Computer-aided designing (CAD) involves the usage of computer programs to create, analyze, modify, or optimize a two-dimensional (2D) or three-dimensional (3D) design. CAD software is experiencing a rise in its usage in the automotive and manufacturing industries. With a large number of connected cars set to be on the roads in the near future, vehicle designers are using advanced tools and software to design and manufacture error-free products. Due to these factors, the global CAD software market is predicted to generate revenue of $18.7 billion in 2030, growing with a CAGR of 6.6% during the forecast period (2020–2030).
CAD software is likely to witness a low demand in several verticals, such as manufacturing, aerospace & defense, and automotive, primarily due to the coronavirus (COVID-19) disease. The shutdown of manufacturing and automotive industries and halt in commercial aviation activities, which is further leading to a low demand for aircraft, and disruptions in supply chain, are the key factors hampering the adoption of this software. The CAD software market will experience growth from 2021 onward; however, it would be slow. This would majorly be due to the time that the industries might take to recover from the damage caused by the COVID-19 pandemic.
3D Software Is Projected To Be Faster-Growing Category during Forecast Period
On the basis of technology, the CAD software market has been categorized into 2D software and 3D software. Between the two, 3D CAD software is projected to attain the faster growth in demand during the forecast period. 3D CAD offers numerous advantages when compared to 2D CAD, which include improved product visualization and presentation. Moreover, the growing focus on precision and accuracy in product drawings, along with the increasing penetration of the 3D technology across various application areas, is the key factor positively impacting the growth of the market in this category.
Based on application, the CAD software market has been categorized into aerospace & defense, automotive, manufacturing, healthcare, media & entertainment, arts, and others. Of these, the aerospace & defense category is expected to continue dominating the market in the coming years, particularly owing to the high focus on the development of state-of-the-art space shuttle, missile, and aircraft designs. Since aerospace & defense production demands high accuracy, especially in the development of critical components, such as wings and interbody sheets, CAD software has become an integral part of product designing in this industry.
Geographically, North America held the largest share in the CAD software market in 2019. The rising usage of CAD software in the aerospace and automotive industries, to facilitate product prototyping prior to production, increase production efficiency, and reduce product maintenance and repair costs, is the key factor fueling demand for the software in the region. The U.S. held the larger share in the regional market in 2019, which can be mainly attributed to the higher adoption of CAD software in aerospace & defense and manufacturing applications in the country than Canada.
Market Players Are Partnering with Each Other to Increase Customer Base
Players in the global CAD software market are partnering with each other to boost their market presence and increase their customer base. For instance, in April 2020, Autodesk Inc. announced its alliance with Aurigo Software, to bolster the construction technology for construction firms. The partnership aims to develop a comprehensive set of cloud-based solutions for public and private owners. As part of the deal, Aurigo will integrate with Autodesk Construction Cloud, a portfolio of construction management software and services, to give owners a single, end-to-end technology platform for the designing, planning, construction, and operations of public infrastructure and private assets.
Similarly, in February 2020, Dassault Systèmes SE announced its partnership with Xometry Inc., a provider of custom manufacturing and on-demand services for computer numerical control (CNC) machining, 3D printing, and sheet metal fabrication. With this deal, the former company will provide its consumers with automatic and quick access to Xometry price quotes for manufacturing parts on MAKE Marketplace, without the need to leave their SOLIDWORKS and CATIA design environment.
The major players operating in the CAD software market include Autodesk Inc., Bentley Systems Inc., Dassault Systèmes SE, Trimble Inc., PTC Inc., Gstarsoft Co. Ltd., 3D Systems Corporation, AVEVA Group plc, Hexagon AB, IronCAD LLC, AO Nanosoft, CNC Software Inc., SolidCAM GmbH, ZWSOFT CO. LTD., and Siemens AG.