Generative Design Market Size, Share & COVID-19 Impact Analysis, By Deployment (On premise and Cloud), By Application (Topology Optimization & 3D Printing, Lightweighting, Thermal Management, and Others), By Industry (Automotive, Aerospace & Defense, Architecture & Construction, Industrial Manufacturing, and Others), and Regional Forecast, 2023-2030

The generative design market size was valued at USD 217.5 million in 2022 and is projected to grow from USD 257.2 million in 2023 to USD 926.0 million by 2030, exhibiting a CAGR of 20.1% during the forecast period (2023-2030). North America accounted for a market value of USD 85.7 million in 2022 and is dominated the global market with a share of 39.4% in 2022. 

Generative design is a dynamic design examination process in which engineers or designers input their goals and parameters, such as performance, spatial requirements, materials, manufacturing methods, and cost constraints, into the software. This 3D Computer-Aided Design (CAD) capability utilizes Artificial Intelligence (AI) to autonomously generate numerous design alternatives, swiftly exploring all possible permutations to meet specified requirements. Engineers can interactively define their preferences, including materials and manufacturing processes, and the generative engine produces a ready-to-manufacture design. This approach accelerates product developments and innovation, allowing engineers to create superior designs efficiently.

Moreover, such design facilitates the exploration of numerous alternatives within a short timeframe, enhancing the speed of design innovation. By considering various factors, such as materials, manufacturing processes, and performance requirements, it optimizes designs for specific goals, significantly reducing the time required to design a product or component. Automating the design process and the rapid exploration of alternatives make generative design a powerful tool for creating efficient and innovative designs.

The market is driven by the rising demand for innovative and optimized design solutions and the growing need to significantly reduce time and material usage in the product development process. Moreover, the growing demand for lightweight and high-performance components and the potential for reducing material waste is driving the market in the aerospace industry. For instance, in March 2023, NASA (Space Agency) started using AI to develop and create its mission hardware with relatively stronger components than the human-designed counterparts, saving two-thirds of the weight.

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COVID-19 IMPACT

Increase in Remote Collaboration Domains Amid Pandemic Propelled Market Growth

The market experienced both favorable and adverse effects due to the COVID-19 pandemic. Initially, the disruptions led to temporary project delays and reduced investments. However, the market swiftly recovered as companies realized the significance of generative design in overcoming challenges and adjusting to new circumstances. For instance, in August 2020, Antonio Citterio Patricia Viel (architecture firm) launched ACPVLab, a research and development unit that focuses on using such designs to develop interiors. The unit developed a handcrafted computer script, allowing interior designers and architects to explore various layout permutations instantly.

Also, the pandemic underscored the importance of efficient design solutions, cost optimization, and remote collaboration domains where such design excels. Consequently, there was an upsurge in the adoption of design technologies, especially in sectors such as healthcare, where rapid design iterations and optimization played a critical role.

Generative Design Market Trends

Rising Demand for Lightweight Vehicle Products to Enhance Market Growth

The rising demand for lightweight vehicle products has spurred the adoption of generative technology, emerging as a pivotal trend in the global market growth. Weight reduction is crucial for enhancing electric vehicle efficiency, as lighter vehicles require less energy for propulsion, contributing to extended range per charge – an essential factor for consumers evaluating electric vehicles.

Moreover, such design addresses structural integrity, manufacturing constraints, and material properties to create efficient, optimal, and lightweight designs. This technology empowers designers to swiftly explore diverse possibilities, resulting in minimized material usage and improved performance and functionality.

For instance, in March 2021, XponentialWorks partnered with Arcimoto (lightweight and electric fun utility vehicles provider). The joint plan worked with Paramatters’ CogniCAD generative design software to reduce the vehicle weight using lightweighted components. The team reduced the weight of a control arm (upper) by 52%, a rear swing arm by 34%, and a brake pedal by 49%.

