CAD Industry to Maintain Growth in the Face of Economic Downturn, According to Jon Peddie Research

TIBURON, Calif.—(BUSINESS WIRE)—March 24, 2008— Jon Peddie Research announces the release of the CAD report for 2008 to 2012.

The CAD industry has been undergoing a remarkable renaissance over the last five years as a result of several factors. Among those factors are hardware advances that put 64-bit, multi-core computers into the mainstream. In addition, there is broadening acceptance of 3D techniques. And finally, the marriage of CAD visualization with information management helps redefine the CAD industry and extend its relevance throughout the enterprise. In an industry known for a conservative rate of change, there is a significant shift taking place as smaller businesses are investing in new technologies to improve their processes and efficiency.

According to JPR's research, CAD software vendors saw combined revenues of $5,234.95 million in 2007. The CAD software market increased an astounding 20% in 2007 compared to 2006 when revenues reached $4,362.45 million. The trend will continue through 2008 in spite of challenges in the U.S. economy that could ripple through worldwide economies. Strong growth continues in the emerging economies that will than offset contractions in the west.

In 2008, the CAD market will grow to $6,024.55 million, an increase of 15%. This is slightly down from our earlier prediction of 18% growth as we see some vendors 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%.
                       2006   2007   2008   2009   2010   2011   2012
  Total CAD Revenue   $4,362 $5,235 $6,025 $6,609 $7,072 $7,567 $8,210
                                         (Source: Jon Peddie Research)

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

In 2007 the majority of CAD users, 63% are still working in 2D, and 37% work in 3D. However revenues for 3D CAD programs are higher. In all revenues for 3D CAD accounted for 53% of the market and 2D CAD accounted for 47% of the market. This highlights a shift as comparatively fewer users account for a larger share of the revenue. This trend will continue. 2D CAD programs are less expensive than 3D programs and we've been seeing the slow encroachment of 2D CAD programs offered for free by companies hoping woo 2D users to their 3D products.

The trend to 3D will continue but it's important to note that not all of the 2D CAD users are going to make the transition to 3D. In many cases, the transition means a change of job description. Sometimes, the growth of 3D CAD is happening as professionals add CAD to their portfolio of tools. However, those 2D CAD users who do make the transition to 3D can expect to see increased job prestige and increased income.

The 2008 CAD Report

The 2008 CAD Report is a detailed report that looks specifically at the CAD market. It includes information on worldwide CAD software revenues, market share, and a information about the user base. The market looks at the industry from the two major subsets of Mechanical/Manufacturing and AEC (Architecture, Electrical, and Construction). The report also includes 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.

The report also looks at major trends in the industry including the transition to advanced hardware, the approaches to multiCAD, and the addition of visualization to the repertoire of CAD companies' capabilities. For more information, a table of contents is available at

About the Jon Peddie Research

Based in Tiburon, California, JPR provides consulting, research, and other specialized services to technology companies, including graphics development, multimedia for professional applications and consumer electronics, high-end computing, and Internet-access product development.

The report is available for $5,000 for a single license and $7,500 for a site wide license. Also available will be profiles on the major CAD companies which will be available online and regularly updated.

EDITOR'S NOTE: Excerpts from the CAD report and expert interviews are available on request.


Jon Peddie Research
Jon Peddie, 415-435-9368
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Pat Meier Associates PR
Pat Meier-Johnson, 415-389-1700
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