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Computer Aided Engineering (CAE) Market size is set to grow by USD 4.69 billion from 2024-2028, Growth of the smartphone industry boost the market, AI Role and Impact, Technavio

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NEW YORK, Aug. 22, 2024 /PRNewswire/ — The global computer aided engineering (CAE) market size is estimated to grow by USD 4.69 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  9.45%  during the forecast period. Growth of the smartphone industry is driving market growth, with a trend towards increasing adoption of cfd for battery designing. However, lack of awareness among end-users about developments in CFD poses a challenge. Key market players include Altair Engineering Inc., ANSYS Inc., Autodesk Inc., Bentley Systems Inc., BETA CAE Systems, Cadence Design Systems Inc., Ceetron AS, COMSOL AB, Dassault Systemes SE, ESI Group SA, Fidesys LLC, Flow Sciences Inc., Hexagon AB, Parametric Designs and Solutions, PTC Inc., Seiko Epson Corp., Siemens AG, Simerics Inc., SimScale GmbH, and Symscape.

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Computer Aided Engineering (CAE) Market Scope

Report Coverage

Details

Base year

2023

Historic period

2018 – 2022

Forecast period

2024-2028

Growth momentum & CAGR

Accelerate at a CAGR of 9.45%

Market growth 2024-2028

USD 4699.2 million

Market structure

Fragmented

YoY growth 2022-2023 (%)

8.42

Regional analysis

Europe, North America, APAC, South America, and Middle East and Africa

Performing market contribution

APAC at 32%

Key countries

US, Germany, China, France, and Japan

Key companies profiled

Altair Engineering Inc., ANSYS Inc., Autodesk Inc., Bentley Systems Inc., BETA CAE Systems, Cadence Design Systems Inc., Ceetron AS, COMSOL AB, Dassault Systemes SE, ESI Group SA, Fidesys LLC, Flow Sciences Inc., Hexagon AB, Parametric Designs and Solutions, PTC Inc., Seiko Epson Corp., Siemens AG, Simerics Inc., SimScale GmbH, and Symscape

 

Market Driver

The Computer Aided Engineering (CAE) market experiences significant growth due to the increasing adoption of Computational Fluid Dynamics (CFD) for battery design. CFD’s capacity to simulate fluid flow, heat transfer, and electrochemical processes in battery design enhances efficiency, reducing the need for costly and time-consuming physical prototypes. This efficiency is crucial for meeting the escalating demand for high-performance batteries in electric vehicles and renewable energy storage systems. Furthermore, CFD’s role in developing advanced battery technologies, such as solid-state and lithium-sulfur batteries, necessitates sophisticated modeling capabilities, driving the demand for CAE tools. Ensuring battery safety and regulatory compliance through CFD simulations also increases its adoption, mitigating risks like thermal runaway and short circuits. The integration of CFD with other CAE tools, like Finite Element Analysis (FEA), offers a holistic approach to battery design, enhancing overall efficiency and optimization. By enabling early identification of design issues, CFD reduces development costs and accelerates time-to-market. As industries pursue technological advancements and competitive edge, the reliance on CFD for customized and optimized battery solutions significantly contributes to the expanding CAE market, making these tools essential in modern engineering processes. Consequently, the increasing adoption of CFD for battery design propels the growth of the global CAE market. 

The Computer-Aided Engineering (CAE) market is experiencing significant growth, particularly in the passenger aircraft industry, where CAE solutions are used to analyze structural deformation during high-altitude flight, reduce fuel consumption, and decrease carbon emissions and footprint. Digital technologies, automation, cloud, and Building Information Modeling (BIM) are driving trends in this market. CAE solutions are also crucial for industries like consumer electronics, healthcare, aerospace & defense, and industrial equipment, where product durability, quality, and process management are key. CAE solution suppliers provide software for Finite Element Analysis (FEA), Computational Fluid Dynamics (CFD), and Multibody Dynamics (MBD), among others. Open-source platforms and Software-as-a-Service (SaaS) are gaining popularity. CAE solutions are also essential for defense and aerospace, electric vehicles, and industries dealing with composite parts, hardware failure, and thermal analysis. Value-added resellers play a vital role in delivering CAE solutions to various industry verticals. 

