3D CAD Software Market

Market Overview

The global 3D CAD software market size was valued at USD 10.83 billion in 2022. It is estimated to reach USD 18.61 billion by 2031, growing at a CAGR of 6.2% during the forecast period (2023–2031).

3D CAD (Three-dimensional computer-aided design) is a design and technical documentation technique that substitutes an automated procedure for human drafting. The 3D CAD software, used by architects, engineers, and other experts, correctly depicts and visualizes objects using a set of points in three dimensions. CAD is primarily used for the detailed engineering of 3D models or 2D drawings of actual physical components. However, it is also utilized throughout the entire engineering process, from conceptual design and layout of products, through strength and dynamic analysis of assemblies, to the definition of manufacturing methods for components.

Producing a technical drawing with computer software is mechanical design automation (MDA) or computer-aided drafting (CAD) in mechanical design. For a mechanical design, the objects of traditional drafting are represented by CAD software utilizing either vector-based visuals or, in some circumstances, raster images that reflect the overall appearance of planned things. In two-dimensional (2D) space, CAD may be used to create curves and figures; in three-dimensional (3D) space, it can create curves, surfaces, and solids.

Highlights

• On-premisedominates thedeploymentsegment
• Manufacturing dominates the application segment
• North Americais the highest shareholder in the global market

Market Dynamics

Global 3D CAD Software Market Drivers:

Increased Penetration in the Manufacturing Sector

Manufacturers constantly face challenges to improve product quality and increase efficiency. Several manufacturers are utilizing new methods and technologies, including CAD/CAM and 3D designing, to address these challenges to reduce development time. Rendered 3D CAD models assist in generating commercial brochures and part catalogs to help vendors deliver better product design. This has enhanced business-to-business aspects with smoother communication between component suppliers and manufacturers. The 3D CAD software designs and manufactures products accurately and validates the design for optimization.

Furthermore, the introduction of CAD and CAM has revolutionized manufacturing, allowing manufacturers to create 3D models representing a part or system. CAD software facilitates quality designing, which is essential in the manufacturing sector. It provides a medium for designers to view a component or a part under several representations and test it by simulating real-life conditions. In addition, CAD makes the manufacturing process more cost-effective by eliminating the risk of producing a part to ensure its working. It helps reduce production costs for customers and manufacturers by detecting faults earlier in the manufacturing process. The growth in the manufacturing sector is expected to impact 3D CAD software growth directly.

Growing Usage of 3D CAD Software in the Packaging Sector

The market for 3D CAD software is expanding due to the growing use of 3D CAD software in the packaging sector. Packaging is planning, designing, producing, wrapping, packing, or bottling products for retail, wholesale, industrial, manufacturing, military, and other markets. All stages of packing, including product filling, wrapping, strapping, and labeling, are completed with the aid of packaging machinery, which is widely employed in industries. In addition, engineers and designers use 3D CAD software to address mechatronic engineering difficulties as packaging machines get more complicated. With simulation and communication control tools, 3D CAD software makes it possible to simulate these devices uniquely. Also, the demand for smart packaging drives the industry's use of this technology.

Global 3D CAD Software Market Restraint:

High Cost and Availability of an Open-Source Software

The currently available open-source software is anticipated to restrain the market growth for 3D CAD software over the projected period. The software is readily available online; however, vendors charge for support, customization, and maintenance services. Currently, Linux is leading the open architecture software market. This software has been a boon for small software vendors, due to which large enterprises have been facing negative impacts. Minor flaws and bugs can be tested and fixed immediately in open-source technology, which drives growth. However, in a closed-source technology, it becomes difficult for the company to rectify errors due to the availability of limited resources such as developers and testers. Furthermore, the high price of the software is negatively affecting the industry's growth. To remain competitive, vendors offer their products and services at a price similar to the ones provided by their competitors.

Global 3D CAD Software Market Opportunities:

Increasing Investments in 3D Printing

The global market is emerging from its developing stage as companies use CAD software and prototyping applications in their product development phases. Growing advancements in technology and increasing investments in R&D have enabled the incorporation of 3D printers in manufacturing. In addition, 3D printers are widely used in various fields, including dentistry, fashion, automotive, and aerospace. Increasing government investments in 3D printing will also likely influence market growth over the forecast period.

Additionally, companies are increasingly investing in 3D metal printing for critical aviation applications. For instance, in February 2021, the Engine Division of Hindustan Aeronautics Ltd (HAL) collaborated with the Wipro 3D, the metal additive manufacturing business of Wipro Infrastructure Engineering (WIN), for the manufacturing, development, and airworthiness accreditation of a perilous aero-engine module functioning in the hot zone, through metal 3D printing. Organizations are outsourcing 3D printing to gain access to various technologies and reduce their overall costs. In addition, businesses are working hard to create goods compatible with 3D printing, creating many expansion possibilities for the global 3D CAD software market.

Regional Analysis

North America Dominates the Global Market

Based on region, the global 3D CAD software market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant shareholder in the global 3D CAD software market and is anticipated to grow at a CAGR of 5.0% during the forecast period. Due to the extensive usage of this technology in several sectors besides manufacturing, North America dominated the market for 3D CAD software. The need for augmenting the designing and manufacturing processes to reduce the time to market is expected to keep the market buoyant over the next few years. The regional automotive and aerospace sectors have been utilizing CAD software for producing low-volume components with complex designs, thus furthering regional market growth. In addition, the North American regional 3D CAD software market includes the U.S. and Canada. The United States accounted for the most prominent revenue share in the regional market. This can be attributable to the support provided by the U.S. government for adopting digitization tools that will accelerate the growth of the region's industrial sector and promote the use of 3D CAD software tools. Further, the market is developing due to major companies in the area, including Autodesk Inc., PTC, Dassault Systèmes, and Dassault Systèmes SolidWorks Corp.

