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Engineering Software Market - By Component (Software, Service), By Deployment Model (Cloud, On-premises), By Application (Design Automation, Product Design & Testing, Plant Design, Drafting & 3D Modeling, Others), By End User, Forecast 2023 - 2032

  • Report ID: GMI6791
  • Published Date: Sep 2023
  • Report Format: PDF

Engineering Software Market Size

Engineering Software Market size was valued at USD 28.9 billion in 2022 and is projected to register a CAGR of over 18% between 2023 and 2032. The increasing complexity of engineering projects, driven by globalization & stringent regulations, is a significant driver of the market.

Engineering Software Market

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Modern projects demand sophisticated design, simulation, and analysis tools to meet industry-specific requirements. These software solutions enable engineers to navigate intricate challenges efficiently, reduce errors, and accelerate product development. As industries evolve, the demand for cutting-edge engineering software continues to rise, ensuring that companies can stay competitive and innovative in today's fast-paced technological landscape.

The adoption of cloud-based engineering software is reshaping the industry as it offers flexibility, scalability, and enhanced collaboration capabilities. With the increasing trend toward remote work & global collaboration, cloud solutions enable engineers to access & share critical data and models seamlessly. They also provide efficient resource management and lower upfront infrastructure costs. As companies seek agility and remote accessibility, cloud-based engineering software has become a cornerstone in supporting modern engineering practices, accelerating project timelines, and reducing operational bottlenecks.

High costs associated with engineering software can hinder engineering software market growth, especially for smaller businesses. These expenses encompass initial procurement costs, ongoing licensing fees, and the need for hardware upgrades. Additionally, the complexity of certain software tools necessitates substantial training investments. Consequently, Small & Medium-sized Enterprises (SMEs) may face barriers to adoption. Overcoming this challenge may require more cost-effective licensing models, cloud-based solutions, and educational initiatives to ensure that SMEs can effectively access & leverage advanced engineering software.

COVID-19 Impact

The COVID-19 pandemic has had some positive impacts on the engineering software market. With remote work becoming the norm, there has been a greater reliance on digital tools for collaboration and project management, which has driven the adoption of engineering software. Companies have also accelerated their digital transformation efforts, realizing the importance of advanced software solutions to maintain productivity & competitiveness. This has created opportunities for software providers, leading to increased demand.

Engineering Software Market Trends

The integration of AI into engineering software is catalyzing lucrative growth in the market. AI enhances productivity by automating tasks, optimizing designs, and analyzing vast datasets. This streamlines engineering processes, reduces errors, and accelerates product development. For instance, in September 2023, SimScale GmbH introduced its fully integrated, cloud-native AI-powered physics prediction feature. SimScale collaborated with NAVASTO, a top A.I. developer in accelerated engineering, to seamlessly incorporate its solutions into the SimScale platform. This integration empowers engineers to engage in real-time design by concurrently leveraging physics & AI-derived analysis results. With industries increasingly embracing AI-driven solutions, the demand for advanced engineering software continues to surge, driving substantial market expansion & innovations.

Engineering Software Market Analysis

 Engineering Software Market Size, By Component, 2021 – 2032, (USD Billion)

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Based on component, the engineering software market is divided into software and service. The software segment held around USD 23.5 billion in market revenue in 2022. The constant improvements and innovations in manufacturing software are driving the software segment expansion. These advancements empower manufacturers to optimize production processes, reduce costs, and enhance the product quality. For instance, in May 2023, nTop, an engineering design software firm based in the U.S., unveiled its most recent release, nTop 4 Additive Manufacturing software. This significant update is said to expand on nTop's foundational technologies, bringing forth fresh features centered around four core themes: design, integration, scalability, and adoption. Enhanced software also facilitates better integration with various 3D printing hardware & materials. As a result, companies can achieve cost-efficiency & innovations in their manufacturing processes, fostering the expansion of the additive manufacturing software market within the broader engineering software landscape.

 Engineering Software Market Share (%), By Application, 2022

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Based on application, the engineering software market is categorized into design automation, product design & testing, plant design, drafting & 3D modelling, and others. The product design & testing segment accounted for around USD 11.1 billion in market revenue in 2022 and is projected to grow by 2032. The need for cost reduction is boosting the industry demand. These tools allow engineers to create and test virtual prototypes, minimizing the need for costly physical prototypes. By simulating and analyzing product performance digitally, companies save on materials, manufacturing, and testing expenses. This reduces production costs and shortens development cycles, contributing to the overall cost-efficiency and improved competitiveness in a highly dynamic business landscape.

U.S. Professional Beauty Services Market Size, 2021 -2032, (USD Billion)

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North America led the engineering software market with a major share of over 30% in 2022. Acquisitions aimed at portfolio enhancement in the U.S. are propelling the North America market progress. Companies in the U.S. are strategically acquiring innovative software providers to broaden their offerings and cater to diverse engineering needs. For instance, in January 2023, Ansys, a pioneer in engineering simulation software, announced its acquisition of Engineering Simulation Software, Rocky DEM. This addition of Rocky DEM to Ansys' portfolio will assist engineers in tackling intricate design challenges associated with discrete solids featuring complex multi-physics interactions. Furthermore, the acquisitions facilitate access to cutting-edge technologies & expertise, empowering engineers to tackle complex challenges and drive innovations, thereby bolstering the market in North America.

Engineering Software Market Share

Major players operating in the engineering software market are

  • ANSYS, Inc.,
  • Autodesk, Inc.
  • Dassault Systèmes, Inc.
  • Siemens
  • PTC
  •  Hexagon AB
  • Synopsys.

Engineering Software Industry News:

  • In June 2023, Hexagon AB introduced the Reality Cloud Studio, featuring HxDR technology. This software-as-a-service application democratizes access to reality capture data, seamlessly blending Hexagon's advanced technologies with automation. It simplifies data processing, ensuring user-friendliness while maintaining high-quality professional outcomes.

The engineering software market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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  • Software
  • Computer-Aided Design (CAD) Software
  • Computer-Aided Manufacturing (CAM) Software
  • Computer-Aided Engineering (CAE) Software
  • Others 
  • Service
  • Development Service
  • Training, Support & Maintenance

By Deployment, 2018 – 2032

  • Cloud
  • On-Premises

By Application, 2018 – 2032

  • Design Automation
  • Product Design & Testing
  • Plant Design
  • Drafting & 3D Modeling
  • Others

By End User, 2018 – 2032

  • Automotive
  • Aerospace & Defense
  • Electronics
  • Medical Devices
  • Architecture, Engineering, and Construction (AEC)
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Nordics
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Southeast Asia 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • South Africa
    • Saudi Africa


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The engineering software industry value was USD 28.9 billion in 2022 and is projected to register over 18% CAGR between 2023 and 2032.

The software segment accounted for around USD 23.5 billion in market revenue in 2022 and is expected to grow substantially through 2032 owing to the constant improvements and innovations in manufacturing software.

North America engineering software market held a major share of over 30% in 2022 and will grow through 2032 owing to the acquisitions by companies aimed at portfolio enhancement in the U.S.

ANSYS, Inc., Autodesk, Inc., Dassault Systèmes, Inc., Siemens, PTC, Hexagon AB, and Synopsys.

Engineering Software Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 19
  • Tables & Figures: 357
  • Countries covered: 21
  • Pages: 230
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