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Market Challenges

 The global Computer Aided Engineering (CAE) market faces a significant challenge in increasing awareness and understanding of the advantages of modern Computer Fluid Dynamics (CFD) software among end-users. Traditional CFD software posed challenges such as high expertise requirements, extensive training costs, and the need for supercomputers for analysis. However, the latest versions of CFD software have addressed these issues by reducing complexity, eliminating the need for extensive mathematical knowledge, and enabling use on laptops and PCs. Despite these advancements, many small-scale manufacturers, particularly in equipment markets like lawn sprinklers, have yet to adopt CFD due to affordability concerns. This represents an opportunity for CFD software vendors to expand their reach into untapped markets and promote the benefits of their technology beyond traditional industries. The CAE market, including cloud CFD, has vast potential, but its growth may be hindered by the persisting misconceptions regarding its applicability and accessibility. CFD software can be utilized in all fluid-handling equipment, including lawn sprinklers, for optimizing design and performance. By addressing affordability and awareness, the CAE market can unlock new opportunities and drive growth.The Computer Aided Engineering (CAE) market is experiencing significant growth due to the increasing demand for simulation-based design and problem-solving capabilities in various engineering sectors. Challenges such as engineering modes, concurrent engineering, and design iterations are being addressed through advanced CAE technology solutions. Startups and small-to-medium enterprises are benefiting from affordable CAE software products and cloud-based services. CAE technology companies and software developers are focusing on complex solutions that incorporate the Internet of Things, machine learning, and artificial intelligence for predictive modeling and optimization. Electronics companies are enhancing product quality and accelerating time-to-market with CAE. CAE software is essential for industries like commercial aviation, where energy-efficient aircraft, temperature simulation, and battery life optimization are critical. CAE solutions are available through licensing fees or pay-as-you-go subscriptions, providing flexibility for businesses of all sizes. CAE software is used for validation, simulation, and prototype development, enabling engineers to make informed decisions and improve design efficiency.

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Segment Overview 

This computer aided engineering (cae) market report extensively covers market segmentation by  

Type 1.1 FEA1.2 CFDEnd-user 2.1 Automotive2.2 Aerospace and defense2.3 Electrical and electronics2.4 OthersGeography 3.1 Europe3.2 North America3.3 APAC3.4 South America3.5 Middle East and Africa

1.1 FEA-  Computer-Aided Engineering (CAE) market, specifically the Finite Element Analysis (FEA) software segment, plays a crucial role in the manufacturing industry. FEA software enables the evaluation of product designs’ functionality prior to physical prototype production. In industries such as electrical and electronics, FEA is essential for estimating structural strength and behavior, simulation, modeling, and design optimization. FEA software reduces costs by creating virtual prototypes for simulations, minimizing warranty and product return costs, and expediting product development. High Research and Development (R&D) investments are a significant factor fueling the FEA market’s growth. R&D investments are allocated for purchasing new technologies, hardware, software (including FEA), and services to create innovative products. The electrical and electronics industry heavily relies on FEA for risk-free product testing, cost reduction, and multitasking. FEA software helps engineers tackle complex problems related to power consumption reduction, electronic signal quality checks, and bandwidth improvement. The global FEA market’s growth is driven by R&D investments and stringent government regulations. Cloud-based FEA solutions’ availability is another key factor contributing to the market’s expansion, with APAC expected to adopt these solutions more rapidly due to the presence of numerous electrical and electronics companies.

