Global CAD Software Market Size (2023-2030)

In Global CAD Software Market was valued at USD 9.84 billion and is projected to reach a market size of USD 16.78 billion by the end of 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 6.9%.

Market Overview: 

With the introduction of new and advanced software packages, the efficiency of production processes improved significantly. It led to more creativity and innovations by various engineers. A major factor fuelling the growth of the market is the rising usage of CAD software in the manufacturing and automotive sectors. Packaging processes are becoming more complex, especially with the increase in the focus on efficiency, due to which designers are setting-up CAD software to meet certain engineering challenges. The software enables the designer to model the entire system much more speedily and aids in correcting any limitations in the model before the creation of any physical prototype. Computer-enabled software packages offer improved productivity as it improves the quality of the system for manufacturing processes. Nowadays, the primary applications of computer-based software are in furniture making. It is bringing back woodwork art, thanks to these advanced technologies such as CAD. Benefits can be collected by thousands of online software platforms that help in building a piece that is predominantly in imagination, thereby pushing the industry forward. 

COVID-19 Impact on the global CAD Software Market: 

The COVID-19 lockdowns imposed by several governments to curb the spread of the disease have adversely impacted market growth. Several industries, especially manufacturing and automation had to halt their projects and also terminate some of their future assignments, which caused a hindrance in market growth. Companies are witnessing to be formulating strategies to overcome the pandemic situation and make up for the loss post the lockdown. Furthermore, the increasing mergers & acquisitions of large-scale companies, along with growing outsourcing, have propelled small- and medium-sized businesses to invest hefty amounts in digital simulation tools, thus fuelling market growth. 

Market Drivers: 

The surging investments in the manufacturing and healthcare sector to improve facilities and consumer satisfaction is augmenting the CAD Software market:  

Some of the largest and most developed economies, such as the U.S. and China, are declared as manufacturing hubs of the world and are anticipated to invest heavily in the healthcare sector to enhance existing facilities. The National Health Expenditure Account (NHEA), U.S., estimates the overall healthcare expenditure in the country to reach more than USD 5.8 trillion by 2028 showcasing a CAGR of nearly 7% from 2022 to 2028. Modern healthcare facilities focus on managing technology-driven treatments for patients, thereby driving the global market growth over the forecast timeline. 

The increasing inclination of government authorities toward these developing technologies to enhance the existing infrastructure is boosting the market:  

The growing government policies and inclination toward these technologies are augmenting the market growth. The top players in the market are providing customized and personalized solutions to their clients to attract a larger customer target. To gain a competitive edge over rivals, major companies invest heavily in R&D activities to integrate emerging technology and develop software solutions with advanced features. These advanced technologies augment users in fuelling the creation and designing process by amalgamating digital designs for physical products. 

Market Restraints:  

The high costs and prices of technology may restrict the growth of the CAD Software market: 

The high prices and the subsequent rise in hardware components and software prices are anticipated to hinder market growth to some extent. As the market is in the innovation stage, several major service providers across the globe are investing hugely in deploying modern CAD infrastructure to tap the maximum user base globally. 

CAD SOFTWARE MARKET REPORT COVERAGE:

This research report on the global CAD Software Market has been segmented and sub-segmented based on Technology, Model, Deployment, Level, Application, Regions, and Key Companies. 

CAD Software Market – By Technology. 

• 2D Software 
• 3D Software 

Based on the technology, the CAD Software Market has been segmented into 2 major segments – 2D Software and 3D Software. 

Three-dimensional CAD software holds the largest share of the CAD software market in 2022, based on the technology segment. This can be majorly attributed to the increasing adoption of 3D CAD software, due to the increasing number of professionals, especially in sectors such as aerospace & defense, healthcare, and automotive. It offers several advantages over 2D CAD software, including improved product visualization and presentation and helps accelerate the product development cycle.  

CAD Software Market – By Model. 

