Computer Aided Manufacturing Market Size
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Computer Aided Manufacturing Market Analysis
The computer-aided manufacturing market is anticipated to register a CAGR of 8.5% during the forecast period. Computer-aided manufacturing (CAM) reduces waste and energy for enhanced manufacturing and production efficiency via increased production speeds, raw material consistency, and more precise tooling accuracy: rapid industrialization and the growing trend of industrial automation support computer-aided manufacturing growth.
- Technological advancements and innovations across various manufacturing units have aided computer-aided manufacturing (CAM). Furthermore, the rise of Industry 4.0 and the Industrial Internet of Things (IIoT) component has made the market more accessible, as it has become easier to convert machines in the manufacturing industry into smart and connected devices. It has made manufacturing processes and stages accessible via a single control center and wearables, increasing accessibility and improving operational processes and usability.
- Also, the number of IoT-connected devices is expected to reach 21.051 billion units (21,500 million units) by the forecast period globally. IoT in the manufacturing market is expected to surpass USD 53.08 billion (USD 53,080 million) by the forecast period. For instance, according to Cisco's annual Visual Networking Index, machine-to-machine (M2M) connections supporting IoT applications accounted for over half of the world's 28.5 billion (28,050 million) connected devices in the previous year.
- The ability of CAM technology to reduce the time required to design and prototype quickly without reconfiguring or retooling the manufacturing line is increasing the deployment of CAM solutions across various industry verticals. CAM solutions ensure that mission-critical machines are adequately maintained and increase efficiency, resulting in high-quality products.
- Furthermore, the significant shift from proprietary software to cloud-based subscriptions is expected to provide profitable opportunities for market growth. Cloud-based solution adoption is expected to accelerate, allowing end users to reduce overall implementation and purchasing costs.
- Furthermore, as technology advances, CAM is used in the medical field. Subtractive milling is currently the most widely used CAM protocol in dentistry because it offers an alternative method of fabricating oral and facial prostheses. For instance, recently, the United Nations Development Programme (UNDP) in Rwanda, in collaboration with Swiss Limbs and the Home de la Vierge des Pauvres (HVP) Gatagara, launched a 3D computer-aided design and manufacturing of orthotics and prosthetics. The novel technology aids in improving the efficiency and quality of the limbs produced.
- However, the high initial investment required is a significant market constraint. Because of the high associated costs, small manufacturers cannot adopt it, lowering the adoption rate significantly. COVID-19 also discouraged market growth. Vendors serving the automotive and aerospace industries have suffered the most due to reduced spending.
Computer Aided Manufacturing Industry Segmentation
Computer-aided manufacturing (CAM) automates manufacturing processes using software and computer-controlled machinery. CAM software aids engineers, architects, and designers in the fabrication and design of objects, specifically computer numerical control (CNC) machining. It constrains automated machinery by using geometrical design data. CAM systems are related to computer numerical control (CNC) or direct numerical control (DNC) systems. These systems differ from early numerical control (NC) forms in that geometrical data is encoded mechanically. High-tech industries such as aerospace and semiconductors pioneered computer modeling to test products.
The computer-aided manufacturing market is segmented by End-user Industry (Aerospace & Defense, Automotive, Medical, Energy &Utilities, and Other End-User Industries) and Geography (North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
|End-User Industry (Revenue in USD million and Market Share as a part of the study)|
|Aerospace & Defense|
|Energy & Utilities|
|Other End-User Industries|
|Geography (Revenue in USD million and Market share as a part of the study)|
|Middle East and Africa|
Computer Aided Manufacturing Market Trends
Automobile is Expected to Hold a Major Market Share
- Automobile production is a single process, especially with the globalization of engineering, design, manufacturing, and third-party suppliers. This is why information systems are required to assist in the production of automobiles using computer-aided manufacturing (CAM).
- Automotive CAM also addresses mechanical design issues such as fit, clearances, strain, stress, heat, and vibration. CAM systems are finding applications in handling the large part files standard in automotive design, which can contain up to 14,000 components.