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Research Analysis

The Computer Aided Engineering (CAE) market encompasses a range of computer software solutions used to simulate and analyze various engineering applications. These solutions include Finite Element Analysis (FEA) and Computational Fluid Dynamics (CFD) software for modeling and analyzing structural and fluid dynamics behavior. CAE solutions are utilized across diverse industries such as aerospace, electric vehicles, and manufacturing to enhance product durability, quality, and process management. Value added resellers play a crucial role in providing CAE software and services to businesses. CAE software is integral to simulation, validation, and concurrent engineering, enabling the creation of integrated CAE data and 3D prototypes. Licensing fees and pay-as-you-go subscriptions are common business models for CAE software. Building information modeling and 3D printing are also integrating with CAE solutions to streamline engineering modes and improve product development.

Market Research Overview

The Computer Aided Engineering (CAE) market is a dynamic and innovative industry that provides engineers with advanced tools for simulation, analysis, and optimization of complex systems. CAE solutions, including Finite Element Analysis (FEA) and Computational Fluid Dynamics (CFD) software, are essential for various industries such as electric vehicles, aerospace, defense, electronics, semiconductors, energy, and more. CAE technology enables product durability and quality enhancement, process management, and concurrent engineering. Value added resellers play a crucial role in delivering CAE solutions to startups, small-to-medium enterprises, and engineering sector clients. CAE software products offer decision-making capabilities, simulation-based design, and optimization algorithms, including machine learning and artificial intelligence. CAE solutions are applied to various industries, from electronics companies focusing on product quality enhancement and time-to-market acceleration to aerospace and defense, where they contribute to the design of energy-efficient aircraft, low-emission planes, and solar panels. The market also includes cloud-based CAE, localization strategies, and licensing fees or pay-as-you-go subscriptions. CAE technology is essential for modeling information, validation, and prototyping, addressing challenges such as temperature, battery life, fan performance, noise pollution, and fuel consumption. Digital technologies, automation, and cloud services are transforming the CAE market, enabling real-time collaboration, optimization, and predictive modeling.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

TypeFEACFDEnd-userAutomotiveAerospace And DefenseElectrical And ElectronicsOthersGeographyEuropeNorth AmericaAPACSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio

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Haloid Poll: Majority of Public Safety and Commercial Radio Administrators Would Consider Starlink Integration With LMR Two-Way Radio Networks, but Disruption Unlikely

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STONY BROOK, N.Y., Oct. 25, 2026 /PRNewswire/ — Following Starlink’s announced entry into the mobile communications space, Haloid’s consulting team polled government and business land mobile radio (LMR) administrators on whether Starlink could replace, or complement, their LMR systems. We found that most radio administrators were receptive to the nascent technology but did not see it as a replacement for their LMR networks.

Sixty-seven percent of radio administrators said they would be willing to integrate Starlink technology if it allowed them to expand coverage or lower infrastructure costs. When asked whether Starlink could completely replace their LMR networks, fewer than 15 percent said yes; the vast majority believed Starlink is not as reliable as the custom networks they have built. Among administrators who already use two-way radio over cellular (also known as push-to-talk over cellular, or PoC), however, nearly 80 percent said that Starlink’s satellite coverage, combined with its newly acquired cellular spectrum, would make it more desirable than the industry’s wireless incumbents because it could eliminate dead spots where cellular does not reach.

In the U.S., hundreds of thousands of radio users rely on traditional cellular carriers for push-to-talk communications, and that number grows each year. While the migration to two-way radio over cellular has affected the LMR industry, it has not replaced it. Many public safety agencies never made the switch, citing the risk that cellular networks could go down during weather events, power outages, or cyberattacks and jeopardize emergency communications.

In fact, during recent cellular outages, Starlink was used to provide emergency communications to affected areas, because its satellite connectivity does not depend on cell towers. But Starlink’s integration with the 800 MHz cellular spectrum — “Starlink 2.0,” as some experts are calling it — exposes it to some of the same vulnerabilities as traditional wireless carriers.

While Starlink’s satellite service might still function if local cell towers go down, a critical portion of an agency’s communications might rely on local towers using the 800 MHz spectrum, leaving the agency vulnerable in a storm or outage.

