Engineering Software Market Trends and Analysis by 2031

The engineering software market size is projected to reach US$ 73.03 billion by 2031 from US$ 39.47 billion in 2023. The market is expected to register a CAGR of 7.9% in 2023—2031. The surge in popularity of automation and cost-effective technology is likely to remain key engineering software market trends.

Engineering Software Market Analysis

The growing use of CAD and CAE software across a range of industries, including the automotive, aerospace, construction, and healthcare sectors, is responsible for the market expansion. Software for engineering comprises, among other things, computer-aided design (CAD), computer-aided manufacturing (CAM), and computer-aided engineering (CAE). The engineering software market is anticipated to expand significantly throughout the forecast period for a variety of reasons, including mounting demand on businesses to shorten the time and expense of product development.

Engineering Software Market Overview

Engineers, designers, and manufacturers may write critical engineering documentation, analyze and simulate product performance and operations, and develop intricate models with the help of engineering software solutions. With cloud-based solutions, team members can collaborate remotely using whatever device they choose because they can be accessed through a web browser. As a result, businesses can modernize and reduce hardware expenditures without sacrificing computational power or usefulness.

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Engineering Software Market: Strategic Insights

Engineering Software Market Drivers and Opportunities

Surge in the Popularity of Automation and Cost-Effective Technology to Favor the Market.

The worldwide plant 0/0s and EPCs are under pressure to reduce production errors and operational expenses due to the intensifying market rivalry. Plant engineers can improve quality by following particular international standards during the design, production, and commissioning processes. Production and intensity issues can be resolved with design software, ongoing analysis, and standard upgrades. As a result, businesses all around the world are using engineering software more and more to reduce mistakes in building and production.

Increasing Development Across Construction and Infrastructure

One of the main factors contributing to the socioeconomic development of any country is thought to be construction. The building industry is expanding rapidly in developing nations around the world, including Ethiopia, India, China, Brazil, Uzbekistan, Cambodia, Tanzania, and Myanmar. These economies' fundamental infrastructure is also developing at a rapid rate. For example, the developing economies of Asia Pacific and SAM are drawing a lot of foreign direct investment in their infrastructure development. These advancements will also spur the growth of their infrastructure, and as the building industry expands, so too will the need for engineering software. Therefore, it is anticipated that the expanding advancements in the infrastructure and construction business verticals will offer.

Engineering Software Market Report Segmentation Analysis

Key segments that contributed to the derivation of the engineering software market analysis are software type and application.

• Based on software type, the engineering software market is divided into CAD, CAM, CAE, AEC, and EDA. The CAD segment is anticipated to grow in the forecast period.
• By application, the market is segmented into plant design, design automation, drafting & 3D modeling, product design & testing, and others. The design automation segment is anticipated to grow in the forecast period.

Engineering Software Market Share Analysis by Geography

The geographic scope of the engineering software market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. North America has dominated the engineering software market. High technology adoption trends in various industries in the North American region have fuelled the growth of the engineering software market. Factors such as increased adoption of digital tools and high technological spending by government agencies are expected to drive the North American engineering software market growth. Moreover, a strong emphasis on research and development in the developed economies of the US and Canada is forcing the North American players to bring technologically advanced solutions into the market. In addition, the US has a large number of engineering software market players who have been increasingly focusing on developing innovative solutions. All these factors contribute to the region's growth of the Engineering Software market.

Engineering Software Market Regional Insights

The regional trends and factors influencing the Engineering Software Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Engineering Software Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Engineering Software Market Report Scope

Engineering Software Market Players Density: Understanding Its Impact on Business Dynamics

The Engineering Software Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Engineering Software Market News and Recent Developments

The engineering software market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:

• In February 2024, - Global technology company Cognizant is aiming to accelerate business modernization by expanding its array of platform offerings. The company announced the launch of Cognizant Flowsource, a generative AI-enabled platform designed to power the new era of software engineering.

(Source: Cognizant, Press Release, 2024)

• In June 2023, Nullspace, Inc. was launched as a spin-off from IERUS Technologies, an established defense contractor in Huntsville, AL. Nullspace, Inc. focuses on delivering advanced engineering software for electromagnetics applications.

(Source: Nullspace, Press Release, 2023)

Engineering Software Market Report Coverage and Deliverables

The "Engineering Software Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter's Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles