Engineering Software Market by Software Type, Deployment, Application, Enterprise Size

List of Tables

The Engineering Software Market was valued at USD 38.34 billion in 2023, expected to reach USD 44.22 billion in 2024, and is projected to grow at a CAGR of 12.36%, to USD 86.71 billion by 2030.

Engineering software encompasses a broad range of applications, including CAD, CAM, CAE, and project management tools that facilitate engineering design and analysis. The scope of engineering software is vast as it enables industries like aerospace, automotive, construction, and manufacturing to enhance product development processes, improve design accuracy, and optimize lifecycle management. The necessity of engineering software lies in its ability to reduce time-to-market, increase productivity, and enhance collaboration among engineers. Its application extends across product design, simulation, analysis, and management tasks, while the end-use scope targets industries seeking innovation, efficiency, and automation. Market growth is influenced by the rapid digital transformation across industries, increasing complexity in product design, and the demand for precision. Additionally, advancements in cloud computing, AI, and machine learning are driving the adoption of these tools, offering potential opportunities for companies that innovate in software integration and user interface enhancements. Challenges impacting the market include high initial investment costs, the learning curve associated with complex software, and data security concerns, which are critical as companies transition to cloud-based solutions. Barriers also exist in integrating legacy systems with new technologies. Businesses can focus on innovation in areas like AI-driven design tools, virtual reality integration for immersive modeling experiences, and SaaS platforms to improve accessibility and reduce costs. Research into the development of user-friendly interfaces and inter-operational capabilities could also provide a competitive advantage. The market is characterized by its dynamic and evolving nature, driven by technology advancements and evolving customer needs. Companies that can navigate these changes, address security concerns, and develop flexible, scalable solutions are more likely to capture growth opportunities and maintain a competitive edge in the engineering software market.

KEY MARKET STATISTICS
Base Year [2023]	USD 38.34 billion
Estimated Year [2024]	USD 44.22 billion
Forecast Year [2030]	USD 86.71 billion
CAGR (%)	12.36%

Market Dynamics: Unveiling Key Market Insights in the Rapidly Evolving Engineering Software Market

The Engineering Software Market is undergoing transformative changes driven by a dynamic interplay of supply and demand factors. Understanding these evolving market dynamics prepares business organizations to make informed investment decisions, refine strategic decisions, and seize new opportunities. By gaining a comprehensive view of these trends, business organizations can mitigate various risks across political, geographic, technical, social, and economic domains while also gaining a clearer understanding of consumer behavior and its impact on manufacturing costs and purchasing trends.

Market Drivers
- Increasing applications in automotive, construction, electronics, and oil & gas
- Need to ensure accuracy, reliability, and quick delivery of analytics and data
- Expanding use in drafting and 3D modeling
Market Restraints
- High license and maintenance costs
Market Opportunities
- Rising adoption of portable computing devices in workplace and the popularity of cloud software
- Use of AI, ML, and Bigdata in engineering software
Market Challenges
- Lack of deep technical expertise and limited awareness in emerging economies

Porter's Five Forces: A Strategic Tool for Navigating the Engineering Software Market

Porter's five forces framework is a critical tool for understanding the competitive landscape of the Engineering Software Market. It offers business organizations with a clear methodology for evaluating their competitive positioning and exploring strategic opportunities. This framework helps businesses assess the power dynamics within the market and determine the profitability of new ventures. With these insights, business organizations can leverage their strengths, address weaknesses, and avoid potential challenges, ensuring a more resilient market positioning.

PESTLE Analysis: Navigating External Influences in the Engineering Software Market

External macro-environmental factors play a pivotal role in shaping the performance dynamics of the Engineering Software Market. Political, Economic, Social, Technological, Legal, and Environmental factors analysis provides the necessary information to navigate these influences. By examining PESTLE factors, businesses can better understand potential risks and opportunities. This analysis enables business organizations to anticipate changes in regulations, consumer preferences, and economic trends, ensuring they are prepared to make proactive, forward-thinking decisions.

Market Share Analysis: Understanding the Competitive Landscape in the Engineering Software Market

A detailed market share analysis in the Engineering Software Market provides a comprehensive assessment of vendors' performance. Companies can identify their competitive positioning by comparing key metrics, including revenue, customer base, and growth rates. This analysis highlights market concentration, fragmentation, and trends in consolidation, offering vendors the insights required to make strategic decisions that enhance their position in an increasingly competitive landscape.

FPNV Positioning Matrix: Evaluating Vendors' Performance in the Engineering Software Market

The Forefront, Pathfinder, Niche, Vital (FPNV) Positioning Matrix is a critical tool for evaluating vendors within the Engineering Software Market. This matrix enables business organizations to make well-informed decisions that align with their goals by assessing vendors based on their business strategy and product satisfaction. The four quadrants provide a clear and precise segmentation of vendors, helping users identify the right partners and solutions that best fit their strategic objectives.

Strategy Analysis & Recommendation: Charting a Path to Success in the Engineering Software Market

A strategic analysis of the Engineering Software Market is essential for businesses looking to strengthen their global market presence. By reviewing key resources, capabilities, and performance indicators, business organizations can identify growth opportunities and work toward improvement. This approach helps businesses navigate challenges in the competitive landscape and ensures they are well-positioned to capitalize on newer opportunities and drive long-term success.

Key Company Profiles

The report delves into recent significant developments in the Engineering Software Market, highlighting leading vendors and their innovative profiles. These include Altair Engineering Inc., Ansys, Inc., Aspen Technology, Inc., Autodesk, Inc., Bentley Systems, Inc., Cranes Software International Ltd., Dassault Systemes, S.A., ESI Group, HCL Technologies, Hexagon AB, International Business Machines Corporation, KBC Advanced Technologies PLC, PTC, Inc., Rockwell Automation, Inc., and SAP SE.

Market Segmentation & Coverage

This research report categorizes the Engineering Software Market to forecast the revenues and analyze trends in each of the following sub-markets:

Based on Software Type, market is studied across Architecture, Engineering & Construction, Computer-Aided Designing, Computer-Aided Engineering, Computer-Aided Manufacturing, and Electronic Design Automation.
Based on Deployment, market is studied across Cloud and On-Premise.
Based on Application, market is studied across Design Automation, Drafting & 3D Modeling, Plant Design, and Product Design & Testing.
Based on Enterprise Size, market is studied across Large Enterprises and Small & Medium Enterprises.
Based on Region, market is studied across Americas, Asia-Pacific, and Europe, Middle East & Africa. The Americas is further studied across Argentina, Brazil, Canada, Mexico, and United States. The United States is further studied across California, Florida, Illinois, New York, Ohio, Pennsylvania, and Texas. The Asia-Pacific is further studied across Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. The Europe, Middle East & Africa is further studied across Denmark, Egypt, Finland, France, Germany, Israel, Italy, Netherlands, Nigeria, Norway, Poland, Qatar, Russia, Saudi Arabia, South Africa, Spain, Sweden, Switzerland, Turkey, United Arab Emirates, and United Kingdom.

The report offers a comprehensive analysis of the market, covering key focus areas:

1. Market Penetration: A detailed review of the current market environment, including extensive data from top industry players, evaluating their market reach and overall influence.

2. Market Development: Identifies growth opportunities in emerging markets and assesses expansion potential in established sectors, providing a strategic roadmap for future growth.

3. Market Diversification: Analyzes recent product launches, untapped geographic regions, major industry advancements, and strategic investments reshaping the market.

4. Competitive Assessment & Intelligence: Provides a thorough analysis of the competitive landscape, examining market share, business strategies, product portfolios, certifications, regulatory approvals, patent trends, and technological advancements of key players.

5. Product Development & Innovation: Highlights cutting-edge technologies, R&D activities, and product innovations expected to drive future market growth.

The report also answers critical questions to aid stakeholders in making informed decisions:

1. What is the current market size, and what is the forecasted growth?

2. Which products, segments, and regions offer the best investment opportunities?

3. What are the key technology trends and regulatory influences shaping the market?

4. How do leading vendors rank in terms of market share and competitive positioning?

5. What revenue sources and strategic opportunities drive vendors' market entry or exit strategies?

Product Code: MRR-02026C4CABA1

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Increasing applications in automotive, construction, electronics, and oil & gas
  - 5.1.1.2. Need to ensure accuracy, reliability, and quick delivery of analytics and data
  - 5.1.1.3. Expanding use in drafting and 3D modeling
- 5.1.2. Restraints
  - 5.1.2.1. High license and maintenance costs
- 5.1.3. Opportunities
  - 5.1.3.1. Rising adoption of portable computing devices in workplace and the popularity of cloud software
  - 5.1.3.2. Use of AI, ML, and Bigdata in engineering software
- 5.1.4. Challenges
  - 5.1.4.1. Lack of deep technical expertise and limited awareness in emerging economies
5.2. Market Segmentation Analysis
5.3. Porter's Five Forces Analysis
- 5.3.1. Threat of New Entrants
- 5.3.2. Threat of Substitutes
- 5.3.3. Bargaining Power of Customers
- 5.3.4. Bargaining Power of Suppliers
- 5.3.5. Industry Rivalry
5.4. PESTLE Analysis
- 5.4.1. Political
- 5.4.2. Economic
- 5.4.3. Social
- 5.4.4. Technological
- 5.4.5. Legal
- 5.4.6. Environmental

6. Engineering Software Market, by Software Type

6.1. Introduction
6.2. Architecture, Engineering & Construction
6.3. Computer-Aided Designing
6.4. Computer-Aided Engineering
6.5. Computer-Aided Manufacturing
6.6. Electronic Design Automation

7. Engineering Software Market, by Deployment

7.1. Introduction
7.2. Cloud
7.3. On-Premise

8. Engineering Software Market, by Application

8.1. Introduction
8.2. Design Automation
8.3. Drafting & 3D Modeling
8.4. Plant Design
8.5. Product Design & Testing

9. Engineering Software Market, by Enterprise Size

9.1. Introduction
9.2. Large Enterprises
9.3. Small & Medium Enterprises

10. Americas Engineering Software Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific Engineering Software Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa Engineering Software Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Israel
12.8. Italy
12.9. Netherlands
12.10. Nigeria
12.11. Norway
12.12. Poland
12.13. Qatar
12.14. Russia
12.15. Saudi Arabia
12.16. South Africa
12.17. Spain
12.18. Sweden
12.19. Switzerland
12.20. Turkey
12.21. United Arab Emirates
12.22. United Kingdom

13. Competitive Landscape

13.1. Market Share Analysis, 2023
13.2. FPNV Positioning Matrix, 2023
13.3. Competitive Scenario Analysis
13.4. Strategy Analysis & Recommendation

Companies Mentioned

1. Altair Engineering Inc.
2. Ansys, Inc.
3. Aspen Technology, Inc.
4. Autodesk, Inc.
5. Bentley Systems, Inc.
6. Cranes Software International Ltd.
7. Dassault Systemes, S.A.
8. ESI Group
9. HCL Technologies
10. Hexagon AB
11. International Business Machines Corporation
12. KBC Advanced Technologies PLC
13. PTC, Inc.
14. Rockwell Automation, Inc.
15. SAP SE