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Computer-aided engineering (CAE) is the usage of sophisticated and interactive computer software to solve engineering problems. CAE includes tools such as computational fluid dynamics (CFD), finite element analysis (FEA), and multi-body dynamics (MBD). CAE software optimizes engineering tasks. These tools are generally used to analyze the performance and robustness of assemblies and components. CAE is used in many areas, such as aviation, space, automation, and shipbuilding. With faster processing due to the use of CAE, one can save on time and achieve goals faster. Models developed in computer-aided design (CAD) and verified in CAE are entered into computer-aided manufacturing (CAM) software, which controls machine tools like computer numeric control (CNC). CAE provides higher site construction standards, more sophisticated designs, and better building operation practices. Recent years have witnessed increasing adoption of computational fluid dynamics; for instance, the automotive industry have started using this tool in the designing of air-cooled systems.

In recent years there has been increased partnership and mergers and acquisitions (M&A) between original CAE providers and resellers as well as between resellers. This is leading to an increase in the presence of a large number of value-added resellers (VARs), which is expected to boost the CAE market. CAE software has a wide application range and supports various tasks, such as analysis, validation, simulation, and the manufacturing of engineering products. Even though CAE is used as an analysis and troubleshooting tool, there is an opinion by critics that accurate results come late in the design cycle; this is expected to restrain the growth of the CAE market. Also, open-source solutions (i.e., those for which the source code is available with a license) are readily available in the market.

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Consequently, companies avoid making investments in obtaining the commercial licenses of CAE solutions, which is expected to hamper the growth of CAE market. A rise in the adoption of computational fluid dynamics, which helps in reducing the cost of electric vehicles and the prediction of thermal conditions, is expected to create a growth opportunity for the CAE market during the forecast period.

The global CAE market is segmented on the basis of CAE tools, end use, and region. In terms of CAE tools, the market can be segmented into computational fluid dynamics (CFD), finite element analysis (FEA), and multi-body dynamics (MBD) tools. The market is also classified on the basis of end use into electronics and electrical, defense, aerospace, automobile, and industrial machinery. The market segments on the basis of geographical regions are North America, Europe, Asia Pacific, South America, and Middle East and Africa (MEA). Asia Pacific is expected to lead the CAE market owing to the increasing adoption of CAE tools and the emergence of large number of manufacturing industries in the region.

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Industry participants leading the CAE market with the most significant developments are Dassault Systemes, Siemens Product Lifecycle Management Software Inc., CD-adapco, Altair Engineering, Inc., AspenTechnology, Inc., Mentor Graphics, Inc., MSC Software Corporation, Computational Engineering International Inc., ESI Group, Bentley Systems Incorporated, and Exa Corporation.

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The following regional segments are covered comprehensively:

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