Although CAE and simulation have existed for many years, the technology is advancing rapidly as manufacturers increasingly recognize the value of having multiple CAE capabilities, such as electromagnetics, CFD, and multi-physics, to better understand building behaviour, airflow, and responses to external stresses like earthquakes.  We also expect to see further consolidation in CAE to continue as synergies are seen between ‘EDA’ and MCAE in the silicon chip and electronic design space. You can find more information on our blog post about Turbulence in the CAE/EDA/Simulation Software Market.  
In 2025, major M&A and partnerships included Siemens Digital Industries Software’s acquisition of Altair Engineering, Synopsys acquisition of ANSYS, and NVIDIA’s strategic investment in Synopsys to accelerate GPU-enabled simulation and verification workflows—supporting faster compute, more simulations, and increased software usage. Additionally, a definitive agreement was signed for Cadence’s proposed €2.7 billion acquisition of Hexagon’s Design & Engineering division, with an expected close in Q1 2026.  
The overall market size for CAE software in 2025 is estimated at $11.6 billion. Of which $10.1 billion is software and $1.6 billion is provider services. In the latest release, the constant currency growth estimate for the CAE Software market in 2025 is projected around 9% and +13% (Constant USD) a year ago in 2024.  
From 2021 to 2025, the fastest-growing Capability was Plastics, while from 2025 to 2029 the fastest growth is forecast to shift to DSE/SA. Over the same periods, the leading Application changes from Biomedical (2021–2025) to Materials (2025–2029). In contrast, Aerospace remains the fastest-growing Industry across both timeframes, with continued strong growth forecast through 2029.