Latest News- Agentic AI In Digital Engineering Market: Cloud is expected to lead the Deployment segment during 2025-2029

The Agentic AI In Digital Engineering Market is being driven by Imperative to accelerate innovation and reduce time-to-market

The Agentic AI In Digital Engineering Market is expected to grow at a CAGR of 46.4% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 20142.4 million. In the digital engineering market, a significant development is the integration of agentic AI with high-fidelity, physics-based digital twins. This trend transcends the use of digital twins as passive replicas, transforming them into active, dynamic environments where autonomous agents can experiment, learn, and optimize in real time. Instead of merely mirroring a physical asset, these advanced virtual environments function as the primary workspace for AI agents. An agent can be assigned a high-level objective, such as enhancing a data center's thermal efficiency, and then be released within its digital twin to autonomously test variables, adjusting server layouts, cooling system parameters, and simulating airflow to uncover innovative and highly effective solutions. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Deployment
  • Cloud
  • On premises
• Application
  • Product design and development
  • Predictive engineering analytics
  • Process automation and workflow optimization
  • Others
• End-user
  • Automotive and aerospace
  • Energy and utilities
  • Construction and civil engineering
  • Others
• Geography
  • North America
    • Canada
    • US
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Europe
    • Germany
    • UK
    • France
  • South America
    • Brazil
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Imperative to accelerate innovation and reduce time-to-market
• Escalating complexity of modern products and systems
• Rapid advancements in foundational AI models and computational infrastructure

However, the market also witnesses some limitations, which are as follows:

• Paramount concerns over data security and intellectual property protection
• Overcoming issues of trust, validation, and model reliability
• Prohibitive implementation costs and scarcity of specialized talent

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Market Scope in Agentic AI In Digital Engineering Market Research Report

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Research Analysis Overview

In the Agentic AI digital engineering market, 'agent-based modeling' is used for complex system design, while 'design space exploration' and 'multi-objective optimization' ensure efficient solutions. 'Design for manufacturing' and 'design for sustainability' prioritize production and environmental considerations. 'Human-in-the-loop systems' integrate human expertise, and 'explainable AI methods' promote transparency. 'Federated learning' and 'transfer learning techniques' enable data sharing and reuse. 'Knowledge graph technology' and 'ontology development' support semantic understanding, and 'semantic web technologies' ensure interoperability. 'Digital thread traceability' and 'data provenance management' maintain accountability, while 'model fidelity assessment' and 'simulation validation' ensure accuracy. 'Virtual prototyping' and 'digital twin validation' provide realistic testing, and 'design review process,' 'engineering change management,' 'configuration management,' 'requirement management,' 'test automation frameworks,' 'deployment automation,' 'continuous integration,' and 'continuous delivery' streamline development.

Market Research Overview

In the dynamic digital engineering market, Artificial Intelligence (AI) is revolutionizing design automation through the application of advanced generative design algorithms. Companies specializing in AI-driven design solutions leverage digital twin technology and simulation-driven engineering to enhance productivity and efficiency. These innovative offerings fall under the broader category of application software, contributing significantly to the global IT software market. According to Technavio, this market encompasses businesses providing all types of IT software, including cloud-based solutions. The application software market specifically focuses on the development and production of software tailored for business and consumer applications, excluding interactive home entertainment and systems software providers.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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Website: www.technavio.com/