Technavio, a tech-focused market research firm, has published a new report on the global CAD market in the automobile industry, which is expected to experience steady growth with a CAGR of more than 5% during the forecast period, 2016-2020.
This report by Technavio covers the market outlook and growth prospects of the global CAD market in the automobile industry for 2016-2020, considering 2015 as the base year. In addition, an overview of the market, key leading countries, vendor landscape, and a detailed analysis of the top vendors operating in this market are covered in the report.
Based on geographical division, Technavio market researchers segment the global CAD market in the automotive industry into the following key regions: APAC, EMEA, North America, and South America.
Geographical segmentation of the CAD market in the automotive industry for 2015 (market share %)
|
EMEA |
31.28% |
|
North America |
30.40% |
|
APAC |
28.89% |
|
South America |
9.43% |
Source: Technavio
EMEA: largest revenue generating region for CAD market in the automotive industry
The market in EMEA has a high potential for growth owing to factors such as the growing automotive industry in the European countries including Germany, UK, and France, and the increased application specific R&D activities, mainly start-ups and smaller revenue generating automobile companies in the region.
The increase in sales, turnover, and production in the automotive industry in Germany is prompting vendors in the market to adopt CAD solutions to design their products, which, in turn, is leading to the growth of the CAD market in Germany. For instance, the adoption of Siemens PLM Software NX by Daimler and CATIA by Volkswagen and BMW contributed heavily to the growth of CAD market in Germany. Apart from Germany, other countries such as the UK, Spain, and Portugal have a flourishing CAD market, which contributes to the overall growth of the CAD market in the automotive industry in EMEA.
According to Siddarth Jaiswal, a lead analyst at Technavio for product lifecycle management, “The CAD market is undergoing a shift in preference from a perpetual license model to a subscription model. The high ROI on subscription is encouraging many vendors in the market to bring down the sale of perpetual CAD licenses gradually. The advantages of the subscription model over the perpetual license model also acts an incentive for its rising adoption. The subscription model is simple and provides a better user experience for the customers. With a subscription-based approach, vendors will be able to provide updated software versions with bug patches.”
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CAD market in the automotive industry in North America
During 2015, the CAD market for the automotive industry in North America accounted for a revenue of around $868 million. The growth of the CAD market in North America is fueled primarily by the flourishing automotive industry in the US. The automotive industry in the US is driven by three major companies – Ford Motor company, General Motors, and Fiat Chrysler Automobiles.
The automotive industry in Mexico has a high potential for growth, which is encouraging vendors to set up manufacturing units in the region. Some of the advantages of setting up an automobile manufacturing unit in Mexico include low labor cost, proximity to the US, and free trade agreement.
CAD market in the automotive industry in APAC
The majority of the demand for CAD software in APAC during 2015 was accounted for by China and India. The increased demand from these countries comes from the manufacturing units of international automotive vendors such as Volkswagen and GM. In China, the high demand for new energy vehicles is the primary driver for the growth of the CAD market. The new energy vehicle vendors use specialized PLM software, which includes CAD, owing to the variations in the design and manufacture processes when compared to the traditional processes, which is contributing to the growth of the market in the country. The CAD market in India is flourishing owing to the increased use of CAD software for product designing by some of the leading automobile manufacturers. Maruti Suzuki, Mahindra & Mahindra, and Ashok Leyland are some of the key manufacturers using CAD software for their product designing purposes.
CAD market in the automotive industry in South America
The automotive industry in countries like Brazil and Argentina is the major driving force behind the growth of the CAD market in South America. The protectionist policies implemented in Brazil, which mandate that at least 50% of the vehicle components should be manufactured by domestic suppliers, has benefitted the automotive suppliers in the country. This policy spurred an increase in the use of CAD by domestic automobile part manufacturers, resulting in the growth of the automotive market in Brazil. The CAD market for the automotive industry in South America is expected to register growth at a CAGR of more than 6% during the forecast period.
The top leading vendors operating in the CAD market in the automotive industry are:
- Autodesk
- Dassault Systèmes
- PTC
- Siemens PLM Software
Other prominent vendors in the market include BricsCAD, Encore, Graebert, RealCAD, Solvespace, and TurboCAD.
A more detailed analysis is available in the Technavio report titled, ‘Global CAD Market for the Automotive Industry 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.
Other related reports:
- Global CAD Market in the Apparel Industry 2016-2020
- Global PLM in the Automotive Sector 2016-2020
- Global Mechanical Computer-Aided Design Market 2016-2020
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