CAD Software Market Overview
The global computer-aided design (CAD) software market was valued at $8,325.0 million in 2017 and is predicted to progress at a CAGR of 6.6% during 2018–2023. The increasing use of CAD software in the packaging industry and automotive industry is one of the key factors positively impacting the growth of the market.
On the basis of technology, the market has been bifurcated into 3D software and 2D software. Of these, 3D CAD software held the larger share in the CAD software market in 2017, owing to the growing need for design efficiency and accuracy and enhanced product visualization and presentation. In addition, 3D CAD also accelerates the development cycle with virtual testing and optimization.
AMERICAS CAD SOFTWARE MARKET, BY MODEL, $M (2013 – 2023)
Based on model, the market has been categorized into solid, surface, and wireframe. Among these, the solid model category held the largest share in the CAD software market in 2017. This is attributed to the rising trend of precise designing and product prototyping. Moreover, as solid modeling offers better in-depth detailing and accuracy as compared to wireframe or surface modeling, the demand for solid modeling is increasing.
CAD Software Market Dynamics
A shift from license-based to subscription-based models is one of the major trends being observed in the CAD software market. Due to the high cost of CAD software, many small and medium enterprises (SMEs) with a limited IT budget are purchasing professional CAD software on a quarterly or monthly basis. Since the development and installation of CAD solutions is highly expensive, majority of the users of 2D CAD software have now shifted to subscription-based models. Accordingly, vendors such as PTC Inc. and Autodesk Inc. have also transitioned from the license-based to subscription model to offer consumers some ways to align the software according to their individual needs with low-cost trials and multiple-machine/device access.
The increasing usage of CAD in the packaging industry is one of the key factors driving the growth of the CAD software market. Packaging machinery is pressed in several phases of the packaging process, including filling, wrapping, strapping, and labeling. With packaging machines becoming increasingly complex and the demand for higher efficiency escalating, engineers and designers are adopting CAD software to face unique mechatronic engineering challenges. CAD software enables the packaging machinery to provide unconventional modelling through simulation and communication control tools. These tools help in the selection of actuators and optimization of the motors to reduce the operational cost and energy consumption.
The increasing availability of open-source and free versions of CAD software is one of the major challenges impacting the growth of the CAD software market. Due to the high cost of CAD software, many providers are rolling out free versions of their offerings to reach out to customers. Such free and open-source products are widely being used by individual small-scale industries and small and medium enterprises (SMEs) that have a 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.
The rapid development of software-as-a-service (SaaS) apps creates huge opportunities for the growth of the global CAD software market. There is a huge demand for accessing the 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 the ongoing adoption of new technologies via mobile platforms, are generating a high demand for critical drawing and drafting apps, capable of replacing desktops, to design products.
CAD Software Market Competitive Landscape
The CAD software market has observed notable changes in recent years, especially owing to the emergence of hardware startups and personal technology products, such as 3D printers with democratized design. Key players are focusing on mergers & acquisitions, partnerships, and product launches to expand their market foothold. For instance, in January 2018, Bentley Systems Inc. announced the acquisition of a Mumbai-based concrete building design and documentation software company, S-Cube Futuretech Pvt. Ltd. The addition of S-Cube Futuretech’s applications expands Bentley’s offerings, specific to the needs of concrete engineering design and documentation software users, in India, Southeast Asia, and the Middle East.
Moreover, in March 2018, PTC Inc. launched Creo5.0, a CAD software, which enables the company to accelerate product innovation and development by reusing the designs and replacing the assumptions with facts. Some of the other major players operating in the CAD software market are Autodesk Inc., Dassault Systemes, Trimble Inc., Gstarsoft Co. Ltd., 3D Systems Corporation, Aveva Group PLC, Hexagon AB, IronCAD LLC, and Siemens AG.
Key Questions Addressed/Answered in the Report
What is the current scenario of the global CAD market?
What is the historical and the present size of the categories within the market segments and their future potential?
What are the major catalysts for the market and their impact during the short, medium, and long terms?
What are the evolving opportunities for the players in the market?
Which are the key regions from the investment perspective?
What are the key strategies being adopted by the major players to expand their market share?