Computer Aided Manufacturing Market Statistics, 2028
The global computer aided manufacturing market size was valued at $2,689 million in 2020, and is projected to reach at $5,477 million by 2028, growing at a CAGR of 8.4% from 2021 to 2028. CAM software is used to design a product and program manufacturing processes such as CNC machining. It is an electronic information system, which includes predictions about arrival and departure times of travel. It utilizes models formed in computer assisted manufacturing to generate toolpaths, which drives machine tools to convert design into physical parts. It is used to manufacture prototypes, production runs, and finished parts.
On the basis of component, the solution segment exhibited highest growth in the CAM market share in 2020, and is expected to maintain its dominance in the upcoming years. Growth of this segment is mainly attributed to surge in need of CAM software solutions in packaging machinery along with increase in industrialization processes. However, the services segment is expected to witness highest growth, owing to increase in adoption of CAM software. In addition, extensive adoption of professional services among end users to ensure effective functioning of CAM software solution throughout the process drives growth of the market.
By Component
Services segment is projected as one of the most lucrative segments.
By application, the global CAM market share was dominated by the machine tool industry segment in 2020, and is expected to maintain its dominance in the upcoming years. This is attributed to benefits of CAM software for machine tool industry such as faster machining cycles, machining of elements by non-machining experts, higher quality finishing, increased operator productivity, improved material utilization, and longer tool life.
North America dominated the market, and is expected to maintain its dominance during the forecast period, owing to increase in investments in the U.S. infrastructure industry, especially for designing and engineering software. In addition, technological advancements in architecture, engineering, and construction (AEC) industry drives computer aided manufacturing market growth in North America. However, Asia-Pacific is expected to observe highest growth rate during the computer aided manufacturing market forecast period, owing to proliferation of advanced technologies such as additive manufacturing, advanced robotics, industrial internet of things (IIOT), and augmented reality.
By Region
Asia-Pacific is projected as one of the most significant region.
The report focuses on growth prospects, restraints, and Computer aided manufacturing market analysis. The study provides Porter’s five forces analysis of the CAM software industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the Computer aided manufacturing market trends.
By Type
Others segment is projected as one of the most lucrative segments.
COVID Impact Analysis
The current estimation of 2028 is projected to be lower than pre-COVID-19 estimates. The COVID-19 outbreak has considerable impact on growth of the Computer aided manufacturing market, as CAM software adoption has decreased in the wake of unprecedented circumstances. This is attributed to decrease in spending by vendors serving automobile and aerospace industries. In addition, the market players have introduced updated CAM software products during the pandemic to serve increased demand for automation. This factor drives the market growth. For instance, in April 2020, DP Technology launched ESPRIT 2020, a comprehensive product update for its computer-aided manufacturing (CAM) software. The global computer aided manufacturing market is segmented on the basis of component, deployment type, enterprise size, design type, application, and region.
Segment Review
According to the component, the market is segmented into solution and services. As per the deployment type, the market is categorized into on-premise and cloud. On the basis of organization size, the market is segmented into large enterprises and SMEs. According to design type, the market is classified into 2D and 3D. By application, it is divided into aerospace & defense industry, shipbuilding industry, automobile & train industry, machine tool industry, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Top Impacting Factors
Factors such as rise in use of CAM software in packaging machinery, surge in industrialization, and increase in investments of R&D activities in the CAM market drives growth of the market. However, availability of free and open-source CAM software is expected to impede the market growth. Conversely, increase in adoption of cloud-based solutions and technological advancements in CAM software are expected to present major opportunities for the market expansion in the future.
Rise in use of computer aided manufacturing software in packaging machinery
Major factor that propels growth of the CAM market includes surge in adoption of CAM software in packaging machinery. Packaging machinery helps to complete various phases of packaging process such as filling, wrapping, strapping, and labelling. As packaging machines are becoming increasingly complex with higher efficiency demand, engineers and designers are adopting CAM software to face unique mechatronic engineering challenges. CAM software offers an innovative tool, which is expected to increase productivity and reduce overall cost per package. Moreover, emergence of smart packaging is expected to fuel growth of the Computer aided manufacturing market in packaging machinery as designers are streamlining communication between electrical engineering controls and mechanical systems through CAM integrated product development solutions.
