In 2021, the top 10 Aerospace and Defense software vendors accounted for 52.7% of the global Aerospace and Defense applications market which grew 13.7% to approach nearly $6.3 billion in license, maintenance and subscription revenues.
Dassault Systemes led the pack with a 9% market share riding on a 22.4% jump in Aerospace and Defense license, maintenance and subscription revenues. Autodesk was #2, followed by Microsoft, Siemens Digital Industries Software, and Cadence Design Systems.
We ask the simple question: Who’s buying Aerospace and Defence applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)
Through our forecast period, the Aerospace and Defense applications market size is expected to reach $7.5 billion by 2026, compared with $6.3 billion in 2021 at a compound annual growth rate of 6.2%.
| Exhibit 2: Worldwide Aerospace and Defense Software Market 2021-2026 Forecast, $M | |||
|---|---|---|---|
| Year | 2021 | 2026 | 2021-2026 CAGR, % |
| Total | 6301 | 7471 | 6.2% |
Source: Apps Run The World, September 2022
Top 10 Aerospace and Defense Software vendors
Aerospace and Defense (Aircraft and parts, defense contractors) – Aviation Maintenance Management, Air Traffic Management applications, Flight operations software, Quality management system, Financials, HR, Procurement
Legacy replacements could spur growth in the A&D market, but cybersecurity risks may prevent A&D firms from embracing the Cloud in its current form. Still GE Digital is pushing ahead with Cloud initiatives like Predix to reshape the A&D market with device connectivity solutions for predictive maintenance.
Here are the rankings of the top 10 Aerospace and Defense applications vendors in 2021 and their market shares.
| Rank | Vendor | 2020 Aerospace & Defense Apps Revenues, $M | 2021 Aerospace & Defense Apps Revenues, $M | YoY Growth | 2021 Aerospace & Defense Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | Dassault Systemes | Subscribe | Subscribe | 22.4% | Subscribe | In April 2022, Urban-Air Port has selected Dassault Systèmes 3DEXPERIENCE Platform to provide the digital architecture for design, development, and operational management of its vertiport sites around the world. Dassault Systèmes, a global innovation leader providing software solutions to nearly 300,000 customers and 25 million users across eleven different industries. |
| 2 | Autodesk | Subscribe | Subscribe | 15.9% | Subscribe | The Autodesk suite is the ideal choice for aerospace companies willing to move their manufacturing plants towards a smart-factory setup. The whole software suite is integrated with the Internet of Things via Autodesk’s Fusion Production software, which collects real-time data from various nodes throughout factory floors, identifies errors, updates its cloud-based database, and gives quick access to information to users. Currently, Autodesk has 4,000 desktop developers, and they hope to draw many of them into the cloud in addition to attracting new ones. |
| 3 | Microsoft | Subscribe | Subscribe | 8.5% | Subscribe | Several years ago, Microsoft Research offered an open-sourced tool called AirSim, which was a simulator for drones, cars and other autonomous vehicles. After years of experimentation, in 2022 Microsoft launched a new AirSim simulation platform for the aerospace industry called Project AirSim. Project AirSim, like the original AirSim, uses AI models to build, train and test drones and other autonomous aircraft using 3D simulation. |
| 4 | Siemens Digital Industries Software | Subscribe | Subscribe | 6.8% | Subscribe | In 2022, Siemens Digital Industries Software entered into an agreement to acquire Zona Technology, a specialist in the field of aeroelastic simulation solutions. This addition to Siemens’ Xcelerator portfolio will assist customers in making their digital threads as comprehensive and as efficient as possible to help speed innovation and ensure on-time and on-budget delivery of more sustainable aerospace invention. Zona’s technology will become part of Siemens’ Simcenter software portfolio, allowing the creation of a unique end-to-end airframe structure design and certification analysis digital thread, beginning with early concept studies, through high-fidelity aero-structural optimisation, through to structural certification and documentation. |
| 5 | Cadence Design Systems | Subscribe | Subscribe | 11.1% | Subscribe | In March 2021, Cadence Design Systems has completed the acquisition of NUMECA International. the addition of NUMECA’s technologies and talent supports the Cadence Intelligent System Design strategy and broadens its system analysis portfolio with computational fluid dynamics (CFD) solutions. These products will contribute to Cadence system analysis solutions for integrated circuits (ICs), electronic subsystems and full system designs. NUMECA’s technologies serve several industries including aerospace, automotive, industrial and marine, and have been adopted by industry leaders such as NASA, ArianeGroup, Honda and Ford. |
| 6 | Synopsys | Subscribe | Subscribe | 12.3% | Subscribe | The US Government has called for agility in defense acquisition with a focus on rapid prototyping. Synopsys offers parallel simulation, FPGA prototyping and server-level emulation. To reduce analog/mixed-signal (AMS) semiconductor development time, Synopsys is executing the DARPA ERI Posh Open-Source Hardware (POSH) program to enable parallel software/hardware development with less test iterations while prototyping real-world interfaces. |
