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Add to CartGlobal Engineering Design Software Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Component;
Software and ServicesBy Type;
Computer-Aided Design and Electronic Design Automation SoftwareBy User;
Small & Medium Enterprises (SMEs) and Large EnterprisesBy Application;
Industry Facilities and InfrastructureBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)Engineering Design Software Market Overview
Engineering Design Software Market (USD Million)
Engineering Design Software Market was valued at USD 15183.82 million in the year 2024. The size of this market is expected to increase to USD 27756.62 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 9.0%.
Global Engineering Design Software Market Growth, Share, Size, Trends and Forecast
*Market size in USD million
CAGR 9.0 %
| Study Period | 2025 - 2031 |
|---|---|
| Base Year | 2024 |
| CAGR (%) | 9.0 % |
| Market Size (2024) | USD 15183.82 Million |
| Market Size (2031) | USD 27756.62 Million |
| Market Concentration | Medium |
| Report Pages | 377 |
Major Players
- Electronic Design Automation Software
- Bentley Systems Inc
- Dassault Systemes SA
- IBM Corporation
- Siemens PLM Software Inc
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Global Engineering Design Software Market
Fragmented - Highly competitive market without dominant players
The Engineering Design Software Market is expanding rapidly as businesses seek to improve design accuracy, collaboration, and speed. With over 60% of engineering teams using intelligent CAD and simulation tools, there are growing opportunities for developers offering integrated, automation-ready platforms. These solutions are becoming central to efficient engineering workflows and product innovation strategies.
Next-Generation Technologies Driving Precision and Speed
Roughly 55% of design tools now include technological advancements such as AI-assisted drafting, real-time validation, and collaborative 3D modeling environments. These innovations reduce rework, enhance quality, and allow engineering teams to accelerate development cycles. Built-in automation supports better design decisions and faster product delivery.
Strategic Partnerships Enhancing Product Ecosystems
Around 50% of vendors are building collaborations and forming partnerships with simulation software providers, cloud computing services, and hardware manufacturers. These alliances are driving expansion by improving interoperability and enabling engineers to manage everything from modeling to simulation in a unified environment. Seamless integration enhances usability and design efficiency.
Future Outlook Shaped by Intelligent and Collaborative Design
The future outlook for the Engineering Design Software Market focuses on cloud-native platforms that adapt to user needs in real time. Over 50% of upcoming solutions will include customizable workflows, AI-supported decision engines, and remote team collaboration tools. These advancements represent ongoing growth, smarter design environments, and continuous innovation in engineering software.
Engineering Design Software Market Recent Developments
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In November 2022, when Autodesk introduced Autodesk Construction Cloud, a software suite combining advanced design tools, BIM (Building Information Modeling), and project management features. This was aimed at enhancing collaboration and productivity across construction projects, ensuring faster, more cost,efficient project completions.
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This growth is fueled by increasing applications in automotive, construction, electronics, and oil & gas sectors, and the rise in demand for cloud,based solutions and automation technologies, such as AI and machine learning in design software.
Engineering Design Software Market Segment Analysis
In this report, the Engineering Design Software Market has been segmented by Component, Type, User, Application, and Geography.
Engineering Design Software Market, By Component
The Engineering Design Software Market has been segmented by Component into Software and Services.
Software
The software segment dominates the engineering design software market, accounting for nearly 70% of the total share. This includes CAD, CAE, CAM, and other specialized platforms used extensively in design, analysis, and manufacturing workflows.
Services
The services segment contributes around 30% of the market and includes consulting, integration, training, and maintenance. As organizations seek to optimize design tool implementation, demand for value-added services continues to rise.
Engineering Design Software Market, By Type
The Engineering Design Software Market has been segmented by Type into Computer-Aided Design and Electronic Design Automation Software
Computer-Aided Design
Computer-Aided Design (CAD) software holds a major share of over 60% in the engineering design software market. It is widely used across industries for creating 2D and 3D models, enabling faster prototyping and precision in product development.
Electronic Design Automation Software
Electronic Design Automation (EDA) software contributes nearly 40% of the market. It is essential for designing and simulating integrated circuits, PCBs, and electronic systems, especially in the semiconductor and electronics sectors.
Engineering Design Software Market, By User
The Engineering Design Software Market has been segmented by User into Small & Medium Enterprises (SMEs) and Large Enterprises
Small & Medium Enterprises (SMEs)
SMEs represent around 35% of the engineering design software market. With the rise of cloud-based and subscription models, SMEs are increasingly adopting these tools to enhance design capabilities while managing costs.
Large Enterprises
Large enterprises dominate the market with a share of approximately 65%. These organizations invest heavily in integrated, high-end design solutions to support complex engineering projects and maintain competitive advantage.
Engineering Design Software Market, By Application
The Engineering Design Software Market has been segmented by Application into Industry Facilities and Infrastructure.
Industry Facilities
The industry facilities segment commands over 60% of the engineering design software market. It covers applications in manufacturing plants, industrial equipment design, and mechanical systems, where precision and automation are critical.
