Technical Illustration Software Market Size, Share & Trends Analysis Report By Type (Bitmap/Raster, Vector), By Technology (2D, 3D), By Component (Solution, Services), By Organization Size (Large Enterprise, Small and Medium-Sized Enterprises (SMEs)), By End-User (Automotive and Machinery, Aerospace and Defense, Architecture, Engineering, and Construction, High-Tech and Telecommunications, Energy, Oil and Gas) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The technical illustration software market is expected to grow with a CAGR of 6.7% during the forecast period.

Technical illustration software is extensively used by small and large organizations to display their products in an enhanced manner. Its ability to provide 2D and 3D illustrations and digital and interactive replicas with utmost precision, comprising HTML animations, technical 3D animations, and infographics, and display complex structures and processes in a simplified manner drives its demand across the industrial verticals.

Market Dynamics

Changing business dynamics drives the market growth/ digitalization: a key business strategy

With the advent of technology, the business dynamics have changed significantly, enabling businesses to adapt to the changing circumstances. As per an article published by one of the leading players, PTC, about 70% of the companies have or are planning to strategize for a digital transformation as a competitive necessity.

Companies are using aggressive strategies to gain customers and earn revenue, digitalization being the prime one. As stated in the report ‘The IT Industry Outlook 2020’, published by CompTIA, Inc.,  the organizations focus mainly on four pillars, which are 57% on software development, 51% on cybersecurity, 47% on data, and 45% on infrastructure, for digital transformation. Several companies are using a customer-centric approach by showcasing their products using a 2D or 3D technology to improve the user experience. The report also states that the user experience enhancement is one of the critical aspects of the software development of an organization. Thus, changing business dynamics fosters market growth. 

Emergence of new technology: a key market driver

Incorporation of the latest technological trends such as cloud computing, augmented reality, virtual reality, and 3D painting fosters market growth. As per the article ‘The Digital Transformation Initiative – Maximising returns on Digital Investments’, published by the World Economic Forum, the total investment expenditure on emerging technologies is anticipated to reach approximately USD 2.4 trillion by 2020. It also states that the Internet of Things (IoT) will be one of the largest emerging technologies, with over 42% of the total investment expenditure.

As stated in the report ‘3D Printing: A Guide for Decision-Makers’, published by the World Economic Forum, the global revenue of the 3D printing market was valued at USD 9.38 billion in 2018. The technology has been gaining significant popularity in the manufacturing sector in the last few years. The report also states that in 2020, the 3D printing market is projected to account for 0.7% of the total manufacturing revenue, which is expected to rise by 1% in the coming five years. Thus, the amalgamation of technical illustration software with IoT, 3D printing, and other emerging technologies drives market growth.

Lack of skilled professionals: a key market restraint

Technical Illustrators use drafting tools, automated equipment, and software, such as Creo from PTC, Adobe Acrobat from Adobe, CorelDRAW from Corel, and Canvas, to provide blueprints and detailed sketches. They are mainly used by a trained professional with adequate knowledge about the tools and equipment; however, the lack of skilled labor restrains the market growth. As per an article by the World Economic Forum, the European ICT sector anticipates about 756,000 unfilled jobs by 2020. Additionally, rapid technological advancements prompt the need for enhancing the skills as per the changing technology, further widening the gap. The article also stated that more than 54% of the employees lagged in terms of changing technology and needed significant reskilling.

Regional Analysis

The U.S.: World’s Fastest Adopter of New Technologies/ North America to Dominate the Technical Illustration Software Market/ Presence of Leading Players Drives North America’s Market Growth

North America dominates the technical illustration software market on account of the presence of key players such as Adobe, PTC, QuadriSpace, Corel, Canvas GFX, Ignite Technologies, and Autodesk. As per the report ‘The IT Industry Outlook 2020’, published by CompTIA, Inc., the U.S. technology industry is projected to reach USD 1.7 trillion by the end of 2020. The region is one of the fastest adopters of technology and is backed by the presence of suitable technological infrastructure and increasing government spending. As stated by the report ‘Doing Business 2020’ by the World Bank,  the U.S. ranks 2^nd in the economic environment.

Increasing Adoption of Latest Technology across Industrial Verticals Drives Asia-Pacific’s Market Growth/ Surging Number of Startups and Government Initiatives Bolsters Asia-Pacific’s Market Growth

Asia-Pacific is projected to exhibit the fastest growth in the technical illustration software market on account of the increasing adoption of technology such as Industrial IoT, augmented reality, and virtual reality. The report ‘A GSMA Internet of Things Report, July 2018’ published by GSM Association states that there will be approximately 200 billion IoT devices across the globe by the end of 2020, and 95% of those devices will be manufactured by China.

As per the ‘Korean Startup Ecosystem Guide’ published by the Australian government, the Korean virtual reality market was valued at USD 0.73 billion in 2016 and reached USD 0.87 billion in 2017. Apart from this, the surging number of startups and increasing government initiatives and investments drive the regional market growth. For instance, the Startup India and Make in India initiatives by the Government of India and Skills Future Series in Advanced Manufacturing by the government of Singapore provides an impetus to the market growth.

Segmental Analysis

Solution segment to hold the largest market share/ solution segment to be backed by the presence of leading players offering 2d and 3d technological illustrations

On the basis of components, the technical illustration software is divided into solutions and services. The solution segment holds the largest market share on account of the rising demand to illustrate the product in order to gain a competitive edge. The leading players are offering solutions that provide illustrations in 2D and 3D technologies for a complete depiction of the product. Additionally, its ability to offer raster and vector type of illustrations via software solutions to fulfill different demands of the industry vertical fosters the market. The services segment, on the other hand, is segmented into professional services and managed services. The professional services help to provide advisory, consulting, and support services to the clients.

Large enterprises: leading consumers of technical illustration software

By organization size, the technical illustrations market is segmented into large enterprise and small and medium-sized enterprises (SMEs). Large enterprises are the leading consumers of technical illustration software due to the availability of technical infrastructure and capital to spend on R&D activities.

On the other hand, the SME’s utilize technical illustration software to provide a better demonstration of their solution and services and gain a competitive edge. As stated by the report ‘Doing Business 2020’, published by the World Bank, the cost of starting a business has tremendously reduced from 2004 to 2020 in the low and middle economies. It has fallen from approximately 140% of the per capita income to less than 30% of the per capita income on account of the rising government initiatives and adoption of technology. 

Impact of covid-19

The technical illustration software market is projected to experience steady growth due to its ability to provide a complete illustration of the products. During these unprecedented times, the inability to provide physical demonstration and deploying the products has become difficult due to the uncertainty of staffing and resources in the companies, further driving the market growth.

Recent Developments

• In June 2019, Corel enhanced its CorelDRAW Technical Suite 2019 to provide precision and control the Technical Illustration Software and expand its product portfolio.
• In April 2020, Autodesk partnered with Aurigo Software to integrate the latter company with Autodesk Construction Cloud, perform end-to-end planning, design, and construction operations, and expand its business operations