Increase in adoption of cloud-based solutions
Major shift from proprietary software to cloud-based subscription is expected to provide lucrative opportunities for the market growth. Adoption of cloud-based solutions is expected to grow at a faster rate as it enables end-users to reduce their overall implementation and ownership cost. Growth of cloud-based solutions is expected to come from new users drawn to low-risk start-up value-proposition offered by cloud-based applications and by cloud-based offerings replacing existing desktop software whose users are expected to be attracted to operational flexibility enabled by cloud-based subscription models.
Furthermore, to enhance their products, vendors of CAM software offer additional features and launch new products, which are projected to boost adoption of CAM software among end users. For instance, in February 2017, Machining Software Pvt. Ltd launched OnCreate3D CAM app, which is full cloud 3D CAM app. The app omits use of buying separate CAM packages and does not require tracking of license update codes on hardware dongles and software lock files.
Key Benefits for Stakeholders
- This study includes the computer aided manufacturing market analysis, trends, and future estimations to determine the imminent investment pockets.
- The CAM market report presents information related to key drivers, restraints, and computer aided manufacturing market opportunity.
- The computer aided manufacturing market size is quantitatively analyzed from 2020 to 2028 to highlight the financial competency of the computer aided manufacturing industry.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in computer aided manufacturing market.
Computer Aided Manufacturing Market Report Highlights
| Aspects | Details |
 By Component |
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 By Deployment |
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 By Organization Type |
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 By Product Type |
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 By Application |
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 By Region |
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 Key Market Players | AUTODESK, INC., GRZ SOFTWARE LLC, MECSOFT CORPORATION, DASSAULT SYSTÈMES, SOLIDCAM GMBH, BOBCAD-CAM, INC., SIEMENS AG, CAMNETICS, INC., VERO SOFTWARE, CNC SOFTWARE, INC., ZWCAD SOFTWARE CO., LTD., 3D SYSTEMS, INC. |
Analyst Review
According to CXOs of leading companies, the computer aided manufacturing market is going through enormous transformation and growth. Advancements in manufacturing technologies, rise in need for faster and precise production of components, and growth in adoption of Industry 4.0 supplement the market growth across the globe. In general, CAM development has advanced along two different tracks. Geometry-based CAM systems used in die/mold machining and other applications focused on complex milled geometries.
In industries such as aerospace and power generation, medical devices have been catching up with latest technologies in a spectacular way. Manufacturing companies focus on improving experience of engineers and designers, reducing costs, and improving capacity. These factors boost growth of the market. In addition, advancements in Computer aided manufacturing used in CNC machining enable even more precision in manufacturing. For instance, new developments in Computer aided manufacturing allow machinists to use digital twinning, process of simulating a physical object, or process in the digital world. Moreover, pressure on manufacturing companies to provide accurate data on platforms, in vehicles, or anywhere through an app creates an increase in demand for Computer aided manufacturing. Potential of five axis machining and five axis programming increasingly gains traction in manufacturing processes.
Furthermore, there is a rise in adoption of new updated versions of computer aided manufacturing to train new workers by showing them 3D models of machines they are working with and parts they are making to illustrate concepts. In addition, as per CXOs, increase in economic strength of countries in Asia-Pacific, such as China, India, Japan, and South Korea is expected to provide lucrative opportunities to the market. Hence, Asia-Pacific is expected to dominate the market during the forecast period
CXOs further added that the computer aided manufacturing market is competitive and comprises a number of regional and global vendors competing based on factors such as cost of solutions, reliability, and support services. Growth of the market is impacted by rapid advances in machining software offerings, whereas performance of vendors is impacted by COVID-19 conditions and industry development. Owing to the competition, vendors operating in the market offer advanced Computer aided manufacturing products. For instance, in January 2020, MecSoft Corporation, developer of Computer aided manufacturing solutions announced general availability of CAM products including RhinoCAM 2020 and VisualCAD/CAM 2020.
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