A giant software industry once dismissed as mature sprouts green shoots.
Jon Peddie Research (JPR), the industry's research and consulting firm for graphics and multimedia, announced the completion of the CAD market study with historical data and forecasts.
JPR's CAD Report tracks suppliers of CAD software and related products and has done so for over 15 years.
The news is encouraging and consistent with economic trends. The field of CAD has grown to encompass many disciplines, industries, and capabilities; the report concentrates on the tools used to produce CAD drawings and models. From that point of view we offer market share data for the major companies, geographic breakdowns, an estimate of users, and forecasts for the future.
Jon Peddie Research estimates the CAD software market to be an $8 billion market with 5.15M annual users. We expect the market to grow to $8.7 billion in 2017 at a CAGR of 4%.
The CAD market has been marked by a modest growth rate for decades, but that doesn't mean the industry is not changing. We have seen significant changes in the years following the recession in 2009. As is typical in all recessions the industry has become more efficient, it has tightened in terms of employment, and it is poised for growth in the coming years.
As the advantages of a digital workflow are extended to the field and to the shop floor the numbers of people accessing CAD data are growing. New access to training and software is helping the CAD workforce move to more efficient methods and advance their skills. The long, long awaited transition to 3D is picking up speed and the gap between 2D and 3D workflows is growing more pronounced in some industries.
This report is intended to provide a broad overview of the major CAD markets and the dynamics within those markets.
Table of Contents
- A summary of findings
- Trends 2014
CAD Market Overview
- Opportunity and Danger
- 3D: Shifts in emphasis
- 2D: The Contenders
- Transforming AEC
- Opportunities abound for BIM
- Cloud enabled BIM
- The metrology revolution
A closer look at individual markets
- Manufacturing/Mechanical CAD
- AEC, Architecture, Engineering, and Construction
- The construction opportunity
- And then there's Asia
- Process, Power, and Marine
- Digital Reality: Real World Capture:
- First Steps
- Sketching and drawing
CAD User profiles
- The users: 2D, 3D, and both
Definitions & Methodology
- Information Sources
- Primary research for this report
- Secondary research for this report
Table of Figures
- Figure 1: Revenues for the CAD software market from 2009 to 2014. We expect to see growth continue.
- Figure 2: The CAD industry has seen new competitors arrive, but the traditional leaders have held their position. In 2014 companies are exploiting their core competencies and looking for niches.
- Figure 3: A breakdown of the major segments considered in this report. In this chart the segments are apportioned according to revenue.
- Figure 4: The advantage is increasingly going to large companies, but we're also seeing new opportunities emerge for young companies.
- Figure 5: When looked at by revenue it's clear that 2D CAD is not a growing business. However, 2D does not go away, drafting and drawings are required for most CAD markets, but the price for the software is coming down.
- Figure 6: The CAD leaders: Autodesk, Dassault Systèmes, PTC, and Siemens PLM have a disproportionate percentage of market share compared to their smaller competitors.
- Figure 7: In terms of sheer numbers, the majority of CAD users can be classified as 2D users, but 3D programs cost more and require a different expertise. People who work solely in 2D CAD are now classified as drafters with a much lower rate of pay. Those who use 3D are modelers; they are often people holding professional degrees. 3D has grown in the CAD market. In 2014 CAD revenues are split 24:76 between 2D and 3D. We have seen new entrants on the scene with a strong focus on 2D hoping to take market share from Autodesk.
- Figure 8: The industry has learned that 2D is an essential tool for communicating design information. It's used in conjunction with 3D information -sometimes it's converted, more often it is not but 2D information lives alongside 3D information.
- Figure 9: BIM has wider penetration in Europe compared to the U.S. European requirements have encouraged the use of BIM, but the U.S. is becoming an enthusiastic market as more workers have access to BIM data and the advantages of more efficient information sharing and collaboration are realized. In addition, owners in many industries are starting to ask for BIM as part of the project.
- Figure 11: Open BIM
- Figure 12: This diagram of Conventional vs. BIM 5D communication was found in a presentation from Consolidated Construction Company CCC. The conventional model has members communicating in an ad hoc manner and there is no assurance everyone is getting the whole story or even the same story. BIM starts with a central model, which everyone uses to communicate. The term of 5D BIM describes 3D CAD plus schedule (4D) and cost related information (5D). (Source: Zuhair Hadad, Use of BIM, http://www.ccc.me/)
- Figure 13: The companies with CAD and BIM tools stand to gain as countries adapt BIM standards. In this look at market share we are comparing the CAD companies BIM tools. The universe of BIM tools is much larger than these companies. Today, the traditional CAD companies in AEC are almost obliged to have BIM capabilities and they are enthusiastic about the opportunity.
- Figure 14: Autodesk hopes to offer as many tools as possible to keep users working with Autodesk products. Competitors Bentley Systems, Trimble, Hexagon, Nemetschek and others have similar ambitions but some are more enthusiastic collaborators. (Source: Autodesk) .
- Figure 15: Excel Engineering demonstrates scanned imagery combined with 3D model in Revit (Source: Excel Engineering)
- Figure 16: The market share among leading mechanical CAD providers. The Mechanical market is the largest segment of CAD. The market is lopsided with a few strong leaders and numerous smaller competitors.
