The global engineering software market includes various software such as computer aided manufacturing (CAM), computer aided engineering (CAE), electronic design automation (EDA), computer aided designing (CAD), and various other types of construction, architecture, and engineering software. Various engineering mechanisms utilize this software, such as communication, electronics, process, chemical, mechanical, and electrical engineering. The global engineering software market had a value of US$19.98 billion in 2014 and is forecast to expand at a CAGR of 12.4% during the 2015-2022 forecast period.
Market Growth Due to Demand for Mobile Engineering Software
Growth of the global engineering software market has been augmented due to the intensifying need for integrated solutions for analyzing and designing engineering systems and automation. The proliferation of mobile devices such as smartphones, laptops, and tablets has accelerated the use of engineering software by increasing accessibility of engineering software. Market growth of engineering software has also been due to increased use of cloud based versions. Major restraints for the engineering software market include lack of technical know-how in operating the software and its high maintenance costs. High licensing costs are also among the restraining factors for engineering software.
North America Leads Market Due to Demand for Cloud Based Software
Segments of the engineering software market on the basis of software type include CAE software, AEC software, EDA software, and CAM software. There was great demand in the first few years of this decade for CAD software and this trend is set to continue during the forecast period, indicated by the nearly 50% share held by CAD software in the global market. CAD software is being used worldwide due to growth in accessibility of the software through mobile technologies. This trend is maximizing the implementation of CAD software, especially in the APAC region. Additionally, rise in the use of new engineering modes such as building information modeling, 3D modeling, 3D printing, and concurrent engineering are major drivers for the engineering software market.
Application segments for the global engineering software market are product design and testing, 3D modeling, drafting, design automation, and others. Enterprise resource planning, knowledge management, project management, and 3D printing services are some of the elements in the miscellaneous category of other applications. Product design and testing is estimated to continue its high growth rate and grow upon its 25% market share due to enablement of remote connectivity, which allows analysis and investigation of products in the field without being physically present on the site. The fastest growing application segment of the engineering software market is drafting and 3D modeling, due to growing use in marketing, advertising, and geology and other scientific fields.
Geographically, North America is estimated to lead the market during the forecast period, with its share in the global market already exceeding 30%, which is due to increased use of cloud-based software. Market growth in Latin America is anticipated to increase and engineering software demand is set to exhibit a high growth pattern in the coming years in countries such as Mexico, Argentina, Brazil, and countries in the Middle East during the coming years. Initiatives and investment by governments are also major market drivers for engineering software. In Asia Pacific, the ongoing construction boom is contributing to the expansion of the market for engineering software. Major market leaders in the engineering software market include IBM Corporation, Siemens PLM Software, Inc., MSC Software Corporation, Bentley Systems, Inc., SAP SE, PTC, Inc., Dassault Systemes, S.A., and Synopsys, Inc.