• Solid 
• Surface 
• Wireframe 

Based on the model, the CAD Software Market has been segmented into 3 major segments – Solid, Surface, and Wireframe.  

The solid modelling category holds the highest market share and dominated the CAD software market in 2022, and it is estimated to continue its dominance during the outlook period. This is primarily due to the increase in the focus on precise designing and product prototyping. It enables the designer to see the object as it would look when manufactured. 

CAD Software Market – By Deployment.  

• Cloud-Based 
• On-Premise 

Based on the deployment type, the CAD Software Market has been segmented into 2 major segments – Cloud-Based and On-Premise. 

The on-premise segment accounted for the largest revenue share of over 86% in 2022. This is due to the high information or data security feature. The users find it more convenient to deploy the on-premise solution as the data can be retained easily on their systems. They are deployed primarily by end-users in highly regulated sectors, such as medical, healthcare, and government institutions.  

The cloud-based segment is estimated to witness the fastest CAGR from 2023 to 2028. The demand for cloud-based platforms has drastically increased in the past few years due to advantages, such as better collaboration and the ability to share designs.  

CAD Software Market – By Level. 

• Professional  
• Intermediate 
• Beginner 

Based on the level, the CAD Software Market has been segmented into 3 major segments – Professional, Intermediate, and Beginner.  

The intermediate category holds the largest share of the CAD software market in 2022, according to the level segment. This can be majorly attributed to the presence of a large number of designers working at the intermediate level, worldwide. It has been witnessed that intermediate-level designers are the highest number of users in the industry, generally designing models for small-sized and some mid-sized projects.  

CAD Software Market – By Application. 

• Manufacturing 
• Architecture, Engineering, and Construction.  
• Automotive 
• Media & Entertainment 
• Healthcare 
• Others 

Based on the application, the CAD Software Market has been segmented into 6 major segments – Manufacturing, Architecture, Engineering, Construction, Automotive, Media & Entertainment, Healthcare, and Others.  

The manufacturing segment accounted for the highest revenue share of more than 24.5% in 2022 and will grow further at a steady CAGR from 2023 to 2028. This can majorly be attributed to the wide-scale use of 3D CAD software in prototype design. This enables Original Equipment Manufacturers (OEMs) to imitate parts movement in the production process system, thereby fuelling the growth of the segment. Furthermore, the media & entertainment segment is likely to observe considerable growth over the outlook period. This can be attributed primarily to the deployment of software in media houses for animated content production.  

CAD Software Market – By Region. 

• North America 
• Europe 
• Asia-Pacific 
• South America 
• Middle-East and Africa 

Based on region, the CAD Software Market has been segmented into 5 major regions – North America, Europe, Asia-Pacific, South America, Middle-East, and Africa. 

North America accounted for the largest revenue share of more than 35% in 2022 and is estimated to maintain its dominance during the outlook period as well. This can be attributed majorly to the support offered by the U.S. government for deploying solutions that will improve the development of the manufacturing industry, thus augmenting the implementation of 3D CAD software solutions. Asia Pacific is anticipated to register the fastest CAGR from 2023 to 2028 due to the rise in the number of AEC and manufacturing companies in the region. The increased growth in the region’s engineering, design, and development sectors is likely to fuel the adoption of designing and modelling tools over the outlook period. 

CAD Software Market – By Companies. 

1. Autodesk, Inc. 
2. Bentley Systems, Inc. 
3. Hexagon AB 
4. Oracle 
5. PTC 
6. Siemens 
7. Dassault Systèmes SolidWorks Corp. 

The CAD Software Market is highly fragmented and extremely competitive with key players involved in research and development and constant technological innovation done by the vendors. 

Latest Industry Developments: 

• In January 2021, Autodesk Inc. Acquired Netfabb’s 3D printing software and created a new division, Fusion 360. It is the company’s first 3D CAD, CAM, CAE, and PCB tool. The acquisition enabled users to retrieve complete access to Fusion 360 and HSMWorks.