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    Software engineering Market

    ID: MRFR/ICT/1619-CR
    94 Pages
    Aarti Dhapte
    February 2020

    Software Engineering Market Research Report Information By Application (Plant Design, Product Design, 3D Modelling, and Automation Design), By Software Type (PLC, Computer-Aided Engineering, Engineering & Construction, Architecture, Electronic Design Automation, Computer Aided manufacturing, and Computer-Aided Designing), By End User (Healthcare, Banking, Aerospace, Oil & Gas, IT & Telecommunication, Automotive, and Defense), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2035.

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    Software engineering Market Infographic
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    Software engineering Market Summary

    As per Market Research Future Analysis, the Software Engineering Market is projected to grow from USD 65.70 Billion in 2024 to USD 205.44 Billion by 2035, with a CAGR of 10.9% during the forecast period. The market was valued at USD 65.70 Billion in 2024, driven by increasing demand across industries such as aerospace, automotive, banking, IT, oil & gas, and healthcare. The rise of digitalization and automation further fuels this growth, alongside the adoption of IoT and 3D printing technologies.

    Key Market Trends & Highlights

    Key trends influencing the Software Engineering Market include technological advancements and industry-specific demands.

    • 3D modeling dominated the market in 2021, enhancing design quality and reducing costs.
    • Computer-aided engineering held a 60-64% market share in 2021, driving product design improvements.
    • The automotive sector had the highest revenue share in 2021, with significant growth expected in healthcare applications.

    Market Size & Forecast

    2024 Market Size USD 65.70 Billion
    2035 Market Size USD 205.44 Billion

    Major Players

    Key companies include Geometric Ltd, Ansys Inc, Siemens PLM Software, Dassault Systemes S.A., Bentley Systems Inc, MSC Software Corporation, Carlson Software Inc, and IBM Corporation.

    Software engineering Market Trends

    Increase in adoption of IoT and 3D printing to fuel market growth

    The increase in the use of digital technologies such as the Internet of Things (IoT), artificial intelligence (AI), machine learning (ML), automation, cloud, and others in designing products aids in enhancing product quality and durability. Furthermore, to minimize product development time & cost, users are adopting computer-aided engineering solutions that are expected to drive market growth. The evolving engineering modes such as building information modeling (BIM), 3D printing, and concurrent engineering is expected to influence the computer-aided software engineering trend. 3D printing is a form of additive manufacturing that enables users to print any object as a 3-D image.

    This technology aids in minimizing production costs and assists in developing new methods of production. Moreover, the ease of use and unlimited customization capabilities are the major factors influencing the 3D printing market, which is further anticipated to positively impact the market.

    Furthermore, 3D printing is gaining importance in several industry verticals such as consumer electronics, aerospace & defense, automotive, and healthcare. For instance, 3D printing in the sector has resulted in more robust and customized surgical tools, medical devices, and lab equipment such as eyeglasses, drug delivery devices, hearing aids, exoskeletons, and others. Moreover, additive manufacturing methods also improve the patient-specific and prosthetics implants in dental and orthopedic surgeries, which is increasing the need for computer-aided engineering solutions.

    Further, the Introduction of new solutions and other strategic alliances by the key player creates a lucrative demand for the market. For instance, in May 2022, Intel announced the launch of Intel VTune Profiler to escalate system performance, application performance, and system configuration for cloud, HPC, IoT, storage, media, and more. It aids users in tuning the performance of the complete application. Therefore, the aforementioned factors, such as an increase in the adoption of IoT and 3D adoption, are expected to boost the computer-aided software engineering market revenue growth.

    The Global Software Engineering Market is poised for robust growth, driven by increasing demand for innovative software solutions across various sectors, which suggests a transformative shift in how technology is integrated into everyday business operations.

    U.S. Bureau of Labor Statistics

    Software engineering Market Drivers

    Market Growth Visualization

    Advancements in Cloud Computing

    The Global Software Engineering Market Industry is significantly influenced by advancements in cloud computing technologies. The shift towards cloud-based solutions allows organizations to enhance scalability, flexibility, and cost-effectiveness in their software development processes. As businesses increasingly adopt cloud platforms, the demand for cloud-native applications rises, fostering innovation and collaboration. This transition is expected to contribute to the market's growth, with projections indicating a market size of 173.9 USD Billion by 2035. The integration of cloud services into software engineering practices not only streamlines development but also enhances accessibility, enabling teams to work efficiently from diverse locations.

    Emergence of Artificial Intelligence

    The Global Software Engineering Market Industry is profoundly impacted by the emergence of artificial intelligence technologies. AI-driven solutions are transforming software development processes, enabling automation, predictive analytics, and enhanced decision-making capabilities. As organizations strive to leverage AI for competitive advantage, the demand for software engineers skilled in AI technologies is on the rise. This trend is indicative of a broader shift towards intelligent software solutions that can adapt to user needs and optimize performance. The integration of AI into software engineering practices is expected to play a crucial role in shaping the future of the industry, fostering innovation and efficiency.

    Rising Demand for Software Solutions

    The Global Software Engineering Market Industry experiences a notable surge in demand for software solutions across various sectors. As organizations increasingly rely on digital transformation, the need for custom software applications becomes paramount. In 2024, the market is projected to reach 65.7 USD Billion, driven by the necessity for enhanced operational efficiency and customer engagement. Industries such as healthcare, finance, and retail are particularly focused on leveraging software to streamline processes and improve service delivery. This trend indicates a robust growth trajectory, as businesses seek innovative solutions to remain competitive in an evolving landscape.

    Increased Investment in Cybersecurity

    The Global Software Engineering Market Industry is witnessing a heightened focus on cybersecurity measures as organizations prioritize data protection and risk management. With the rise in cyber threats, businesses are compelled to invest in secure software solutions that safeguard sensitive information. This trend is likely to drive the demand for software engineering services that incorporate robust security features. As a result, the industry is expected to grow at a CAGR of 9.25% from 2025 to 2035. Companies are increasingly seeking software engineers who specialize in cybersecurity, reflecting the critical need for secure software development practices in today's digital landscape.

    Growing Need for Agile Development Methodologies

    The Global Software Engineering Market Industry is increasingly adopting agile development methodologies to enhance project management and delivery timelines. Agile practices promote iterative development, collaboration, and responsiveness to changing requirements, which are essential in today's fast-paced business environment. Organizations are recognizing the benefits of agile frameworks, leading to a shift in software engineering practices. This trend is likely to contribute to the market's growth, as companies seek to improve their software development processes. The emphasis on agility in software engineering reflects a broader movement towards more adaptive and customer-centric approaches in the industry.

    Market Segment Insights

    Software Engineering Application Insights

    The software engineering market segmentation, based on the application, includes plant design, product design, 3D modelling, and automation design. The 3D modelling dominated the market in 2021. In the engineering software market for the drafting & 3D modeling segment by application, there is a constant pressure on plant O/Os and EPC companies to fulfil the demands in a highly competitive market environment. Faster and cheaper delivery to the market helps in reducing project margins and anticipates more for less in the current CAPEX process, marine and power market.

    Thus, power and manufacturing industries are implementing solutions that enables them to meet higher production objectives and stringent regulatory requirements for building a plant. 

    Get more detailed insights about Software Engineering Market Research Report - Global Forecast to 2032

    Regional Insights

    By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American software engineering market is expected to grow at a significant CAGR during the study period, accounting for USD 22.76 billion in 2021. Many companies in the North America such as ANSYS Inc, Altair Engineering Inc, Dassault Systems, and Bentley Systems Inc, among others put a robust emphasis on digital revolution and are frequently considered among the initial adopters of next-gen technologies, such as IoT, Artificial Intelligence (AI), automation, and cloud.

    The continual implementation of these technologies by companies in the region is fueling the market in the region. Major investments in software and services by large companies, along with the adoption of new technologies across industries, have contributed to the revenue growth of the regional market.

    Moreover, the major countries covered in the market report include the United States, Germany, Canada, France, the United Kingdom, Italy, Spain, India, Japan, Australia, China, South Korea, and Brazil.

    Figure 3: Software Engineering Market Region, 2024-2030 (USD Billion)

    Software Engineering Market Region

    Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

    The European software engineering market is the world's second-largest. The presence of key market players across European countries is further expected to boost the market. Similarly, the automotive industry is the key industry across Europe, and this is likely to fuel the computer-aided engineering demand. The increasing developers of virtual vehicles and connected car providers are significantly investing in reliable engineering tools in optimizing the production cost. Further, the UK software engineering market held the largest market share, and the German software engineering market was the fastest-growing market in the European region.

    The Asia Pacific software engineering market is expected to grow at the fastest CAGR during the forecast period due to increasing government spending on manufacturing industry development and increasing the capacity for producing renewable energy. Moreover, the region has shown a rebound in the sales and manufacturing sector, considering the increase in hardware and device demand. Moreover, China’s software engineering market held the largest market share, and the Indian software engineering market was the fastest-growing market in Asia-Pacific.

    Key Players and Competitive Insights

    The rapid adoption of new technologies, such as cloud computing, mobile devices, and big data analytics, by organizations seeking to improve their competitiveness. Growing demand for mobility and data portability drives the need for data-centric solutions and business software. Market players are pursuing several growth strategies to remain competitive in the industry, such as alliances, strategic contracts and collaborations, mergers & acquisitions, and developing new products.

    The low code app development platform is a key trend gaining popularity in the software engineering industry. Low code development is an approach of software development to optimize the development process and speed up the delivery of the software, thus helping the enterprises to automate every step of the application of the product lifecycle.

    Salesforce Inc is an American cloud-based software company provides customer relationship management software and applications focused on sales, customer service, marketing automation, analytics, and application development. For instance, in June 2021, Salesforce, a US-based software company, released a powerful set of low-code development tools that allow everyone within an organization, to create and ship apps on a single platform. The platform includes interactive app development and automation, along with the new elastic computing, identity management, AI-driven data protection, and DevOps capabilities to help teams drive business outcomes faster.

    In January 2021, Cognizant, a US-based information technology services and consulting company, acquired Magenic Technologies for an undisclosed amount. The acquisition is expected to enable Cognizant to enhance its capabilities in software development and cloud modernization along with Cognizant's software product engineering footprint. Magenic Technologies is a US-based custom software development services company.

    Key Companies in the Software engineering Market market include

    Industry Developments

    • Q2 2024: GitHub launches Copilot Workspace, an AI-powered developer environment GitHub announced the launch of Copilot Workspace, a new AI-powered developer environment designed to help software engineers plan, build, and test code more efficiently using generative AI tools.
    • Q2 2024: Microsoft completes acquisition of Inflection AI to boost Copilot and Azure AI Microsoft finalized its acquisition of Inflection AI, aiming to integrate the startup’s large language model technology into its Copilot and Azure AI offerings, strengthening its position in the software engineering tools market.
    • Q2 2024: Databricks Raises $500 Million in Funding at $43 Billion Valuation Databricks, a major player in data engineering and AI software, secured $500 million in a funding round led by T. Rowe Price, further fueling its product development and global expansion.
    • Q2 2024: GitLab appoints Chris Weber as Chief Revenue Officer GitLab announced the appointment of Chris Weber as its new Chief Revenue Officer, signaling a strategic focus on scaling its software engineering platform business.
    • Q2 2024: Snyk acquires Helios to expand developer security platform Snyk, a developer security company, acquired Helios to enhance its platform with advanced observability and troubleshooting tools for software engineers.
    • Q2 2024: HashiCorp to be acquired by IBM for $6.4 billion IBM announced a definitive agreement to acquire HashiCorp, a leading provider of infrastructure automation software, for $6.4 billion to strengthen its hybrid cloud and AI engineering capabilities.
    • Q2 2024: Linear raises $35M Series B to build the next-gen issue tracking platform Linear, a startup focused on modernizing software engineering workflows, raised $35 million in Series B funding to accelerate product development and expand its engineering team.
    • Q2 2024: Atlassian launches Compass, a developer experience platform Atlassian officially launched Compass, a new platform aimed at improving developer experience and productivity by centralizing software component management.
    • Q1 2024: Red Hat appoints Matt Hicks as new CEO Red Hat, a leading provider of open-source software solutions, named Matt Hicks as its new CEO, marking a leadership transition as the company continues to expand its software engineering offerings.
    • Q1 2024: Vercel raises $250M Series D to expand its frontend cloud platform Vercel, a company specializing in frontend developer tools and cloud infrastructure, raised $250 million in Series D funding to scale its platform and accelerate hiring in software engineering.
    • Q1 2024: Google Cloud launches Gemini Code Assist for enterprise developers Google Cloud introduced Gemini Code Assist, an AI-powered coding assistant designed to help enterprise software engineers write, review, and optimize code more efficiently.
    • Q1 2024: JetBrains launches AI-powered code completion tool for developers JetBrains, known for its developer productivity tools, launched a new AI-powered code completion tool to enhance software engineering workflows and reduce development time.

    Future Outlook

    Software engineering Market Future Outlook

    The Global Software Engineering Market is projected to grow at a 10.92% CAGR from 2025 to 2035, driven by advancements in AI, cloud computing, and increasing demand for software solutions.

    New opportunities lie in:

    • Invest in AI-driven development tools to enhance productivity and reduce time-to-market. Expand cloud-based software services to cater to remote work trends and scalability needs. Leverage low-code platforms to attract non-technical users and accelerate application development.

    By 2035, the market is expected to reach unprecedented levels, reflecting robust growth and innovation.

    Market Segmentation

    Software Engineering End User Outlook

    • Healthcare
    • Banking
    • Aerospace
    • Oil & Gas
    • IT & Telecommunication
    • Automotive
    • Defense

    Software Engineering Regional Outlook

    North America
    • US
    • Canada
    Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Rest of Europe
    Asia-Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia-Pacific
    Rest of the World
    • Middle East
    • Africa
    • Latin America

    Software Engineering Application Outlook

    • Plant Design
    • Product Design
    • 3D Modelling
    • Automation Design

    Software Engineering Software Type Outlook

    • PLC
    • Computer-Aided Engineering
    • Engineering & Construction
    • Architecture
    • Electronic Design Automation
    • Computer-Aided manufacturing
    • Computer-Aided Designing

    Report Scope

    Attribute/Metric Details
    Market Size 2024 USD 65.7 billion
    Market Size 2035 205.44 (Value (USD Billion))
    Compound Annual Growth Rate (CAGR) 10.92% (2025 - 2035)
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2018 & 2020
    Market Forecast Units Value (USD Billion)
    Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
    Segments Covered Application, Software Type, End-User, and Region
    Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
    Countries Covered The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
    Key Companies Profiled Geometric Ltd, Ansys Inc, Siemens PLM Software, Dassault Systemes S.A., Bentley Systems Inc, MSC Software Corporation, Carlson Software Inc, Ansys Inc, IBM corporation
    Key Market Opportunities Emerging penetration of low code app development platforms
    Key Market Dynamics Rising adoption of aircraft designing Increasing demand for customized Softwares
    Market Size 2025 72.87 (Value (USD Billion))

    Market Highlights

    Author
    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    FAQs

    How much is the software engineering market?

    The software engineering market size was valued at USD 65.7 Billion in 2024.

    What is the growth rate of the software engineering market?

    The market is projected to grow at a CAGR of 10.9% during the forecast period, 2024-2032.

    Which region held the largest market share in the software engineering market?

    North America had the largest share of the market.

    Who are the key players in the software engineering market?

    The key players in the market are Geometric Ltd, Ansys Inc, Siemens PLM Software, Dassault Systemes S.A., Bentley Systems Inc, MSC Software Corporation, Carlson Software Inc, Ansys Inc, and IBM corporation.

    Which application led the software engineering market?

    The 3D modelling category dominated the market in 2021.

    Which software type had the largest market share in the software engineering market?

    In 2021, computer-aided engineering had the largest share of the market.

    Which is the fastest growth rate and which region is expected to achieve it in the coming years?

    The fastest rate of 13.32% is expected to be achieved by Asia Pacific in the coming years.

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