3D CAD Software Market Size, Share & Trends Analysis Report By Deployment (Cloud, On-premise), By Application (Manufacturing, Healthcare), By Region (North America, APAC), And Segment Forecasts, 2021 - 2028

Report Overview

The global 3D CAD software market size was valued at USD 9.46 billion in 2020 and is expected to register a compound annual growth rate (CAGR) of 6.4% from 2021 to 2028. The growing use of computer-aided design in the automotive industry, coupled with manufacturers’ increased focus on additive manufacturing, is expected to boost the market growth. The emergence of a cloud-based platform for 3D CAD software is further driving the growth of the market. Several companies are increasingly turning to cloud-based architecture to streamline workflows and increase design flexibility. For instance, in October 2019, PTC acquired Onshape Inc., a Software as a Service (SaaS) product design platform, as an initiative in the transition to a cloud-based SaaS platform, thereby attracting new customers with the offering.

Furthermore, the use of 3D CAD software technology in the packaging industry for various purposes, such as designing, wrapping, boxing, and bottling consumer goods, is expected to fuel market growth. The market is also expected to be driven by the growing demand for precise designing, digitalization, and complex structure prototyping in the automotive, manufacturing, and aerospace & defense sectors. 3D CAD outsourcing services are commonly used in various functions, including engineering, to focus on designing core products and their production. Furthermore, the rising preference of end-users for customized solutions is escalating the demand for 3D CAD software solutions.

The key players in the market are offering customized and personalized solutions to their clients to attract a larger customer base. The major companies to incorporate customization features in their product offerings include Autodesk Inc., Dassault Systèmes, SolidWorks Corporation, and PTC, among others. The advances in 3D printing are driving the demand for 3D CAD software as 3D printing enables the development of a three-dimensional model using computer-aided design technology. The growing funding for 3D printing technology allows the manufacturing of a wide range of items, from a variety of materials, depending on the needs of end-users.

Major companies have started to deploy and incorporate 3D printing technology to offer an advanced solution to their clients and gain a competitive advantage. For instance, in January 2021, Autodesk Inc. integrated Netfabb’s 3D printing software into Fusion 360, the company’s first 3D CAD, CAM, CAE, and PCB tool. The incorporation enabled Netfabb users to have complete access to Fusion 360 and HSMWorks. Increased investment in state-of-the-art technologies fuels competition among players, allowing them to develop products with cutting-edge technology and enhanced capabilities, such as Augmented Reality (AR) and the Internet of Things (IoT). These advanced technologies support users in accelerating the creation and designing process by combining digital designs for physical products.

Furthermore, Virtual Reality (VR) has emerged as a useful auxiliary technology for 3D CAD as it enables users to see how their designs will work in the real world. The VR technology offers a virtual copy of the model, enabling users to detect defects in the designs with an immersive visual experience. The technology has proved beneficial by saving costs and reducing errors and is expected to benefit several industrial works, especially in the aerospace and automotive sector. Major companies are investing in the Research & Development (R&D) of the solution offerings to reduce competition from other companies and to offer technologically advanced products in the market.

However, the lockdowns imposed by several governments in 2020 and 2021 to curb the spread of the COVID-19 disease have adversely affected the market growth. Many industries, especially manufacturing, automation, and media & entertainment, had to halt their ongoing projects and in some cases, terminate their future assignments, which caused a hindrance in the market growth. Companies are seen to be formulating strategies to overcome the situation and make up for the forfeiture post the pandemic. Furthermore, the growing mergers & acquisitions of large-scale engineering companies, coupled with increasing outsourcing, have compelled small- and medium-sized businesses to invest in digital simulation tools, thus propelling the market growth.

Deployment Insights

The on-premise segment accounted for the largest revenue share of over 82% in 2020. This can be attributed to the high information or data security feature of the technology. Software users find it convenient to deploy the on-premise solution as all information and design data can be retained easily on their systems. On-premise solutions are deployed mainly by end-users in highly regulated sectors, such as medical, healthcare, and government institutions. On-premise solutions offer accelerated innovation by facilitating collaboration, significant data & design reuse, reduction or elimination of errors due to version control issues, and quality assurance; which is leading to the high adoption of these solutions among industries.

The cloud segment is anticipated to witness the fastest CAGR of over 11.0% from 2021 to 2028. The demand for cloud-based platforms has drastically augmented in the past couple of years owing to advantages, such as better collaboration, ability to share designs with stakeholders, minimal or no installation process, and integrated data management system. Moreover, companies are seen to be increasingly incorporating cloud-based CAD software in the wake of the coronavirus pandemic as it offers employees remote access to a software solution to produce and amend technical drawings for their ongoing projects. In May 2020, CADCAM-E.COM, Inc. launched EnSuite-Cloud, a free cloud CAD viewer offering, to enable remote working throughout the ongoing COVID-19 crisis.

