Global outlook of the CAD market in the automotive industry
Technavio’s market research analysts predict the global CAD market in the automotive industry to grow steadily during the next four years and post a CAGR of more than 5% by 2020. This industry research report identifies the increasing number of product recalls by several automobile companies to be one of the major factors that will have a positive impact on the growth of this market in the coming years. The recent years have witnessed a number of major automobile manufacturers recalling their products due to various reasons including defective air bags, faulty light systems, issues with ignition switch parts, and faulty camshaft. From having to incur severe losses based on the number of products recalled to having a bad reputation in case of a major issue, product recalls due to non-compliance of product standards and safety concerns have several negative effects. Since the effective use of product life cycle management (PLM) software such as computer-aided designing (CAD), computer-aided engineering (CAE), and computer-aided manufacturing (CAM) can ensure the reduction in number of product recalls by refining the product, there will be an increase in the adoption of PLM software by automotive industries, which in turn, fuels the growth of the CAD market in the automotive industry.
The shift toward subscription model from the perpetual license model will be one of the major trends that will gain traction in this market in the coming years. Benefits such as simpler and a better user experience will result in the major customer shift toward the subscription model. Additionally, low upfront costs, subscription to on-premises CAD software, and instant updates will also induce customers to prefer the subscription model. As a result, CAD vendors will start reducing the sale of perpetual CAD licenses. One of the major vendors Autodesk, has already announced that it will stop providing perpetual CAD licenses for all their product suits by the end of 2016 and has already started focusing on periodical subscriptions to boost their revenue.
Competitive landscape and key vendors
The market is currently dominated by four major CAD vendors who generate their revenues either through direct sales or through resellers and system integrators. The vendor competition in the market is quite intense and this will result in market consolidation where smaller companies are either being acquired by or merged with large companies. Technological advancements and declining profit margins pose a challenge to the growth of vendors and they have the need to distinguish their product and service offerings through a clear and unique value proposition.
The leading vendors in the market are -
Siemens PLM Software
The other prominent vendors in the market are BricsCAD, Encore, Graebert, RealCAD, Solvespace, and TurboCAD.
Geographical segmentation and analysis of the CAD market in the automotive industry
In terms of geographical regions, EMEA accounted for the major shares of the market during 2015 and this was mainly due to the growth of automotive companies in countries such as Germany, Spain, and France. The constant growth of the automotive industry and the rise in number of application specific R&D activities, will bolster the market’s growth prospects in this region.
Key questions answered in the report include
What will the market size and the growth rate be in 2020?
What are the key factors driving the global CAD market in the automotive industry?
What are the key market trends impacting the growth of the global CAD market in the automotive industry?
What are the challenges to market growth?
Who are the key vendors in the global CAD market in the automotive industry?
What are the market opportunities and threats faced by the vendors in the global CAD market in the automotive industry?
Trending factors influencing the market shares of APAC, EMEA, North America, and South America.
What are the key outcomes of the five forces analysis of the global CAD market in the automotive industry?
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