We are delighted to announce our second Cambashi Industry Newsletter for 2025.

This quarter, we’re sharing our updated forecasts and analysis of trends across various software segments.

The impact of US tariffs on the engineering and industrial software market

As long as tariffs do not directly impact cross-border software sales (the current position), their effect on the software market is indirect, primarily through slowing industrial production and delaying or postponing software purchases.

Although it is not technically a tariff, it’s important to highlight that President Trump recently imposed an embargo on Electronic Design Automation (EDA) software in China – essential for electronic chip and PCB design, the brains behind all smart munitions and modern military hardware.

In Cambashi’s view, software growth is unlikely to be affected in the short-term (through 2025) because of existing subscription contracts, but slower in the medium term because customers may, for example, opt for shorter-term subscriptions, reduce the number of seats purchased (especially in the case of lay-offs), downgrade their subscriptions, delay upgrades, or transition to more affordable products.

Despite this, software remains a key driver of productivity improvements and, in a challenging economic environment, companies often turn to software to improve the efficiency of design and manufacturing. The resilience of the software market, as seen during the COVID-19 pandemic, further supports this observation and suggests that the impact may not be as bad as the reduction in Industry Value Add suggests.

This is Cambashi’s high-level view on the impact of the current tariffs on engineering/industrial Software. We will issue further views in more detail – by industry, country, and product – in our next Observatory release scheduled for July 2025.

Cambashi can also provide a briefing on “The Impact of US Tariffs on the Engineering/Industrial Software Market,” which provides critical insights into the effects of global trade tensions on software consumption trends. This market briefing is part of Cambashi’s continued commitment to equipping global stakeholders with clear, data-driven insights. For more information, contact us: https://cambashi.com/contact-us/

The Resilience and Future of the Media & Entertainment Software Market

Another resilient software segment to market disruptions is in Media & Entertainment (M&E) industry. It`s already shown in 2024—including layoffs in the gaming industry and strikes by voice/mocap actors, alongside Hollywood actors and writers—the M&E software market has demonstrated resilience, maintaining stable revenue levels.

M&E software remains critical for enhancing productivity, particularly in editing, rendering, and content management, supporting operational efficiency amid economic uncertainty.

Cambashi’s latest forecast projects the global M&E software market to grow at a compound annual growth rate (CAGR) of approximately 8% through 2029, a 4% downward revision from the 2023 forecast due to ongoing market volatility.

Cambashi’s 2025 update for the Visualization and 3D Rendering Software Market provides a detailed look at how Media & Entertainment (M&E) software is performing amid ongoing industry disruption.

• Real-time engines saw a sharp slowdown, from 18.1% growth in 2023 to just 2.9% in 2024, but are expected to recover with projected growth above 11%.
• Rendering, animation, and special effects continue to grow at 8–11% annually, though special effects may dip below 8% in 2025.
• Growth is also expanding beyond traditional M&E, notably into AEC and Manufacturing sectors.

We’re tracking performance trends for key players like Unity, Autodesk, Epic Games, and Adobe, as well as emerging players across the 3D design and rendering ecosystem.

Want deeper insights? Read the article The Resilience and Future of the Media & Entertainment Software Market or Request a sample to learn more about Cambashi’s comprehensive data coverage.

Why Hardware Companies Buy CAE/Simulation Software Companies

Even in a volatile market, mergers and acquisitions never stop. At Cambashi, we have analyzed why more large hardware companies are acquiring CAD, CAM, and CAE software companies, with a special focus on CAE vendors.

From expanding a hardware company’s profits into new tech territories to using software to boost hardware sales, the insights go beyond the obvious.

Siemens and Hexagon are leading the way among hardware companies in acquiring CAE software companies.

If we consider the business benefits of a hardware company acquiring CAE software and engineering simulation software companies in general, there are broadly three underlying reasons for the acquisitions:

Whether you’re involved in product development or strategy, our recent article “Why Hardware Companies Buy CAE Software Companies” provides a valuable perspective, viewing CAE not just as a tool, but as a strategic asset.

Download the full article “Why Hardware Companies Buy CAE Software Companies”, written by Dr. Keith Hanna.

Employment Trends: North vs South America

Read the full article “Optimizing Regional Sales Strategies: North America vs South America Through Cambashi Market Intelligence”.

Cambashi provides deeper knowledge across a variety of industries. – Access a free trial of the Market Intelligence training tool, an interactive section on our Insights platform which provides an additional layer across value-added, engineering software spend, and employment.

Industrial AI – More Than Just a Buzzword

One of the most important topics these days in any industry is AI. We’re noticing important distinctions emerge between ‘Consumer AI’ and ‘Industrial AI’—particularly in the Engineering, Manufacturing, and Industrial software sectors.

As we observe important trends and opportunities emerging in the industrial software markets, we’re excited to provide succinct ‘Cambashi Views’ to summarize key insights.

In our latest Cambashi View, we explore how Industrial AI differs from general-purpose AI. This mirrors our earlier differentiation between ‘Industrial IoT’ and commercial ‘IoT’ from several years ago. It’s fascinating to see how real-world applications of both IoT and AI acquire new, meaningful names when they are put into practical use as applications.

Key Characteristics of Industrial AI

Validated data only

No tolerance for “hallucinations”; accuracy is essential.

Structured, referenceable datasets

Including product specs and regulatory standards.

Secure, traceable processes

Supporting compliance, documentation, and future product evolution.

Technology flexibility

Neural networks may be used, but not always required.

Complementary use of consumer tools

e.g., for content generation, with human oversight.

These distinctions are not just technical—they are essential for building trust, ensuring safety, and delivering value in industrial environments. The full Cambashi View will delve deeper into the evolution of AI in the industry, from Predictive to Generative to Agentic, along with examples of how leading firms are already applying Industrial AI successfully.

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