Expect evolution, not disruption

“Just like cellular didn’t replace LMR, we don’t see Starlink as an existential risk,” said Jeremy Alicandri, President of Haloid Solutions. He expects Starlink to accelerate the industry’s evolution toward shared communications infrastructure, also known as hybrid LMR. “We have public safety customers already using Starlink in their vehicles to extend the coverage of their radios. This trend will continue as Starlink devices become more ubiquitous.”

The stock prices of Verizon, T-Mobile, and AT&T were affected by Starlink’s recent announcement. LMR stocks such as L3Harris, JVCKENWOOD, and BK Technologies, maker of the Bendix King brand, have been unaffected, as Wall Street views Starlink as unlikely to replace LMR technology for the same reasons cellular did not. “But it may be too early to predict the industry’s winners and losers,” Alicandri added. “The cellular incumbents have many advantages, including low-cost devices, existing infrastructure, and their own satellite ambitions.”

About Haloid Solutions Research

Haloid’s Starlink poll drew on respondents to its LMR brand loyalty study, which measures radio administrators’ sentiment toward the ownership and after-sales experience. Haloid’s LMR research is sponsored by investors in the mission-critical communications space.

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SOURCE HALOID SOLUTIONS

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Newborn Town and Viggle Launch AI-Powered 3D Interactive Game, Bringing World Models to Social Gaming

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HONG KONG, Oct. 26, 2026 /PRNewswire/ — Recently, Newborn Town’s game-oriented social platform TopTop has launched “Slap Showdown”, an AI-powered 3D interactive mini-game developed in collaboration with Viggle, a company specializing in physics-native world models. The launch brings world model technology into social gaming, offering users a more personalized and engaging interactive experience.

Developed by TopTop and powered by Viggle’s self-developed Joint Space-Time (JST) world model, “Slap Showdown” lets users turn uploaded photos into customized 3D characters and take them straight into the game.

Launched in September, “Slap Showdown” has gained particular traction in Japan, among Spanish-speaking users in North America, and across the Middle East. It is now available in multiple countries and regions worldwide.

From Better Gameplay to a Richer Ecosystem: How World Models Could Redefine Social Gaming on TopTop

In terms of gameplay, “Slap Showdown” combines AI-generated 3D characters with multiplayer interaction. Players can simply upload a photo from their phone and generate a personalized 3D character in around 30 seconds, whether it’s an anime protagonist, a cyberpunk cyborg, or a LEGO minifigure. They can then bring their custom characters into the game and face off against other players in fun, interactive battles.

As players use controls such as press-and-hold, tap, and drag, the 3D characters respond with realistic, physics-based movements. This takes AI-generated characters beyond visual customization, integrating them directly into the gameplay experience.

According to TopTop’s operations team, “Slap Showdown” has attracted a growing base of highly engaged, high-spending-potential players in its first month since launch. The game has recorded a 97% match completion rate, while its game-start rate has also exceeded the platform-wide average.

The depth of user engagement is further illustrated by individual player activity. One player in Japan completed 1,041 matches over 22 days, reaching a daily peak of 151 matches and averaging one match every 9.5 minutes. Another particularly avid player in Eastern Europe completed 735 matches in just 11 days, averaging 66.8 matches per day and peaking at 126 matches in a single day.

For a UGC-driven social gaming platform such as TopTop, mini-games serve as entry points and traffic drivers, while social features underpin retention and monetization. Personalized 3D avatars add another dimension to that experience. Beyond their visual appeal, they give users new ways to express themselves, interact with friends and share memorable moments. In turn, richer gameplay and more meaningful social interactions can help improve retention, attract new users and strengthen engagement across the platform.

“Slap Showdown” marks a successful step in TopTop’s efforts to deepen its application of AI technology, as well as a starting point for using world models to enhance gaming and social experiences. TopTop’s operations team said future game releases could make greater use of AI-powered 3D generation, extending beyond avatars to include customized environments. Existing games could also be revitalized by the introduction of new gameplay features, potentially driving stronger retention and user acquisition.