Application Insights

The manufacturing segment accounted for the largest revenue share of more than 24.5% in 2020 and will expand further at a steady CAGR from 2021 to 2028. This can be attributed to the extensive use of 3D CAD software in prototype designing in the manufacturing sector. This software enables Original Equipment Manufacturers (OEMs) to simulate parts movement in the production process, thereby driving the growth of the segment. Furthermore, the media & entertainment segment is likely to witness considerable growth over the forecast period. This can be attributed to the deployment of the software in media houses for advertising and animated content production. The others segment, which includes the education, government & utilities, and aerospace & defense sectors, is also estimated to witness significant growth over the forecast period. The aerospace & defense industry is utilizing the software to recognize minute defects in the models before passing it to the production house.

The healthcare segment is anticipated to register the highest CAGR from 2021 to 2028. This can be attributed to the ability of 3D CAD software in creating 3D models from the information received by medical images obtained from MRI and CT scans. The significant deployment of 3D CAD models for planned surgeries, especially prostheses and implantation of medical devices, is driving the growth of the segment. The Architecture, Engineering, and Construction (AEC) segment is projected to register the second-fastest CAGR from 2021 to 2028. The software offers an accurate representation of the artifact by allowing operators to produce a comprehensive dimension of each fragment of an architectural design. This has furthered the implementation of the solution amongst architects and construction businesses. Likewise, with the growing focus on sustainable living and smart housing, real-time 3D modeling is expected to play a substantial role in designing outlines of construction, thus fueling the AEC segment growth.

Regional Insights

North America accounted for the highest revenue share of more than 33% in 2020 and is anticipated to maintain its dominance even during the forecast period. This can be attributed to the support offered by the U.S. government for deploying digitization solutions that will enhance the development of the manufacturing industry in the region, thus encouraging the implementation of 3D CAD software solutions. The presence of key players, such as Autodesk Inc., PTC, Dassault Systèmes, and Dassault Systèmes SolidWorks Corp., in the region is also fueling the market growth. Europe accounted for a significant market share in 2020 and is likely to observe considerable growth from 2021 to 2028 due to the increasing deployment of Building Information Management (BIM) solutions by AEC businesses in the U.K.

Asia Pacific is expected to register the fastest CAGR from 2021 to 2028 on account of a rise in the number of AEC and manufacturing companies in the region. The extensive growth in the region’s engineering, design, and development sectors is anticipated to boost the adoption of designing and modeling tools over the forecast period. The Middle East & Africa region is expected to witness substantial growth over the forecast period. The significant growth in deployment of 3D CAD software solutions in advanced graphic movies, e-sports, and oil& gas sectors is expected to drive the regional market growth.

Key Companies & Market Share Insights

The market is relatively fragmented due to the presence of several participants. With the help of 3D CAD software, companies focus on minimizing production errors, leading to efficient use of technology and resources. The key players have procurement teams based in major revenue-generating economies to procure goods and services from different suppliers based on criteria, such as sustainability, the total cost of ownership, credentials, supplier’s creativity and innovation, contractual commitments, and quality and completeness of the solution. The key market players sell their products and services through direct and indirect channels consisting of resellers and distributors.

To gain a competitive advantage over rivals, major companies heavily invest in R&D activities to incorporate emerging technology and develop software solutions with unique features. For instance, in March 2021, Autodesk, Inc. launched Autodesk Takeoff, a feature that empowers estimators to carry out 2D & 3D quantification workflow with various tools. The newly launched feature facilitates increased collaboration, accuracy, and speed in the estimation process. Moreover, technology providers focus on developing solutions to cater to a specific industry vertical and incorporate various advanced technologies, such as VR, AR, and IoT to fulfill a specific industrial requirement. Some key players in the global 3D CAD software market include:

• Autodesk, Inc.

• Bentley Systems, Inc.

• Hexagon AB

• Oracle

• PTC

• Siemens

• Dassault Systèmes SolidWorks Corp.

3D CAD Software Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global 3D CAD software market report on the basis of deployment, application, and region:

• Deployment Outlook (Revenue, USD Million, 2016 - 2028)

  • Cloud

  • On-premise

• Application Outlook (Revenue, USD Million, 2016 - 2028)

  • Architecture, Engineering, & Construction (AEC)

  • Manufacturing

  • Automotive

  • Healthcare

  • Media & Entertainment

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa