Computer Aided Design Market Analysis

Computer Aided Design (CAD) Market Overview

The Computer Aided Design (CAD) market size is projected to grow from USD 9.88 billion in 2024 to USD 15.8 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.0% during the forecast period (2024 - 2032). Additionally, the market size for Computer Aided Design (CAD) was valued at USD 9.32 billion in 2023. 

Increasing Demand for Advanced Design Tools, Technological Advancements, and Increasing Demand for Electronic Design Automation (EDA) are the key market drivers boosting the growth of the Computer Aided Design (CAD) market. As per Analyst at MRFR “The CAD market is experiencing steady growth driven by advancements in technology and increasing demand across various industries. Key players in the CAD market continue to innovate, offering solutions tailored to specific industry needs. Cloud-based CAD solutions are gaining traction, providing flexibility and collaboration capabilities to users. With the rise of additive manufacturing and smart design technologies.”

FIGURE 1: COMPUTER AIDED DESIGN (CAD) MARKET SIZE 2019-2032 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Computer Aided Design (CAD) Market Trends

Integrating Augmented Reality (AR) and Virtual Reality (VR) technologies in the CAD market offers a significant opportunity to enhance the design process. Users can better visualize and interact with models by immersing themselves in their creations within 3D settings by integrating AR and VR elements into CAD tools. Through the provision of a more immersive and realistic experience, this integration revolutionizes the design review process and enables users to get a deeper comprehension of complex models.

In industries where realistically visualizing designs is crucial, like architecture, engineering, and construction, the integration of AR and VR technologies with CAD software is very beneficial. With the use of these tools, stakeholders may work together more effectively, identify design faults early on, and make wise decisions all the way through the project. through the incorporation of VR and AR into CAD software.

Computer Aided Design (CAD) Market component Segment Insights

Computer Aided Design (CAD) Technology Insights

Based on technology, the Computer Aided Design (CAD) Market segmentation includes 2D and 3D. The 3D held the majority share in 2022, contributing around ~81.5% to the market revenue. facilitating the accurate construction of intricate three-dimensional models. 3D CAD is a fundamental tool in modern design and manufacturing processes, With the help of 3D computer-aided design (CAD), engineers and designers may view a product in its entirety and analyse it from several viewpoints. It is widely embraced across industries, including architecture and engineering, owing to its versatility and ability to simulate real-world conditions. By leveraging mathematical equations, 3D CAD accurately represents the geometry and properties of designed parts, facilitating a deeper understanding of their functionality.

Beyond just being useful for visualization, 3D CAD also helps to expedite the manufacturing process by reducing mistakes and misunderstandings. Professionals utilize 3D CAD during prototyping to swiftly iterate designs and visualize alterations, increasing efficiency and cutting down on time to market.

Additionally, 3D CAD enables the creation of realistic renderings, which serve as valuable assets for project stakeholders and marketing stakeholders. Its practicality and versatility underscore its crucial role in modern design workflows, empowering professionals to translate concepts into tangible representations with clarity and fidelity.

FIGURE 2: COMPUTER AIDED DESIGN (CAD) MARKET, BY TECHNOLOGY, 2022 VS 2032 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Computer Aided Design (CAD) Component Insights

Based on component, the Computer Aided Design (CAD) Market segmentation includes Software and Services. Software held the majority share in 2022. Computer-aided design software, or CAD software for short, transforms design processes by using computer-based tools to produce accurate and comprehensive models or drawings. CAD software is widely used by engineers, architects, and designers in a variety of industries. It makes it easier to create both two- and three-dimensional (2-D) drawings and models.

A wide variety of experts and industries are served by the adaptability of CAD software. While engineers use CAD to generate exact mechanical designs and prototypes, architects use it to construct complex architectural structures and floor layouts. To guarantee ideal development and functionality, city planners use computer-aided design (CAD) to visualize infrastructure projects and urban landscapes. Moreover, CAD software finds extensive application in the arts and entertainment industry, enabling graphic designers, animation illustrators, and game designers to bring their creative visions to life with unparalleled precision and realism. Fashion designers utilize CAD to develop intricate garment designs, while interior and exterior designers leverage its capabilities to visualize and conceptualize spatial arrangements and aesthetics.

Computer Aided Design (CAD) Development Model Insights

Based on development model, the Computer Aided Design (CAD) Market segmentation includes Cloud and On-Premises. On-Premises held the majority share in 2022. On-premises CAD systems grow slowly because of a number of environmental issues that are part of its design. First off, peak-capacity planning may have an effect on project budgets and schedules since it necessitates an upfront financial investment and careful resource allocation. To handle complicated simulation and verification jobs, ongoing upgrades are necessary, which presents planning difficulties and disrupts design teams. Concerns about reliability are still present since system outages could result in large increases in engineering expenses and lost productivity. Furthermore, careful planning and upkeep are needed to ensure high availability and disaster recovery across consolidated server farms.

Manufacturers who use on-premises CAD systems have several challenges, such as growing hardware specifications, time-consuming software updates, and restricted accessibility. Each workstation needs to have CAD software loaded, which means a lot of processing power and constant maintenance is needed to keep compatibility problems at bay. Furthermore, the inability to collaborate and work remotely is a barrier to virtual accessibility, which lowers productivity and lowers stakeholder involvement.

Computer Aided Design (CAD) Application Insights

Based on application, the Computer Aided Design (CAD) Market segmentation includes 3D Printing, Surface Modelling, Reverse Engineering, Drafting Detailing, Assembly, and Others. The Drafting Detailing held the majority share in 2022. One of the most important ways to create 3D models from physical components that already exist is by reverse engineering, which makes it easier for such models to be integrated into software for computer-aided design (CAD), computer-aided manufacturing (CAM), and computer-aided engineering (CAE). This procedure entails precisely measuring an object with metrology equipment and rebuilding a virtual model to allow for additional digital modification and analysis.

