Model Based Enterprise Market Analysis by Offerings (Solutions, and Services); by Deployment Mode (On-Premise, and Cloud); and by End User (Aerospace & Defense, Automotive, Construction, Power & Energy, and Retail) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035

Buy Now Report ID: 4885 | Published Date: May 01, 2023

Global Model Based Enterprise Market Size, Forecast, and Trend Highlights Over 2023 – 2035

Model Based Enterprise Market size is estimated to reach ~USD 249.6 Billion by the end of 2035 by growing at a CAGR of ~24.17% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of model based enterprise was ~USD 18.58 Billion. The growth of the market can be attributed to growing adoption of Internet of Things (IoT). In 2022, about 33% of North American and European organizations were integrating IoT technology into their daily operations, and another approximately 13% planned to do so in 2023. By offering more data and insights into product performance and customer behavior, the increased adoption of the Internet of Things (IoT) is anticipated to enhance demand for model-based enterprise (MBE).

Moreover, the growing adoption of 5G network is also estimated to boost the demand for model based enterprise. With less latency and greater capacity, 5G networks are intended to offer faster and more dependable communication. As a result, IoT devices would be able to interact more rapidly and effectively, supporting the transmission of bigger data sets. Moreover, the deployment of internet of things (IoT) devices in more remote and rural locations would be possible since to the predicted expansion of 5G networks' coverage over earlier cellular network generations. By enabling new use cases, this would aid in extending the reach of IoT applications. Hence, this factor is also estimated to boost the growth of the market.

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Global Model Based Enterprise Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2022)

~ USD 18.58 Billion

Forecast Year Market Size (2035)

~ USD 249.6 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Global Model Based Enterprise Market: Growth Drivers and Challenges


Growth Drivers

  • Rise in Adoption of Smartphones With about 5 billion smartphone users worldwide as of 2023, approximately 85% of the world's population would be smartphone owners.   Smartphones may be utilized to gather information on a variety of subjects, including consumer behavior, location-based information, and sensor data. With the aid of model based enterprise (MBE) technologies, these data may be utilized to build digital models that could be examined and improved.
  • Growing Generation of Data - There has been growing generation of data by organizations across the globe that increased the demand for model based enterprise. Globally, about 3 quintillion bytes of data are produced every day.
  • Surge in People Working from Home- By 2025, about 35 million individuals in the United States would be remote, an approximately 15 million increased from pre-pandemic data. Businesses require digital tools to support team collaboration and communication as more employees work remotely. Employees could collaborate on design and development projects every corner of world using MBE tools to produce digital models that could be accessed and changed by multiple users.
  • Rise in Investment for Industry 4.0- Investments in Industry 4.0 have increased by roughly about 9X during the past ten years and are projected to reach approximately USD 199 billion globally by 2025. The development of MBE in the manufacturing sector is being fueled by the Industry 4.0 programme, which aspires to build "smart factories" and more automated, networked industrial processes. By facilitating the development of digital models that could be utilized for automation and optimization, MBE offers a digital basis for Industry 4.0.
  • Upsurge in Consumption of Energy - About 3% of the electricity consumed for end uses was used directly by the industrial and commercial sectors in 2022 in the United States. MBE could aid in reducing energy waste by minimizing energy use during design and manufacture. MBE could assist in identifying places where energy consumption could be decreased by employing simulations and digital models, such as by the use of alternative materials or more effective production techniques.


  • Lack of Standardization
  • Rise in Cost of Model Based Enterprise
  • Lack of Skilled Workers - One of the obstacles to the implementation of model-based enterprise (MBE) practices is a lack of skilled labor. MBE demands some highly qualified personnel with knowledge of the particular industry and product sector, proficiency with digital tools, and the ability to analyses and interpret complicated data. However, new technologies are continually being created, and the MBE sector is constantly changing. Hence, it might be hard for some workers and organizations to keep up with these developments since it requires continual training and education.

Global Model Based Enterprise Market Segmentation

The global model based enterprise industry is segmented and analyzed for demand and supply by deployment mode into on-premise, and cloud. Out of which, the cloud segment is anticipated to garner the highest revenue by the end of 2035. The growth of the segment can be attributed to growing adoption of cloud. In the US, about 93% of businesses employ cloud services, whereas approximately 66% of business infrastructure is now cloud-based. Cloud storage options offer a safe and expandable environment for hosting and distributing MBE data. Also, virtual teams may interact and collaborate in real-time owing to cloud-based collaboration technologies. This could facilitate communication, lower error rates, and hasten the product development process. Additionally, engineers and designers may execute intricate simulations and analyses with the help of cloud-based simulation tools without having to spend a lot of money on high-end gear or software. As a result, they may more effectively optimize their products by testing various design possibilities.

