In October 2023, IDC released “CAE Market Share of Chinese Design and R&D Industrial Software, 2022: The Race to the Top” (# CHC50259423) and “CAD Market Share of Chinese design and R&D Industrial Software, 2022: Progress in Stability” (# CHC50258523). The report provides a detailed study on the size, growth rate, major players, market and technology development trends of China’s CAD and CAE market in 2022.

IDC data show that in 2022, the total market share of computer-aided design (CAD) in industrial software for design and development in China reached 4.86 billion yuan, with an annual growth rate of 15.4%, which has slowed down compared with the previous year. From the perspective of the competitive landscape, Dassault Systemes, Siemens and Autodesk are still the top three in China’s CAD software market in 2022, but the market share has declined, including Dassault Systemes from 25.3% to 23.5%, Siemens from 16.4% to 15.3%, Autodesk from 14.0% to 12.5%; Zhongwang Software, PTC, Suzhou Haochen, Digital generous fourth to seventh. The 3D CAD sub-market was RMB 3.09 billion, accounting for 73.4% of the total market, with an annual growth rate of 21.5%, higher than the overall CAD market. Other typical service providers include new Di digital, Huatian Software, Zhejiang Lindi, Cool Jiale, three dimensional home, set order technology, Tianhe Software, EPLAN, Lichi software, Calente, Gongzhiyi, etc., have good results in their respective segments.

In 2022, China’s total market share of computer-aided engineering (CAE) reached 3.76 billion yuan, with an annual growth rate of 17.1%, maintaining a stable growth rate. Ansys, Siemens and Dassault Systemes ranked the top three in China’s CAE software market in 2022, and their market share also declined. Among them, Ansys fell from 19.1 percent to 16.8 percent, Siemens from 16.5 percent to 14.7 percent, and Dassault Systemes from 10.2 percent to 7.9 percent. Other typical service providers include Aotide, Shanghai Suochen, Yundao Intelligent Manufacturing, China Ship Olanto, Intersimulation, frontier Power, Anhuaixin, Tianfu, Holaiwo, Yunlu Technology, Zhongwang Software, etc., also have good market performance.

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CAD and CAE markets are deeply related and different. CAD market manufacturers concentrated, product technology convergence, while the CAE market is more dispersed, the number of manufacturers is much higher than CAD. IDC research shows that the total market share of the top seven CAD market in 2022 is 69.9%, while the CAE data is only 49.5% during the same period. The main reason is that although CAE has the underlying technology such as geometric modeling, mesh division, finite element model, etc., it is difficult for the head manufacturer to have a general simulation product for the whole physical field because it involves different fields such as structural simulation, fluid simulation, electromagnetic simulation, noise simulation, and various professional simulations. Therefore, there are a wide range of general and professional CAE simulation products in the market. Based on this market characteristics, the competition in the second half of the CAE market will not only further expand its existing market and product advantages, but also be carried out in the form of integration between manufacturers.

In recent years, local manufacturers have begun to make breakthroughs in various types of industrial software designed and developed. The report data shows that in 2022, local manufacturers still maintain close to 20% market share in the CAD market, and the CAE market figure remains at about 15%. IDC predicts that while the overall market continues to rise in the future, the proportion will continue to increase.

The report pointed out that in addition to still being affected by the COVID-19 epidemic, the main market changes in 2022 include the continuous enhancement of the awareness of intellectual property protection in the whole society, and the return of the investment environment to rationality. IDC suggested in the report that technology service providers should focus on trends such as the choice of research and development routes, user application feedback, rich product portfolios, integration of design and simulation, and commercialization of SaaS CAD.

IDC China manufacturing industry research manager Du Yanze said that in recent years, the design and development of industrial software has continued to get the dual attention of national policies and capital markets, from the once unknown behind the scenes to the front, but in the context of China’s manufacturing industry as a whole slowing down and the serious homogenization of the market competition, industrial software manufacturers need to adhere to the long-term principle. Clear research and development and market strategy and adhere to the implementation, it is possible to achieve high-quality long-term development, and better support China’s new industrialization system.