According to a new research report from leading analyst firm Jon Peddie Research (JPR), Computer-Aided Design (CAD) software is used for design documentation and mechanical design. It is an automated alternative to manual drafting and aids manufacturing and development by offering detailed product diagrams, material information, tolerances, dimensions, and other essential specifications. The digital revolution of the last 20 years has driven CAD to become the centerpiece of a modern digital reality.
The Computer-Aided Design software market is forecasted to reach US$16 billion by 2027, driven mainly by the increased use of Digital Twin systems. From 2024 to 2027, the demand for CAD solutions is expected to grow at a compound annual growth rate approaching 7%, reaching an estimated value of over US$20 billion by 2033.
The prominent players in the market are Autodesk, Dassault, and Siemens, which control over 65% of the market. Secondary players like Bentley, Hexagon, and PTC capture another 20%. The rest of the market is shared among more than 15 other companies. And the big ones are getting bigger. The report contains SWOT on the nine top CAD companies.
The market is almost evenly divided between EMEA, APAC, and North America, with the rest of the world capturing a mere 4%.
2D CAD has a well-defined role to play, and even with its lower average selling price, it accounts for 45% of the market. In terms of users, it dominates with all the free 2D programs available. However, its growth rate is quite low and declining for the not-for-free programs.
Nonetheless, future growth is anticipated to sustain its strength as industries increasingly depend on digital technologies to enhance efficiency and quality.
“AI’s incorporation—some say intrusion—combined with organic CAD concepts is changing how drawings and models are created, distributed, and integrated into the total project program,” said Jon Peddie, president and founder of Jon Peddie Research. “AI is poised to revolutionize industry and society profoundly. However, initial oversights and an incomplete grasp of its extensive advantages will inadvertently provide startups and small to mid-sized enterprises a competitive edge. Leveraging pivotal computing capabilities will be instrumental in this advantage.”
3D CAD software is vital in this landscape, enabling designers, engineers, architects, and other professionals to craft and modify 3D models of various entities like products and buildings. Its significance spans diverse sectors like manufacturing, construction, and engineering. Factors like the expansion of the manufacturing sector, infrastructure projects, and the integration of advanced technologies such as metaverse, 3D printing, and virtual reality contribute to the rising demand for 3D CAD software.
The ongoing integration of design tools with data, including planning and regulatory data, sensor data, and maintenance records, promises a profitable digital ecosystem.
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