Computer Aided Engineering Market is Projected to Reach US$23.44 Billion by 2031 at a CAGR of 11.9% | Insight Partners

NEW YORK, Sept. 26, 2025 /PRNewswire/ -- According to a new comprehensive report from The Insight Partners, the global computer-aided engineering market is observing significant growth due to the popularity of cloud-based computer aided engineering. The report runs an in-depth analysis of market trends, key players, and future opportunities.

The report from The Insight Partners, therefore, provides several stakeholders, including software providers, hardware and infrastructure providers, and end-user industries, with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

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Overview of Report Findings

1. Market Dynamics and Insights: As IoT devices proliferate across industrial environments, they generate vast streams of real-time operational data from sensors embedded in machinery, vehicles, and infrastructure. This continuous influx of data enables computer-aided engineering models to be dynamically updated and refined, allowing simulations to accurately reflect the current state of physical assets.
   
   By feeding real-time sensor data into simulation environments, IoT integration empowers predictive maintenance strategies, wherein potential failures can be identified and mitigated before they occur, reducing downtime and maintenance costs. Real-time data integration enhances performance optimization, enabling engineers to fine-tune designs and operational parameters based on usage patterns and environmental conditions. Digital twins, powered by computer-aided engineering simulations enriched with IoT data, provide insights into the operational characteristics of complex systems.
   
   Engineers can conduct "what-if" scenarios, test modifications virtually, and predict outcomes under varying conditions without interrupting physical operations. This virtual experimentation accelerates product development cycles and improves reliability by identifying design weaknesses and performance bottlenecks early in the process. Further, digital twins support lifecycle management by continuously updating and adapting models based on incoming data, facilitating ongoing optimization and informed decision-making.
   
   The convergence of computer aided engineering, IoT, and digital twins is transformative in sectors such as aerospace, automotive, manufacturing, and energy, where the complexity of systems and the criticality of operational reliability demand advanced simulation-driven insights. For example, in smart manufacturing, computer-aided engineering-integrated digital twins create intelligent production lines that self-optimize and self-diagnose, driving efficiency and reducing waste. In product development, manufacturers can leverage digital twins to customize products dynamically and anticipate field performance, significantly enhancing customer satisfaction. Integrating IoT and digital twin technologies with computer-aided engineering platforms marks an evolution toward more intelligent, connected, and adaptive engineering solutions. This trend accelerates computer aided engineering adoption by demonstrating clear value in operational efficiency and product innovation, as well as paves the way for a future where simulation-driven digital ecosystems become integral to the entire engineering and manufacturing value chain.
   
   
2. Regional Insights: Countries in the Gulf Cooperation Council (GCC), particularly Saudi Arabia and the UAE, emphasize large-scale infrastructure and industrial projects such as NEOM and Expo 2020 legacy developments. These projects require extensive computer-aided engineering tools in civil, structural, and energy system simulations.
   
   The oil and gas sector, a dominant industry in the region, relies on simulation technologies to ensure operational safety, optimize complex equipment, and simulate flow and thermal dynamics under harsh conditions. Additionally, the region's economic diversification plans, such as Saudi Vision 2030 and UAE Vision 2021, aim to reduce dependence on oil and foster innovation-driven industries. This shift encourages the adoption of computer aided engineering in sectors such as aerospace, defense, and renewable energy.
   
   While the region faces challenges such as limited access to skilled professionals and high software costs, partnerships with global providers and investments in higher education are gradually addressing these issues. The region is accelerating its adoption of advanced digital and AI-driven technologies.
   
   On May 13, 2025, Cisco, a global leader in networking and security, announced a series of strategic initiatives to support the AI revolution in the U.S. and the Middle East. These initiatives position Cisco and its partners at the core of the Gulf region's digital transformation efforts, delivering world-class infrastructure and secure, scalable AI capabilities. As industries in the Middle East, particularly energy, infrastructure, aerospace, and manufacturing, turn to simulation and modeling to enhance efficiency and innovation, integrating AI-driven solutions becomes essential. Cisco's involvement strengthens regional digital capabilities and enhances the computational environment necessary for advanced engineering applications.
   
   This involvement directly supports the computer-aided engineering market's growth by enabling faster, smarter simulations and empowering enterprises and governments to optimize design, reduce costs, and meet national development goals such as Saudi Vision 2030 and the UAE's digital economy strategy.
   
   
3. Geographical Insights: North America is expected to dominate the computer aided engineering market with the highest market share in 2024.

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Market Segmentation

• By component, the market is divided into software and services.
• Based on deployment, the market is bifurcated into on-premises and cloud.
• By type, the market is segmented into finite element analysis (FEA), computational fluid dynamics (CFD), multibody dynamics (MBD), and optimization & simulation.
• Based on end-user, the market is categorized into automotive, defense and aerospace, electronics, medical devices, industrial equipment, and others.
• The computer aided engineering market is segmented into five major regions: North America, Europe, Asia Pacific, the Middle East and Africa, and South and Central America.

Competitive Strategy and Development

• Key Players: A few major companies operating in the computer aided engineering market include Autodesk Inc, Hexagon AB, Ansys Inc, Altair Engineering, Inc., Dassault Systemes SE, Bentley Systems Inc, PTC Inc, Siemens AG, Satven, and Technosoft Engineering Projects Ltd., among others.
• Trending Topics: AI and ML Driven Simulation, Cloud‑Based CAE, Digital Twins & IoT Integration among others.

Global Headlines on the Computer Aided Engineering Market

• "Siemens' Designcenter X NX Academic Edition is available through the Siemens Academic Partner Program. Designcenter X NX Academic Edition is a cloud SaaS CAD/CAM/CAE software for accredited academic institutions. The product package includes premium design, manufacturing and simulation features from Siemens' Designcenter X NX and NX X Manufacturing, plus access to the Teamcenter Share app, allowing for collaboration and secure data storage. Plus, with the included value-based licensing tokens, you can access over 140 specialized add-on modules from NX. Designcenter X NX Academic Edition is a local installation that leverages named-user licensing with entitlement, configuration and updates in the cloud. With automatic updates following the same commercial continuous release cycle, you can access new features and capabilities at the same time as industry engineers."
• "Hexagon's Asset Lifecycle Intelligence (ALI) division announced the acquisition of CAD Service. CAD Service develops advanced visualisation tools used to integrate computer-aided design (CAD) drawings, BIM models, and Reality Capture data into HxGN EAM, Hexagon's industry-leading asset management solution designed to extend asset lifecycles and improve productivity."

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Conclusion

Computer Aided Engineering (CAE) refers to the use of software tools to simulate, analyze, and optimize engineering designs through methods such as finite element analysis (FEA), computational fluid dynamics (CFD), and multibody dynamics. It helps engineers evaluate performance, durability, and efficiency before physical prototypes are built. Key factors driving CAE adoption include the rise of AI-powered simulations, growing demand for digital twins, increased use of cloud-based platforms, and the need to reduce product development time and costs while improving design accuracy.

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