- Using Automotive CAM systems simplifies fault detection on the production line, and the same can be eliminated immediately. Traditionally, car manufacturers would have to remove parts for testing. They could only test small sections of large batches, so there was always the risk of something going wrong elsewhere.
- Moreover, CAM simulations assist computers in simulating various real-life scenarios on 3D models. This includes testing for what would happen during a violent impact, harsh weather, high speeds, wear and tear, and crashes.
- Furthermore, advancements such as quantum computing, which combines GPUs and CPUs into a single element, eliminate the need for additional interfaces. As a result, operations can be completed faster, which is expected to significantly impact the speed of the design process in the automobile industry.
- Furthermore, by leveraging 3D printing and other emerging technologies, CAM is poised to disrupt product modeling processes and continue to play an essential role in the automotive industry in the future.
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North America is Expected to have Highest Market Share
- North America is expected to hold the highest market share due to the increased adoption rate of industrial robotics in the United States region, and CAM adoption has multiplied in the recent past. With industrial robots coming into the picture, the CAM has helped improve the robotics' functioning.
- Furthermore, due to unprecedented competition from Japanese automakers, the region invests heavily in its efforts to compete. End-users can invest more in solutions such as CAM due to pending government regulations on emission control and safety. For instance, despite a three-year slump, North America produced around 13.43 million motor vehicles in the previous year, according to OICA. This is due to increased production costs and changes in the supply chain.
- The increased competition between the manufacturers in North America has led to a loss of market share. There is a strong desire to increase productivity. With the introduction of Industry 4.0 and Smart factories, manufacturers constantly need to automate the process to improve efficiencies. For instance, in the previous year, Deloitte opened a new smart factory in Wichita, Kansas, United States, and brought together an ecosystem of innovators to make Industry 4.0 a reality.
- Furthermore, the smart factory, Wichita, brings together a first-of-its-kind ecosystem of more than 20 world-renowned solution providers, technology innovators, and futurists to help solve the most complex manufacturing challenges. A fully operational manufacturing line combines advanced technologies such as artificial intelligence, machine learning, big data, cloud and edge applications, robotics, vision solutions, and more.
- The increased labor cost in the United States has forced manufacturers to adopt automation to reduce expenditures. With the adoption of CAM, the risks associated with human labor are also reduced by a significant amount. For instance, according to FXTM Academy, unit labor costs in the United States business sector increased by 3.2 percent annually in the fourth quarter of 2022.
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Computer Aided Manufacturing Industry Overview
There are several players in the computer-aided manufacturing market. In terms of market share, none of the players have a significant market share. The market is fragmented in nature, with a large number of competitors present. The providers constantly innovate their products to meet the most current demand while catering to recent industry trends.
In December 2022, CNC Software, LLC, creators of Mastercam CAD/CAM software, partnered with CAMWERK to offer customers the unique, simple-to-use, fully-integrated machine solution known as NC2Check. Mastercam developers collaborated closely with CAMWERK to create a solution for G-code simulation within Mastercam. The integration provides Mastercam customers with a solution for avoiding machine damage, downtimes, and failures and making production and programming more efficient and error-free.
In October 2022, a computer-aided manufacturing software maker entered the additive manufacturing market, particularly in metal 3D printing. The company recently released a desktop metal 3D printing solution that combines additive and subtractive manufacturing methods. Additive manufacturing is an excellent complement to subtractive CNC manufacturing for SolidCAM. As such, it aims to solve all complex manufacturing problems and provide real added value to its customers.
In August 2022, Court Square Capital Partners announced the acquisition of Computer Aided Technology, Inc. ("CATI"), a product development solutions provider specializing in 3D software and 3D printing hardware, by its portfolio company GoEngineer. CATI, founded in 1992 and headquartered in Chicago, provides computer-aided design (CAD) and additive manufacturing solutions with over 30 years of experience in product development solutions designed to provide customers with unique services and innovative technologies.
Furthermore, the acquisition is the company's next strategic step in establishing a national CAD and additive manufacturing platform. Furthermore, GoEngineer will be able to expand its footprint in the Midwest and Eastern United States by leveraging CATI's existing customer network in the region.