Infrastructure
The infrastructure segment accounts for nearly 40% of the market, driven by the growing use of design software in construction, civil engineering, and transportation projects. These tools are essential for managing large-scale infrastructure developments efficiently.
Engineering Design Software Market, By Geography
In this report, the Engineering Design Software Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Regions and Countries Analyzed in this Report
Engineering Design Software Market Share (%), by Geographical Region
North America
North America leads the engineering design software market with a share of around 35%, driven by strong adoption across the aerospace, automotive, and construction industries along with robust investment in technology innovation.
Europe
Europe holds approximately 25% of the market. The region benefits from widespread use of design tools in automotive manufacturing, industrial machinery, and large infrastructure projects, particularly in Germany, the UK, and France.
Asia Pacific
Asia Pacific accounts for about 30% of the global market and is the fastest-growing region. Expansion in electronics, construction, and smart manufacturing in countries like China, Japan, and India is fueling growth.
Middle East and Africa
Middle East and Africa collectively contribute nearly 5%. Rising investments in urban development and industrial diversification are gradually increasing demand for advanced design solutions in the region.
Latin America
Latin America holds around 5% of the market share. Adoption is supported by growth in infrastructure modernization and the presence of regional hubs for automotive and industrial manufacturing.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Engineering Design Software Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- Increased demand for design automation
- Adoption of cloud-based software
- Growth in manufacturing and construction
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Need for precision and efficiency - The need for precision and efficiency in the engineering design process is paramount as it directly impacts the quality, performance, and reliability of the final product. In industries such as aerospace, automotive, and construction, even minor errors in design can lead to significant issues, including safety hazards, increased costs, and project delays. Engineering design software enhances precision by providing advanced tools for detailed modeling, simulation, and analysis, reducing the likelihood of errors and rework.
Efficiency is also improved as these tools automate repetitive tasks, streamline workflows, and facilitate real-time collaboration among team members, enabling faster project completion and better resource management. The emphasis on precision and efficiency drives the adoption of sophisticated engineering design software, ensuring high standards in product development and execution.
Restraints:
- Integration challenges
- Data security concerns
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Compatibility issues - Compatibility issues in the Global Engineering Design Software Market primarily arise from the diverse range of software tools and systems used across different engineering disciplines and industries. These issues can occur when attempting to integrate new software with existing legacy systems or when different departments or organizations use incompatible software platforms. Such incompatibilities can lead to data transfer problems, inconsistencies in design formats, and difficulties in collaboration, which can hinder the overall efficiency of the design process.
Resolving these compatibility issues often requires additional time and resources for customization, training, and sometimes even the purchase of supplementary software, which can increase the overall cost and complexity of software implementation. Addressing these compatibility challenges is essential for ensuring seamless workflow and maximizing the benefits of engineering design software.
Opportunities:
- Growth of IoT and smart technology
- Expansion in aerospace and defense
- AI and machine learning tools
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Customizable software options - The need for precision and efficiency in the engineering design process is paramount as it directly impacts the quality, performance, and reliability of the final product. In industries such as aerospace, automotive, and construction, even minor errors in design can lead to significant issues, including safety hazards, increased costs, and project delays. Engineering design software enhances precision by providing advanced tools for detailed modeling, simulation, and analysis, reducing the likelihood of errors and rework.
Efficiency is also improved as these tools automate repetitive tasks, streamline workflows, and facilitate real-time collaboration among team members, enabling faster project completion and better resource management. The emphasis on precision and efficiency drives the adoption of sophisticated engineering design software, ensuring high standards in product development and execution.
Competitive Landscape Analysis
Key players in Global Engineering Design Software Market include,
- Electronic Design Automation Software
- Bentley Systems Inc
- Dassault Systemes SA
- IBM Corporation
- Siemens PLM Software Inc
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Component
- Market Snapshot, By Type
- Market Snapshot, By User
- Market Snapshot, By Application
- Market Snapshot, By Region
- Engineering Design Software Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Increased demand for design automation
- Adoption of cloud-based software
- Growth in manufacturing and construction
- Need for precision and efficiency
- Restraints
- Integration challenges
- Data security concerns
- Compatibility issues
- Opportunities
- Growth of IoT and smart technology
- Expansion in aerospace and defense
- AI and machine learning tools
- Customizable software options
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Engineering Design Software Market, By Component, 2021 - 2031 (USD Million)
- Software
- Services
- Engineering Design Software Market, By Type, 2021 - 2031 (USD Million)
- Computer-Aided Design
- Electronic Design Automation Software
- Engineering Design Software Market, By User, 2021 - 2031 (USD Million)
- Small & Medium Enterprises (SMEs)
- Large Enterprises.
- Engineering Design Software Market, By Application, 2021 - 2031 (USD Million)
- Industry Facilities
- Infrastructure
- Engineering Design Software Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Engineering Design Software Market, By Component, 2021 - 2031 (USD Million)
- Competitive Landscape Analysis
- Company Profiles
- Electronic Design Automation Software
- Bentley Systems Inc
- Dassault Systemes SA
- IBM Corporation
- Siemens PLM Software Inc
- Company Profiles
- Analyst Views
- Future Outlook of the Market