The global computer-aided manufacturing market size was worth USD 2,879 million in 2021. It is expected to reach USD 6,004 million by 2030, growing at a CAGR of 8.51% during the forecast period (2022-2030). Computer-aided manufacturing is a software tool that lends a hand to engineers, architects, and other professionals to propose and produce items. Computer-aided manufacturing software passes on to the utilization of computers to help out the entire function of a manufacturing plant. These take account of planning, management, transportation, and storage. The essential purpose of Computer-aided manufacturing software is to form quicker manufacturing procedures along with the mechanisms and provide more accurate magnitudes and substance reliability. Computer-aided manufacturing applications are practiced for designing manufactured goods and program production procedures, notably CNC machining.
Factors like increasing deployment of computer-aided manufacturing software in packaging mechanisms, expansion in industrialization, and boost in funds for research & development movements drive market growth. On the other hand, the accessibility of complementary and open-source computer-aided manufacturing software is anticipated to slow down the market growth. On the contrary, amplification in implementing cloud-based solutions and technological progressions in Computer-aided manufacturing software is likely to provide the most critical opportunities for market growth in the upcoming years.
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Increased Utilization of Computer-Aided Manufacturing Software in Packaging Technology
The rapid adoption of CAM software in packaging machinery is a crucial factor driving the market's growth. The packaging process, including filling, wrapping, strapping, and labeling, is carried out with the assistance of packaging machinery. Engineers and designers are adopting CAM software to address unique mechatronic engineering challenges as packaging machines become more complex and higher efficiency standards are demanded. Computer-aided manufacturing software provides a pioneering tool projected to boost the overall output and trim down overall expenditure per package. Additionally, the growth of the CAM software market for packaging machinery is anticipated to be fueled by smart packaging as designers streamline communication between mechanical systems and electrical engineering controls using CAM-integrated product development solutions.
An increase in industrialization that concentrates on digital advances and integrates rudiments like automation, biotechnology, artificial intelligence, the internet of things, and 3D printing is likely to increase the requirement for Computer-aided manufacturing software. Additionally, it has prompted the establishment of quality assurance and inspection organizations to check the entire product development and manufacturing process. As a result, manufacturers now adhere to regulatory body requirements. In addition, the increase in the need for visualization of the manufactured goods and hurried trial of these goods in diverse industries is anticipated to make available profitable opportunities for the growth of computer-aided manufacturing (especially 2D and 3D CAM software).
Free and Open-Source Computer-Aided Manufacturing Software is Widely Accessible
The chief element likely to hold back the Computer-aided manufacturing market growth is the accessibility of free and open-source Computer-aided manufacturing software. Due to budget issues, SMEs always search for free software, which leads to taking up free and open-source Computer-aided manufacturing software. This ends up impeding the market growth. Furthermore, several Computers aided manufacturing software merchants enthusiastically launch new products in the market containing advanced attributes for free, which weighs down the market growth.
Cloud-Based Solutions are Facing Colossal Demand
A significant transition from proprietary software to cloud-based subscriptions is anticipated to present lucrative opportunities for market expansion. Since cloud-based solutions allow end users to lower their overall implementation and ownership costs, adoption is expected to increase more quickly. Cloud-based offerings are predicted to displace existing desktop software, whose users are expected to be drawn to the operational flexibility made possible by cloud-based subscription models and new users attracted to the low-risk start-up value proposition of cloud-based applications. Additionally, CAM software vendors offer new features and launch additional products to improve their existing products, which is expected to increase end users' adoption of CAM software.
The global computer-aided manufacturing market is segmented by component, deployment type, organization size, design type, application, and region.
The component-wise segmentation includes solutions and services.
The solution section holds the largest market share and is expected to grow at a CAGR of 8.93% by 2030. This segment includes those tools and software that support manufacturing organizations in optimizing the procedure of converting raw materials along with the constituents into completed goods. The expansion of this segment is primarily accredited to an increase in requirement in favor of Computer-aided manufacturing software solutions in packaging technology besides a boost in industrialization procedures.
The service section will hold the second-largest share. The services regarding computer-aided manufacturing solutions comprise professional and managed services that include implementation, training, support, and consulting. Furthermore, widespread espousal of professional services between end-users to guarantee the efficient operation of Computer-aided manufacturing software solutions during action drives the market growth.
The deployment model classified the computer-aided manufacturing market into on-premise and cloud.
The on-premise segment is expected to generate the highest revenue, growing at a CAGR of 8.16%. Clients mostly prefer on-premise deployment mode as in this mode, computer-aided manufacturing solution suppliers set up solutions at the client's data center or any chosen place. This deployment mode provides enhanced security compared to the cloud deployment mode, which increases the adoption of Computer-aided manufacturing software leading to market growth.