Generative Design Market Growth Factors

Rapid Advancements in AI and CAD Technologies to Drive Product Innovation and Enhance Market Growth

The market is driven by swift advancements in AI and CAD technologies, enabling engineers and designers to efficiently explore a multitude of design options. The burgeoning demand for energy-efficient, lightweight, and cost-effective products, particularly in the automotive and aerospace industries, propels the adoption of such designs. Moreover, these designs hasten the product development process and enhance overall efficiency. The increasing applications of such designs in architecture, additive manufacturing, and simulation-driven design also play a pivotal role in the market growth.

The market is further driven by the escalating demand for advanced manufacturing featuring intricate designs, pushing automotive manufacturers to intensify R&D investments and embrace generative techniques.

For instance, in August 2023, Toyota pioneered a generative AI technique to integrate engineering parameters into initial design sketches. Similarly, in June 2023, Mercedes-Benz showcased a voice assistant powered by ChatGPT.

Various players in the automotive industry are exploring this technology to expedite iterations and enhance outcomes.

RESTRAINING FACTORS

Lack of Interoperability with Other Software and Legacy Systems to Impede Market Growth

A potential obstacle to market growth is the presence of interoperability issues with other software and legacy systems. The difficulty in sharing information among stakeholders is increased by the lack of interoperability, leading to potential errors. Traditionally, information exchange relied on drawings and documents. However, the evolution of requirements, such as 2D or 3D CAD, has increased the reliance on digital solutions, such as Building Information Modeling (BIM), for efficient information sharing. The use of diverse tools by project managers for data collection, design, and analysis compounds the challenge of interoperability for design vendors in the market. Also, end-use industries exhibit hesitancy in adopting the software due to the necessity for a comprehensive infrastructure overhaul, posing a potential obstacle to market growth. These factors are expected to curtail the global generative design market growth.

Generative Design Market Segmentation Analysis

By Deployment Analysis

On Premise Segment’s Growth is Driven by its Increasing Popularity Among Large Enterprises

Based on deployment, the market is divided into on premise and cloud.

The on premise segment holds the highest share of the market owing to its popularity among large enterprises. Organizations with established IT infrastructures find deploying these solutions on premise more practical and cost-effective, allowing better integration with existing systems.

However, the cloud segment is expected to grow with the highest CAGR over the forecast period. It provides accessibility, allowing users to utilize design tools from various locations, promoting collaboration and flexibility.

By Application Analysis

Topology Optimization & 3D Printing Segment Takes the Lead Owing to Its Ability to Minimize Material Usage

Based on application, the market is studied among topology optimization & 3D printing, lightweighting, thermal management, and others.

The topology optimization & 3D printing segment holds the largest global generative design market share owing to its ability to systematically determine the optimal distribution of material within a given design space. For instance, in August 2022, Carbon acquired ParaMatters to add new topology optimization features to its 3D printing software.

However, the lightweighting segment is predicted to hold the highest CAGR over the forecast period owing to the increasing emphasis on energy efficiency and sustainability across various industries.

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By Industry Analysis

Growing Need for Complex and Lightweight Structures Drives the Industrial Manufacturing Segment Growth

The market is studied across many industries, including automotive, aerospace & defense, architecture & construction, industrial manufacturing, and others.

The industrial manufacturing segment holds the highest share of the global market. Generative technology is particularly valuable in industrial manufacturing for creating complex and lightweight structures that meet stringent performance requirements. For instance, in June 2022, Altair acquired additive manufacturing software firm Gen3D to expand its additive manufacturing design capabilities.

However, the automotive segment is expected to grow with the fastest CAGR over the forecast period. The demand for generative design in advanced manufacturing processes and the need to enhance automotive performance drive the adoption of such design in the industry.

REGIONAL INSIGHTS

We have studied the market across North America, South America, Europe, Asia Pacific, and the Middle East & Africa.

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North America holds the highest market size owing to the mature ecosystem of the region. The region has a robust presence of key technology players who foster innovation and technological advancements. Industries in the region, particularly aerospace, automotive, manufacturing, and construction, emphasize continuous improvement and advanced technologies, making them market growth drivers. Additionally, the region’s strong investment in cutting-edge technologies further propels the market. For instance, in May 2023, KPMG LLP declared an initiative to deploy a set of generative artificial intelligence investments to empower its workforce and further improve cutting-edge client solutions.

