A significant shift is taking place as smaller businesses continue to invest in new technologies to improve their processes and efficiency.

According to JPR’s research, CAD software vendors saw combined revenues of $5,234.95 million in 2007. The CAD software market increased 20% in 2007 compared to 2006 when revenues reached $4,362.45 million. The trend will continue through 2008 in spite of challenges in the U.S. economy that could ripple through worldwide economies. Strong growth continues in the emerging economies that will then offset contractions in the west.

In 2008, the CAD market will grow to $6,024.55 million, an increase of 15%. This is slightly down from an earlier prediction of 18% growth as JPR research sees some vendors facing decreased sales primarily in the architectural fields. In all, however, the CAD industry is growing and will continue to grow through 2012 with a CAGR of 11%.

In 2007 the worldwide installed base of CAD users reached 5.31 million, a 20% increase over 2006 when the number of CAD users was 4.42 million.

In 2007 the majority of CAD users, 63% are still working in 2D, and 37% work in 3D. However revenues for 3D CAD programs are higher. Revenues for 3D CAD accounted for 53% of the market and 2D CAD accounted for 47% of the market. This highlights a shift as comparatively fewer users account for a larger share of the revenue. This trend will continue. 2D CAD programs are less expensive than 3D programs and there has been a slow encroachment of 2D CAD programs offered for free by companies hoping to woo 2D users to their 3D products.

The trend to 3D will continue, but not all 2D CAD users will move to 3D. In many cases, such a move means a change of job description. Sometimes, the growth of 3D CAD is happening as professionals add CAD to their portfolio of tools. However, those 2D CAD users who do move to 3D can expect to see increased job prestige and income.