- Figure 17: A comparative look at CAD software revenues from the leading companies based on estimates and company-disclosed data. It reveals the profound effect of recession on the market segment and also the relative slow growth of design software.
- Figure 18: Good news and bad news: The above chart is a focused look at influential world-wide economies via the OECD's Condensed Leading Indicators (CLI). The CLI is a compilation of factors the OECD has found to have an effect on the economy. The OECD is tracking turning points thus the big four European leaders are due for an upturn (blue), North America (NAFTA, maroon) is holding steady and Asia (green) is back on the upswing thanks to China, and Russia (red) is a decided wild card with everything going on hold in the face of low oil prices, sanctions, and war. (Source: OECD)
- Figure 19: The companies serving the manufacturing market are looking for ways to expand their product lines into the life cycle of products. (Source: JPR)
- Figure 20: The AEC industry has suffered badly as a result of the recession and was especially hard hit by the real estate speculation in Europe. Building projects are picking up in the U.S. The picture of the AEC CAD market is looking much more positive as companies adopt new workflows.
- Figure 21: The major markets of AEC.
- Figure 22: A comparison of the AEC companies shows a trend of growth since the 2009 drop. Trimble's business includes hardware as well as software so its revenues are significantly higher, but also interesting, the company has been building its construction software business. As we discussed in the BIM section, AEC is going to continue to trend up.
- Figure 23: Room for growth: Europe is just now gaining ground lost in their long ongoing recession. EU-28 and EA-19 Construction output, 2000-2014, monthly data, seasonally and working day adjusted (2010=100), Source: Eurostat (sts_copr_a). The EU 28 includes the entire member states of the European Union, and the EA 19 are those countries in the Euro Area (EA) that have adopted the Euro currency.
- Figure 24: US Construction figures from U.S. Census data. There is still room for US construction to grow but there is a great deal of confidence at US construction companies.
- Figure 25: Process and power maket share
- Figure 26: In the U.S., the sources of power are distributed. (Source: The US Energy Information Administration)
- Figure 27: The US EIA (Energy Information Administration) expects energy demands to rise dramatically in India and China. The other emerging economies are catching up while the 34 OECD partners (Organization for Economic Co-operation and Development) levels off. The OECD countries include the US, Europe, Nordic countries, Australia, etc. and account for 63% of the world's GDC.
- Figure 28: Market shares in global shipbuilding - CGT stands for Compensated Gross Tons. This is a market that travels according to costs. (Source: Ecorys report on shipbuilding in Europe)
- Figure 29: The companies leading the GIS industry are ESRI, Hexagon, and GE Energy (Smallworld).
- Figure 30: We believe the majority of CAD users are using Windows 7 and they are debating whether to use Windows 8 or wait for Windows 9. Microsoft is putting a great deal of effort in to transitioning users to Windows 8 before 9 and that will help nudge some CAD users.
- Figure 31: The market for CAD software on the Mac is small. The products in this chart have native Mac CAD products. Those users who want CAD on the Mac primarily use virtualization techniques like Bootcamp and use Windows-based software on Mac machines. Programs built forthe Mac have modest revenues but their user base is dedicated.
- Figure 32: A comparison of salaries shows CAD drafters to be relatively low paid compared to Professional Engineers, and Architects.
- Figure 33: A look at the number of respondents to polls suggests that for many people, the job of CAD drafter is a stepping-stone. The majority of respondents have not been in the job for a long time. They may be ready to move up in their profession or to move on to another type of work.
- Figure 34: The 2D CAD market
- Figure 35: We believe the 2D market share has shifted in favor of low cost and free CAD tools. Autodesk still holds a majority of market share in 2D, but end users are showing a willingness to change. Graebert claims over 7 million users of its core drafting engine but we put the estimate of committed, active users at much less.
- Figure 36: By the numbers, the ratio between 2D and 3D users; however it's a little misleading since 2D drafting tools are basic tools owned by many.
- Figure 37: With the advent of subscriptions and cloud-based tools, there is more access to 3D CAD but we do not believe the number of skilled 3D CAD professionals changes a great deal.
- Figure 38: The CAD market has returned to growth and vendors are optimistic about 2015 and beyond. However, the largest growth is coming as a result of new packaging options such as subscriptions and low cost or free products.
- Figure 39: Strong representation by European CAD companies has changed the picture of worldwide CAD revenues.
- Figure 40: To get a larger view of the world market for CAD we broke out the regions by country using our own segmentation, world economic data, as well as company information where available. (Source: Jon Peddie Research)
- Figure 41: There have been some interesting shifts over the past six years or so. The Americas have remained stable, losing a little of their percentage to China and Asia but Europe has had rolling economic setbacks and China's economy is at cooling off. In our forecasts, we had expected Latin America to continue its growth but instead the region is working through some headwinds.
Table of Tables
- Table 1: A general breakdown of the market concentrations for the major CAD companies
- Table 2: The ODA companies
- Table 3: CAD programs and suppliers for the Mac.
- Table 4: List of CAD programs