A new market study by Cambashi gives a comprehensive, quantitative view of the engineering software market: CAD (computer-aided design), CAM (computer-aided manufacturing), BIM (building information modeling), GIS (geographic information system), PLM (product lifecycle management), visualization software tools and IoT (Internet of Things) development tools.
The study presents spending on engineering and design software in terms of five key segments:
- AEC (architecture, engineering, and construction)
The latest data shows these segments to be growing at significantly different rates. It is estimated that geospatial will have the highest growth, followed by manufacturing, then AEC, then visualization. Forecasts then project a complete change around with 2017 growth ordered with AEC growing fastest, then visualization, then manufacturing, and finally geospatial.
The promise of increased investment in infrastructure in the U.S. is likely to pull-through investment in design and engineering software. Technological advances for the AEC market will spur the growth.
Behind this turnaround is the leaning toward subscription-based pricing. The major providers are offering new customers subscriptions, with one taking the most robust approach by offering subscriptions as the only option to new customers, according to the study. This causes a glitch in the growth patterns, as revenues drop, then recover as the financial benefits of subscription pricing hit the bottomline.
With more engineering software solutions and options for the AEC market, the growth is promising since many can use these tools to improve workflow at the jobsite.