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The Virtual Engineering market is dynamically influenced by a myriad of factors that collectively shape its landscape and drive its growth. One of the primary market factors is the rapid advancement in technology. As cutting-edge technologies like augmented reality (AR), virtual reality (VR), and artificial intelligence (AI) continue to evolve, they empower virtual engineering solutions with enhanced capabilities. This technological progress not only improves the efficiency of virtual engineering processes but also opens up new possibilities for innovation and problem-solving.
One of the other major market factors that directly influence the virtual engineering climate is globalization. The need to outsource engineering and construction products has also grown dramatically, especially when the businesses expand their product endeavor across borders. Virtual engineering makes remote teams’ collaboration costs-effective and timely since all of them get connected whereas relying on virtual engineering assures the productivity by making communication and interaction smooth throughout, irrespective of their location. This trend is especially applicable in fields including automotive, aerospace, and manufacturing industry where the distributed system is widely used to develop products.
The industry is impacted by cost consideration too, the latter of which also significantly influences virtual economy. The regular product development colour wheel may be a resourceful and time-consuming process. What is more, virtual engineering solutions offer a less expensive variant for the design and test phases as it automates production of prototypes that significantly decrease with their creation costs. Businesses are looking for opportunities to keep quality levels high but gain efficiencies and save money, thus costing issues make virtual engineering an attractive option.
The market of virtual engineering is also being affected by the growing attention to manners aimed at sustainability. Companies are subjected to increasing pressures in the reduction of environmental footprints and the technology plays a very important role in this. Virtual engineering facilitates simulations and analyses dedicated to optimizing energy consumption, material use, as well as the lifecycle of the products which brings sustainability in terms of things or processes produced. Along with the increasing significance and popularity of environmental issues, the mainstreaming solutions that involve virtual engineering into sustainable practice are considered an important driver, which leads to its implementation.
Another of the leading factors that influences the dynamics of virtual engineering market is compliance with regulations. Certain industrial sectors, including health care, aerospace and automotive have to satisfy stringent legislations as it can be dangerous without them. Virtual engineering tools offer a testing and validating environment that helps companies comply with the regulations under which all aspects of their production are tested for compliance purposes. The simulations and analysis of different scenarios ensure that the products which are manufacturing, tested and marketed meet industry standards, consequently minimizing losses because of regulatory drawbacks.
Market competition is intensifying across various sectors, prompting companies to seek ways to differentiate themselves. Virtual engineering offers a competitive advantage by accelerating time-to-market, improving product quality, and fostering innovation. Businesses that integrate virtual engineering into their development processes can gain a strategic edge in delivering products that meet or exceed customer expectations. As the competitive landscape continues to evolve, the adoption of virtual engineering becomes a strategic imperative for companies aiming to stay ahead in their respective industries.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2023 | USD 684.4 million |
| Growth Rate | 15.9 % (2023-2032) |
Virtual Engineering Market Highlights:
Virtual Engineering Market Overview
Virtual Engineering Market Size was valued at USD 552.3 million in 2022. The Virtual Engineering Market industry is projected to grow from USD 684.4 Million in 2023 to USD 2,579.2 million by 2032, exhibiting a compound annual growth rate (CAGR) of 15.9% during the forecast period (2023 - 2032).
The goal of virtual engineering is to master the product development cycle while lowering risks and quality concerns (iteration, rework), which account for a large portion of development expenditures. Rapid developments in computer hardware, software, and simulation technologies have considerably improved virtual engineering capabilities.
Figure1: Virtual Engineering Market, 2019 - 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Virtual Engineering Market Trends
Growing Demand for Innovative Technologies
Virtual engineering tools have proven indispensable in a variety of sectors. The merging of technologies including as simulation, computer-aided design (CAD), and virtual reality (VR) has enabled the creation of user-friendly, low-cost VP systems. These tools are increasingly seen as the next generation of computerized design systems. Because of benefits such as reduced time consumption and cost-effectiveness, virtual engineering is commonly employed as an alternative for fast prototyping. Furthermore, virtual engineering entails doing tasks in a computer-controlled environment where real-world situations may be produced for evaluating products or systems prior to manufacture.
Virtual engineering allows engineers to optimize designs, forecast product performance, and discover possible concerns early in the development process. This results in higher product quality, dependability, and functionality. As a result, the increased need for virtual prototyping will aid in the expansion of the virtual engineering industry. However, as the manufacturing business becomes more competitive, virtual engineering approaches for product development are being used to assist improve product quality. This aids manufacturers in maintaining their competitive position.
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Virtual Engineering Market Component Segment Insights
Virtual Engineering Software Type Insights
Based on Solution, the Virtual Engineering Market segmentation includes Computer-Aided Design (CAD), Computer-Aided Engineering (CAE), Computer-Aided Manufacturing (CAM), Computer-Aided Engineering (CAE), Architecture, Engineering and Construction (AEC), Electronic Design Automation (EDA). The CAD category led with almost 38.1% of the market. Companies have seen an enormous spike in the need for CAD tools to assist product design and development across a wide variety of industries, including automotive, construction, manufacturing, and healthcare. CAD tools save operating expenses and boost manufacturing efficiency. CAD also provides a method for standardizing the drawing process, removing uncertainty from simulation operations. Furthermore, CAD is a basic tool that explains several features of a product prototype during simulation and testing. As a result, this segment is expected to capture a large market share throughout the projection period.
