Computer Aided Manufacturing Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 3.18 Billion |
| Market Size (2029) | USD 5.04 Billion |
| CAGR (2024 - 2029) | 9.63 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Computer Aided Manufacturing Market Analysis
The Computer Aided Manufacturing Market size is estimated at USD 3.18 billion in 2024, and is expected to reach USD 5.04 billion by 2029, at a CAGR of 9.63% during the forecast period (2024-2029).
- Computer-Aided Manufacturing (CAM) is evolving to seamlessly integrate with Industry 4.0 technologies, including the Internet of Things (IoT), artificial intelligence (AI), and big data analytics. This integration facilitates real-time data exchange and communication among machines, systems, and humans, resulting in more intelligent manufacturing processes.
- Furthermore, CAM systems increasingly support additive manufacturing techniques, enabling the design and production of intricate geometries that traditional methods couldn't achieve. Additionally, hybrid manufacturing, which merges both additive and subtractive processes, is gaining traction in CAM applications, providing enhanced flexibility and precision in crafting complex parts.
- CAM software develops programs for a range of CNC machines, including milling, turning, edge machining, and additive manufacturing machines. The demand for additive manufacturing is on the rise, driven by its benefits like cost efficiency, reduced material waste, and fewer production steps. It facilitates rapid prototyping, allowing for swift design iterations and a faster time-to-market.
- Manufacturers in the automotive industry utilize CAM to produce body parts, engine components, and other intricate elements. With CAM, they can shorten lead times, enhance accuracy, and achieve superior precision and quality in vehicles. The rising production of electric and connected vehicles further propels this market growth.
- The rise of open-source computer-aided manufacturing (CAM) software poses a significant challenge to the growth of the CAM market. This trend is primarily fueled by the cost-effectiveness and accessibility of open-source solutions, drawing in a diverse user base, especially small and medium-sized enterprises (SMEs). Operating on tighter budgets, these SMEs find open-source options to be a financially viable choice.
- With the dawn of Industry 4.0, the industrial sector is rapidly adopting innovative techniques and enhanced networking architectures, signaling promising prospects for market expansion. Key industries, including oil and gas, automotive, pharmaceutical, and aerospace, are integrating CAM software to mitigate production delays and boost operational efficiency. However, geopolitical tensions, notably the U.S.-China conflict, the Israel-Hamas situation, and the Russia-Ukraine war, loom as potential threats to market growth in these regions.
Computer Aided Manufacturing Market Trends
Automotive Segment to Witness Major Growth
- One of the primary applications of CAM in the automotive industry is in the design and prototyping phase. Advanced software tools enable engineers and designers to create intricate 3D models of automotive components and systems. This capability significantly reduces the time and cost associated with traditional prototyping methods.
- By utilizing CAM, manufacturers can simulate performance, assess manufacturability, and identify potential design flaws before physical production begins. Rapid prototyping technologies, such as 3D printing, further enhance this process, allowing for the quick iteration of designs.
- CAM systems facilitate effective production planning and scheduling by analyzing production capacities, lead times, and resource allocation. By integrating CAM with Enterprise Resource Planning (ERP) systems, automotive manufacturers can optimize their production schedules to meet demand fluctuations while minimizing downtime. This level of optimization is critical in a sector characterized by just-in-time (JIT) manufacturing practices, where timely delivery is essential to maintaining competitiveness.
- Further, the automotive sector demands high precision in manufacturing components, such as engine parts, transmission systems, and chassis. CAM software enables the precise control of CNC (Computer Numerical Control) machines, which are integral to the machining process. These machines can execute complex geometries accurately, ensuring that components adhere to stringent quality standards. Additionally, CAM allows for the automation of machining processes, reducing the likelihood of human error and enhancing overall productivity.
- The growth in the demand for electric vehicles is also likely to aid the development of the studied market significantly. For instance, according to the International Energy Agency (IEA), almost 14 million new electric cars were registered globally in 2023, bringing their total number on the roads to 40 million.
- Electric car sales in 2023 were 3.5 million higher than in 2022, a 35% year-on-year increase. Electric cars accounted for around 18% of all cars sold in 2023, up from 14% in 2022. Further, the International Energy Agency (IEA) projected that electric vehicle (EV) sales will make up approximately 65% of total car sales by 2030 in the Net Zero Scenario. To achieve this, there should be an annual growth rate of around 25% in EV sales from 2023 to 2030.
