CAD Market Size, Share, and Industry Analysis By Type (2D, 2.5D, and 3D), By Deployment Model (On-premises and Cloud), By Industry Vertical (Aerospace and Transportation, Civil Engineering and Public Services, Healthcare, Engineering and Construction, and Product Design and Manufacturing), and Regional Forecast, 2025-2032

The global CAD market is witnessing significant expansion with an escalation in the number of CAD software downloads across various regions and increasing product usage across several industries, including aerospace, healthcare, construction, and manufacturing. CAD (Computer-aided design) helps in the digital creation of 2D and 3D design simulations before the physical creation of objects/structures. The deployment of this technology enables modification and adjustment and replaces the conventional “pencil on paper” method used in engineering and design.

A range of benefits offered by this software is anticipated to boost its demand over the coming years. Improved productivity, enhanced accuracy, and automation are a few of the benefits of using CAD software. Furthermore, the technology provides increased quality and helps in optimizing the design strength, weight, and cost.

• According to CAD Market Report 2022, CAD software downloads recorded an 18% surge in 2022 at the global level.

The market is also supported by increasing advancements in technology and the elevated emphasis of industry players on innovation.

• According to CAD Software Insights, the average annual number of CAD software updates is 12.

CAD Market Driver

Rising Adoption of 3D Printing across the Design Industry

Several players in the design industry are deploying 3D printing technology, which bolsters the demand for 3D CAD software. This can be attributed to the high quality of creation and the opportunity for testing and visualization before manufacturing. According to the Global Design Trends Report, around 65% design firms have adopted 3D printing in their businesses. The increased deployment of this technology is poised to augur well for industry expansion.

In addition, the COVID-19 pandemic has led to a rise in remote work, augmenting the number of CAD professionals, driving market growth. As per Remote Work Study 2022, CAD professionals account for 42% of the remotely working professionals.

CAD Market Restraint

High Software Cost May Create Challenges for Industry Expansion

The high cost of CAD software may hinder its adoption across enterprises with tight budgets. Globally, the average cost of CAD software licenses for businesses is USD 4,500, cites the Software Pricing Survey. The lack of skilled professionals for using the software is another factor that may hamper the growth of the industry. The Skill Development Report 2022 states that 38% of CAD users require training, which underscores the need for skilled professionals.

CAD Market Opportunity

Surging Dependence of Engineers on CAD Software to Offer New Growth Opportunities

The increasing dependence of engineering and architecture professionals on CAD software is anticipated to boost its adoption, creating new growth opportunities. This reliance is fostered by the ease of collaboration and the high quality of simulations. Besides, market players are focused on innovation and this has led to a rise in the number of patents. As stated by WIPO Patent Report, globally, the number of CAD patents filed stood at 6,800 in 2022.

Key Insights

The report covers the following key insights:

• Micro and Macro Economic Indicators
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by Key Players
• Consolidated SWOT Analysis of Key Players
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Overview: Regulatory Scenario

Segmentation

Analysis by Type

Based on type, the market is subdivided into 2D, 2.5D, and 3D.

The 3D segment is projected to lead the global market owing to a surge in the popularity of the software with enhancements in graphic display and computer processing capabilities. Some of the key categories recording a high demand comprise surface modeling, wireframe modeling, and solid modeling software.

The 2D segment is witnessing steady expansion with a rise in product adoption. This type uses fundamental geometric shapes for making flat drawings and designing detailed structures and elevated views. The software finds application in the construction and architecture industries.

Analysis by Deployment Model

By deployment model, the market is divided into on-premises and cloud.

According to Global Software Trends, 55% of CAD software solutions have been equipped with cloud capabilities. The software depicts a high demand on account of several benefits such as enhanced collaboration, ease of design irrespective of the location, and streamlined workflows. Owing to these factors, the cloud segment is anticipated to dominate the global market.

The on-premises segment is estimated to witness significant expansion driven by various advantages such as security, control, and compliance. The solutions offer entire control over data management and storage, enabling the optimization and customization of storage infrastructure.

