Introduction
Engineering software refers to specialized tools used by engineers across various industries to design, analyze, simulate, and test products and systems. These software solutions help streamline and optimize the product development process, improving accuracy and efficiency. Engineering software can include tools for computer-aided design (CAD), computer-aided engineering (CAE), product lifecycle management (PLM), simulation, and testing.
Market Dynamics
Demand for automation and simulation tools drives the global market
A major growth driver in the engineering software market is the increasing demand for automation and simulation tools as industries strive to automate their processes. These software solutions facilitate the automation of design, testing, and manufacturing workflows, reducing the risk of human error, speeding up production, and enhancing overall efficiency. This not only helps businesses optimize their operations but also addresses the growing need for precision and on-time project delivery.
For instance, Dassault Systèmes’ CATIA software incorporates both automation and simulation capabilities, allowing industries such as aerospace and automotive to streamline their design-to-production workflows and achieve higher operational efficiency. As the focus on automation in engineering continues to grow, it is driving the expansion of the global market for engineering software.
Integration of augmented reality and virtual reality creates tremendous opportunities
The integration of augmented reality (AR) and virtual reality (VR) is revolutionizing product design, prototyping, and visualization, offering transformative opportunities. These immersive technologies provide real-time feedback, foster dynamic collaboration, and help identify potential issues early, boosting both efficiency and innovation.
For example, PTC’s incorporation of AR into its CAD software enables engineers to view 3D designs within real-world environments, enhancing collaboration and reducing errors. By optimizing the development cycle, AR and VR are driving more efficient and innovative engineering processes, presenting significant growth opportunities for the market.
Regional Analysis
North America is the highest contributor to the global market, driven by its advanced industrial ecosystem and the presence of key players such as Altair Engineering, Inc., ANSYS, Inc., Autodesk, Inc., and Bentley Systems, Inc. The region's emphasis on research and development, alongside its strong culture of innovation, has fueled demand for advanced solutions in design, simulation, and analysis, especially within the aerospace, automotive, and electronics industries. With a well-established industrial framework and cutting-edge technological infrastructure, North America remains a key driver of growth in engineering solutions, holding a significant market share.
Key Highlights
- The global engineering software market size was valued at USD 25.5 billion in 2024 and is projected to grow from USD 30.7 billion in 2025 to reach USD 65.5 billion by 2033, growing at a CAGR of 9.3% during the forecast period (2025-2033).
- Based on the Component, the global market is segmented into software and services. The software segment dominates the market with the largest market revenue.
- Based on Deployment mode, the global market is segmented into cloud and on-premises. The cloud-based segment leads the global market.
- Based on Application, the global market is segmented into design automation, product design & testing, plant design, drafting & 3D modeling, and others. The product design & testing segment dominates with the highest market share.
- Based on End-User, the global market is segmented into automotive, aerospace & defense, electronics, architecture, engineering, and construction (AEC), and others. The automotive segment owns the market share.
- North America is the highest shareholder in the global market.
Competitive Players
The key players in the global market are Autodesk, Dassault Systèmes, Siemens PLM Software, PTC, Ansys, Altair Engineering, Bentley Systems, Dassault Systèmes SOLIDWORKS, Hexagon AB, and others.
Recent Developments
- In November 2024, L&T Technology Services Limited (LTTS) announced a definitive agreement to acquire Silicon Valley-based Intelliswift. This acquisition aims to strengthen LTTS's capabilities in Software Product Development, Platform Engineering, Digital Integration, and Data & AI.
Segmentation
By Component
- Software
- Services
By Deployment
- Cloud
- On-premises
By Applications
- Design Automation
- Product Design & Testing
- Plant Design
- Drafting & 3D Modeling
- Others
By End-User
- Automotive
- Aerospace & Defense
- Electronics
- Architecture, Engineering, and Construction (AEC)
- Others
Reports
Articles