Beyond enriching gameplay, world model capabilities could also reshape social interaction itself, enabling more immersive, face-to-face experiences in virtual spaces. “We’re constantly exploring how AI can transform gaming and social interaction, while bringing new energy and capabilities to our UGC ecosystem,” TopTop’s operations team said.

Viggle Unveils Physics-Native Model JST-2, Setting Its Sights on Becoming the Infrastructure Layer for Physical AI

The world model technology powering “Slap Showdown” is provided by Viggle.

Founded in 2022, Viggle has focused on developing physics-native world foundation models. Its self-developed JST model can generate 3D characters, motion and environments directly, providing a foundation for gaming and a growing range of AI applications.

Viggle previously attracted widespread attention with Meme Maker, its AI-powered video creation product. The tool enables users to animate static characters and generate videos by applying specified movements, making AI character animation and video creation more accessible. In August 2024, Viggle raised USD 19 million in a Series A funding round led by Silicon Valley venture capital firm Andreessen Horowitz (a16z).

However, video creation was an early application of this technology. Viggle’s longer-term ambition is to make JST a foundational technology for AI-powered experiences across gaming, social platforms and other applications.

Viggle is now further expanding its technological boundaries. On 19 October, Viggle launched JST-2 in full, likening its significance for world models to GPT-2’s role in the evolution of language models.

Unlike many world models that infer physical structure indirectly from pixels, JST-2 is built around a physics-native architecture designed to learn the structure and dynamics of the 3D world directly. Its underlying representation consists of units resembling digital “atoms.” Each has a defined position in three-dimensional space, along with physical properties such as material, color and mass, and information describing how it moves and responds to forces. This allows the model to do more than generate convincing images. It can represent and generate 3D characters, motion and scenes with an underlying understanding of their physical properties.

To support this approach, Viggle has developed an integrated technology stack spanning tokenization, model architecture, data engine, pre-training and post-training. After four years of research and development, JST-2 can generate characters, motion and scenes within a single unified architecture.

Compared with other approaches, JST-2 also demonstrates cost efficiency. JST-2 can generate a 3D scene in seconds, at an inference cost of less than one US cent. Once created, the content can be rendered locally without repeatedly running the foundation model to generate each frame.

It is noteworthy that world model technology remains at an early stage, but Viggle is already working toward more advanced capabilities.

Its next-generation model, JST-3, is intended to become a comprehensive world simulator. Such a system could underpin future game and graphics engines, while also serving as a virtual training environment for robotics and other forms of physical AI.

The longer-term goal is for JST-3 to learn the physical rules governing its simulated world directly from data, rather than relying on rules explicitly written by developers.

For Newborn Town, its investment in and partnership with Viggle represents an important step in exploring how advanced AI can reshape social gaming, promoting a deep integration of AI technology with its business operations.

As a leading global social entertainment company, Newborn Town has continued to deepen the use of AI across key areas in recent years, including product R&D, social recommendation systems, intelligent operations, safety and risk management, and marketing and user acquisition, supporting ongoing business growth.

Meanwhile, the company also continued to invest across the AI ecosystem, backing projects in areas including world models, AI companionship, AI Agents and AI interactive gaming. These investments have further enriched its AI application ecosystem, with Viggle among the AI companies previously backed by Newborn Town.

“Slap Showdown” represents an early step in bringing world models into social gaming. For Newborn Town and Viggle, the next challenge is to turn increasingly sophisticated AI capabilities into experiences that users find genuinely engaging — and compelling enough to keep coming back.

