Model-based enterprise market is anticipated to grow at a significant CAGR of 10.9% during the forecast period (2024-2031).The market growth is attributed to the increasing use of 3D technology in many industrial verticals to meet the growing need for new applications—from 3D modeling to model-based business solutions globally driving the market growth. Model-based enterprises offer to develop, create, and execute innovative building systems, architectural shapes, and other things. It is a creative, quicker, and more flexible approach to product creation and manufacturing.

Market Dynamics

Growing Integration of Digitals Twins

Of the different kinds of digital twins, product digital twins are the ones that are utilized the most frequently. These allow product development teams to design a complete digital version of a product before it is ever made physically. Shop floors and entire supply networks can likewise be replicated using digital twins. By simulating the operation of complex systems, these twins help businesses maximize performance by giving stakeholders important insights into the efficacy and efficiency of their systems. Using digital twins can result in cost savings of 20.0–30.0%.Such savings are limited to that specific silo. However, businesses can save overall expenses combining the various kinds of digital twins into a Model-Based Enterprise (MBE).

Increasing Adoption of 3D Technology Across Multiple Industry

Real-time product shape measurement model-based enterprise solutions are being developed and used as a result of the growing use of 3D technology in several industry verticals to meet the growing need for new applications, such as 3D modeling and shape analysis. There are numerous options to develop, create, and execute innovative building systems, architectural shapes, and others for a creative, quicker, and more flexible approach to product creation and manufacturing. Several manufacturing industries are embracing digital technology, which is driving market growth. the advent of Computer-Aided Design (CAD), 3D models have taken the lead in industry standards for product, tool, and manufacturing process design.

Market Segmentation

Our in-depth analysis of the globalmodel-based enterprise market includes the following segmentsoffering, deployment type, and industry.

• Based on theoffering, the market is sub-segmented into solutions and services.

• Based on the deployment type,the market is sub-segmented into cloud and on-premise.

• Based on the end user, the market is sub-segmented intoaerospace, automotive, construction, retail, power & energy, food & beverages, life sciences & healthcare, marine, oil & gas, and others (electronics & telecommunications).

Services is Projected to Hold as the Largest Segment

Based on the offering,the globalmodel-based enterprisemarket is sub-segmented intosolutions and services. Among these services,sub-segment is expected to hold the largest share of the market. The primary factors supporting the growth includethe increasing adoption of a centralized platform for team collaboration and communication, and model-based enterpriseservices reduce effort duplication. It saves time and cost by doing away with the need for physical prototypes and text-based requirements. For instance, in September 2023, Oracle cloud infrastructure delivered enterprise generative AI Service. The new generative AI service supports Large Language Models (LLMs) to help organizations automate end-to-end business processes, improve decision-making, and enhance customer experiences while keeping their data secure and private.

Aerospace Sub-segment to Hold a Considerable Market Share

Based onend user,the global model-based enterprisemarket is sub-segmented intoaerospace, automotive, construction, retail, power & energy, food & beverages, life sciences & healthcare, marine, oil & gas, and others (electronics & telecommunications). Among these, the aerospace sub-segment is expected to holdaconsiderable share of the market.Manufacturers of aerospace products securely and effectively handle digital products and related data, sharing it with businesses that are part of the product development cycle. Additionally, this industry is swiftly embracing the cloud platform owing to its scalability, cost-effectiveness, and security characteristics. The defense and aerospace sectors are always eager to adopt new technologies. It demands scalable and adaptable infrastructure, which cloud services provide.For instance, in July 2024, Ramco Systems introduced version 5.9.6 of its Aviation Suite to improve usability and enhance efficiency for Maintenance, Repair, and Overhaul(MROs)and Operators. With major enhancements across various business models, this release delivers one of the most comprehensive toolsets aimed at driving digital transformation for aviation Enterprises.

Regional Outlook

The globalmodel-based enterprise marketis further segmented based on geography including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). 

Increasing Demand forModel-Based Enterprisesin Europe

• The regional growth is attributed to the growing adoption of model-based enterprisesolutions, economic globalization, and the demand to reduce capital expenditure.For instance, Gov.UK in March 2023, introduced an increased rate of relief for loss-making R&D-intensive Small And Medium-Sized Enterprises (SMEs). To harness innovation in support of regional economic growth through pioneering a new model of R&D decision-making. Local government, business, and R&D institutions have chosen 26 projects for the program, Around £1 billion ($1.2 billion) of government funding pledged for the next generation of supercomputing and AI research to establish the UK as a science and technology superpower.

• Cloud-based enterprise solutions are boosting business agility. Market players are continuously searching for methods to improve efficiency and streamline their processes as technology progresses. Cloud-based software solutions are used by market players in the area to enhance processes and increase productivity for companies of all sizes.

Global Model-Based Enterprise Market Growth by Region 2024-2031

North America Holds Major Market Share

Among all the regions, North America holds a significant share owing to the presence numerous prominent model-based enterprisecompanies and providers such as Altair Engineering Inc., CIMdata, Inc., and Synopsys, Inc. in the region.The growth is mainly attributed to the increasing adoption of new technologies across nearly all business sectors and has a greater stake in innovative, affordable technology solutions. To grow its manufacturing sector and to reform and fortify various US-based sectors, the regional administration is implementing new and improved manufacturing methods for significant growth in the model-based enterprisemarket. Market players are investing in creating innovative solutions and accelerators for the Manufacturing Execution System And Operations Management (MES/MOM) industry, brought together by a global team of small and midsize enterprises (SMEs), techno-functional consultants, developers, and test engineers with considerable experience.For instance, in March 2023, Cyient and iBASEt inaugurated the Center of Excellence (CoE) to drive digital innovation in aerospace and heavy equipment industries. The joint CoE focuses on the development of capabilities around Manufacturing Execution System (MES) templates for target micro-verticals and model-based Enterprise through Solumina, Product Lifecycle Management(PLM),Enterprise Resource Planning(ERP), and Internet of things (IoT) integration.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global model-based enterprisemarket includeDassaultSystèmes S.E., Hexagon AB, IBM Corp., SAP SE, and Siemens AG among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in February 2024, the Joint MBE and QIF Summit collaborated to offer a model-based enterprise focus. The event includes three and a half days of MBE and QIF technical presentations, panel discussions, and informational sessions from NIST and DMSC.

Recent Development

• In September 2023, HCLTech introduced its Shared Data Center as a Service (Shared DCaaS), an advanced service offering, which aims to help enterprises accelerate their hybrid cloud transformation journeys. This service offering includes shared data centers, dedicated data centers, and regulated workloads in a catalogue-based model.

• In June 2023, Hewlett Packard Enterprise announced it had entered the AI cloud market through the expansion of its HPE GreenLake portfolio to offer large language models for any enterprise, from startups to Fortune 500 companies, to access on-demand in a multi-tenant supercomputing cloud service.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global model-based enterprise market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.