Growth in Global Medical Electronics Market to Boost the CAD Market in the Electrical and Electronics Industry Through 2020: Technavio
Technavio market research analysts forecast the global CAD market in the electrical and electronics industry to grow at a CAGR of over 8% during the forecast period, according to their latest report.
According to Amrita Choudhury, a lead analyst at Technavio for product lifecycle management research, “CAD plays a major role in the miniaturization of electronic and electric equipment making the products more convenient for the consumers.”
Technavio ICT analysts highlight the following three market drivers that are contributing to the growth of the global CAD market in the electrical and electronics industry:
• Growth in global medical electronics market
• Increased demand for smartphones and tablets
• Growing demand for CAD from semiconductor industry
Growth in global medical electronics market
The global medical electronics market is expected to grow at a CAGR of nearly 6% during the forecast period, 2016-2020. CAD is widely used for designing PCB and ICs for medical electronics devices. Due to increasing urbanization, there was a growing need for enhanced healthcare facilities in 2015. This has been a major driving force for medical electronics.
Emerging countries such as India and China are the major players in medical electronics due to the increasing need for developing healthcare standards in the country. Developed countries such as the US, the UK, and Germany have made considerable investments in R&D of efficient medical electronic systems in 2015. The demand for medical electronic devices such as cardiac monitors was high in 2015.
Increased demand for smartphones and tablets
CAD is widely used for designing smartphones and tablets. The global electrical and electronics industry witnesses an increase in the production and demand for smartphones and tablets. Consumers now prefer to access internet facilities on-the-go, without time and location constraints, using web applications for many purposes such as viewing multimedia content, browsing the internet, video calling, gaming, and social networking. Thus, tablets and smartphones fulfil both the entertainment and business-related needs of end-users.
“With changing consumer usage patterns, the demand for tablets and smartphones has increased significantly post 2014. Thus, smartphone and tablet providers are using new and innovative technology such as CAD to develop high performance products,” says Amrita.
Growing demand for CAD from semiconductor industry
Worldwide sales of semiconductors are expected to exceed USD 320 billion in 2016. The semiconductor industry is one of the major contributors to the overall revenue of the CAD market. The continuous decrease in the size of semiconductors and an increased scale of integration has compelled semiconductor manufacturing companies to use the available CAD. This helps them decrease the complexity and difficulties involved in the design of semiconductor chips. The overall product development time has substantially reduced from two–three years to two–three weeks with the use of CAD. The continuous growth in the semiconductor industry has triggered the demand for CAD. The growth of set-top boxes owing to an increase in direct-to-home (DTH) services in rural parts of countries such as India and Brazil has also led to an increased demand for CAD.
CAD is increasingly used in R&D as well as manufacturing. Thus, the demand for the software has increased from both R&D-intensive countries (US, South Korea, and Japan) and manufacturing-intensive countries (China and Vietnam).
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