ID: MRFR/ICT/1619-CR | February 2020 | Region: Global | 94 pages
Global Software Engineering Market is predicted to develop at an 11.72% CAGR between 2016- 2022, reveals the latest Market Research’s (MRFR) software engineering market forecast report. The strong growth of the software market can be accredited to the growing demand for automation from different industries to enhance their program manufacturing processes and design quality.
The COVID-19 outbreak has spurred businesses to create customer-focused software, leading to needed changes to cultures and approaches related to software engineering. This outbreak has unleashed two key shifts- a rise in digital interactions and online buying with customers and mandated remote work. Such changing dynamics have caught several organizations unprepared. Smart organizations have fortified their capabilities of virtual software engineering and laid emphasis on robust approaches that are data-driven and software products that are customer-centric.
Software in the current emerging landscape has become center and front for each company’s go-forward strategy. The outbreak showed that companies that was along digital journeys could pivot faster, thus containing the shockwaves during the initial stage. With this crisis causing near-term disruption in business, there has been the emergence of hotspots for innovation, showing that software engineering is capable of better addressing, like improving decision making and enhancing operational efficiencies. These entail shifting offline processes online, revamping the experience of the customers, and leveraging artificial intelligence to increase process effectiveness. Software, in fact, is the glue that binds them together. The current day crisis has increased the need for a software engineering job to be more software-centric. The goal is to develop software products that are built, keeping in mind the needs of the customer. In short, the software engineer job market in COVID was not impacted much.
During this crisis, software engineering teams are collaborating from home through cloud services such as Facebook Workplace, Microsoft Teams, Cisco Webex Meetings, and Google Meet. The on-going crisis throws light on the need to help workers in software job market in working anywhere, anytime. Thus, the demand for collaboration tools, conferencing tools, independent developer environments, and pair-programming tools have gone up. This is likely to have a positive impact on market growth.
Adoption of CAD/CAM to Bolster Market Growth
The growing adoption of CAD, CAM, as well as other designing software across different industries such as manufacturing units, construction and building, and others, are likely to bolster market growth over the forecast period. Besides, the demand for BIM (building information modeling) is also likely to have a positive impact on market growth.
Additional factors adding to the software engineering market size include technological innovations, increasing applications in oil and gas, construction electronics, and automotive industries, growing adoption of portable computing devices in the workplace, technology advances in software engineering, easy accessibility of such software engineering over the cloud, and increasing use of cloud-based services and products. Thus, software engineering is in great demand.
Increasing Demand for Automation to offer Robust Opportunities
Increasing demand for automation across various industry verticals such as geology, entertainment, media, telecom, IT, utility, energy, and automotive has led to the growing adoption of engineering software all over the world, which is likely to offer robust opportunities to market players in the future. There is also a surging demand for automated systems like process analysis and designing software.
Piracy Issue to Restrain Market Growth
Piracy issues of software may restrain market growth over the forecast period. Besides, the lack of professional experts to operate such products may also have a negative impact on the software engineering market share.
High-Cost May Act as a Challenge
High license cost and high maintenance cost of housing software engineering may act as a major challenge for industry players.
Global Software Engineering Market as per the MRFR software engineering market research report has been segmented based on End User, Application, and Software Type.
Software-based CAD Segment will Lead the Market
By software type, the global software engineering market is segmented into Electronic Design Automation (EDA), Engineering and Construction (AEC), Architecture, Computer-Aided Engineering (CAE), Computer-Aided Manufacturing (CAM), and Computer-Aided Designing (CAD). Of these, the CAD software will lead the market over the forecast period.
Application-based Product Design Segment will Dominate the Market
By application, the global software engineering market is segmented into 3D modeling, product design, plant design, and automation design. Of these, the product design segment will dominate the market over the forecast period.
End user-based Automotive Segment to Have Largest Share in the Market
By end-user, the global software engineering market is segmented into healthcare, oil and gas, IT and telecommunication, banking, automotive, aerospace and defense, and others. Of these, the automotive application will have the largest share in the market over the forecast period.
North America to Spearhead the Market
By region, the global software engineering market covers the opportunities and recent trends across Europe, North America, the Asia Pacific (APAC), and the Rest of the World (RoW). Of these, North America is predicted to spearhead the market over the forecast period. Early and rising adoption of software engineering that is cloud-based, presence of some key players, industry players developing software like CAM, CAD, and others, the introduction of innovative apps for different smartphones and tablets, and increasing adoption of the software in all forms of buildings including residential types like houses and magnificent commercial and industrial structures like hospitals and factories are adding to the global software engineering market growth in the region.
APAC to Have Fastest Growth in the Market
In the APAC region, the global software engineering market is predicted to have the fastest growth over the forecast period. With the presence of many semiconductor manufacturing companies, industry bodies and government making attempts to boost the competitiveness of ESDM (electronics system design and manufacturing) to cater to the domestic need and also attract foreign investments, the regional attractiveness for vendors is on the rise for the accessibility of low-cost labor in Thailand, Indonesia, and India, and the rising manufacturing costs in China and Taiwan has compelled ESDM industry in shifting their industrial base to other alternative countries are adding to the global software engineering market growth in the region. Additional factors adding to the software engineering market size include rising demand from automation industries and rising investments in cloud solutions.
Strategies like new development, market initiative, and acquisition are observed as highly adopted strategies in the market. This market is fragmented in nature for the presence of various system developers and manufacturers. Key players are also incorporating strategies such as partnerships, agreements, and collaborations to stay at the forefront.
Frequently Asked Questions (FAQ) :
The market expansion is expected to take place at a rate of 11.72% during the review period.
Healthcare, Oil & Gas, Automotive, Aerospace & Defense, IT & Telecommunication, Banking, are the main end-users in the market.
Software engineering refers to an application of principles that has use in the engineering field. It is used in systems to design, develop, deploy, test and manage software systems.
CAD software is generally used for surface modeling, solid modeling, drafting, assembly, reverse engineering and detailing.
Architecture, Engineering and Construction (AEC), Computer-Aided Designing (CAD), Electronic Design Automation (EDA), Computer-Aided Engineering (CAE), Computer-Aided Manufacturing (CAM), are the segment that are based on the software type.
North America formed the largest market in the year 2016.
The fastest rate of 13.32% is expected to be achieved by Asia Pacific in the coming years.