CAD Software Market Overview
The global CAD software market was valued at $8,325.0 million in 2017 and is forecasted to witness a CAGR of 6.6% during 2018–2023. Growing demand for precise simulation, designing, and prototyping in industries such as automotive, manufacturing, defense, and dentistry is driving the growth of the CAD software market. Moreover, hobbyists and designers in domains such as arts, and media and entertainment are increasingly using the software to enhance their designs and eliminate the need for manual drafting, thereby reducing the time taken in the designing process.
AMERICAS CAD SOFTWARE MARKET, BY MODEL, $M (2013 – 2023)
On the basis of deployment type, the CAD software market has been categorized into on-premise and cloud. Between the two, on-premise deployment held a larger market share, of 61.3%, in 2017. This can be attributed to the security concerns of enterprises with respect to data protection. Large enterprises are more inclined toward using traditional methods of on-premise deployment and are reluctant to shift to newer technologies, especially when large or professional projects are at hand.
Based on level, the market has been classified into beginner, intermediate, and pro. Intermediate level contributed the largest revenue to the CAD software market in 2017, accounting for over 45% share. This is because intermediate-level designers are considered the most active users in the industry, who design models that do not belong to very critical projects yet are workable in various applications. Moreover, with less investment, the models they work on are productive and value-generating. Besides, an increasing shift of beginners to the intermediate level for better career opportunities has been observed in recent years.
On the basis of application, the market has been categorized into aerospace & defense, arts, manufacturing, automotive, healthcare, media & entertainment, and others, where “others include IT, consumer products, garments, ship building, and interior design. Aerospace and defense is expected to continue holding the largest share in the CAD software market in the coming years. The market growth in the aerospace and defense application can be attributed to the increasing adoption of CAD software for state-of-the-art designs for space shuttles, missiles, and aircraft. The software offers greater precision in aircraft designing, which makes it an integral part of application designing in the aerospace industry.
CAD Software Market Dynamics
Increasing number of acquisitions among CAD software providers, shift from license-based to subscription-based models, and transition from 2D CAD to 3D CAD software are the key trends observed in the CAD software market in recent years. Companies offering the software are acquiring specific-design software solution providers to enhance their offerings and increase their product’s user base. With increasing number of acquisitions, design software solution providers are also enhancing their expertise to cater to larger and more complex business needs in terms of products and services.
Besides, transition from 2D to 3D CAD software is enabling designers with advanced analytical tools to perform all kinds of functions, from simulating the flow of fluids to measuring vibrations in key structural components. Industries such as automotive, defense, and aerospace are capitalizing on the advantages of 3D CAD to digitally prototype their products before production.
Mobile access to 3D CAD and growing popularity of cloud-based CAD services are some of the key factors offering growth opportunities to the players in the CAD software market.There is a huge demand for accessing CAD data on portable devices such as smartphones and tablets from various end users, including large and small enterprises. With the rising adoption of mobile platforms, emerging countries in the Asia-Pacific region are demanding critical drawing and drafting apps, capable of replacing desktops, to design products.
In addition, with the increasing number of design and engineering firms adopting cloud-based solutions, CAD providers are focusing on offering on-cloud services too. Owing to their scalability, flexibility, and economical nature, cloud-based solutions are expected to gain traction among SMEs in the near future. Besides, factors such as reduced capital expenditure owing to reduced need for purchasing and maintaining complex systems, reduced cost of licensing CAD software on individual systems and data backup, and lower energy usage are expected to generate a high demand for CAD software in the market in the coming years.
CAD Software Market Competitive Landscape
The CAD software market has observed a significant demand for personal technology products, such as 3D printers with democratized design, in recent years. The market is going through rapid changes due to the emergence of cloud and mobile technologies, with demand for CAD software increasing among engineers, entrepreneurs, and consumers. Some of the key players in the market are Autodesk Inc., Bentley Systems Inc., Dassault Systemes, PTC Inc., GStarsoft, and Hexagon AB.
With the increasing availability of computing technologies at low prices and the shift of industry from personal computer to cloud and mobile computing, barriers to entry have considerably reduced for new players in the market, characterized by increased competition among existing and new players. Market consolidation due to complementary products and technologies and the possibility of players offering CAD software for various applications are expected to further increase competition in the CAD software market in the near future.