Market Overview

The size of the CAD and EDA market in FY2024 was valued at 230,839 million yen, 105.4% of the preceding fiscal year, based on the shipment value of CAD and EDA system manufacturers.CAD and EDA are critical systems in design and development across manufacturing enterprises. In Japan, 2D CAD, which has served as the dominant system for Japanese manufacturers, is progressively transitioning to 3D CAD in tandem with advancing manufacturing capabilities. Concurrently, amid escalating geopolitical tensions that threaten semiconductor supply chain resilience, coupled with rapid advances in AI technology, the Japanese government is actively promoting the revitalization of Japan's domestic semiconductor sector, thereby accelerating demand for semiconductor design EDA tools. These developments are catalyzing growth in the CAD and EDA market.

Noteworthy Topics

User Perception of CAD Systems Evolve Alongside Spread of Digital Transformation

The CAD and EDA market has reached a mature stage. In particular, many mechanical CAD solutions have become largely standardized as a result of long-term functional enhancements and performance improvements. Consequently, CAD vendors are now seeking to provide value beyond core design capabilities.
To this end, vendors are integrating CAD systems with tools used in upstream and downstream design processes and developing platforms that optimize the entire manufacturing value chain.
These efforts are consistent with the strategic direction of user companies pursuing digital transformation, a trend gaining national prominence. Such companies are shifting from localized, task-specific optimization toward comprehensive, end-to-end process improvement that enhances organizational efficiency and value creation.
Going forward, cross-domain integration will remain essential for addressing user needs. This trend will, in turn, shape both the role of CAD systems and the criteria by which user companies select them.

Future Outlook

The size of the CAD and EDA market is projected to attain 243,590 million yen in FY2025, 105.5% of the preceding fiscal year.
In detail, the EDA segment is projected to continue serving as a major growth driver, as it did in FY2024. In addition, price increases in the CAD segment—driven by added value through the transition from 2D CAD to 3D CAD, migration to the cloud, and the implementation of AI capabilities—will also contribute to overall market expansion.
While the current U.S. tariff environment creates uncertainty for Japan’s manufacturing sector, particularly for automotive manufacturers, vendors remain committed to delivering advanced solutions and strong customer support. Given these conditions, the domestic CAD and EDA market is expected to maintain its growth trajectory.

Research Outline