The global model-based enterprises (MBE) market is projected to witness significant expansion, reaching an estimated USD 32.1 billion by 2030 from USD 13.9 billion in 2024, at a robust CAGR of 15.0%.
This remarkable growth is driven by organizations’ ongoing efforts to meet evolving customer expectations by leveraging innovative, digitized design and manufacturing processes. The MBE approach revolutionizes traditional engineering by introducing digital 3D models that serve as the central source of information throughout a product’s lifecycle—streamlining operations, enhancing collaboration, and reducing costly errors.
The rise of industries that prioritize quality and safety—such as aerospace, defense, and automotive—is also propelling the adoption of MBE methodologies. The increasing number of industrial enterprises globally further strengthens market momentum. For instance, as of December 2023, over 21.5 million micro, small, and medium enterprises (MSMEs) were registered in India alone. These businesses, driven by the need for agility and efficiency, are embracing model-based frameworks to optimize operations and maintain competitiveness. Moreover, supportive government policies, especially in Asia-Pacific and North America, are accelerating the digital transformation journey, enabling businesses to adopt MBE solutions on a wider scale.
Key Insights
The design model segment dominates the market in 2024 with a 40.0% share, attributed to the widespread use of 3D CAD models across industries. These models serve as a comprehensive product definition tool, replacing traditional 2D blueprints and forming the foundation for model-based engineering and manufacturing practices.
The aerospace and defense industry leads both in size and growth rate among end users, accounting for 35% of the market share in 2024. This sector’s complexity, regulatory rigor, and early adoption of digital technologies have made it a key proponent of MBE adoption, especially in enhancing lifecycle management and product innovation.
Asia-Pacific is forecasted to be the fastest-growing region during the forecast period, with a CAGR of 15.5%. This growth is fueled by rapid industrialization, increasing technological investments, and rising support from regional governments, including incentives for local manufacturing and innovation-driven reforms.
North America remains the largest regional market due to the early adoption of Industry 4.0 principles, significant investments in digital transformation, and the presence of key players such as Boeing, PTC Inc., and Dassault Systèmes.
The integration of MBE with Industry 4.0 is a defining trend, with governments like that of the U.S. investing USD 1 billion into research and development for smart manufacturing technologies, including AI and quantum information systems. This strategic move is accelerating the deployment of smart factories and sustainable production ecosystems.
Technological advancements such as cloud-based MBE platforms, CAD upgrades, AI integration, and IoT deployments are reshaping how businesses implement model-based systems. These innovations enhance interoperability, provide real-time insights, and support seamless collaboration across teams.
The automotive sector is rapidly embracing MBE for its ability to shorten product development cycles, increase design accuracy, and ensure compliance with environmental and safety standards, thereby improving profitability and customer satisfaction.
The market is highly fragmented, featuring a mix of global and regional players. Notable names include Siemens AG, Oracle Corporation, Autodesk Inc., ANSYS Inc., SAP SE, Aras Corporation, HCL Technologies, and Airbus SE. These companies are actively engaging in strategic partnerships, M&As, and R&D to strengthen their market positions.
Emerging trends such as the fusion of quantum computing with MBE are expected to transform design optimization by offering rapid prototyping and multi-concept simulations, especially in high-tech sectors like aerospace and defense.
Despite its benefits, transitioning to MBE poses challenges including cultural shifts, need for employee re-training, and infrastructure investments. Businesses must navigate data management complexities and legacy system limitations during the adoption process.
Overall, the increasing need for precision, regulatory compliance, and operational agility is solidifying MBE’s role as a core pillar of modern digital manufacturing strategies across diverse sectors.
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