CAD report

The 2008 CAD Report

The CAD industry has been undergoing a remarkable renaissance over the last five years as a result of several factors. Among those factors are hardware advances that put 64-bit, multi-core computers into the mainstream. In addition, there is broadening acceptance of 3D techniques. And finally, the marriage of CAD visualization with information management helps redefine the CAD industry and extend its relevance throughout the enterprise. In an industry known for a conservative rate of change, there is a significant shift taking place as smaller businesses are investing in new technologies to improve their processes and efficiency.

According to JPR’s research, CAD software vendors saw combined revenues of $5,234.95 million in 2007. The CAD software market increased an astounding 20% in 2007 compared to 2006 when revenues reached $4,362.45 million. The trend will continue through 2008 in spite of challenges in the U.S. economy that could ripple through worldwide economies. Strong growth continues in the emerging economies that will than offset contractions in the west.

In 2008, the CAD market will grow to $6,024.55 million, an increase of 15%. This is slightly down from our earlier prediction of 18% growth as we see some vendors facing decreased sales primarily in the architectural fields. In all, however, the CAD industry is growing and will continue to grow through 2012 with a CAGR of 11%.

(Source: Jon Peddie Research)

 

2006

2007

2008

2009

2010

2011

2012

Total CAD Revenue

$4,362

$5,235

$6,025

$6,609

$7,072

$7,567

$8,210

In 2007 the worldwide installed base of CAD users reached 5.31 million, a 20% increase over 2006 when the number of CAD users was 4.42 million.

In 2007 the majority of CAD users, 63% are still working in 2D, and 37% work in 3D. However revenues for 3D CAD programs are higher. In all revenues for 3D CAD accounted for 53% of the market and 2D CAD accounted for 47% of the market. This highlights a shift as comparatively fewer users account for a larger share of the revenue. This trend will continue. 2D CAD programs are less expensive than 3D programs and we’ve been seeing the slow encroachment of 2D CAD programs offered for free by companies hoping woo 2D users to their 3D products.

The trend to 3D will continue but it’s important to note that not all of the 2D CAD users are going to make the transition to 3D. In many cases, the transition means a change of job description. Sometimes, the growth of 3D CAD is happening as professionals add CAD to their portfolio of tools. However, those 2D CAD users who do make the transition to 3D can expect to see increased job prestige and increased income.

The 2008 CAD Report

The 2008 CAD Report is a detailed report that looks specifically at the CAD market. It includes information on worldwide CAD software revenues, market share, and a information about the user base. The market looks at the industry from the two major subsets of Mechanical/Manufacturing and AEC (Architecture, Electrical, and Construction). The report also includes a section on CAD for the Mac and Process and Power. It breaks out the relative share of the market for Architecture, MCAD, Process and Power, Civil, GIS/Mapping, and other.

The report also looks at major trends in the industry including the transition to advanced hardware, the approaches to multiCAD, and the addition of visualization to the repertoire of CAD companies’ capabilities.

Table of Contents

Worldwide CAD Market Report

  • Introduction
  • Executive Summary
    • A summary of findings
  • Part I: CAD Market Overview
      • Market Share Leaders
    • 3D taking over
      • Architectural vs. manufacturing's move to 3D
    • The users: the 2D base and 3D elite
  • Geographies
  • 3D Mechanical/Manufacturing CAD
  • AEC, Architecture, Engineering, and Construction
    • The Mac market
      • CAD programs for the Mac
    • Process and Power
  • Forecasts
    • Economic indicators
    • Forecast Conclusion
  • Part II: Trends in the CAD Industry
  • The major issues
    • The transition to 3D
      • CAD users
    • Hardware advances
      • 64-bit computing
      • Multi-Core
      • Gaming
    • Globalization and new efficiencies
    • Verticalization
    • Architectural CAD — 3D acceptance and BIM
      • BIM defined
    • MCAD
      • Leading issues in MCAD
        • Ease of Use
        • Analysis
        • Taking advantage of advanced hardware
        • Redefning the channel
        • Globalization
        • Direct Modeling vs. History-based modeling
    • Collaboration and communication, MultiCAD
    • Collaboration
      • Open Design Alliance
      • Autodesk's DWF initiative
      • Autodesk Freewheel
      • PTC
      • U3D
      • Anark's Core
    • Multi-CAD
      • ACIS/Parsolid
      • JT
      • Dassault rolls out 3DLive for its entire product line
      • IntelliCAD
      • COLLADA
    • Visualization
      • Autodesk acquires Opticore
      • Accurender
      • BunkSpeed
      • Mental Images
    • Free CAD/Open Source
      • Alibre's Free 3D XCAD
      • UGS offers Solid Edge 2D for free
      • Think3 offers free2D
      • SketchUp
      • CoCreate
      • The Future of Free
    • Conclusion

Table of Tables

  • Table 1: CAD programs and suppliers for the Mac
  • Table 2: A rough comparison of the vertical organization of the major CAD companies reveals their areas of emphasis