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Asia Pacific is expected to grow with the highest CAGR over the forecast period. The region is witnessing rapid urbanization with Industry 4.0 strategies, leading to increased adoption of generative design solutions across various industries. Also, key players in the region are acquiring and partnering with similar businesses to set footprints in the global market. For instance, in March 2022, Obayashi Corporation partnered with SRI International to develop AiCorb. It is an AI technology that proposes various designs, from hand-sketched drawings to 3D models.

The market in Europe is driven by factors, such as the region’s emphasis on advanced manufacturing and engineering practices. The European automotive sector has gained prominence on the global stage within the automobile industry. Significant multinational car Original Equipment Manufacturers (OEMs) are driving the widespread adoption of 3D printing technology for design formulation and R&D applications in the automotive industry. Renowned automakers, such as Mercedes-Benz, Audi, BMW, Jaguar, Land Rover, Volkswagen, and others, have collectively established a sustainable market for 3D printing and related technologies in Europe.

Similarly, the Middle East & Africa, and South America are expected to grow potentially in the coming years. In November 2023, University of Johannesburg (UJ) students secured a Gold DMA Assegai award for AI-incorporated MaXhosa X Nike strategy. Students produced a data-driven strategy for a South African brand, MaXhosa Africa, using generative AI for their creative prototypes.

List of Key Companies in Generative Design Market

Collaborations & Partnerships among Vendors to Propel Market Growth

Key players in the market are collaborating and integrating with similar companies to bring significant financial gains to both parties. Partnerships aid businesses in increasing sales and cutting down costs by sharing or combining resources. For instance,

• November 2022: NX Filtration and Transcend collaborated to highlight the benefits of direct nanofiltration membranes using generative design software. The partnership between NX Filtration (a provider of breakthrough direct nanofiltration membrane technology) and Transcend (a provider of generative design SaaS tools) aids in bringing NX Filtration’s projection tool online via the Transcend platform.

List of Key Companies Profiled:

• PTC (U.S.)
• Dassault Systemes (France)
• Autodesk Inc. (U.S.)
• Siemens (Germany)
• ANSYS, Inc. (U.S.)
• nTopology Inc. (U.S.)
• Hexagon AB (Sweden)
• Altair Engineering Inc. (U.S.)
• Carbon, Inc. (U.S.)
• Synera GmbH (Germany)

KEY INDUSTRY DEVELOPMENTS:

• November 2023: Autodesk, Inc. launched Autodesk AI to remove non-productive work across the industries dealing with design. It provides generative and intelligent assistance capabilities and is available in the Design and Make Platform. Furthermore, it allows customers to discover freely while producing accurate, innovative, and precise results.
• November 2023: Cognitive Design Systems (a manufacturer of 3D models) secured USD 2.2 million in funding. The funds accumulated will aid in the hi-tech development of CDS’s platform. Additionally, the company planned to expand its salesforce and geographic footprint in the U.S. and Europe.
• October 2023: Altair launched Altair HyperWorks to enhance its design and simulation platform. It is a comprehensive, versatile, and open CAE platform that aids in transforming technology, offering an integrated solution to streamline workflow, enable innovation, and enhance user experiences.
• April 2023: Cadence Design Systems, Inc. launched Cadence Allegro X AI. It is a system design AI technology offering revolutionary improvements in automation and performance. The product can be accessed through the Allegro X Design Platform and delivers an improved timeframe for PCB design.
• February 2023: Hexagon AB launched a Design for Additive Manufacturing module with its Nexus Open Cloud platform. This enabled customers to utilize the Nexus browser interface to unite Simufact Additive process simulation software and Hexagon's MSC Apex Generative Design with AM Studio via the cloud.

REPORT COVERAGE

An Infographic Representation of Generative Design Market

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The generative design market report research provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into key market trends and highlights industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation