Global Agentic AI in Digital Engineering Market Size is Predicted to Expand and Reach USD 646.34 Billion by 2035 | CAGR of 60.1%

The Global Agentic AI in Digital Engineering Market Size is Predicted to Expand and Reach USD 646.34 Billion by 2035.

According to a research report published by Spherical Insights & Consulting, the Global Agentic AI in Digital Engineering Market Size is anticipated to grow from USD 3.65 Billion in 2024 to USD 646.34 Billion by 2035, at a CAGR of 60.1% during the forecast period 2025-2035.

Browse 210 Market Data Tables And 45 Figures Spread Through 190 Pages and In-Depth TOC On the "Global Agentic AI in Digital Engineering Market Size, Share, and COVID-19 Impact Analysis, By Technology Type (Generative AI for Design, Digital Twins and Physics-based Simulation, AI in Robotics and Automation, and Explainable AI (XAI)), By Deployment Model (On-Premise, Cloud-Based, and Hybrid), By Application Phase (Product Design & Development, Predictive Engineering Analytics, Autonomous Testing & QA, and Process & Workflow Optimization), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 – 2035. " Get Detailed Report Description Here: https://www.sphericalinsights.com/reports/agentic-ai-in-digital-engineering-market    

Agentic AI in digital engineering market involves autonomous systems capable of reasoning, planning, and executing complex, multi-step engineering workflows, such as generative design, simulation, and predictive maintenance, with minimal human intervention. These AI agents leverage large language models to interact with CAD, PLM, and physics-based tools, transforming engineering from human-executed to autonomously assisted workflows. Key drivers include the urgent need for faster innovation, increased product complexity, and the push for reduced time-to-market. Significant opportunities arise from integrating physics-based digital twins, automating compliance reporting, and applying agents to accelerate CAD design cycles. The market is rapidly shifting from passive coding assistants to active, collaborative digital engineers. The agentic AI digital engineering market is limited by costs, security issues, and legacy integration challenges.

The generative AI for design segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.

Based on the technology type, the agentic AI in digital engineering market is divided into generative AI for design, digital twins and physics-based simulation, AI in robotics and automation, and explainable AI (XAI). Among these, the generative AI for design segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. The generative AI for design segment led market growth, driven by increasing adoption in product development, rapid prototyping, and innovation acceleration, enabling companies to streamline design workflows, reduce time-to-market, and enhance creativity across industries.

The cloud-based segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the deployment model, the agentic AI in digital engineering market is divided into on-premise, cloud-based, and hybrid. Among these, the cloud-based segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period. The cloud-based segment growth is fueled by scalable infrastructure, remote accessibility, and cost-efficiency, enabling organizations to deploy agentic AI solutions seamlessly, enhance collaboration, and accelerate digital engineering workflows across multiple industries globally.

The product design & development segment accounted for the highest market revenue in 2024 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the application phase, the agentic AI in digital engineering market is divided into product design & development, predictive engineering analytics, autonomous testing & QA, and process & workflow optimization. Among these, the product design & development segment accounted for the highest market revenue in 2024 and is anticipated to grow at a significant CAGR during the forecast period. The product design & development segment led market growth, driven by increasing demand for innovative solutions, faster prototyping, and efficiency improvements, with agentic AI enabling streamlined workflows, enhanced collaboration, and accelerated time-to-market across engineering and manufacturing industries.

North America is expected to hold the majority share of the global agentic AI in digital engineering market during the forecast period.

North America is expected to hold the majority share of the global agentic AI in digital engineering market during the forecast period. The region’s growth in agentic AI in digital engineering market is driven by advanced industrial adoption, strong R&D investments, established technology infrastructure, and high enterprise AI integration. Key countries like the U.S. lead innovation, accelerating AI deployment across manufacturing, aerospace, and automotive sectors.

Asia Pacific is anticipated to grow at the fastest pace in the global agentic AI in digital engineering market during the forecast period. The region is rapidly growing in the agentic AI digital engineering market, driven by rising industrial automation, government AI initiatives, expanding manufacturing hubs, and increasing adoption of advanced engineering technologies in countries like China, India, and Japan.

Major vendors in the global agentic AI in digital engineering market are NVIDIA Corporation, Dassault Systemes, Autodesk, Inc., Siemens, Google LLC, ANSYS, Inc., IBM Watsonx, PTC Inc., Accenture PLC, Synopsys Inc., Microsoft Corporation, Adept AI Labs Inc., Cadence Design Systems, Ampcome Technologies Pvt. Ltd, and Others.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Key Market Development 

• In February 2026, the Ministry of Commerce and Industry, in partnership with Microsoft, launched the AI Agent Factory platform to develop, manage, and deploy AI agents, enhancing government service efficiency, modernizing operations, and enabling seamless integration across internal and external systems.

• In February 2026, Siemens launched the Questa One Agentic Toolkit, introducing domain-scoped AI workflows for its Questa One verification software. By automating complex IC design and verification tasks, it accelerates RTL sign-off, enhances engineer productivity, and enables intelligent, framework-agnostic, multi-step workflows with controlled human oversight.

• In January 2026, Ministry of Digital Development and Information, through Infocomm Media Development Authority, released Version 1.0 of the Model AI Governance Framework for Agentic AI, outlining risk management, human accountability, technical controls, and end-user responsibilities for safe deployment of autonomous, multi-agent AI systems.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the agentic AI in digital engineering market based on the below-mentioned segments:

Global Agentic AI in Digital Engineering Market, By Technology Type

• Generative AI for Design
• Digital Twins and Physics-based Simulation
• AI in Robotics and Automation
• Explainable AI (XAI)

Global Agentic AI in Digital Engineering Market, By Deployment Model

• On-Premise
• Cloud-Based
• Hybrid

Global Agentic AI in Digital Engineering Market, By Application Phase

• Product Design & Development
• Predictive Engineering Analytics
• Autonomous Testing & QA
• Process & Workflow Optimization

Global Agentic AI in Digital Engineering Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe

• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa

About the Spherical Insights & Consulting

Spherical Insights & Consulting is a market research and consulting firm which provides actionable market research study, quantitative forecasting and trends analysis provides forward-looking insight especially designed for decision makers and aids ROI.

Which is catering to different industry such as financial sectors, industrial sectors, government organizations, universities, non-profits and corporations. The company's mission is to work with businesses to achieve business objectives and maintain strategic improvements. 

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