Software engineering companies, focus on providing services related to the design, development, testing, and maintenance of software applications. These companies play a central role in the software development lifecycle, contributing to the creation of reliable and efficient software solutions across various industries. Software engineering companies are essential for innovation and digital transformation.
Competitive Landscape of the Software Engineering Market:
The software engineering market is a dynamic and ever-evolving space, fueled by the relentless march of technological advancements and the insatiable demand for innovative solutions. This landscape is characterized by intense competition, with established giants jostling for market share alongside nimble startups offering niche expertise. Understanding the key players, their strategies, and market dynamics is crucial for any organization navigating this complex terrain.
Key Players:
Strategies Adopted:
Factors for Market Share Analysis:
New and Emerging Companies:
The software engineering landscape is continuously being shaped by the emergence of innovative startups. Some notable trends include:
Current Investment Trends:
Investors are increasingly recognizing the potential of the software engineering market, leading to significant funding for promising startups. Some key trends include:
Latest Company Updates:
Thanks to the depth of its industry knowledge, industrialised delivery assets, and range of generative AI services, Capgemini is well-positioned in 2023 to assist clients through their next phase of digital transformation. Over the past few years, Capgemini has successfully completed numerous generative AI projects for its clients, mostly in the life sciences, consumer products & retail, and financial services sectors. Capgemini is a trusted business and technology transformation partner to its clients.(Source: ) Capgemini has observed an increase in client demand and focus on generative AI in recent months.
Mach9, a startup developing geospatial manufacturing technology, released its first product in 2023. The new application generates 2D and 3D CAD and GIS engineering deliverables by utilising AI and computer vision.
The engineering practise of Deloitte Touche Tohmatsu Ltd., a technology consulting firm, was established in 2023 with the goal of assisting customers in expanding their software engineering and product innovation endeavours. Deloitte Engineering, which was unveiled today, is dedicated to assisting customers in staying ahead of the curve with cutting-edge new technologies including Web3, cloud-native apps, generative artificial intelligence, and linked goods.
The Software Engineering Market Size was valued at USD 52.7 billion in 2021.The software engineering market industry is projected to grow from USD 58.63 Billion in 2022 to USD 123.74 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 11.26% during the forecast period (2024 - 2030). The growth of the market can be attributed to the increasing demand for software engineering services from various industries such as aerospace & defense, automotive, banking, IT & telecommunication, oil & gas, and healthcare. Furthermore, the growing trend of digitalization and automation is also fueling the growth of the software engineering market.
Figure 1: Software Engineering Market Size, 2024-2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
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 healthcare 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 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. 2D CAD models do not always offer required accuracy and speed thus, the professionals are using 3D modelling for enhanced efficiency and visual of their designs. 3D modelling offers several benefits, which includes enhancement in the design quality, easy documentation, increased designer productivity, automatic design redrawing, international standards compliance, better client visualization, design time reduction, data, and drawings savings, as well as cost savings. Thus, the drafting & 3D modeling segment by application for engineering software market is projected to provide numerous lucrative business opportunities for the market players in the forecast period.
Figure 2: Software Engineering Market Application, 2024-2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The software engineering market segmentation, based on the software type, includes PLC, computer-aided engineering, engineering & construction, architecture, electronic design automation, computer aided manufacturing, and computer-aided designing. The computer-aided engineering segment held the majority share in 2021, contributing to around ~60-64% of the software engineering market revenue. The practice of using computer software to simulate performance in order to enhance product designs or assist in the solving of engineering problems for a variety of sectors is known as computer-aided engineering (CAE). This covers the simulation, validation, and improvement of manufacturing tools, products, and processes. Furthermore, the organizations are implementing the hyper-converged infrastructure (HCI) platform for establishing a private cloud that provides advanced storage and computation services which are projected to propel computer-aided engineering software market growth.
The software engineering market segmentation, based on the end user, includes healthcare, banking, aerospace, oil & gas, IT & telecommunication, automotive, and defense. The automotive segment had the highest market revenue share in 2021. Automotive to gain maximum segment share during the forecast period. The increasing need to evaluate the viability of heat dissipation methods such as ventilation, cooling, and aerodynamics in the region is expected to fuel the demand for computer-aided engineering software. The countries such as Brazil and Argentina are the key automotive manufacturer in the region.
Healthcare and medical devices to gain rapid software engineering market growth during the forecast period. The government's growing focus on the healthcare system is expected to fuel the manufacturer of medical devices to invest in computer aided engineering software. Its capability to offer accurate products is driving its demand for healthcare sector.
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)
Source: Secondary Research, Primary Research, MRFR 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.
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.
Geometric Ltd
Ansys Inc
Siemens PLM Software
Dassault Systemes S.A.
Bentley Systems Inc
MSC Software Corporation
Carlson Software Inc
June 2022: Ansys & SoftInWay, an analysis and design software supplier for 1D-2D designs, partnered to simplify the design workflow for multi-stage, single-stage, and multi-module turbomachinery.
May 2021: Siemens launched Simcenter Femap which is an enhanced simulation application for editing, creating, and reviewing finite element models of complex systems or products.
January 2020: SimScale raised USD 32 million in Series C funding to increase its cloud-driven engineering simulation tool.
Plant Design
Product Design
3D Modelling
Automation Design
PLC
Computer-Aided Engineering
Engineering & Construction
Architecture
Electronic Design Automation
Computer-Aided manufacturing
Computer-Aided Designing
Healthcare
Banking
Aerospace
Oil & Gas
IT & Telecommunication
Automotive
Defense
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
Software engineering Market Highlights:
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