Engineering Software Market Analysis

Engineering Software Market Analysis

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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.
 

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.
 

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.