Global CAD Market in the Automotive Industry 2016-2020
CAD is a software tool that is used to achieve accuracy in designing and modeling of products and components of an organization. several industries such as automotive, aerospace and defense, industrial machinery, electrical and electronics, and others widely use CAD solutions. These solutions allow the end-users to develop prototypes of their products digitally before the commencement of the production. They also help engineers, architects, and design professionals draft industry-specific products that enhance the overall product development.
Technavio’s analysts forecast the global CAD market in the automotive industry to grow at a CAGR of 5.26% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global CAD market in the automotive industry for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of CAD software licenses, and services.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global CAD Market in the Automotive Industry 2016-2020
Technavio recognizes the following companies as the key players in the global CAD market in the automotive industry: Autodesk, Dassault Systèmes, PTC, and Siemens PLM Software.
Other Prominent Vendors in the market are: BricsCAD, Encore, Graebert, RealCAD, Solvespace, and TurboCAD.
Commenting on the report, an analyst from Technavio’s team said: “Shift toward 4D CAD will be a key trend for market growth. End-users of CAD software, especially automotive industry, are shifting from 3D to 4D CAD models. Globalization of the markets has increased the competition among CAD solution, and the lack of product differentiation further adding to the battle for maximum market share. Vendors are incorporating additional features and functionalities in their solutions to improve customer experience. CAD providers are developing 4D CAD solutions for enhanced operational performance and better project execution strategies in order to improve the constructability and sequencing of construction schedules using granular level information. These kinds of solutions facilitate effective management of resources while adhering to project schedules.”
According to the report, role of CAD in mass customization will be a key driver for market growth. High demand for product customization increased the demand for CAD solutions across industries. Companies that relied on mass production due to its cost effectiveness are now resorting to mass customization. Product customization also leads to the creation of a single bill for materials that can be used once or multiple times depending on the end-user's requirements. CAD software plays a major role in determining the bill of materials at the design stage.
Further, the report states that high cost of switching will be a challenge for the market. Although CAD helps realize a high ROI in a short period of time, it involves high customer switching costs. Investment in CAD depends on the existing PLM. Customers commit to long-term contractual arrangements with vendors to leverage the benefits of PLM and CAD tools. They are forced to continue working with the same vendor because of high the switching cost and low performance issues, which is affecting the growth of the market.
Autodesk, Dassault Systèmes, PTC, Siemens PLM Software, BricsCAD, Encore, Graebert, RealCAD, Solvespace, TurboCAD.
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