Computer Aided Design Software Market

Market analysis and insights

The global computer-aided design, or CAD, market is expected to reach USD 18.61 billion by 2031, expanding at a CAGR of 6.2% from 2023 to 2031.

The CAD market is expanding due to the increasing demand for CAD software across many industries, including aerospace, automotive, smart manufacturing, and construction. The increasing utilization of 3D CAD software is additionally propelling the CAD market forward.  Designers and engineers utilize CAD (computer-aided design) programs to create, modify, and analyze designs. Its importance in different industries like production, architecture, automotive, and others has led to sustained expansion. Innovation in the CAD market has been fueled by technological advancements such as 3D modelling, virtual worlds, and cloud collaboration. 

Computer-Aided Design Market Scope:

Market Definition 

Computer-aided design (CAD) is a software and technology segment that involves the production, alteration, and evaluation of digital models, plans, and designs in various industries. 
Engineers, architects, and artists can use it to create and visualize accurate models of products, frameworks, or systems. CAD software expedites the design process, improves precision, and facilitates team collaboration. It features 2D and 3D design tools as well as simulation capabilities, frequently connecting with other software programs for efficient workflow integration. The CAD market focuses on delivering effective and efficient tools for design, prototyping, and manufacturing across a wide range of industries. 

Key market segments 

Insights on Key Products 

AutoCAD by Autodesk will be one of the most dominant CAD software in September 2021 due to its established presence, widespread adoption, and vast capabilities. Its user-friendly interface, adaptability, and support for both 2D and 3D creation have all contributed to its widespread use in a variety of industries. One of the most well-known and widely used CAD programs is AutoCAD from Autodesk, which is renowned for its versatility in 2D and 3D planning, drafting, and modelling across a broad range of industries. SolidWorks by Dassault Systems is a powerful 3D CAD program with solid modelling and simulation features frequently used in industrial and product design. CATIA by Dassault Systems is a complete CAD software suite used in aircraft, automotive, and manufacturing design that includes powerful 3D modelling and simulation capabilities. Creo by PTC is versatile CAD software that allows both conventional and direct modelling, making it appropriate for various industries such as manufacturing and engineering. NX by Siemens: Its superior design, simulation, and production capacities make it popular in industries like automotive and aerospace. Solid Edge by Siemens: A user-friendly CAD package with integrated 3D simulation and design tools commonly used by small and medium-sized organizations Rhino by McNeel: Rhino, frequently used in commercial design and architecture, provides versatile 3D modelling and visualization capabilities. Fusion 360 by Autodesk: A cloud-based platform that combines CAD, CAM, and CAE tools to enable collaborative engineering and design processes 

Insights into key applications 

The automotive industry is the most dominant application of CAD. This is due to the vast and growing nature of the automobile industry, where CAD can be used to improve vehicle design, performance, and manufacturing. CAD can assist in cost reduction, fuel efficiency improvement, and safety enhancement.  Automotive: In the automotive business, CAD is used for drafting automobiles, trucks, buses, and other transportation. It is used to model and simulate the performance of cars in two and three dimensions. CAD is a tool that engineers can utilize to speed up time to market, cut costs, and improve vehicle design. Aerospace: In the aerospace business, CAD is used to create aircraft, helicopters, and spacecraft. It is used to mimic the performance of vehicles and produce 2D and 3D representations of them. CAD is a tool that engineers can utilize to speed up time to market, cut costs, and improve vehicle design. Manufacturing: CAD is used in the manufacturing industry to design items such as tools, machinery, and consumer goods. It is used to create 2D and 3D models of products and simulate their performance. CAD may assist manufacturers in improving product design, lowering costs, and increasing quality. Architecture: In architecture, CAD is used for constructing buildings, bridges, and other structures. It is used to create 2D and 3D models of structures and simulate their performance. CAD can help architects improve structure design, save costs, and shorten building time. Engineering: Engineering uses CAD to design a wide range of products and systems, including bridges, dams, power plants, and medical equipment maintenance. It is used to generate 2D and 3D models of goods and processes and simulate their functionality. Engineers can use CAD to enhance the design of products and systems, cut costs, and reduce time to market. 

Insights on End Users: 

The automotive industry is the most significant end-user of CAD software due to its size and the complexity of the vehicles it designs. The automotive industry relies on CAD software to design and create new vehicles that meet consumer needs. Automotive sector: CAD software is most commonly used in the automotive sector. CAD software is used in the automotive industry to design cars, lorries, buses, and other vehicles. It is used to mimic the performance of cars and produce 2D and 3D representations of them. Engineers may improve vehicle design, cut costs, and accelerate time to market with the use of CAD. Aerospace Industry: Another vital end user of CAD software is the aircraft sector. In the aerospace business, CAD software is used to design aircraft, helicopters, and spacecraft. It is employed to model these vehicles in two and three dimensions and to mimic their operation. With CAD, engineers can speed up time to market, cut costs, and enhance vehicle design.

Manufacturing Industry: The manufacturing industry is another significant end-user of CAD software. CAD software is employed in the manufacturing business to create things such as tools, machinery, and consumer goods. It is used to generate 2D and 3D product models as well as simulate manufacturing processes. CAD may assist manufacturers in improving product design, lowering costs, and increasing quality. Architecture and Engineering Industry: Architecture and engineering are also heavy consumers of CAD software. CAD software is utilized for constructing buildings, bridges, and other components in the architecture and engineering sectors. It is used to generate 2D and 3D structural models as well as simulate their outcomes. Engineers can use CAD to improve vehicle design, reduce costs, and expedite time to market. 

