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Engineering Software Market Size Forecast Points To $127.05 Billion In Revenue By 2030
The engineering software market has experienced rapid expansion in recent years. It is projected to grow from $64.7 billion in 2025 to $75.34 billion in 2026 at a compound annual growth rate (CAGR) of 16.4%. This historical growth can be attributed to a growing reliance on digital engineering tools, the early adoption of CAD and simulation platforms, the increasing utilization of PLM systems for product development, the rise of engineering outsourcing models, and the expansion of software integration capabilities.
The engineering software market is anticipated to experience substantial growth in the upcoming years. By 2030, its valuation is projected to reach $127.05 billion, expanding at a compound annual growth rate (CAGR) of 14.0%. This expansion during the forecast period is driven by several factors, such as the increasing embrace of AI-powered engineering tools, a surge in demand for cloud-native engineering platforms, advancements in immersive design and visualization solutions, the broadening of digital twin implementations, and the growing integration of IoT-enabled engineering workflows. Key developments expected over this period encompass a rising need for advanced simulation and testing tools, greater uptake of product lifecycle management solutions, an increasing requirement for high-precision 3D modeling software, the expansion of engineering workflow automation, and the amplified use of integrated engineering collaboration platforms.
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Engineering Software Market Driver Analysis: Key Factor Supporting Revenue Growth
Increased manufacturing automation is anticipated to propel the engineering software market going forward. Manufacturing automation refers to the utilization of technology and machinery to execute tasks or processes with minimal human involvement. The rise in manufacturing automation stems from factors such as an aging workforce, existing skills gaps, labor shortages, the desire for customization, and benefits related to quality control. Engineering software enhances manufacturing automation by furnishing the necessary tools and capabilities to efficiently design, simulate, analyze, control, and optimize automated processes. For instance, in September 2025, the International Federation of Robotics, a Germany-based non-profit organization, indicated that global robot installations are projected to grow by 6% in 2025, reaching approximately 575,000 units, and are anticipated to surpass 700,000 units by 2028. Therefore, the expansion of automation in manufacturing is a key driver for the engineering software market’s growth.
Engineering Software Market Segmentation Framework: Major Segments At A Glance
The engineering software market covered in this report is segmented –
1) By Component: Software, Services
2) By Deployment: Cloud, On-Premises
3) By Application: 3D Printing, Enterprise Resource Planning, Plant Layout, Drafting And 3D Modeling, Project Management, Knowledge Management, Product Design And Testing
4) By End-Use: Automotive, Aerospace And Defense, Electronics, Medical Devices, Architecture, Engineering, And Construction (AEC), Other End-Uses
Subsegments:
1) By Software: Computer-Aided Design (Cad) Software, Computer-Aided Engineering (Cae) Software, Product Lifecycle Management (Plm) Software, Finite Element Analysis (Fea) Software, Simulation Software, Computer-Aided Manufacturing (Cam) Software, 3D Modeling And Visualization Software, Building Information Modeling (Bim) Software, Geographic Information Systems (Gis) Software, Embedded Systems Design Software
2) By Services: Consulting Services, Software Implementation Services, Customization And Integration Services, Training And Support Services, Managed Services, Maintenance And Upgrade Services, Cloud-Based Engineering Services, System Integration Services, Simulation And Testing Services, Data Analytics And Optimization Services
Latest Engineering Software Market Developments And Emerging Trends
Leading companies in the engineering software market are concentrating on developing technologically advanced solutions, such as digital engineering solutions, to offer comprehensive support for modern manufacturing and secure a competitive advantage. Digital engineering solutions encompass a variety of technology-driven approaches and methods used in the design, development, and maintenance of engineering products and systems. For example, in November 2023, CAPTURE 3D, a US-based software company providing 3D metrology solutions, launched ZEISS INSPECT, a 3D metrology software designed to address current manufacturing and engineering challenges. It is developed to analyze 3D, CT (computed tomography), or motion data and supports the entire inspection workflow, from scanning to analysis and reporting. ZEISS INSPECT enables users to work with optical 3D data, volume data, and airfoils, regardless of the metrology method used for data collection. This helps simplify procedures, increase efficiency, and tackle the difficulties associated with measuring technology. Additionally, it features the Autosurfacing app for automatically converting scan data into high-precision CAD (computer-aided design) models.
Which Companies Are Shaping The Engineering Software Market?
Major companies operating in the engineering software market are Siemens Ltd, International Business Machines Corporation, General Electric Company, Oracle Corporation, Schneider Electric SE, Honeywell International Inc, SAP SE, ABB Ltd, Emerson Electric Co, HCL Technologies, Rockwell Automation Inc, Dassault Systèmes, Hexagon AB, Keysight Technologies, Synopsys Inc, Autodesk Inc, Ansys Inc, PTC Inc, National Instruments Corporation, Aveva Group Plc, MathWorks Inc, Bentley Systems Inc, Altair Engineering Inc, Altium Limited, Aras Corp, ComplianceQuest
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Engineering Software Market Regional Distribution: Where Is Revenue Concentrated?
North America was the largest region in the engineering software market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the engineering software market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
