Computational Fluid Dynamics Market Size 2024-2028

The computational fluid dynamics market size is forecast to increase by USD 1.24 billion at a CAGR of 9.45% between 2023 and 2028. The market's growth is influenced by multiple factors, including the increasing demand for reducing product design time and costs, the rising adoption of electric vehicles, and the expansion of unconventional exploration and production projects. Computational Fluid Dynamics (CFD) serves as a critical tool for analyzing complex systems across various industries. Recent advancements in CFD allow for the detailed examination of intricate systems such as separation units, pipeline component interactions, and heat exchangers, leading to more accurate estimates of projected flow properties.

What will be the size of the Computational Fluid Dynamics Market During the Forecast Period?

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Computational Fluid Dynamics Market Segmentation

The market serves a wide range of industries, including aerospace, energy, automotive, and manufacturing. In aerospace, it is utilized to optimize aerodynamics, thereby reducing costs and enhancing safety. Energy companies employ these tools to improve the designs of power plants and wind turbines for greater efficiency. Within the automotive sector, Computational Fluid Dynamics (CFD) assists in optimizing vehicle aerodynamics and cooling systems for electric vehicle batteries. Across various industries, CFD contributes to process optimization and cost reduction in manufacturing. Recent advancements in hardware and cloud-based solutions have made CFD more accessible. Additionally, the integration of artificial intelligence streamlines simulations, expediting analysis across multiple sectors. The market size is determined by the revenue generated from software and services related to CFD, with software licenses encompassing both perpetual and subscription-based options.

The computational fluid dynamics market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• End-user Outlook 
  • Aerospace and defense industry
  • Automotive industry
  • Electrical and electronics industry
  • Others

• Deployment Outlook 
  • Cloud
  • On-premise

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

By End-user

The aerospace and defense industry segment is anticipated to experience substantial market share growth during the forecast period. This growth is driven by the rising demand for operational efficiency, cost reduction, compliance with standards, product performance, and effective resource management throughout all stages of the manufacturing chain. Traditionally, manufacturing companies relied on wind tunnel testing and flight-testing methods; however, these can now be effectively replaced by numerical simulation techniques. These advanced simulation methods are founded on the Navier-Stokes equations, which describe fluid motion according to Newton's second law. The implementation of CFD has led to an increased bypass ratio, which enhances fuel efficiency and reduces the number of blades required in turbines due to improved operational efficiency.

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The aerospace and defense industry segment was valued at USD 547.60 million in 2018 and is projected to continue its growth through 2022. The entire aerospace design process can be enhanced by minimizing the need for physical prototypes. SimScale, a significant player in the market, provides cloud-based platforms capable of delivering robust CFD simulations. Furthermore, modern aircraft systems must adhere to electrical design requirements, for which one market participant offers capital load analyzer software. This software simplifies compliance and certification processes through automated simulations and seamless digital data continuity. These factors are expected to contribute to the growth of this segment during the forecast period.

Regional Overview

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North America is anticipated to account for 32% of the growth in the global market during the forecast period. Analysts have provided a detailed analysis of the regional trends and drivers influencing the market in this timeframe. Within North America, the United States stands out as the largest revenue generator, driven by the expansion of manufacturing, automotive, and aerospace industries, along with significant defense spending on aircraft by the U.S. government.

Numerous companies operate in this region, benefiting from factors such as abundant natural resources, political stability, a highly educated and productive workforce, and a favorable business environment. Additionally, the aerospace, automotive, and housing sectors are among the primary end users of CFD software. Automotive manufacturers are increasingly focused on innovating new, lightweight, and fuel-efficient models, while many U.S. aircraft companies heavily utilize CFD software for the production of aircraft components. These dynamics are expected to positively impact the growth of the computational fluid dynamics market in the region during the forecast period. 

Computational Fluid Dynamics Market Dynamics

The market is positioned at the forefront of efficient product design and optimization, utilizing high-performance computing (HPC) and cloud-based solutions. Industries such as healthcare, renewable energy, and biotechnology are enhancing sustainability while addressing environmental concerns. Computational fluid dynamics (CFD) is applied across a variety of sectors, including aerospace, automotive manufacturing, energy, electrical and electronics, computer peripherals, and industrial machinery. Its influence extends to material and chemical processing, particularly within electric vehicles and broader industrialization initiatives. By employing computational fluid codes, CFD significantly advances fluid mechanics, fostering innovation in the automotive sector and ensuring efficient design processes across various industries. This CFD market research and growth report on computational fluid dynamics includes a comprehensive analysis of drivers, trends, and challenges shaping the industry.

