According to a new report, published by KBV research, The Global Computer Aided Engineering Market size is expected to reach USD 22.64 billion by 2032, rising at a market growth of 9.9% CAGR during the forecast period.
The evolution of the CAE market began in the 1960s and 1970s, when early computational modeling systems were used primarily in defense and aerospace applications. As computing capabilities expanded, CAE tools became more accessible for commercial industries. During the 1980s and 1990s, major OEMs in automotive and heavy manufacturing — such as Ford, GM, Toyota, Caterpillar, and Siemens — began integrating FEA and CFD to reduce prototyping costs and accelerate design cycles. These early applications demonstrated how simulation could identify structural weaknesses, thermal challenges, and design inefficiencies long before physical testing.
The Software segment is leading the Global Computer Aided Engineering (CAE) Market by Component in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $16.11 billion by 2032, growing at a CAGR of 9.5 % during the forecast period. CAE software is extensively used across automotive, aerospace & defense, electronics, industrial equipment, energy, and medical devices industries to perform structural analysis, fluid dynamics simulation, thermal modeling, multibody dynamics, and multiphysics simulations. Organizations worldwide rely on CAE software to improve design accuracy, reduce development timelines, and minimize dependence on physical prototypes.
The Automotive segment led the Global Computer Aided Engineering (CAE) Market by End-use Industry in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $6,291.4 million by 2032, growing at a CAGR of 9 % during the forecast period. At the global level, the automotive industry represents the largest end-use segment for the Computer Aided Engineering (CAE) market, accounting for a substantial portion of overall revenues. Automotive manufacturers and component suppliers worldwide rely extensively on CAE tools to support vehicle design, structural integrity analysis, crash simulation, durability testing, and thermal management.
The On-premise segment registered maximum revenue in the Global Computer Aided Engineering (CAE) Market by Deployment Model in 2024, growing at a CAGR of 9.6 % during the forecast period. At the global level, on-premise deployment represents a dominant portion of the Computer Aided Engineering (CAE) market, reflecting its continued importance across industries that require high levels of control, security, and customization. Organizations in automotive, aerospace & defense, industrial equipment, energy, and electronics rely heavily on on-premise CAE solutions to perform complex, high-fidelity simulations within their internal IT environments.
The North America region dominated the Global Computer Aided Engineering (CAE) Market by Region in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $7.12 billion by 2032. The Asia Pacific region is experiencing a CAGR of 10.4% during (2025 - 2032). Additionally, The Europe region would exhibit a CAGR of 9.5% during (2025 - 2032).
By Deployment Model
By Component
By End-use Industry
By Geography
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