Insights on regional analysis 

North America is the dominant region in the CAD market due to the concentration of automotive, aerospace, and manufacturing companies in the region. These businesses heavily rely on CAD software to design and create their products. North America: North America is the world's largest CAD software market, accounting for over 30% of the global market share. This is owing to the region's concentration of aerospace, automotive, and manufacturing companies. Europe: Europe is the second-largest CAD software market, accounting for over 25% of the global market. This is owing to the region's concentration of aerospace, automotive, and manufacturing firms.  Asia Pacific: Asia Pacific is the fastest-growing CAD software market, accounting for over 20% of the global market share. This is due to the rising demand for CAD software in emerging markets like China, India, and Japan. 

Key players 

Autodesk is the dominant player in the CAD sector. It is the leading CAD software vendor, offering a wide variety of CAD software solutions used by numerous sectors. Autodesk is also a leader in developing emerging CAD technologies like 3D printing and augmented reality. Key players include Autodesk, Dassault Systèmes, PTC, Siemens Digital Industries Software, and Bentley Systems. 

COVID-19 Impact and Recovery Analysis 

The COVID-19 epidemic had a tremendous impact on the computer-aided design (CAD) market. The epidemic created disruptions in the CAD software supply chain as well as a drop in end-user demand. As a result, the growth of the CAD market slowed down in 2020.  However, in this post-pandemic phase, the CAD market is projected to revive. The epidemic has spurred the adoption of CAD software in various industries, including the automotive, aerospace, and industrial sectors. This is because CAD software can assist businesses in designing and developing new products and processes more rapidly and efficiently. 

Latest trends and analysis 

• Dassault Systèmes' 3DEXPERIENCE platform was released in 2019. This cloud-based CAD package has numerous tools for product design, simulation, and production. 

• In 2015, Autodesk released Fusion 360 software. This cloud-based CAD, CAM, and CAE system is intended for individuals and small enterprises. 

• In 2017, Siemens PLM Software purchased Mentor Graphics, a renowned producer of electronic design automation (EDA) software. Siemens was able to increase its capabilities in the CAD industry for electronics design as a result of this acquisition. 

• In 2018, PTC purchased Onshape, a cloud-based CAD software firm. PTC was able to compete with Autodesk's Fusion 360 product because of this acquisition. 

• Bentley Systems' iTwin platform will be available in 2020. This cloud-based platform merges data from CAD, GIS, and BIM to build a digital twin of the structure itself. 

Significant Growth Factors 

The most dominant driver of expansion for the CAD market is the growing use of CAD software across various sectors. This is because CAD software is necessary for companies to create and manufacture products that meet their customers' needs. The growth of new CAD technologies is another significant growth factor for the CAD market. These new technologies, such as 3D printing and augmented reality, can help firms improve product design and manufacturing. 

The most crucial development element for the CAD business is the increasing use of CAD software across a variety of industries. CAD software is utilized in a variety of industries, such as aerospace, automotive, manufacturing, architecture and engineering, and electronics. This is due to the rising complexity of products and buildings being constructed, as well as the demand for customization and personalization. New CAD technologies are being developed to help firms improve their item design and manufacturing. 3D printing and virtual reality are two examples. 3D printing is the procedure of turning a computer model into a physical thing using a 3D printer. This can be used to create both prototypes and finished things. Augmented reality is an approach in which a computer-generated image is superimposed on the user's sense of reality. This can be used to assist designers in visualizing their designs in real-world scenarios. Customers prefer cloud-based CAD software because it allows them to access CAD software from any place with an internet connection. This is useful for businesses that need distant team members to work together on CAD projects. AI has been utilized to automate CAD software tasks such as 2D and 3D model generation and simulation. This allows CAD users to concentrate on more imaginative and strategic tasks. Artificial intelligence is also being utilized to build new CAD solutions, such as generative design. Generative design is the process of creating multiple design choices that fit particular requirements. This can help designers come up with more creative and original design concepts. The CAD market has become significantly globalized as companies strive to reach new markets. Demand for CAD programs is increasing in growing markets such as China, India, and Brazil. 

Restraining factors  

The most significant restraining factor for the CAD market is the high cost of CAD software. This is particularly true for organizations that require licenses for multiple users. The expensive price of CAD software may make it difficult for small firms and startups to afford it, limiting the penetration of CAD software in these areas.  CAD software can be costly, making it challenging for small enterprises and startups to enter the market. Some users may be discouraged by the complexity of learning and using CAD software. In some regions of the world, there is a shortage of skilled CAD professionals, making it difficult for enterprises to deploy CAD software. Security concerns may exist in CAD software, which is a concern for firms that handle sensitive data. Some CAD programs offer limited options for customization, which can be a disadvantage for firms that require the software to be tailored to their specific needs. However, due to the factors listed above, the CAD market is likely to grow in the coming years. Some of the primary drivers of the CAD market include the growing need for CAD software in various sectors, the increasing usage of 3D CAD software, and the rising demand for product innovation.