Reverse engineering is quite versatile and may be used in many different industries. It can be used for product design iterations, reengineering, and producing spares for older parts that don't have digital CAD files. The hitherto difficult task of obtaining rich point cloud data has become more accessible because to developments in 3D scanning technology and metrology software, enabling the development of reliable reverse engineering methods for a variety of applications.

Computer Aided Design (CAD) Vehicle Propulsion Insights

Based on vehicle propulsion, the Computer Aided Design (CAD) Market segmentation includes Ice and Electric vehicles. The ICE held the majority share in 2022. ICE vehicles are powered by traditional internal combustion engines fueled by gasoline or diesel. The growth of the ICE subsegment is attributed to the continued dominance of ICE vehicles in the global automotive market. BBW systems offer improved braking performance, responsiveness, and control, contributing to overall vehicle safety and performance.

Computer Aided Design (CAD) End Use Vertical Insights

Based on end use vertical, the Computer Aided Design (CAD) Market segmentation includes Electrical and Electronics, Automotive, Civil And Construction, Energy And Materials, Industrial Equipment, Media And Entertainment, and Others. The Civil and Construction held the majority share in 2022. In the civil and construction sector, AutoCAD is a vital tool that allows engineers to carefully create 2D and 3D models, drawings, and plans that are essential for the design and building stages. Its adaptable applications improve accuracy and efficiency throughout project lifecycles, meeting a range of civil engineering needs. AutoCAD makes it easier to create complex plans, sections, and construction drawings for civil design and drafting, which enables engineers to communicate engineering concepts with unmatched accuracy. The software's powerful 3D modeling features improve design analyses and presentations, especially for projects with intricate terrain and structures.

For road and traffic engineering design, AutoCAD offers automated road creation, intersection design, and traffic flow simulations, simplifying the process of transportation infrastructure planning. Engineers can swiftly generate compliant road design drawings and conduct traffic flow simulations to optimize road design proposals effectively.

Computer Aided Design (CAD) Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and South & Central America. The Asia pacific Computer Aided Design (CAD) market accounted for ~36.0% in 2022. The Asia-Pacific region's CAD market is expanding significantly, driven by the product's extensive use in important nations including China, Japan, and India. The growing usage of CAD software in healthcare applications, particularly for the creation of cutting-edge medical devices and diagnostic instruments, is one of the main factors driving this rise. The design and manufacture of state-of-the-art medical equipment are made possible by CAD technology, which is essential given the growing demand for creative healthcare solutions in the area.

Moreover, the Asia-Pacific region is experiencing substantial investments in various industries including defense, construction, manufacturing, and automotive sectors. These investments are expected to further boost the demand for CAD software, as industries leverage advanced design and engineering tools to enhance productivity, efficiency, and innovation. With growing economic development and infrastructure projects across the region, CAD software is poised to play a pivotal role in shaping the future of design and manufacturing processes in Asia-Pacific.

FIGURE 3: COMPUTER AIDED DESIGN (CAD) MARKET SIZE BY REGION 2022 VS 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, UK, France, Spain, Italy, China, India, Japan, Australia, and South Korea.

The wide range of industries that CAD is being used in is propelling the market's explosive growth in North America. The region's aerospace and military industry in particular has seen a sharp increase in the use of CAD, mostly for the purpose of product prototyping. In order to visualize, create, and refine aircraft designs, CAD software is essential. This promotes efficiency and innovation in the aerospace sector.

Major CAD software suppliers rely on North America as a hub, which raises the region's profile in the worldwide CAD market. Given the importance of North America in the CAD business, a major share of the global headquarters of top CAD software giant Dassault System SE are located there. Furthermore, the existence of other significant competitors like Adobe Inc., Trimble Inc., and Autodesk Inc. fosters innovation and growth in the North American CAD software industry.

With its strong technological infrastructure, skilled workforce, and robust innovation ecosystem, North America continues to drive advancements in CAD technology. The region's emphasis on research and development, coupled with strategic partnerships and collaborations, positions North America as a key player in shaping the future trajectory of the CAD market on a global scale.

Computer Aided Design (CAD) Key Market Players& Competitive Insights

With a strong presence across different verticals and geographies, the Computer Aided Design (CAD) market is highly competitive and dominated by established, pure-play vendors. Over 20 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Computer Aided Design (CAD) market is highly competitive, with many vendors offering similar products and services.

The major players in the market include Autodesk Inc, Trimble Inc, Dassault Systemes, Bentley Systems Inc, PTC, Siemens PLM Software, Encore Software, HEXAGON AB, TurboCAD, CAD International, SmartDraw¸ ZWSOFT Co., Ltd.¸ Gstarsoft Co., Ltd, ANSYS Inc, and CorelDRAWA Industries Corporation constantly takes on new challenges to ensure the stability of its management foundation by extending its reach into business fields such as engine production, vehicle assembly, and the development and production of lift trucks and car air-conditioning compressors. It concentrates on broadening its product offerings to reach new audiences in the global market.

The Computer Aided Design (CAD) Market is consolidated, increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Computer Aided Design (CAD) Market include

• Autodesk Inc


• Trimble Inc


• Dassault Systemes


• Bentley Systems Inc


• PTC


• Siemens PLM Software


• Encore Software


• HEXAGON AB


• TurboCAD


• CAD International


• SmartDraw


• ZWSOFT Co., Ltd.


• Gstarsoft Co., Ltd


• ANSYS Inc


• CorelDRAWA

Computer Aided Design (CAD) Industry Developments