CAD in the apparel industry: Key market research findings
- The Americas dominate the market geographically
- 2D CAD accounts for a majority share of the market’s revenue
- Key vendors – Autodesk, Browzwear, and Lectra
Technavio’s market research analysts predict the global CAD market in the apparel industry to grow at a CAGR of around 5% between 2016 and 2020. The growth of the market is fueled primarily by the growing demand for customization among consumers. Customizations include changes in patterns, fabric, and design. High demand for apparel customization has led to a rise in demand for CAD solutions in the industry. Using CAD software, an estimate of materials and other basic requirements can be calculated before the bulk production of the apparel. The global CAD market in the apparel industry was dominated by the Americas with a market share of around 44% during 2015. The presence of many fashion houses and garment factory units in the US is expected to contribute to the growth of the CAD market in the apparel industry in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the CAD segments based on the product.
“Currently, the market is witnessing a steady shift towards 4D models. CAD vendors in the market are now developing 4D CAD solutions that to enable increased operational performance. This can improve the project execution strategy, resulting in better execution and sequencing of construction schedules with granular level information. The effective deployment of 4D CAD solutions is expected to enable effective manageability of resources while meeting the project schedules,” says Amrita Choudhury, Lead Analyst, ICT, Technavio Research.
During 2015, the 2D CAD segment accounted for around 82% of the overall market revenue to become the dominant shareholder in the global CAD market in the apparel industry. 2D CAD solutions are used mainly by smaller companies for basic purposes, such as stitching designs, as they are more cost-effective than 3D CAD solutions. Many vendors are expected to shift to 3D CAD due to the advantages associated with its use over the next four years – causing a negative impact on the growth of the global 2D market in the apparel industry.
The key vendors in the market comprise of Autodesk, Browzwear, and Lectra. The level of competition in this market is intense among the existing vendors and new entrants. The declining profit margins and market competition pose significant risks to vendors’ operations. The rising level of competition in this market is leading to consolidation, wherein smaller entities are being acquired by large players. The rapidly altering technological environment in this market is a major challenge that will make it imperative for vendors to distinguish their product and service offerings through a clear and unique value proposition.
A more detailed analysis is available in the Technavio report, Global CAD Market in the Apparel Industry 2016-2020.
We can customize reports by other regions and specific segments upon request.
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