Computer Aided Manufacturing Market Leaders
CNC Software, Inc.
Dassault Systèmes SE
*Disclaimer: Major Players sorted in no particular order
Computer Aided Manufacturing Market News
- December 2022: Hexagon AB, a global provider of digital reality solutions combining sensor, software, and autonomous technologies, announced the acquisition of CIM3, an Italian distributor of Hexagon's ESPRIT software. ESPRIT is a high-performance computer-aided manufacturing (CAM) software specializing in CNC machine programming, optimization, and simulation for precision machining. The scalable platform, created in close collaboration with machine vendors, orchestrated modular support for multi-tasking, complex Swiss-turning operations, wire electrical discharge machining (EDM), and additive manufacturing processes.
- Furthermore, the acquisition of CIM3 aims to improve support for its ESPRIT customers and is an essential step in the company's sales activity in Italy. The CIM3 team brings a wealth of ESPRIT software knowledge and expertise and extensive local market knowledge. Integrating CIM3 aims to ensure customer security and the experienced team seeks to provide precious know-how and expertise to customers as their machining needs become more complex.
- October 2022: Siemens introduced a product development tool called Solid Edge 2023. Furthermore, Digital Industries Software's Solid Edge 2023 product development tools enable users to create, connect, and collaborate on products. Solid Edge 2023 introduced a new streamlined user experience, increased interoperability with the Siemens Xcelerator portfolio, and enhanced capabilities and collaboration across common workflows.
- Moreover, along with Siemens' work to bring innovative technology and capability to each release of Solid Edge, covering everything from 3D design through advanced CAM and technical publications, it's critical that they also evolve how they make these capabilities available to its community. Siemens introduced new licensing options designed to meet the changing business needs of small and medium-sized manufacturers, providing greater flexibility, more value, and more control with Xcelerator.
Computer Aided Manufacturing Market Report - Table of Contents
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 Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Market Drivers
4.3.1 Increasing Adoption of Industry 4.0
4.3.2 Growing Utilization of CAM Software in the Packaging Machinery Sector
4.4 Market Restraints
4.4.1 Wide Availability of Open Source CAM Software
4.5 Impact of COVID-19 on the Computer Aided Manufacturing (CAM) Market
5. TECHNOLOGY SNAPSHOT
5.1 2D Design
5.2 3D Design
5.3 5D Design
6. MARKET SEGMENTATION
6.1 End-User Industry (Revenue in USD million and Market Share as a part of the study)
6.1.1 Aerospace & Defense
6.1.4 Energy & Utilities
6.1.5 Other End-User Industries
6.2 Geography (Revenue in USD million and Market share as a part of the study)
6.2.1 North America
6.2.4 Latin America
6.2.5 Middle East and 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.
7.1.5 Hexagon AB
7.1.6 3D Systems, Inc.
7.1.7 HCL Technologies Limited
7.1.8 NTT DATA Corporation
7.1.9 OPEN MIND Technologies AG
7.1.11 MecSoft Corporation
7.1.12 Dassault Systems
7.1.14 ZWSOFTCO., LTD. (Guangzhou)
- *List Not Exhaustive
8. VENDOR MARKET SHARE ANALYSIS (To be provided for Major vendors operating in the Global CAM Market)
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
Computer Aided Manufacturing Market Research FAQs
What is the study period of this market?
The Computer Aided Manufacturing Market is studied from 2018 - 2028.
What is the growth rate of Computer Aided Manufacturing Market?
The Computer Aided Manufacturing Market is growing at a CAGR of 7.8% over the next 5 years.
Which region has highest growth rate in Computer Aided Manufacturing Market?
Asia Pacific is growing at the highest CAGR over 2021 - 2026.
Which region has largest share in Computer Aided Manufacturing Market?
North America holds highest share in 2022.
Who are the key players in Computer Aided Manufacturing Market?
Autodesk Inc., SolidCAM Ltd., CNC Software, Inc., Siemens AG, Dassault Systèmes SE are the major companies operating in Computer Aided Manufacturing Market.
Computer Aided Manufacturing Industry Report
Statistics for the 2023 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 to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.