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What does CAE mean in product development?
CAE (Computer-Aided Engineering) refers to the computer-based use of simulation and calculation software to analyse the physical behaviour of components, assemblies or entire systems before they are manufactured. Design and simulation engineers use the digital model to check factors such as strength, flow behaviour, heat development or crash safety instead of building multiple physical prototypes. This allows weak points to be identified and resolved early in the development process. CAE is considered a central building block of digital product development and complements geometric design in the CAD system.
What is the difference between CAD and CAE?
CAD (Computer-Aided Design) describes the geometry of a product, i.e. the question of what is to be built and what it looks like. CAE uses this geometry as a basis to calculate physical behaviour under load, for example whether a component holds, vibrates or deforms. CAD thus supplies the model, while CAE evaluates and optimises it virtually without creating new geometry itself. In practice, the geometry required for a CAE calculation almost always comes directly from a CAD system.
Which methods belong to CAE, and what is FEM?
The best-known CAE method is the finite element method (FEM, whose practical application in analysis is often referred to as FEA), which divides a component into a mesh of many small elements and calculates stress, strain and deformation for each element. It is complemented by computational fluid dynamics (CFD) for liquids and gases, based on the Navier-Stokes equations, and multibody simulation (MBS) for moving mechanisms. Added to these are thermal and electromagnetic analyses, often combined in what is known as multiphysics simulation. FEM is the most widely used discipline within the CAE spectrum.
Which CAE software is best known?
Ansys (part of Synopsys since July 2025) is regarded as the broad market leader for FEM and CFD and, according to industry estimates, holds the largest position in the CAE segment. Siemens Simcenter, Dassault Systèmes Simulia (Abaqus), Altair HyperWorks (part of Siemens since 2025), Hexagon (MSC Software) and MathWorks are also widely used, while for SMEs solutions such as SolidWorks Simulation or Autodesk often provide the entry point. Together, these vendors cover a large share of a market that market researchers estimate at around twelve billion US dollars for 2025, with double-digit growth rates expected. The right choice depends on the industry, the type of simulation and the existing CAD and PLM landscape, and this list is to be understood without any ranking implied.
Does CAE completely replace physical prototypes and testing?
CAE significantly reduces the number of physical prototypes required, but as a rule it does not completely replace physical testing. The results are model calculations whose quality depends heavily on meshing, material data, loads and boundary conditions; well-configured simulations often match real-world behaviour with a deviation in the single-digit to low double-digit percentage range. In practice, physical tests therefore serve to validate and calibrate the simulation models, for example using measurement data from strain gauges or sensors. CAE and physical testing thus complement rather than replace each other.
Does CAE play a role for an ERP system?
CAE is not an ERP module itself but an independent simulation discipline in the engineering and PLM environment; nevertheless, it is closely connected to the ERP through shared data. Once a simulation confirms a design, the verified geometry, materials and variants flow via PLM into the bills of materials and thus into the ERP's procurement, material planning and costing. If, for example, a topology optimisation saves material or the material changes, downstream quantities, costs and possibly suppliers change as well. Without proper engineering change management, there is a risk that simulation-driven changes do not arrive consistently in the ERP systems.