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SOURCE Newborn Town

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HKICEC Launches First-Ever Global Mobile Exchange Pavilion at Mobile Electronics Show

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Charting a New Milestone with Outstanding Achievements

HONG KONG, Oct. 26, 2026 /PRNewswire/ — The Hong Kong International Communications Electronic Chamber (HKICEC) made a landmark debut at the Global Sources Mobile Electronics Show, held from October 18-21, 2026, with the inaugural launch of the HKICEC Global Mobile Exchange Pavilion. Spanning 600 square meters, the pavilion brought together nearly 60 industry leaders from mainland China, Hong Kong, India, Japan, the UAE, the US and the UK. As the largest themed pavilion in the mobile electronics sector and a premier highlight of the exhibition, this event marks a new developmental milestone for HKICEC. The pavilion underscores the chamber’s dedication to bridging global markets and serving the communications and electronics industry, injecting vital new momentum into the synergy between Hong Kong’s technology sector and international trade.

The grand opening ceremony on October 18 marked the official launch of the first B2B pavilion in Hong Kong and Asia dedicated exclusively to mobile communications equipment. The milestone event was officiated by a distinguished lineup of devices global business, including  Dr. the Hon. Starry Lee Wai King, GBS, JP, Member of the Standing Committee of the National People’s Congress and President of the Legislative Council; Mr. Zhu Xiaodong, Director of the Kowloon Affairs Department of the Liaison Office of the Central People’s Government in the HKSAR; Dr. the Hon. Horace Cheung Kwok Kwan SBS JP, Deputy Secretary for Justice, HKSAR; Mr. Liu Maozhou, Level 1 Bureau Rank Official, the Economic and Financial Department II, Liaison Office of the Central People’s Government in the HKSAR; Mr. Ho Lap Ki, Denny, JP, District Officer (Kwun Tong), Home Affairs Department; Mr James Liu, CEO of Global Sources; and Mr. Jacky Tse, Chairman of HKICEC, alongside HKICEC Management team. Together, they witnessed the official launch of the first B2B pavilion in Hong Kong and Asia dedicated to mobile communications equipment. The ceremony drew over a hundred political and business leaders, industry representatives, international exhibitors, and major media outlets, reflecting the event’s importance and the industry’s green trading development. Following the inauguration, officials toured the pavilion for high-level discussions with global exhibitors, signaling robust institutional backing for the industry and HKICEC’s strategic expansion.

During the four-day exhibition, the pavilion experienced a continuous flow of visitors. Communications and electronics suppliers and global buyers from overseas visited specifically for business matchmaking and negotiations, unlocking numerous commercial opportunities. Notably, the pavilion also featured a retrospective exhibit of 16 classic mobile phones, tracing the industry’s evolution from early ‘brick’ devices to Mainland China’s first official Apple release, the iPhone 3GS. The historical display proved to be a standout attraction, gathering large crowds throughout the event.

Beyond the exhibition floor, the chamber partnered with Global Sources to co-host an international forum on October 19. Under the theme ” From New Devices to New Life: Building a Global Mobile Device Lifecycle Ecosystem”, the event gathered experts from ecoATM, PCS Wireless, Cenwood, Our Hong Kong Foundation, and the Global Mobile Association. They engaged in profound discussions on cutting-edge topics including the global economic landscape, inventory management, ESG development, the circular ecology of new and used devices, and AI technology.  Attended by over 200 international representatives, the forum successfully catalyzed cross-border collaboration and established a new standard for sustainability discourse in the global mobile industry.

As a capstone to the comprehensive four-day events, HKICEC convened over 500 industry leaders, VIPs, and exhibitors for a high-profile networking banquet designed to accelerate cross-border business alliances. The gathering provided a premier platform for delegates to solidify collaborative ties and exchange strategic insights initiated from the pavilion. Ahead of the exhibition’s conclusion, a special ” Pearl Of The Orient • Victoria Harbour Cruise Party” was organized to showcase Hong Kong’s unique charm as a cosmopolitan city to global guests, providing a memorable networking experience against Hong Kong’s iconic skyline to formally cap off the week’s successes.

High-resolution images: https://bit.ly/3WqHMxu

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SOURCE The Hong Kong International Communications Electronic Chamber (HKICEC)

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