Key Market Driver

The increasing demand for reducing product design time and costs is a key driver of market growth. By shortening the product development cycle and enhancing the speed of product design through software-generated simulations, computational fluid dynamics (CFD) significantly reduces time to market. The reliability and accuracy of results, along with cost-effectiveness and the elimination of multiple physical prototypes, further contribute to the market's expansion.

Consequently, many companies across manufacturing industries are adopting these solutions. For example, the Steel Authority of India Limited (SAIL) utilizes ANSYS Fluent Software, which aids in minimizing unnecessary expenses associated with plant-scale experiments and testing. A leading global manufacturer of oil, gas, water, and steam boilers also employs ANSYS simulation software, enabling them to save over six months compared to traditional build-and-test methods. These factors are anticipated to drive growth in the computational fluid dynamics market during the forecast period. 

Significant Market Trends

The increasing shift toward cloud-based CFD is a key trend in the market. In developing countries, factors like increased digitization, improving connectivity, and increased R&D investment is boosting the growth of the market. Cloud-based CFD software has numerous benefits including automatic installation and upgradation, and zero start-up time. and do not require IT system setups or license activation.

Moreover, it helps support operational efficiency by offering a guided workflow and a smooth learning curve. Cloud-based are also user-friendly and can help in the correct completion of advanced CFD simulations by following a simple step-by-step approach. If required, constant online support is also present which gives it an edge over traditional software. These factors will fuel computational fluid dynamics market growth during the forecast period.  

Major Market Restraint

The rising concerns regarding software and data privacy pose significant challenges to market growth. To tackle these security issues, companies are implementing data security policies governing OpenStack cloud models. CFD firms often encounter difficulties as clients may not verify the server's Certificate Authority (CA) credential before establishing a secure socket layer connection. Fears of data leakage, which could compromise business security by exposing confidential information, hinder market expansion.

Additionally, while the increased accessibility of cloud computing enhances operational convenience, it also introduces risks related to data mishandling by service providers or third parties. Cloud-stored data can be susceptible to hacking or malware infections. Furthermore, reliance on cloud-based control limits businesses' oversight of their data, which adversely affects market growth. Despite improvements in cloud solution security, threats such as distributed denial-of-service (DDoS) attacks, data breaches, data loss, and account hijacking remain prevalent. These factors are expected to impede the growth of the computational fluid dynamics market during the forecast period. 

Customer Landscape

The computational fluid dynamics market report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the computational fluid dynamics market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Who are the Major Computational Fluid Dynamics Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Altair Engineering Inc. - The company offers computational fluid dynamics software such as Altair AcuSolve, Altair nanoFluidX, and Altair ultraFluidX.

ANSYS Inc. - The company offers computational fluid dynamics software such as Ansys Fluent and Ansys CFX and Ansys Chemkin Pro.

Autodesk Inc. - The company offers computational fluid dynamics software such as Autodesk Cfd.

The computational fluid dynamics market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:

• Bentley Systems Inc.
• Cadence Design Systems Inc.
• COMSOL AB
• Convergent Science Inc.
• CPFD Software LLC
• Dassault Systemes SE
• Flow Science Inc.
• Fluidyn Group
• Hexagon AB
• Kitware Inc.
• Mechartes Researchers Pvt Ltd.
• PTC Inc.
• Siemens AG
• SimScale GmbH
• Synopsys Inc.
• The MathWorks Inc.
• ZeusNumerix Pvt. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The market is experiencing notable growth driven by the need for efficient product design and optimization across various sectors, including aerospace, automotive manufacturing, and industrial machinery. The emergence of high-performance computing (HPC) and advanced simulation and analysis software has led to increased adoption of computer-aided engineering (CAE) solutions to address complex challenges in fluid mechanics and computational fluid dynamics (CFD). Industries are utilizing CFD to reduce manufacturing costs, enhance energy efficiency, and tackle environmental issues, particularly in energy management and renewable energy applications. The integration of artificial intelligence further boosts CFD's capabilities, making it essential in biotechnology, healthcare, and material and chemical processing, thus supporting sustainability and industrialization efforts.

The computational fluid dynamics market is rapidly expanding, driven by advancements in hardware and the adoption of sustainability initiatives across multiple industries. CFD applications are widely used, especially in the automotive and aerospace sectors, to optimize designs and improve product performance in real-world conditions. The market is segmented by deployment model, encompassing both cloud-based and on-premises solutions to meet diverse industry requirements. As developed economies grow, there is an increasing demand for these solutions to streamline manufacturing processes and accelerate product design cycles. Furthermore, CFD software packages provide advanced equation-solving capabilities, which reduce testing and analysis time while ensuring robust cybersecurity measures are implemented.

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What are the Key Data Covered in this Computational Fluid Dynamics Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2028
• Precise estimation of the size of the market and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of market companies

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