CAD Software Market Overview
The CAD software market size is expected to reach $11,097.0 million in 2023, growing at a CAGR of 6.9% during 2017 – 2023. CAD software stands for computer aided design software, which enables users to design ideas, visualize various designing concepts and simulate how the design will perform in real world. CAD solution provides designers and engineers the flexibility of multi-dimensional modeling, using advanced designing tools and concepts.
Global 3D CAD software Market, BY Region, $M (2013 – 2023)
Increasing use of CAD software in packaging industry, along with growing product recalls in automotive industry, are some of the key factors positively impacting the growth of the industry. However, availability of free and open-source CAD software, and high cost of advanced and 3D CAD software are the factors negatively impacting the growth of the market.
CAD Software Market Trends
Increasing acquisitions, growing number of partnerships, shift from license-based to subscription-based model, and transition from 2D CAD to 3D CAD are some of the major trends observed in the CAD software market. The companies offering CAD software are incessantly acquiring specific design software solution providers to enhance their offerings and increase user base. Key players, such as Dassault Systèmes and Hexagon AB, have been acquiring software solution providers to leverage their expertise and roll out new products and services in the market. With increasing number of acquisitions, design software solution providers are enhancing their expertise in catering to larger and more complex business needs and user complexities, in terms of product and service development.
With growing demand for advanced CAD software solutions, many players in the market are entering into agreements with other players in the industry to jointly develop advanced designing programs, and serve the end-users with effective and efficient offerings. For instance, agreement between Bentley Systems and Siemens was aimed to jointly develop a software solution, catering to complex challenges faced by various industries. The market is also witnessing several partnerships among CAD providers, government organizations and non-government organizations. Such partnerships are aimed to leverage the latest and advanced offerings to critically design and develop various products and services for end users. This enables organizations and several institutions such as academics, product design, construction and engineering, to serve their customers with innovative and user-friendly software.
CAD Software Market Growth Drivers
Packaging machinery helps to complete various phases of the packaging process including filling, wrapping, strapping and labelling. With packaging machines becoming increasingly complex due to higher efficiency demand, engineers and designers are adopting CAD software to face unique mechatronic engineering challenges. CAD software enables packaging machinery to provide unconventional modeling through simulation and communication control tools. These tools help in selection of actuators and optimization of motor to reduce price and energy consumption. Profitability, elimination of mechanism design failure, greater visualization, and interface control through all phases of development are some additional factors driving the use of CAD software in packaging machinery.
In addition, surge in demand of smart packaging is also a key factor responsible for the increasing demand of CAD software in packaging machinery. Smart packaging decreases the loss and wastage of food, owing to which, designers are streamlining the communication between electrical engineering controls and mechanical systems through CAD integrated product development solutions. These factors are expected to drive the CAD software market during the near and long term.
CAD Software Market Challenges
Increasing availability of open-source and free version is one of the major challenges impacting the growth of the CAD software market. Due to high cost, many providers are rolling out free versions of their offerings to reach out to large customers. Such free and open-source products are widely being rendered by individual small-scale industries, and small and medium enterprises (SMEs) that have limited budget for designing tools. The growing trend toward rolling out free and open-source CAD software may obstruct the growth of the 3D CAD market.
CAD Software Market Opportunities
Some of the key factors offering growth opportunities to the players in the CAD software market include expanding adoption of SaaS based model, surge in demand for mobile access to 3D CAD and growing popularity of cloud-based CAD service. The rapid development of software-as-a-service (SaaS) apps has created huge opportunities for players in this market. There is huge demand for accessing CAD data on portable device platforms, such as smartphones and tablets, from various users, including large and small enterprises. Regions such as Asia-Pacific, with ongoing adoption of new technology through mobile platforms, are in demand for critical drawing and drafting applications capable of replacing desktops, to design their products.
With more number of design and engineering firms adopting cloud-based solutions, the cloud technology is compelling CAD providers to offer on-cloud services. Cloud-based solutions enable CAD software to be loaded and run remotely. This eliminates the software to reside locally on a workstation or on local network servers. Cloud-based CAD solutions are expected to be increasingly preferred by small and medium enterprises, owing to their scalability, flexibility and economic viability. Due to high cost, users are looking for cost reduction and remotely accessible software solutions, and therefore, are interested in adopting cloud-based CAD. Factors such as reduced capital expenditure by reducing the need of purchasing and maintaining high configurable systems, reduced cost of licensing CAD software on individual systems, higher productivity and collaboration, data backup, and lower energy usage are expected to generate ample opportunities for the industry to grow.
Competitive Landscape of the Industry
Some of the major players operating in the global market include Autodesk, Inc., Bentley Systems Inc., Dassault Systèmes, Gehry Technologies Inc., PTC Inc., GStarsoft Co., Ltd., 3D Systems Corp., Aveva Group Plc, Hexagon AB and IronCAD LLC.
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