LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global CAD market in industrial machinery industry to grow at a CAGR of more than 7% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global CAD market in industrial machinery industry market for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of CAD software licenses and services. In addition, it considers the revenue earned by software providers, service providers, and value-added resellers.
The US and China are the major manufacturing hubs using computer-aided design (CAD) software. China and the US together contributed about 45% to the global R&D spending in 2015.
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Technavio ICT analysts highlight the following three factors that are contributing to the growth of the global CAD market in industrial machinery industry market:
- Increase in government initiatives in machine tools sector
- Role of CAD in packaging machinery
- Involvement of inspection agencies in product development
Increase in government initiatives in machine tools sector
“As of 2015, the global machine tools market was worth more than USD 80 billion. Governments across countries have undertaken various initiatives to enhance the growth of the machine tool sector. The machine tools sector is one of the major end-users of CAD in the industrial machinery industry,” says Amrita Choudhury, a lead analyst at Technavio for product lifecycle management research.
Two major initiatives by the Indian government, namely Skill India and Make in India, identify the machine tools industry as the backbone of the Indian manufacturing sector, especially discrete manufacturing sectors such as the automotive, plastic machinery, and medical electronics. In Japan, the Ministry of International Trade and Industry has undertaken an initiative to rationalize the machine tool industry through mergers, acquisitions, and disinvestment. The Chinese government has established cabinet level programs to help Chinese machinery manufacturers compete globally and has undertaken several initiatives to support domestic manufacturers.
Role of CAD in packaging machinery
Packaging machinery consists of special types of machinery that aids with packaging products before their dispatch for storage and distribution networks. Packaging is being increasingly considered as an important part of the marketing mix because it has a strong impact on the customer's buying decision. Packaging machinery is widely used for filling, labeling, coding, and wrapping products. Companies such as Dassault Systèmes are providing CAD software (SOLIDWORKS) that enables engineers to design machinery for the conveying, and filling process.
A major driver in the global packaging machinery market is the increase in demand for smart packaging. This demand is mainly witnessed in the food industry, where hygiene is of great importance. Another major reason for the growing demand of smart packaging is increased concern over the wastage of food. Smart packaging reduces the loss and wastage of food while packing when compared with traditional packing. Also, food packaging has developed over the years and, therefore, helps preserve the food for a longer period by using barrier layers and germicidal films. All these factors have increased the consumption of packaged foods, which has led to an increased demand for packaging machinery.
Involvement of inspection agencies in product development
The need to develop and manufacture the product in accordance to several regulatory bodies worldwide has led to the emergence of inspection agencies to examine the entire product development and manufacturing process. Globally, companies hired inspection agencies such as Lloyd's Register to provide inspection service for their product development. Lloyd's Register performs an inspection based on the regulatory standards set by the country.
Lloyd's Register assignment includes turbomachinery design verification, machinery vibration problem troubleshooting, and analyzing rotatory equipment machine dynamics and machine structure and vibration. This has encouraged industrial machinery manufactures to develop quality products with the adoption of CAD. With more stringent rules and regulation of development of new products, the adoption of CAD in product development process is obligatory. “These rules and regulations have indirectly contributed to an increase in the adoption of CAD globally,” says Amrita.
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