The cloud segment will hold the second-largest share. This deployment mode has the potential to surpass the on-premise deployment mode in the upcoming years. In this deployment mode, the software works on the cloud computing domain of the CAM solution supplier, and the service is dispersed remotely. The cloud segment offers IT professionals a better panorama for easing real business value to organizations by lower anticipated expenditure and enhanced aptitude to concentrate on innovations leading to market growth.
The computer-aided manufacturing market is divided into large enterprises and SMEs based on the organization size.
The section of large enterprises dominates the market, growing at a CAGR of 8.73% by 2030. Large enterprises always try to discover unique customs to renovate their procedures efficiently. These enterprises employ computer-aided manufacturing software to diminish mistakes in designing and production procedures that help the organizations' stakeholders perform their work efficiently. These factors stimulate market growth.
The SMEs segment will hold the second-largest share. As the chief purpose of SMEs is to increase revenue, these enterprises always try to incorporate the latest software developments and solutions. Thus, computer-aided manufacturing software, mainly cloud-based software, is beneficial to SMEs as this proposes personalized services driving market growth.
Per the product type, the computer-aided manufacturing market is classified into 2D and 3D.
The 3D section will have the most significant shareholding, growing at a CAGR of 10.33%. With the help of 3D Computer-aided manufacturing software, designers produce three-dimensional representations of their ideas, generating excessive revenue generation. The primary reason behind the increasing demand for 3D computer-aided manufacturing software is the demand for incorporated suites to facilitate programming five-axis machines on the mount as it offers information regarding the execution of a machine while functioning real work. The eye-catching dynamics of 3D Computer-aided manufacturing software drive the market growth.
The 2D section will hold the second-largest share. 2D computer-aided manufacturing software permits the designers to assess design manufacturing and helps recognize possible concerns related to this. 2D computer-aided manufacturing software developers always try to follow ongoing trends to improve the product collection by adding those trends into the manufactured goods resulting in market growth.
The application segments the CAM market into Aerospace & Defense, Shipbuilding, Automobile & Train, Machine Tool, and Others.
The machine & tool sector is forecasted to grow at a CAGR of 8.36% and hold the largest share. Computer-aided manufacturing software offers several advantages to the machine and tool industry, including quicker machining cycles, machining of rudiments by non-machining specialists, superior quality finishing, amplified machinist efficiency, enhanced material deployment, and prolonged tool time industry to collect a vast amount of revenue.
The automobile & train sector will have the second-largest shareholding. In this industry, the hunt for fresher materials, techniques, and machines is continuous as this industry demands the best profits and features at subordinate investments and expenditures.
By region, the global computer-aided manufacturing market is segmented into North America, Asia-Pacific, Europe, and LAMEA.
North America and the Asia Pacific will lead the regional market
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North America holds the largest share, projected to grow at a CAGR of 7.94% by 2030. The US is the primary contributor to this region as this region has increased investment in the infrastructure industry, especially in the design and software domain. Besides this, technological advancements in architecture, engineering, and construction contribute to market growth. North America's automotive and aerospace industries are the main drivers of manufacturing automation growth. For instance, one of the biggest producers of four-wheeled vehicles in Mexico.
Additionally, a rise in the trend of leasing and outsourcing non-core manufacturing processes like part manufacturing, maintenance, payroll services, and benefits administration supports market expansion. The U.S. business community is consistently implementing strategies and tactics to boost operational effectiveness by focusing resources on the primary production of their core businesses, which is anticipated to fuel demand for CAM software in this region.
The Asia Pacific region holds the second largest market share of USD 2,322 million, expanding at a CAGR of 12.11%. In this region, the primary drivers that compel market growth are the implementation of highly developed technology and elevated demand for automation in the manufacturing segment. These drivers generally improve the accuracy and effectiveness of the manufactured goods that drive market growth. The industrial Internet of Things, advanced robotics, additive manufacturing, and augmented reality also caused the development of the Asia-Pacific computer-aided manufacturing market share.
The market in India is expanding due to the rise in demand for CAM software and service offerings by manufacturers. Additionally, to meet the unprecedented increase in passenger traffic, many airlines have started fleet expansion projects in India, one of the world's domestic aviation markets with the fastest growth rates. As a result, India's aerospace sector presents the CAM market share with lucrative growth prospects. Additionally, Cam software has become popular in Australia's 3D printing industry for use in producing replicas of proposed products that haven't yet been commercialized. Further, it is anticipated that increased CAM software adoption for the production of medical devices will open up significant market opportunities.
List of key computer-aided manufacturing market companies profiled