CAD industry to maintain growth

March 26, 2008

The CAD industry has been undergoing a remarkable renaissance over the last five years as a result of several factors, according to Jon Peddie Research's CAD report for 2008 to 2012. Among those factors are hardware advances that put 64-bit, multi-core computers into the mainstream. In addition, there is broadening acceptance of 3-D techniques. In an industry known for a conservative rate of change, there is a significant shift taking place as smaller businesses are investing in new technologies to improve their processes and efficiency.

JPR's research found that CAD software vendors saw combined revenues of $5,234.95 million in 2007. The CAD software market increased 20 percent in 2007 compared to 2006 when revenues reached $4,362.45 million. The report predicts the trend will continue through 2008 in spite of challenges in the U.S. economy that could ripple through worldwide economies. In 2008, the CAD market will grow to $6,024.55 million, an increase of 15 percent, and in all, the CAD industry is growing and will continue to grow through 2012 with a Compound Annual Growth Rate (CAGR) of 11 percent.

In 2007 the worldwide installed base of CAD users reached 5.31 million, a 20 percent increase over 2006 when the number of CAD users was 4.42 million.

According the to the report, the majority of CAD users in 2007 (63 percent) were still working in 2-D, and 37 percent work in 3-D. Since revenues for 3-D CAD programs are higher, however, revenues for 3-D CAD accounted for 53 percent of the market and 2-D CAD accounted for 47 percent of the market. This highlights a shift as comparatively fewer users account for a larger share of the revenue--a trend the analysis company says will continue. In addition, the report states that there has been a slow encroachment of 2-D CAD programs offered for free by companies hoping woo 2-D users to their 3-D products.

In addition, the company's report says the trend to 3-D will continue but not all 2-D CAD users will make the transition to 3-D. In many cases, the transition means a change of job description. Sometimes, the growth of 3-D CAD is happening as professionals add CAD to their portfolio of tools. However, those 2-D CAD users who do make the transition to 3-D can expect to see increased job prestige and increased income.

The 2008 CAD Report looks at the CAD market and includes information on worldwide CAD software revenues, market share and information about the user base. The market looks at the industry from the two major subsets of mechanical/manufacturing and AEC (architecture, electrical and construction). The report also looks at major trends in the industry including the transition to advanced hardware, the approaches to multiCAD and the addition of visualization to the repertoire of CAD companies' capabilities.
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