Table of Figures

  • Figure 1: A relative breakdown of the major segments considered in this report. In this chart the segments are apportioned according to revenue. As a result, the MCAD segment, with characteristically higher priced products has a higher share of the market revenue
  • Figure 2: The CAD leaders: Autodesk, Dassault, PTC, and UGS have a disproportionate percentage of market share compared to their smaller competitors many of which are successful companies exploiting defined niches
  • Figure 3: Market share for the top CAD vendors. The total CAD market reached $5234 in 2007
  • Figure 4: While there are still more 2D users than 3D users in the CAD industry, 3D CAD generates more revenue. This chart was created by considering all CAD products and breaking out the relative use of 3D compared to 2D
  • Figure 5: The growing use of 3D models in CAD has made the CAD market more competitive ii.
  • Figure 6: A house design created first as floor plans, elevations, and artists renderings then the hard work of actually building it and detailed information affecting contractors comes into play
  • Figure 7: Detail is the whole point in MCAD. A model is not a representation, it is a digital version of the object and updates and changes ripple through the whole design
  • Figure 8: Looking at the 2D market as a distinct subset shows Autodesk to lead the drafting segment by a significant margin. However, Autodesk reports that sales of its lower end products including plain AutoCAD have slowed compared to 3D products. We put the 2D CAD market at $2355
  • Figure 9: The majority of CAD users are still 2D drafters and most of them are using AutoCAD. However, this is the market where Free CAD have an effect and many companies including Think3 and Ashlar-Vellum among others are making their 2D products available for free
  • Figure 10: JPR estimates that 1 million people buy or upgrade their CAD systems every year. Of the people buying CAD systems in 2007, 70% of them or 0 million are primarily 2D users and 30% or 0 million work primarily in 3D
  • Figure 11: Strong representation by European CAD companies has changed the picture of worldwide CAD revenues
  • Figure 12: The market share among leading mechanical CAD providers. The Mechanical market is the largest segment of CAD. It reached $ $2,868 in 2007
  • Figure 13: According to a report published by the U.S. National Science Foundation, the number of degrees awarded in North America in the sciences has remained almost static while the number has increase in almost every other part of the world. In particular, the number of degrees awarded in Asia have increased
  • Figure 14: The AEC industry is a large superset of disciplines in CAD. The AEC segment reached $1,654 . Autodesk has a long history in the AEC industry and leads the market but there are many companies with very strong customer bases. Companies like Nemetschek have helped lead the AEC market to BIM
  • Figure 15: The market for CAD on the Macintosh is modest. It reached 122 in 2007. As the chart shows, German company Nemetschek which has acquired Graphisoft owns most of this market
  • Figure 16: The Process and Power industry is complex combining data management with specialized CAD functions such as piping, collision detection and architecture. The market reached $660 million in 2007
  • Figure 17: The total worldwide CAD market revenue will be over $8 billion by 2012
  • Figure 18: Thanks to several important trends, the CAD market will see overall growth. Two major factors are the growth of emerging economies and also the transition to 3D
  • Figure 19: For some, the number of housing starts in the U.S. is an indicator of the health of the economy. Vendors in the architectural communities will hasten to add that industrial housing is a small part of the overall picture and not reflective of the CAD industry. However, it is obvious, the U.S. economy is in a downturn on several fronts and this will be reflected in the building and construction industry in the U.S
  • Figure 20: The IMF publishes their economic outlook twice a year. The organization was not optimistic at the opening of 2008 and so far, events are bearing them out. One of the interesting things to look at is the relative drop for China. Growth in the region is predicted to go down after three years of increasing growth iii.
  • Figure 21: This chart shows the leading countries in car manufacture and compares 2005 to 2006. This is significant on several levels because it indicates not only the potential growth of the large mechanical CAD companies in these countries but also the economic growth of these countries as well—the people in the region can support an automobile industry
  • Figure 22: An example of the process of evolution for a basic CAD program designed for broad based use. The type outside the boxes represent early specialized tools developed by third party partners. In turn, CAD vendors have created modules or product variations to suit particular disciplines. In this case, we demonstrate the extension of basic CAD to broad subsets such as Architectural and Mechanical and further into Mapping, Process and Power, Civil Engineer, etc. Outside third party developers help maintain the ecosystem
  • Figure 23: The construction industry has been slow to move to CAD in comparison with related fields. Interior Design has incorporated CAD into curriculums in school and as landscape design becomes an accredited field, it too is seeing an increase in automation. The construction industry is becoming automated as a matter of expediency and it is happening as a top down approach in larger companies. Companies are increasingly looking for partners with expertise in CAD practices
  • Figure 24: The AEC market is going to see modest growth. The bright spots are in infrastructure and, energy but overall construction is going to see problems as economic problems ripple through markets. We believe the market will be strong overall as new practices encourage growth
  • Figure 25: The manufacturing industry went through a massive reorganization in the 80s and 90s. As a result the automotive industry has realized significant benefits in efficiency. General Motors compared their facilities construction projects to manufacturing and found plenty of room for improvement
  • Figure 26: This chart was included in a paper by Professor Yukio Hasagawa to illustrate how architecture has lagged behind the manufacturing industry in terms of productivity. Professor Hasagawa's paper is called Construction, Automation, and Robotics in the 21st Century
  • Figure 27: We expect to see growth in the MCAD sector continue fairly steadily, driven by globalization which is bringing in new customers as well as new workers as regional economies growth to support their own industries
  • Figure 28: CAD data can be useful in a variety of other programs. This rendering was created from a CAD model created in OneSpace Designer and imported into Maya using Okino's translator. Copyrights: Images (c) by Pieter Suur, Suur Graphics and Eaton Electric B.V. Courtesy of Okino
  • Figure 29: Volvo C70 rendering