Asia Pacific to Witness Major Growth
- China's pivotal role in the global manufacturing supply chain, coupled with a wave of digital transformation, has been the primary catalyst for the country's burgeoning computer-aided manufacturing sector. Over the past year, geopolitics have increasingly influenced global supply chains. While developed nations are reshoring their manufacturing bases, regions such as Mexico and Southeast Asia are gaining prominence. This dynamic has heightened competition among nations vying for manufacturing lines.
- Japan's manufacturing landscape has historically epitomized global innovation, efficiency, and resilience. With automotive giants like Toyota and electronic powerhouses such as Sony, Japanese companies have not only secured a competitive advantage but have also demonstrated remarkable longevity.
- Yet, today, Japanese manufacturing stands at a crucial juncture. The sector has grappled with notable supply chain disruptions over the last three years, primarily due to the COVID-19 pandemic and evolving US-China relations. In light of these challenges, companies are broadening their supplier networks to bolster reliability. With their renowned dependability and state-of-the-art technology, Japanese firms are strategically poised to leverage these industry shifts.
- South Korea's dynamic market is marked by a multitude of applications driving growth across its diverse sectors. Harnessing its cutting-edge technological framework and innovative spirit, South Korea has positioned itself as a leader in several industries. At the forefront of the nation's manufacturing landscape, the ICT and electronics sectors shine brightly, spearheaded by industry titans like Samsung Electronics Co., Ltd. and LG Electronics Inc. These conglomerates have adeptly broadened their manufacturing horizons beyond South Korea, with Samsung's two pivotal plants in Vietnam now constituting a third of its global production.
- As the demand for advanced, tech-driven automated machines surges, the manufacturing industry is witnessing a robust market upswing. This momentum is further amplified by the escalating appetite for electric vehicles and consumer electronics, underscoring the heightened need for sophisticated machine tools across diverse sectors. With the global manufacturing landscape expanding, the dependence on machine tools, such as Swiss-type automatic lathe machines, for final product production is deepening.
- Furthermore, as manufacturing methodologies advance, there's a pronounced demand for high-end machine tools that promise superior accuracy and precision. This evolution, in turn, amplifies the need for CAM software to adeptly operate these advanced tools.
Computer Aided Manufacturing Industry Overview
The CAM software market comprises global and regional players in a competitive space. Although the market poses high barriers to entry for new players, several new entrants have gained traction. This market is characterized by moderate/high product differentiation, growing levels of product penetration, and high levels of competition.
Innovation can bring about a sustainable competitive advantage. New technologies such as AI, machine learning, cloud computing, and others are reshaping security trends.
Leading vendors are responding to evolving consumer demands driven by technological advancements by enhancing their existing software and introducing advanced solutions. Some of the players include Autodesk Inc., SolidCAM Ltd, Siemens AG, and CNC Software, LLC. (Mastercam), Hexagon AB.
Computer Aided Manufacturing Market Leaders
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Autodesk Inc.
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SolidCAM Ltd.
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Siemens AG
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CNC Software, LLC. (Mastercam)
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Hexagon AB
*Disclaimer: Major Players sorted in no particular order
Computer Aided Manufacturing Market News
- October 2024: Siemens AG has integrated CloudNC's AI-powered computer-aided manufacturing (CAM) Assist solution into its Siemens NX CAM software. This collaboration underscores Siemens AG's dedication to fostering innovation through strategic partnerships, emphasizing how collaboration can expedite technological advancements. By partnering with technology firms like CloudNC, Siemens AG equips its users with advanced tools, ensuring the company remains competitive in the ever-evolving manufacturing landscape.
- September 2024: Cimatron's latest release, v2025, heralds a transformative era in toolmaking, introducing cutting-edge capabilities for both design and manufacturing. With its unmatched tools, Cimatron v2025 is poised to redefine industry standards. Key CAM Advancements: Cimatron v2025 significantly bolsters CAM operations, seamlessly transitioning from fundamental 2.5-X tasks to intricate 5-axis operations. Key upgrades encompass refined profile enhancements for CAM 3-X, advanced auto tilt features for CAM 5-X, and the debut of multi-edit procedures alongside robust process management tools for NC Process.
