CAD Industry to Maintain Growth in Economic Downturn

By DE Editors

According to the CAD Report for 2008 to 2012 released by Jon Peddie Research (JPR; Tiburon, CA), the CAD software market increased 20 percent in 2007 compared to 2006 when revenues exceeded $4 million. The trend will continue through 2008 in spite of challenges in the U.S. economy that could ripple through worldwide economies.

The CAD industry has been undergoing a renaissance over the last five years as a result of hardware advances that put 64-bit multicore computers into the mainstream; a broadening acceptance of 3D techniques; and the marriage of CAD visualization with information management helps redefine the CAD industry and extend its relevance throughout the enterprise.

In 2008, the CAD market will grow to more than $6 million, an increase of 15 percent, states the release about the report ($5,000 for a single license and $7,500 for a site wide license) from JPR. This is slightly down from JPR’s earlier prediction of 18 percent growth as some vendors are 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 percent.

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

Other findings reveal that in 2007 the majority of CAD users, or 63 percent, are still working in 2D, with the rest in 3D. However revenues for 3D CAD programs are higher. In all revenues for 3D CAD accounted for 53 percent of the market and 2D CAD accounted for 47 percent of the market. This highlights a shift as comparatively fewer users account for a larger share of the revenue. JPR expects this trend to continue.

The 2008 CAD Report includes information on worldwide CAD software revenues, market share, user base, and 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.

For the Report’s Table of Contents, go to Jon Peddie Research.

Sources: Press materials received from the company and additional information gleaned from the company’s website.