India CAD Software Market To Generate Revenue Worth $696.9 Million by 2025
- Published: September 2020
The increasing number of construction projects, growing adoption of automated manufacturing processes, enhanced government support, in terms of the introduction of industrial policies, shift toward personalized goods, and high need for product innovation are the factors contributing toward the positive computer-aided design (CAD) software demand growth in India. Due to these factors, the Indian CAD software market is expected to reach $696.9 million by 2025, registering a CAGR of 8.2% during the forecast period (2020–2025).
COVID-19 Impact Analysis
The COVID-19 outbreak has badly disrupted manufacturing and supply chain operations, resulting in a setback across the global trade network. The slowdown in economic activities has also contributed to the reduced demand for industrial products in India, due to which several companies have temporarily closed their production plants and other facilities. Moreover, due to the reduced spending on the construction and development of infrastructure, the demand for CAD software in the country has also been impacted.
Official Category Accounted for Lager Market Size and Is Set To See Faster Growth
The official category, on the basis of license, held the larger share in the market in 2019, and it is also expected to register the faster growth during the forecast period. This is mainly due to factors including data protection and safety, consistent support from license-offering companies for the fixing of bugs, reduced vulnerability to malware attacks, regulatory compliance, high work accuracy, and regular update of the software. Moreover, organizations using pirated versions of software may face legal action, which has resulted in the reduced cases of pirated software being deployed, thereby leading to the higher usage of official, licensed software.
Based on industry, the market is dominated by the aerospace and defense, automotive, healthcare, media and entertainment, agriculture, and education sectors All these industries are increasingly using CAD software for varied applications, such as the designing and modeling of vehicles, aircraft, and tools, creation of prosthetic limbs, and development of games. These have been categorized as others, which generated the maximum revenue in the market in 2019.
In addition, according to the IBEF, the aviation industry in India is expecting an investment of over $5 billion over the next four years, for the purpose of airport infrastructure development. The country is projected to witness an increase in the number of operational airports, to 190–200, by 2040. As a result, the demand for CAD software, for airport layout and terminal designing, is expected to increase in coming years.
Geographically, Maharashtra is expected to register the fastest growth in the Indian CAD software market during the forecast period. This can be ascribed to the robust economic growth in the state and its productive technology, manufacturing, international trade, and financial sectors. Additionally, the surging support from the state government and introduction of state policies and plans for industries are the key factors that would drive the demand for CAD software in the state. For instance, some of the objectives under the Maharashtra Industrial Policy 2019 are:
- Developing dedicated state-of-the-art infrastructure based on sector-specific requirements.
- Providing special fiscal incentive packages to projects based on emerging technologies
- Promoting investments through sector-specific policies, with focus on identified thrust sectors
- Incentivizing investments in R&D and startups.
- Facilitating the ‘Ease of Doing Business’ initiatives and increasing financial support for micro, small, and medium enterprises (MSMEs) to up to $500 million.
- Setting up state-level councils for the promotion of investments and exports
- Supporting the revival of sick or closed business units
Some of the key players operating in the Indian CAD software market are Autodesk Inc., Hexagon AB, Trimble Inc., Bentley Systems Inc., IronCAD LLC, Adobe Inc., 3D Systems Corporation, PTC Inc., Siemens AG, Dassault Systèmes SE, Jytra Technology Solutions Private Limited, and Murari Software Solutions.