Computer Aided Manufacturing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 Aftereffects and other Macroeconomic Factors on the Market
4.4 TECHNOLOGY SNAPSHOT
4.4.1 2D Design
4.4.2 3D Design
4.4.3 5D Design
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Adoption of Industry 4.0
5.1.2 Growing Utilization of CAM Software in the Packaging Machinery Sector
5.2 Market Restraints
5.2.1 Wide Availability of Open Source CAM Software
6. MARKET SEGMENTATION
6.1 By Deployment Model
6.1.1 On-Premises
6.1.2 Cloud-Based
6.2 By End-User Industry
6.2.1 Aerospace & Defense
6.2.2 Automotive
6.2.3 Medical
6.2.4 Energy & Utilities
6.2.5 Other End-User Industries
6.3 By Geography***
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.2 Europe
6.3.2.1 Germany
6.3.2.2 Switzerland
6.3.2.3 Spain
6.3.2.4 Austria
6.3.2.5 Belgium
6.3.2.6 Netherlands
6.3.2.7 United Kingdom
6.3.2.8 France
6.3.2.9 Italy
6.3.2.10 Sweden
6.3.2.11 Poland
6.3.3 Asia
6.3.3.1 China
6.3.3.2 Japan
6.3.3.3 South Korea
6.3.3.4 India
6.3.4 Australia and New Zealand
6.3.5 Latin America
6.3.5.1 Brazil
6.3.5.2 Mexico
6.3.6 Middle East and Africa
6.3.6.1 United Arab Emirates
6.3.6.2 Saudi Arabia
6.3.6.3 South Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Autodesk, Inc.
7.1.2 Siemens AG
7.1.3 SolidCAM Ltd.
7.1.4 CNC Software, LLC. (Mastercam)
7.1.5 Hexagon AB
7.1.6 Cimatron Ltd.
7.1.7 HCL Technologies Limited
7.1.8 NTT Data Engineering Systems Corporation (NTT DATA Corporation)
7.1.9 OPEN MIND Technologies AG
7.1.10 BobCAD-CAM Inc.
7.1.11 MecSoft Corporation
7.1.12 Dassault Systmes
7.1.13 PTC Inc.
7.1.14 ZWSOFT CO., LTD. (Guangzhou)
7.1.15 SmartCAMcnc, Inc.
- *List Not Exhaustive
8. VENDOR MARKET SHARE ANALYSIS
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
Computer Aided Manufacturing Industry Segmentation
Computer-aided manufacturing (CAM) uses software and computer-controlled machinery to automate manufacturing processes . CAM software assists engineers, architects, and designers in the fabrication and design of objects. CAM systems differ from numerical control (NC) forms as the geometrical data is encoded mechanically. Aerospace and semiconductors are some of the high-tech industries that pioneered computer modeling to test products.
The computer aided manufacturing market is segmented by deployment model (on-premises, cloud-based), end-user industry (aerospace & defense, automotive, medical, energy & utilities, and other end-user industries) and geography (North America (United States, Canada), Europe (Germany, Switzerland, Spain, Austria, Belgium, Netherlands, United Kingdom, France, Italy, Sweden, Poland, Rest of the Europe), Asia-Pacific (China, Japan, South Korea, India, Rest of Asia Pacific), Middle East & Africa (United Arab Emirates, Saudi Arabia, South Africa, Rest of Middle East and Africa), and Latin America (Brazil, Mexico, Rest of Latin America)).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Deployment Model | |
| On-Premises | |
| Cloud-Based |
| By End-User Industry | |
| Aerospace & Defense | |
| Automotive | |
| Medical | |
| Energy & Utilities | |
| Other End-User Industries |
| By Geography*** | |||||||||||||
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| Australia and New Zealand | |||||||||||||
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Computer Aided Manufacturing Market Research FAQs
How big is the Computer Aided Manufacturing Market?
The Computer Aided Manufacturing Market size is expected to reach USD 3.18 billion in 2024 and grow at a CAGR of 9.63% to reach USD 5.04 billion by 2029.
What is the current Computer Aided Manufacturing Market size?
In 2024, the Computer Aided Manufacturing Market size is expected to reach USD 3.18 billion.
Who are the key players in Computer Aided Manufacturing Market?
Autodesk Inc., SolidCAM Ltd., Siemens AG, CNC Software, LLC. (Mastercam) and Hexagon AB are the major companies operating in the Computer Aided Manufacturing Market.
Which is the fastest growing region in Computer Aided Manufacturing Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Computer Aided Manufacturing Market?
In 2024, the Asia Pacific accounts for the largest market share in Computer Aided Manufacturing Market.
What years does this Computer Aided Manufacturing Market cover, and what was the market size in 2023?
In 2023, the Computer Aided Manufacturing Market size was estimated at USD 2.87 billion. The report covers the Computer Aided Manufacturing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Computer Aided Manufacturing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Computer Aided Manufacturing Industry Report
Statistics for the 2024 Computer Aided Manufacturing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Computer Aided Manufacturing analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Computer Aided Manufacturing Market Report Snapshots
