Factors such as the increasing application of computer-aided design (CAD) software in the construction industry, escalating need for the rapid production of goods, growing focus on smart manufacturing, and escalating demand for accurate and improved designs will drive the Indian CAD software market at a CAGR of 8.2% during the forecast period (2020–2025). At this rate, the market size will advance from $445.6 million in 2019 to $696.9 million by 2025.
One of the prime factors behind the Indian CAD software market growth is the widescale adoption of CAD software in the construction sector. The construction industry uses CAD software to spot flaws in designs, facilitate precise designs and accurate measurements, and conduct an improved analysis of the designs. Moreover, growth drivers such as the rising initiatives by the government to enhance the infrastructure and increasing foreign direct investment (FDI) will fuel the demand for CAD software in India.
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Another key factor accelerating the Indian CAD software market growth is the surging number of initiatives by state governments for the development of infrastructure. These initiatives have resulted in huge investments in sectors such as construction, aerospace, healthcare, and automobile and increased the demand for high-quality, customized industrial products. Due to these reasons, various Indian states are focusing on industrial policies, thereby boosting the demand for CAD software in the country.
The categories under the industry segment of the Indian CAD software market are architecture, engineering, construction, and manufacturing. During the forecast period, the architecture category will display the fastest growth due to the surging number of architectural projects in India, especially for residential properties. CAD software is utilized in the architecture industry to make designs that are used by teams of engineers to construct the models on site. Moreover, the increasing number of construction plans by government and private companies will boost the demand for architecture, engineering, and construction (AEC) services.
At present, the Indian CAD software market is observing a shift toward subscription-based CAD software from the perpetual licensing model. Due to the high cost of the traditional CAD software licensing model, small and medium enterprises (SMEs) find it difficult to integrate it into their operations, on account of their low information technology (IT) budget. To deal with this issue, market players are focusing on providing subscription-based CAD software. By offering these subscription-based models, market players are also targeting start-up companies.
During the forecast period, the state of Maharashtra is expected to demonstrate the fastest growth in the market. This can be attributed to the high GDP of Maharashtra and the dominance of this state on the nation’s manufacturing, finance, international trade, and technology sectors. Further, Nashik is expected to grow the fastest due to the improving infrastructure sector in the city, existence of numerous construction and engineering companies, and rapid adoption of innovative technologies by industries and their focus on novel electrical parts and equipment designing, for higher production.
Thus, the spurring demand from the construction sector, increasing availability of subscription-based CAD software, and escalating support from the central and state governments will augment the demand for CAD solutions in the future.