The engineering software market is expected to grow from US$ US$ 25.60 Bn in 2017 to US$ 44.54 Bn by 2025 at a CAGR of 7.2% between 2017 and 2025.
Engineering Software market operates in a highly-competitive marketplace. As leading companies in this market continues to broaden its addressable market, by expanding its current product portfolio, diversifying its client base, and developing new applications and markets, all the prominent players faces an increasing level of competition, both from start-ups as well the leading global technology and industrial companies in the world. Technology is witnessing a high growth owing to its increasing applications in several new industries such as automotive, construction electronics, oil & gas and others. The engineering software market is further flourishing due to the rising adoption of portable computing devices at workplace coupled with easy availability of these software over cloud. The South America engineering software market region is expected to witness a CAGR growth rate of 7.7% in the coming years.
Exhibit: Engineering Software Market by Region
Engineering Software Market Insights
Surge in popularity of automation and cost effective technology
The increasing market competition has its impetus on the global plant O/Os’ and EPCs’ to decrease production errors and operating expenditure. Throughout the process of designing, manufacturing and commissioning, certain international standards are to be followed that facilitates plant engineers to enhance quality. Design software, constant analysis and upgrading of standards can provide a solution to intensify quality and production. Therefore, companies worldwide are increasingly implementing engineering software to minimize production/construction errors. Moreover, due to the massive sale of the products, error prevention and automation has risen dramatically in recent years. All the specifications of the production are expected to be handled with perfection, ensuring the maximization of the up-time. Thus, with the help of engineering software, design as well as process monitoring are integrated to meet the global consumer demand. Subsequently, driving the growth for engineering software market in the coming years.
Increase in development across construction and infrastructure sector
Construction is considered to be one of the key contribution to country’s socio-economic development. The developing economies worldwide such as such as Ethiopia, India, China, Brazil, Uzbekistan, Cambodia, Tanzania and Myanmar among others are experiencing a high growth in its construction sector. This has resulted in development of new households and other commercial construction. Also, the basic infrastructure of these economies is on the emerging pace. For instance, Asia Pacific and SAM comprises of several developing economies, which are attracting a lot of FDIs in their infrastructural development. These developments will further lead to construction of their infrastructure development. With the construction sector growing, the demand for engineering software will increase. Thus, the growing developments across construction and infrastructure industry verticals is expected to provide numerous profitable opportunities for the engineering software market players in the coming years.
Engineering Software Market - Application Insight
In the global engineering software market for the drafting & 3D modeling segment by application, there is a constant pressure on plant O/Os and EPC companies to fulfil the global demands in a highly competitive market environment. Faster and cheaper delivery to the market helps in reducing project margins and anticipates more for less in the current CAPEX process, marine and power market. Thus, power and manufacturing industries are implementing solutions that enables them to meet higher production objectives and stringent regulatory requirements for building a plant. Engineers are generally dependent on models and drawings of their respective projects to assist their work. 2D CAD models do not always offer required accuracy and speed thus, the professionals are using 3D modelling for enhanced efficiency and visual of their designs. 3D modelling offers several benefits, which includes enhancement in the design quality, easy documentation, increased designer productivity, automatic design redrawing, international standards compliance, better client visualization, design time reduction, data and drawings savings, as well as cost savings. Thus, the drafting & 3D modeling segment by application for engineering software market is projected to provide numerous lucrative business opportunities for the market players in the forecast period.
Engineering Software Market – Software Type Insight
For the global engineering software market, CAD is abbreviated as Computer Aided Designing software. CAD software caters to the specific purpose of modelling and designing of components and products before they are manufactured. It is a software package that facilitates architectures, engineers and design professionals in prototyping and drafting industry specific products. This segment of engineering software can be further bifurcated into 3D and 2D Computer Aided Designing software. The 2D CAD is for designing and sketching of planograms and prototypes in two dimensions whereas 3D CAD provides access to the tools that help in designing of three dimensional models and structures on computer. Currently North America captures the majority of the market globally followed by other regions. The technology is used by all kinds of buildings, from basic residential types such as houses to magnificent industrial and commercial structures such as factories and hospitals. The CAD engineering software market is expected to grow at a CAGR of 6.9% during the forecast period.
Exhibit: Engineering Software Market by CAD
Engineering Software Market - Strategic Insights
Strategies such as acquisition, market initiative and new development was observed as the most adopted strategy in global engineering software market. Few of the recent strategies by some of the players’ operating in the engineering software market landscape are listed below-
2017: PTC and ANSYS announced a solution that is expected enable ANSYS engineering simulation technology to be rapidly added to applications built on the ThingWorx.
2016: Announced launch of its PTC AgileWorx™ solution that would be industry’s first most agile solution designed to facilitate product engineering teams with improvised innovation and time-to-market.
2016: Rockwell Automation enhanced its Studio 5000 Software with integrated development environment. The advanced version includes expanded integration with engineering tools, pre-developed application content to replace custom code, and new features to help enhance security.
GLOBAL ENGINEERING SOFTWARE MARKET SEGMENTATIONEngineering Software Market – By Software Type