Daratech Forecasts Digital Simulation Market to Increase 12% in 2004

8 Aug, 2004

Daratech research reveals investment in CAE software and services will top $2.1 billion in 2004, a substantial year-over-year increase of 12%. Considering that spending on product lifecycle management is forecast to top $8.6 billion in 2004 and grow 8% each year through 2008, a picture of CAE?s rising prominence begins to emerge: Approximately 25% of PLM investments will come from digital simulation in 2004. Over the next five years, Daratech predicts digital simulation will be the growth engine of PLM, rising 12% annually over that time.

Driving growth will be a combination of advances in high-performance computing along with the growing recognition of digital simulation?s ability to generate higher quality and more innovative products faster and at lower costs than is possible with traditional methods. Though given the integral role played by digital simulation in many of today?s superior products, the researcher believes CAE should be enjoying even higher rates of growth. The prospects for broader use seems to rest on the shoulders of developers who must more effectively communicate the benefits of digital simulation to top management, it says.

For years, data drawn from digital simulation was viewed with skepticism, but the long-held axiom that the physical test results are the data of record is starting to erode. Manufacturers are gaining more confidence in analysis software as their experience and understanding of CAE grows, and as increasing numbers of successful products emerge as a result of heavier reliance on CAE. In addition, the software has become easier to use and implement in conjunction with physical test, enabling practitioners to better correlate results and increase confidence in digital methods. The steady maturation of analysis software coincides with the availability and affordability of high performance computing architectures, making faster CAE possible and desktop CAE a reality.