The global model based enterprise market is also segmented and analyzed for demand and supply by end user into aerospace & defense, automotive, construction, power & energy, and retail. Amongst which, the automotive segment is anticipated to have a significant growth over the forecast period. Model-Based Enterprise (MBE) is a significant technology used to enhance the effectiveness and calibre of the product development process in a number of key industries, including the automobile industry. MBE gives makers of automobiles a standardized method for creating products, allowing them to improve efficiency and cut down on waste. Moreover, MBE gives automakers the ability to simulate and evaluate many design possibilities before creating physical prototypes, which could assist to lower costs and raise overall product quality. MBE could also be used to produce thorough manufacturing plans that contain all the required product data, including as design, engineering, and manufacturing information. This could aid in lowering errors and enhancing manufacturing process effectiveness. Additionally, MBE could help to optimize the maintenance and repair process by giving accurate and up-to-date product information. As a result, the maintenance and repair process may operate more effectively overall and have less downtime.

Our in-depth analysis of the global model based enterprise market includes the following segments:


    By Offerings

  • Solutions
  • Services


    By Deployment

  • On-Premise
  • Cloud



   By End User

  • Aerospace & Defense
  • Automotive
  • Construction
  • Power & Energy
  • Retail

Global Model Based Enterprise Market Regional Synopsis


The market share of model based enterprise in North America, amongst the market in all the other regions, is projected to have the highest growth by the end of 2035, backed by growing adoption of automobile, along with surge in awareness among people regarding model based enterprise. In the United States, there were about 278,063,736 personal and commercial automobiles registered to drivers in 2021. Moreover, the demand for MBE in North America has been fueled by the growing adoption of digitalization and automation in manufacturing processes. In a market where competition is fierce, using MBE could assist to enhance manufacturing efficiency and streamline the creation of new products. Additionally, the increased demand for MBE has also been influenced by the availability of skilled individuals in North America. The region offers a big pool of talented engineers and other people with knowledge in sophisticated manufacturing technology, making it an appealing site for businesses interested in implementing MBE practices.

The Asia Pacific model based enterprise market is estimated to be the second largest, to have the highest growth over the forecast period. Rapid industrialization is taking place in the Asia-Pacific area, where several nations have made significant investments in manufacturing and infrastructure. The need for advanced manufacturing technologies, such as MBE, is rising as a result. However, with several businesses vying for market share in quickly expanding business sectors, the Asia Pacific area is extremely competitive. By increasing the effectiveness of product development and manufacturing, MBE is viewed as a means of gaining a competitive edge. Additionally, the middle class in the Asia Pacific area is expanding quickly, which is boosting demand for consumer items including cars and technology. MBE is frequently employed in various sectors to enhance product quality and cut costs.

Additionally, the market in Europe region is also estimated to boost the growth of the market over the forecast period. The European Union (EU) has put in place strict regulatory standards for a number of industries, including the automobile, aerospace, and defense sectors. MBE solutions assist businesses in various sectors in ensuring product quality and safety as well as regulatory compliance. Additionally, there have been tremendous advancements made in fields including cloud computing, big data analytics, and the Internet of Things (IoT) in Europe, which is home to many top technology companies. Utilizing these technologies and empowering businesses to develop more avant-garde goods and procedures are strengths of MBE solutions.

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Top Featured Companies Dominating the Global Model Based Enterprise Market

    • Siemens AG
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Dassault Systèmes SA
    • PTC Inc.
    • Ansys Inc.
    • Autodesk Inc.
    • SAP SE
    • Aras Corporation
    • Bentley Systems, Incorporated
    • IBM Corporation
    • Oracle Corporation


In The News

  • The technical education initiative "IGnITE" was launched by Siemens AG, the Federal Ministry for Economic Cooperation and Development of the Federal Republic of Germany (BMZ), and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH with assistance from the Ministry of Skill Development and Entrepreneurship of the Government of India (MSDE).
  • Using an advanced AI/IoT platform, Sumitomo Rubber Industries, Ltd., Hitachi, Ltd., and PTC, Inc. are working together to deliver a tyre production solution for attaining high-quality, high-efficiency operations across its numerous plants worldwide


Global Economic Impact

Request Insights
Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Author Credits:  Abhishek Verma, Hetal Singh

Key Questions Answered in the Report

1) What are the major factors driving the growth of the model based enterprise market?

Ans: The major factors driving the growth of the market are rise in adoption of smartphones, growing generation of data, surge in people working from home, and others.

2) What would be the CAGR of model based enterprise market over the forecast period?

Ans: The market size of model based enterprise is anticipated to attain a CAGR of ~24.17% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the model based enterprise market growth?

Ans: Lack of standardization, rise in cost of model based enterprise, and end user are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of model based enterprise market in future?

Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the model based enterprise market?

Ans: The major players in the market are Siemens AG, Dassault Systèmes SA , PTC Inc., Ansys Inc., and more.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the model based enterprise market?

Ans: The market is segmented by offerings, deployment, end user and by region.

8) Which segment captures the largest market size in the deployment segment in the model based enterprise market?

Ans: The cloud segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

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