Analysis by Industry Vertical

Based on industry vertical, the market is fragmented into aerospace and transportation, civil engineering and public services, healthcare, engineering and construction, and product design and manufacturing.

The engineering and construction segment is poised to hold a leading market share impelled by the increasing product adoption for creating detailed representations of infrastructure. The prominent areas of application include bridges, roads, waste disposal, and water systems, among others.

The aerospace and transportation segment is projected to witness considerable expansion with a surge in product deployment for prototyping. The data is deployed in automated manufacturing processes for ensuring quality and consistency.  

Regional Analysis

By geography, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The North America market is anticipated to expand owing to the increasing adoption of this software across the construction and aerospace industries. According to the International Labour Organization, 37% of digital platforms are located in the U.S. The expansion of the regional construction industry and the rollout of advanced solutions by leading market players are poised to propel industry growth. For instance, in December 2024, IronCAD announced the launch of IronCAD 2025. The move is anticipated to transform design collaboration and productivity across the metal fabrication, machinery manufacturing, and industrial equipment industries.

Increasing urbanization and the expansion of the construction industry is anticipated to push market growth in the Asia Pacific region. The evolving infrastructure sector, launch of supportive government policies, and a heightened emphasis on digitalization are bolstering the adoption of CAD solutions. The region also depicts the launch of new solutions by regional players. For instance, in June 2024, ZWSOFT rolled out ZWCAD MFG 2025 for the improvement of design efficiency and standardization for manufacturing professionals.

The Europe market is anticipated to record considerable expansion fostered by an increase in the deployment of CAD software solutions in fashion design, graphic design, and game design, architecture, manufacturing, and engineering, among other applications. The presence of a favorable regulatory landscape and the development of the construction industry are other factors impelling the regional industry expansion.

In Latin America, the industry is poised to expand with the evolution of the manufacturing industry and the expansion of the construction sector.

Key Players Covered

The report includes the profiles of the following key players:

• Motorola Solutions (U.S.)
• Hexagon Safety & Infrastructure (U.S.)
• CentralSquare Technologies (U.S.)
• Caliber Public Safety (U.S.)
• RapidDeploy (U.S.)
• ZOLL Medical Corporation (U.S.)
• Mark43 (U.S.)
• TriTech Software Systems (U.S.)
• Spillman Technologies (U.S.)
• Tyler Technologies (U.S.)
• NICE Public Safety (U.S.)
• ESO Solutions (U.S.)
• Infor (U.S.)
• Intergraph Corporation (U.S.)
• Versaterm (Canada)
• Omnigo Software (U.S.)
• ProPhoenix Corporation (U.S.)
• EnRoute Emergency Systems (U.S.)
• Priority Dispatch Corporation (U.S.)
• Southern Software (U.S.)

Key Industry Developments

• In January 2025, Hexagon announced its takeover of CAD Service. The move would aid Hexagon in the integration of the latter’s visualization capabilities into the wider solution set. Furthermore, it would help in accelerating the development roadmap and offer more comprehensive and robust EAM solutions. It would also allow the evolving requirements of complex industries, including transportation, energy, and manufacturing.
• In June 2024, Tech Soft 3D announced its acquisition of Theorem Solution. The move aligns with the company’s plans focused on fueling growth through product development investments and enhancing its product offerings through takeovers. The deal would facilitate the creation of a data translation ecosystem for developers and end-users.
• In May 2024, Tyler Technologies, Inc., inked an agreement with Illinois-based Evanston Police Department for Tyler’s Enterprise Public Safety suite. Powered by AWS (Amazon Web Services), the suite would be hosted in the cloud and has been claimed to offer improved functionality and security.
• In April 2024, Versaterm acquired ICS (Integrated Computer Systems). The move aligns with the company’s focus on the development of a versatile public safety ecosystem. ICS is the provider of the Athena Public Safety Suite that includes Athena RMS, Athena CAD, Athena MDC, and Athena ICC.