the manufacturing industry is anticipated to pertain its growth, as newer and innovative technologies plunge into these industries.
CAM is a computer driven manufacturing process that also provides additional automation of management, planning, transportation and material tracking. This software is majorly used by the manufacturing industries to reduce energy consumption and wastage for improvised production and manufacturing efficiency by maintaining raw material consistency, production speed, and further precise tooling accuracy. Several manufacturing firms across the globe have been investing in advanced manufacturing technologies, which also includes CAM systems. This is majorly because, availability of an authenticated and well-constructed computer models enables the engineers, system designers and managers to comprehend in prior the meticulous consequences of the investments and their decisions before making any firm commitments. The CAM segment for engineering software is expected to witness a lucrative CAGR growth of 6.4% in the forecast period.
With the continuously rising demand for power in the Middle East region, many power projects for expansion are underway such as Mohammed bin Rashid Al Maktoum Solar Park, second phase of Hassyan clean coal plant, expansion of ebel Ali M-Station CCPP plant etc. These projects are further expected to enhance the transmission and distribution of electricity in the region thus, resulting in the increased demand for engineering software in power sector. Furthermore, due to insufficient government funds, the African region is attracting a lot of foreign direct investment in its power sector. For example, in January 2017, EU signed a Euro 65 million grant to enhance access to energy in Zambia. Many greenfield projects are underway such as coal-fired power plants in South Africa, Kusile and Medupi, which are planned to be commissioned in phases between 2015 and 2020.
Key findings of the study:
The construction, electronics and oil & gas industry are the major end-users’ of engineering software. Oil & gas industry over the years has sustained all the troughs with weak demand and low prices, however the industry is projected to stabilize in the near future as rebalancing of supply – demand fundamentals takes place. Also, the industry exhibits a positive outlook in future as the capital expenditure in the industry might increase by 7% this year. Such investments can bring in lots of new opportunities for the engineering software companies serving to these industries. Also, manufacturing industry is booming in developing regions worldwide such as China, India, South East Asia, and various countries of South America. The government of these countries are also taking initiatives to encourage manufacturing sector such as Made in India Initiative, Made in China, China Manufacturing 2025 etc. Also, countries in South East Asia are experiencing a high growth in their semiconductor industry thus, propelling the growth of engineering software market.
Emerging advancements in cloud technology has enabled organizations across the world to access essential information quickly, and has also created easy availability of tools and data to people, irrespective of place and time. Since, designing and construction process requires different designers at every stage of the project thus, saving the data on the cloud has enabled easy access to such information to all the experts involved in the respective project. The cloud provides single source of data, which makes it easier for multi-user projects. With the increased use of cloud technology worldwide, the growth of CAD in the cloud is expected to gain momentum during the forecast period. CAD in the cloud offers several benefits to the users’ such as easy up gradation of software, higher mobility, and significant reductions in cost, as well as increased storage capacity.
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