Posted: Harrison Garovi 09.21.17
Cloud Adoption by the $8B CAD/CAM/CAE Market Accelerating Faster than Predicted
Jon Peddie Research (JPR) and Business Advantage Group (BA) are pleased to announce the immediate availability of their collaborative report on CAD in the Cloud: The CiC Market Trends 2017 report. CAD/CAM/CAE users are in the early stages of cloud-based workflow adoption. This report delivers a view of rapidly-emerging trends in this nascent market, such as current and future usage plans, management and infrastructure approaches, hardware considerations, benefit perception vs. reality, and perceptions on importance of the technology, enablers and inhibitors and awareness of leading vendors. Content details of the report are available here.
Rate of CiC Adoption Overall
The CiC survey shows 23% of survey respondents stating they “have already implemented CiC or are planning to within 12 months.” This level of adoption, combined with aggressive moves some vendors are making towards cloud-based provisioning of applications and services, and with increasing use of and confidence in content sharing services such as Dropbox, Google Docs, SalesForce and others, we believe there is potential for much faster acceptance of cloud-based workflows than previously thought. The survey includes the outlook of Autodesk users compared to non-Autodesk users, and found Autodesk users to be more receptive to the cloud due in part to consistent Autodesk communications with its customers about the benefits of CiC.
For the next five years, CiC will not be the only way users interact with CAD tools. We expect to see hybrid setups enabling users to choose between the cloud and their desktop, and use syncing technology to keep current. CiC is the solution to a pent-up demand for more distributed and economic computing capabilities. Just as the tablet was a disruptive technology to the PC, CiC will have the same effect on workstations and CAD in general.
Rate of CiC Adoption by Industry Sector
Early adopters of CiC are evenly distributed by industry sector, with Manufacturing pulling slightly ahead of AEC and Other in plans to adopt. However there is a great deal of uncertainty around adopting CiC.
For the past decade, the market for AEC has experienced steady growth, much from pent up demand, but in 2016, growth slowed somewhat compared to prior years. The outlook is complicated because of uncertain world markets. Growth in 2017 is expected to improve over 2016 but there are unknowns surrounding the US and European political climates and struggling economies. Pressures around currency exchange rate fluctuations in subscription models by some AEC solution providers also makes the situation hard to decipher.
Likewise, the major CAD vendors with customers in the manufacturing sector are very interested in CiC workflows, though some are cautious about moving too far ahead of their customers.
Top of Mind Awareness of CIC Vendors Overall
When asked which CAD software vendors/developers are top of mind when thinking about Cloud based CAD, most survey participants were aware of Autodesk’s Fusion 360 (55%), followed by Onshape (26%), as seen in figure 10 below.
We believe the use of 3D tools is more likely to drive cloud workflows. As we have seen, when it comes to 3D workflows, Autodesk is not the leading contender. While Autodesk Fusion 360 requires a downloadable component, Onshape is a pure-play CiC program runningentirely in the cloud. It’s not surprising that Onshape has good awareness among non-Autodesk users, as Onshapefounders Jon Hirschtick, John McEleney, Tommy Li, Dave Corcoran, Scott Harris and Michael Lauer were active at SolidWorks. PTC was slower to commit to the cloud but with the company’s acquisition of ThingWorx and commitment to the Internet-of-Things,PTC’s fate is dependent on a strong cloud infrastructure.
There is a large and enduring base of 2D CAD, because the format holds legacy data and is the file of record in many industries. We observe an interesting consistency that while 3D CAD represents the majority of revenue in the CAD industry, 2D CAD has more users. We see 3D evolving for design, construction and production, and 2D as a tool for documentation and archival.
Top of Mind Awareness of CiC vendors by Industry Sector
We found Interesting results when looking at top of mind awareness of CiC broken down by “AEC”, “Manufacturing” and “Other”, as shown below in Figure 13.Approximately 70% of AEC industry respondents are aware of Autodesk as a vendor of CiC solutions for the AEC space,however in the Manufacturing space,vendor awareness is nearly on par between Autodesk (38%) and Onshape (34%).
Manufacturing has a 20 year history in these practices with PLM (Product Lifecycle Management), in contrast to BIM (Building information modeling) which is a growing field in AEC and was relatively rare 10 years ago. With the rise of digital project planning and asset management and collaborative tools, the cloud has enabled easier adoption of data management programs like PLM and BIM.
Survey Methodology, Intended Audience and How to Purchase
The report is built on results of worldwide survey research conducted individually by each firm, additional industry data and insights from JPR analysts. We observe that a discrepancy in terms is causing some confusion, and to ensure clarity in this survey, CiC was defined as a “model where software applications are delivered to the user over the internet i.e. software is not stored on the company’s network, desktop PC, laptop, etc.”
The CiC Market Trends 2017 report has been developed with the specific interests of the CAD/CAM/CAE/PLM and PDM industry sectors. It provides insight by industry, geography, company size, decision making authority, and in some areas, software usage, into the current thinking of engineers, designers, architects and managers, and design and engineering decision makers.
The report is available for purchase online via the JPR store or via Purchase Order to Jon Peddie Research or Business Advantage. The cost of a site license for the report varies by size of organization:
- Single User or small firm (up to 10 people), US$4,999
- Department or small firm (10 to 100 people), US$6,500
- Large firm/site license, US$10,000
About Jon Peddie Research:
Dr. Jon Peddie has been active in graphics and multimedia for more than 30 years, and in 2015 was given the Life Time Achievement award from the CAAD society. Jon Peddie Research (JPR), based in Tiburon, California, provides consulting, research, and other specialized services to technology companies in a variety of fields including graphics development, multimedia for professional applications and consumer electronics, high-end computing, CAD and Internet-access product development.
Report co-author, Kathleen Maher is an experienced analyst tracking content creation and design software. Maher is the Editor-in-Chief of JPR's TechWatch Report, one of the most respected insider reports published today. She is the author of several well received reports including the 3D Modeling and Animation Report, The CAD Report, and also reports on video animation, print, and audio software. She is the Editor in Chief of GraphicSpeak, a website covering graphics hardware and software.
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