Europe is estimated to grow at a CAGR of 5.6% over the forecast period. The increasing government regulations are expected to bolster the demand the 3D CAD software over the forecast period. For example, in March 2016, the U.K. government announced its strategy to increase productivity in construction to deliver approximately USD 1.91 billion in efficiencies to support 20,000 apprenticeships by 2020. Following this regulation, building information modeling software has become mandatory for large-scale construction projects, increasing demand for 3D designing software. In addition, the faster delivery speed of completed projects, greater effectiveness and efficiency of construction supply chains, and improved visualization of the construction project are a few of the benefits the region is realizing with the use of designing software.

Asia-Pacific is anticipated to be the fastest-growing region, providing several opportunities for 3D CAD solution providers to tap the manufacturing and AEC sectors. The manufacturing industry in South Korea and Taiwan still relies on traditional methods for product designing and fabrication, thus offering the potential to capture the untapped market for 3D CAD software technology in the region. The Asia-Pacific regional 3D CAD software market includes Japan, China, India, Taiwan, Korea, and Australia. In addition, China is expected to witness increased adoption of 3D CAD solutions in the construction sector due to the growing need for developing energy-efficient buildings. Recently, the tallest 3D-printed building was constructed in the Suzhou region of the country. The key players in the region are also improving their manufacturing systems by producing complex 3D parts in a single build with the help of 3D CAD.

The Middle East and Africa region is anticipated to experience significant growth over the forecast period. The development of the regional market is expected to be driven by the considerable increase in the adoption of 3D CAD software solutions in sophisticated graphic movies, e-sports, and the oil and gas sectors.

Segmental Analysis

The global 3D CAD software market is segmented by deployment and application.

Based on deployment, the global 3D CAD software market is divided into cloud and on-premise. 

The on-premise segment is responsible for the largest market share and is anticipated to grow at a CAGR of 4.8% over the forecast period. The on-premise CAD software is a widely adopted software among the end-user industries and can be installed directly at a user's workstation. The growth of the on-premise segment is attributable to the technology's high data or information security feature. On-premise solutions provide fast-tracked innovation by enabling collaboration, elimination or reduction of errors caused due to version control issues or quality assurance, and essential data and design reuse. Furthermore, for on-premise products and solutions, companies offer customers an electronic software download for product updates and initial product fulfillment.

The cloud-based 3D CAD software offers the same benefits and capabilities as the on-premise CAD software. However, cloud-based CAD provides cloud services through an app and is updated on a remote server, which can be accessed by paying a monthly or annual fee. The market for cloud-based 3D CAD software is at its nascent stage. It is expected to grow substantially over the forecast period as end-use industries increasingly focus on adopting these solutions. Moreover, solution providers also opt for cloud solutions due to their advantages, such as minimal or no installation process, better collaboration, integrated data management system, and ability to share designs with stakeholders.

Likewise, the increasing shift from on-premise to cloud, together with the changes in customer inclinations and requirements, is characterizing the growth of the 3D CAD software market. The growing demand for 3D digital designs for communicating product concepts to investors and venture capitalists is contributing to adopting cloud-based 3D CAD software.

Based on application, the global 3D CAD software market is segmented into AEC, manufacturing, automotive, healthcare, media and entertainment, and others. 

The manufacturing segment owns the highest market share and is estimated to grow at a CAGR of 5.7% during the forecast period. The manufacturing sector dominated the 3D CAD industry and is projected to grow significantly over the next few years. Manufacturers are moving from 2D to 3D solutions as the latter offers enhanced accuracy and efficiency and produces improved design quality and fewer errors. For instance, China's Unicorn Industrial Sewing Machine Co. uses 3D CAD software to bring down the design cycle time and enhance product design efficiency by reducing potential errors. Similarly, Haskell International uses 3D modeling technology to reduce the time to market its products.

The 3D CAD software market is projected to depict the fastest growth in the healthcare sector over the forecast period. This growth can be attributed to increasing regulations, such as the Food and Drug Administration (FDA) and Dubai Health Authority (DHA), imposed on the development of customized medical devices. The 3D CAD software assists in achieving diagnostic quality assurance by preventing potential nodules from being overlooked by doctors. Furthermore, the penetration of 3D printing to reach the mass customization of devices, along with the need for digital design and fabrication, is expected to fuel the segment's growth.

The 3D CAD software market for the healthcare sector is expected to witness substantial growth owing to the use of 3D CAD software and 3D printing solutions for empowering manufacturers to produce customized products and medical equipment. Further, these solutions facilitate surgeons to improve the success rate of complex surgeries and procedures. The use of CAD software has witnessed phenomenal growth in developing new products as there have been significant developments in medical implants, bio-printing, and prosthesis manufacturing.

Recent Developments

• February 2023- 3D Systems announced that the BWT Alpine F1 Team had acquired four SLA 750 3D printing systems to increase innovation and track speed. The printing system contains 3D Sprint®, the all-in-one software developed by 3D Systems for preparing, optimizing, and printing 3D CAD data.

• February 2023- Nextech AR Solutions Corp. announced the launch of a new "Quad Typology Converter Update" that places Toggle3D as the premier all-in-one platform for CAD to web 3D design. Users of the Toggle3D platform can now generate quad tessellations, improving the overall quality of 3D models.