| 7 | Ansys Inc. | Subscribe | Subscribe | 13.9% | Subscribe | Ansys acquired AGI, a premier provider of mission-simulation, modeling, testing and analysis software for aerospace, defense and intelligence applications. The acquisition expands Ansys’ offerings, empowering users to solve challenges by simulating from the chip level all the way to a customer’s entire mission. |
| 8 | Hexagon | Subscribe | Subscribe | 15.0% | Subscribe | In 2021, Hexagon in collaboration with Stratasys launched a new solution to help manufacturers in the aerospace sector boost confidence in the performance and safety of 3D printed plastic components and compress time to market. Through the virtual engineering and manufacturing support provided by the partnership, customers will be able to reduce a 2- to 3-year timescale of designing and testing a part to 6 to 9 months. |
| 9 | PTC | Subscribe | Subscribe | 23.8% | Subscribe | In May 2022, PTC has completed acquisition of Intland Software. The acquisition will significantly broaden and deepen PTC’s Application Lifecycle Management (ALM) footprint across safety-critical and regulated industries, including automotive, life sciences, consumer electronics, and aerospace and defense. PTC plans to offer the Intland Codebeamer next-generation ALM suite standalone and in conjunction with both its Windchill and Arena PLM offerings, and to continue to enhance and support its current ALM solution. |
| 10 | Lufthansa Systems | Subscribe | Subscribe | -12.9% | Subscribe | As a tech company and airline IT provider, Lufthansa Systems is committed to identifying its own environmental footprint and improving that of its more than 350 customers worldwide. Smart, innovative IT solutions contribute to an airline’s environmental efficiency, for example by optimizing flight routes to reduce flight times and fuel consumption or migrating to a paperless flight deck and aircraft cabin. |
| Subtotal | Subscribe | Subscribe | 12.3% | Subscribe | ||
| Other | Subscribe | Subscribe | 15.3% | Subscribe | ||
| Total | 5542 | 6301 | 13.7% | 100% |
Source: Apps Run The World, September 2022
Other Aerospace and Defence software providers included in the report are: ADP, Adobe, AerData B.V., Altair Engineering, Inc., Amadeus, AMT-SYBEX’s Leasepoint, Atlassian, AVEVA Group, Bentley Systems Inc., Blue Yonder, Boeing Jeppesen, Cegid, Constellation Software Inc., Cisco Systems, Citrix, Corel Corporation, CoStar Group, DocuSign, Inc., E2open LLC, GE Digital, GFI Informatique, Google, Hitit Bilgisayar, HubSpot, Honeywell International, IBM, IBS Software Services, IFS, Infor, Intuit Inc., Kinaxis Inc., Landmark, a Halliburton business line, Nuance Communications Inc., Open Text Corporation, Oracle, Palantir Technologies, RingCentral, Rockwell Automation, Roper Technologies, Inc., Saab Sensis, SAP, Sage, Salesforce, SAS Institute, ServiceNow, Shopify, SITA, SupplyOn, Sopra Steria Group SA, Trimble, UKG, Verizon Connect, Workday, Zoom Video Communications and many others.
Custom data cuts related to the Aerospace and Defense Applications market are available:
- Top 700 Aerospace and Defense Applications Vendors and Market Forecast 2021-2026
- 2021 Aerospace and Defense Applications Market By Functional Market (16 Markets)
- 2021 Aerospace and Defense Applications Market By Country (USA + 45 countries)
- 2021 Aerospace and Defense Applications Market By Region (Americas, EMEA, APAC)
- 2021 Aerospace and Defense Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2021 Aerospace and Defense Applications Market By Customer Size (revenue, employee count, asset)
- 2021 Aerospace and Defense Applications Market By Channel (Direct vs Direct)
- 2021 Aerospace and Defense Applications Market By Product
Exhibit 4 shows our projections for the enterprise applications market by vertical segment, based on the buying preferences and the customer propensity to invest in new software within those industries as they continue to upgrade and replace many legacy industry-specific applications that have been identified and tracked in our Buyer Insight Database.
Aerospace and Defense Software Purchases Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Aerospace and Defense systems based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest Aerospace and Defense software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these customer Aerospace and Defense wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
Source: Apps Run The World, December 2022
Further Readings
An expanded version of this report covers the top 700+ Aerospace and Defense Software Vendors, offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares (SCORES) within their respective space. We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.
More Enterprise Applications Research Findings
Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) and the world’s 500 largest Cloud Applications Vendors (Cloud Top 500) ranked by their 2015-2021 product revenues.
Their 2021 results are being broken down, sorted and ranked across 16 functional areas (from Analytics to Treasury and Risk Management) and by 21 vertical industries(from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.
Research Methodology
Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market.
We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.
The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.
