Declining Prices and Rapid Adoption by SMBs Drives the Global 3D CAD Market, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on 3D CAD markets. The global 3D CAD market is projected to reach US$7.1 billion by 2018, primarily driven by falling prices of entry level 3D CAD packages, rapid adoption of the technology among small and medium businesses (SMBs), and the growing need among manufacturing companies to leverage faster time to market competencies. Robust demand from emerging markets, Asia-Pacific in particular, also augurs well for the future of the market.

3D CAD: A Global Strategic Business Report

Follow us on LinkedIn – Going beyond traditional CAD, 3D CAD is revolutionizing design agility in ways hitherto unimagined. Product designs whether for automotive, shipbuilding, aerospace, industrial, architectural design or for medical prosthetics, is a thought provoking process, which can be taken to higher levels through the sophisticated functionality of 3D CAD tools. Defined as a computer software tool for creating technical and engineering drawings of product prototypes in three dimensional (3D) vector-based drafting systems, 3D CAD helps create realistic digitally constructed images. 3D CAD provides superior, attractive and informative graphics which allow the designer to retrieve better data from images by creating a superior visual context for better understanding of technical scenarios. In other words, 3D CAD enables easy visualization and understanding of product designs in a digital format that allows for easy, hassle free, cost effective modification of design models. Given that most of the critical, high impact changes are made only in late stage product development, the most important advantage offered is the flexible modeling agility that provides the power to make late stage design changes. As a visually exciting way to convey illustrative information, 3D CAD is expected to score lucrative gains in the upcoming years as unabated migration continues with users upgrading their 2D CAD drafting software to 3D modeling software.

One of the primary factors triggering growth in the global 3D CAD market is the technology’s faster time to market advantages and benefits offered to a range of industry segments. The importance of reduced time to market cannot be undermined, given the competitive edge provided by first mover advantage. 3D CAD, in this regard, helps in faster conversion of prototype designs into executable (in terms of machining and production) designs. This is primarily possible because 3D CAD models and designs provide unrivalled depth of information about a product, thus eliminating bottlenecks in production possibilities. For instance, on the production floor, actual production schedules are often disrupted by missing and/or inadequate machining measurements on 2D product designs. And revision and/or changes in one product dimension/component triggers changes in the rest of the design necessitating engineers to hit it back to the drawing board.

3D designs, by virtue of its associative ability, enables automated adjustments in all other product dimensions in the event of changes in one part, thus eliminating downtime otherwise involved in product revision. The ability to get revised measurements right from the model itself immediately post revision is a killer advantage critical for successful operation in the marketplace. In conclusion, reduced machining time and costs, reduction in scrap, reduced need for reworking designs and for re-running production tests, increased customer satisfaction, all help result in accelerating the time to market speeds. Growth in the upcoming years will also be supported by falling prices of entry level 3D CAD, which currently averages on par with the cost of a 2D CAD package. The cost benefits accrued due to 3D modeling in a design process further outweigh the initial costs incurred in 3D applications.

The 3D computer aided design (CAD) market is expected to gain significant traction from increased adoption of the technology in the SMB segment. The growing acceptance of 3D CAD among SMBs can be thrown into sharp relief by the fact that over 50% of SMBs have implemented 3D CAD in their product design and development efforts. 3D CAD enables SMBs, especially small job shops, to reduce reliance on client blueprint for manufacturing and to be proactively able to create product prototypes out of rough ideas presented by clients. This ability to create value added designs with minimal inputs from clients can spell huge gains for SMBs. Interestingly, variables such as, quality, reliability and speed are even more important and critical for SMBs than in comparison with larger companies, given the limited resources, both human and capital at their disposal. To tap into this potentially large goldmine of opportunities, vendors are getting their act together in developing software solutions tailored to meet SMB needs. In this regard, features such as, ease of use, scalability, flexibility, simplicity, pre-configured functions, ready-made templates, and affordability, rank supreme.

As stated by the new market research report on 3D CAD, the United States represents the largest regional market. Asia-Pacific represents the fastest growing regional market with annual dollar sales from the region waxing at a CAGR of about 19.7% over the analysis period. Increased outsourcing of ODM (original design manufacturing) activities to Asia and the resulting increase in number of low cost manufacturing and designing companies in the region is expected to push up investments in computer-aided design software in the region, thereby driving opportunities for 3D CAD. The massive shifting of manufacturing bases into Asia such as in India, China and Singapore, propelled further by fears over natural calamities like earthquakes and tsunamis in Japan, has and will continue to drive demand for CAD systems including 3D CAD.

Major players in the global marketplace include Ashampoo GmbH & Co., KG., Autodesk Inc., Bentley Systems, Incorporated, CAXA Technology Co., Ltd., Chempute Software (Pty) Ltd., Dassault Systèmes SA, Graphisoft SE, Intergraph Corporation, Kubotek USA Inc, Parametric Technology Corporation, PROCAD Software Ltd., Siemens Product Lifecycle Management Software Inc., VariCAD, and ZWSOFT among others.

The research report titled “3D CAD: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections (in US$ million) for major geographic markets including the US, Japan, Europe, Asia-Pacific and Rest of World.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/3D_Computer_Aided_Design_CAD_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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