Figure2: Virtual Engineering Market, by Software Type, 2022 VS 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
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Virtual Engineering Market Deployment Segment Insights
Virtual Engineering Deployment Insights
Based on Deployment, the Virtual Engineering Market segmentation includes On-premises and Cloud. In 2022, the on-premises segment represented most of the market. This expansion can be associated with a high demand for on-premises virtual engineering tools used for maintaining the privacy of a product model or design. Furthermore, the widespread use of cloud-based tools by small and medium-sized manufacturers to decrease the high infrastructure costs associated with on-premises deployment of virtual engineering tools is expected to fuel market expansion in the coming years.
Virtual Engineering Market Industry Vertical Segment Insights
Virtual Engineering Industry Vertical Insights
Based on the Industry Vertical, the Virtual Engineering Market segmentation includes Aerospace & Defense, Automotive, Banking, IT & Telecommunication, Oil & Gas, Healthcare and Others. In terms of revenue, the automotive industry accounted for the largest a percentage of the worldwide virtual engineering market in 2022. This expansion may be ascribed to OEMs' increased use of CAD and other technologies to boost productivity in designing and manufacturing, as well as precisely test product prototypes before investing in mass production.
Virtual Engineering Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. In terms of revenue, North America accounted for around 33.7% of the market due to the increasing use of CAD tools by the aviation and automotive sectors to develop prototypes of aircraft equipment and engines. Furthermore, manufacturers are investing heavily in the deployment of virtual prototype technologies for designing and simulating Advanced Driver-Assistance Systems (ADAS) solutions for newly built automobiles. Furthermore, prominent automobile manufactures like as Ford, General Motors, and Tesla have made substantial contributions to regional market growth.
Companies in the automotive industry, such as Tesla and General Motors, are using virtual engineering solutions to create and stimulate innovative driver-assistance systems solutions in newest built vehicles. North America is presently the most advanced and competitive automotive market in terms of electric vehicle manufacturing and distribution. The presence of automotive manufacturers contributes to the region's rapid production of electric vehicles and will lead to growth of virtual engineering. Thus, the regional market is expected to grow significantly throughout the projection period.
Figure3: VIRTUAL ENGINEERING MARKET SIZE BY REGION 2022 VS 2032 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
APAC is predicted to be the fastest-growing market due to rising demand for virtual engineering in consumer electronics and automobile production. The presence of some of the world's leading consumer electronics manufacturers in important markets such as China and Japan is also expected to drive regional market expansion over the projection period.
Europe is also predicted to grow significantly between 2023 and 2032 due to the technological advancements, industry adoption, supportive funding, and policies by the European government in the region.
Virtual Engineering Key Market Players & Competitive Insights
With a strong presence across different verticals and geographies, the Virtual Engineering Market is competitive and dominated by established, pure-play vendors. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments.
The major players in the market include Siemens PLM Software, Dassault Systems, Ansys, Autodesk, Inc, Altair Engineering, Inc, Hexagon AB (MSC Software), Bentley Systems, HCL Technologies, Carlson Software, PTC, IBM Corporation, Accenture, Capgemini, Bosch Rexroth, among other players.
The Virtual Engineering Market is a consists of many players. Several important industry participants continually strive to create innovations. To strengthen their market positions, a few major companies are forming alliances and increasing their worldwide reach in growing countries.
Key Companies in the Virtual Engineering Market include.
- Siemens PLM Software
- Dassault Systems
- Ansys
- Autodesk, Inc
- Altair Engineering, Inc
- Hexagon AB (MSC Software)
- Bentley Systems
- HCL Technologies
- Carlson Software
- PTC
- IBM Corporation
- Accenture
- Bosch Rexroth
- Capgemini
- Others
Virtual Engineering Industry Developments
- In November 2022, IBM revealed new tools to help organizations demolish data silos and integrate analytics to make data-driven decisions and quickly address unplanned interruptions. Through business intelligence planning, budgeting, reporting, forecasting, and dashboard capabilities, IBM Business Analytics Enterprise provides customers with a holistic view of data sources throughout their organization.
- In November 2022, Bentley Systems announced the introduction of Bentley Infrastructure Cloud in November 2022, a collection of business solutions spanning the whole infrastructure value chain and lifecycle. Bentley Infrastructure Cloud's complete and evergreen digital twins will enable improved infrastructure creation, delivery, and maintenance.
Virtual Engineering Market Segmentation
Virtual Engineering Software Type Outlook
- Computer-Aided Designing (CAD)
- Computer-Aided Manufacturing (CAM)
- Computer-Aided Engineering (CAE)
- Architecture, Engineering and Construction (AEC)
- Electronic Design Automation (EDA)
Virtual Engineering Deployment Mode Outlook
- On-premises
- Cloud
Virtual Engineering Organization Size Outlook
- SME’s
- Large Enterprises
Virtual Engineering Application Outlook
- Automation Design
- Plant Design
- Product Design
- 3D Modelling
- Others
Virtual Engineering Industry Vertical Outlook
- Aerospace & Defense
- Automotive
- Banking
- IT & Telecommunication
- Oil & Gas
- Healthcare
- Others
Virtual Engineering Regional Outlook
-
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
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