EINPresswire/ -- The total CAE software market in 2025 is estimated at $11.6 billion, comprising $10.1 billion in software revenues and $1.6 billion in provider services.

Analysis of industry growth by sector shows that Manufacturing – Aerospace (MFG-Aero) was the fastest-growing industry between 2021 and 2025, expanding at +14.9% CAGR (constant currency). Looking ahead, MFG-Aero is also forecast to lead growth from 2025 to 2029, with a projected +11.2% CAGR (CC).

Cambashi’s latest analysis highlights that while current U.S. tariffs apply only to physical goods, indirect consequences—such as slower industrial production, reduced investment, and cautious consumer behavior may affect software market growth in the coming years.

Despite tariff-related risks, Cambashi emphasizes the resilience of software demand, as companies continue to depend on engineering and simulation tools to boost productivity and efficiency in uncertain economic conditions.

Industrial AI, on the other hand, is expected to play a pivotal role in shaping company revenues and competitive dynamics. AI can accelerate feature development by auto-generating code and can reduce costs by automating customer-facing functions. However, monetization may prove challenging. Customers often expect continuous feature upgrades as part of their software package, while workforce reductions could mean fewer licenses are required. In addition, AI-native competitors may enter the market with disruptive, lower-priced offerings, further intensifying competition.

About Cambashi

Cambashi is a global market research, industry analysis, consulting, and training firm. For more than 40 years, Cambashi has delivered objective research and insights focused on engineering and industrial software markets. 80% of leading BIM (Building Information Modeling) and Manufacturing Design & Engineering software vendors rely on Cambashi data.

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