This quarter, we’re sharing our updated forecasts for various software segments, Insights for high-tech industry, the impact of US Tariffs and AI, analysis of the market in India, employment patterns and management structures in AEC industry.
What’s new? Cambashi has released its Q2, 2025 data update that includes BIM, CAD/CAM, PLM and many other software segments. The CAE Observatory has also been updated and more data updates are coming for this dynamic market, ensuring full coverage of the recent acquisitions.
Why it matters: You can have access to the latest revenue forecasts, updated market sizing data and new analysis on how recent tariff changes and AI impact could affect the software sector.
The impact of US tariffs on the engineering and industrial software market
Understanding how global trade dynamics influence the engineering and industrial software sector is crucial. While some areas remain resilient, others face significant pressures and strategic shifts.
- Cross-border sales unaffected: Direct software sales across borders are not immediately impacted by tariffs on goods.
- Industrial production slowdown: Weaker industrial production due to tariffs directly impacts demand for software.
- Delayed purchases: Customers may delay or postpone new software acquisitions.
- Shorter subscriptions: A shift towards shorter-term subscriptions (3–12 months) is observed.
- Reduced seat counts: Companies may reduce software seat counts due to lay-offs or downsizing.
- Downgrades/cheaper tools: Transition to more affordable tools or downgrading existing licenses.
Short-Term Impact
Growth is insulated by existing subscriptions, providing initial stability.
Medium-Term Impact
Slower growth projected compared to a no-tariff scenario.
Offsetting Factors for Resilience:
Productivity driver
Software is a key driver of productivity and cost mitigation.
COVID-19 resilience
Software’s resilience was proven during the pandemic.
Domestic shift:
Trade tensions accelerate the shift to domestic software (e.g., China, India).
Research Update & Insights
Cambashi’s update includes provider research up to June 2025, covering published results for Jan-Mar 2025. Public companies now factor tariff uncertainty into their investor guidance, which has directly influenced our market models. Request a sample of Cambashi`s Product / Country / Industry (PCI) database.
Industry Insights: High Tech – Riding the Wave but Ignoring the Current
Global high-tech production is projected to expand by +6.7% in 2025, a pace that would typically signal confidence and momentum. Yet, beneath that headline figure lies an uneven picture. The sector’s momentum is being driven disproportionately by demand for semiconductors, particularly those supporting artificial intelligence applications, while the broader landscape remains challenged by policy volatility, weak capital investment, and diverging regional strategies. This raises a central question: Can the semiconductor-led surge offset the wider structural weaknesses that continue to weigh on the high-tech industry? Read the full article here.
Opportunities
- AI-driven semiconductor demand continues to fuel growth (+6.7% projected for 2025)
- Partial easing of US-China trade tensions provides short-term boost
- Strategic positioning in China, South Korea, and Taiwan offers competitive advantages
Challenges
- Overreliance on semiconductor growth masks broader sector weaknesses
- Investment paradox: production growth without corresponding capital allocation
- Regional disparities creating uneven development landscape
- Risk of industry split between “premium” and “commodity” tracks
The next two years will be critical for the high-tech sector. Strategic diversification, both technologically and geographically, will determine which companies successfully navigate the transition from riding the AI wave to building sustainable growth foundations.
Read the full article here.
Manufacturing Software Market in India: Opportunities and Challenges
Cambashi is excited to announce that we now have a qualified presence on the ground in India and the ability to provide quality, granular data and intelligence (including current market size figures and projected growths by segment and industry) to help manufacturing software providers develop and validate GTM strategies and detailed sales/marketing plans.
Economic Impact
Manufacturing accounts for 17% of India’s GDP in 2023-24, with government initiatives targeting 25% through Make in India and PLI schemes.
Regional Concentration
Top 5 states (Tamil Nadu, Gujarat, Maharashtra, Uttar Pradesh, Andhra Pradesh) account for 54% of all factories.
Digital Transformation
Leaders acknowledge need to modernize and employ digital tools to compete globally, driving software adoption.
Current State
ERP and CRM widely adopted, but PLM, advanced CAE/Simulation, and MES/QMS adoption slower. CAD/CAM solutions prevalent across industries.
Growth Sectors
Semiconductors, defense manufacturing, and SMBs represent major opportunities. Industrial AI gaining momentum through India AI Mission program.
Market Entry
Success requires strategic partnerships, clear ROI demonstration, software adaptation to Indian conditions, and understanding local challenges.
SMB Manufacturing Output
According to a recent government data, SMBs account for 35-40% of total manufacturing output in India.
Global Chip Design
India houses about 20% of world’s semiconductor design engineers
Export Contribution
SMBs contribute over 40% of India’s total exports
“Manufacturing software adoption grows at substantially higher rates than the industries it serves, showing resilience through economic shocks and driving productivity gains.”
Cambashi’s in-depth View on India is coming this October. Sign up to be notified when it goes live or Contact us today to discover how Cambashi can help you navigate the Indian manufacturing software market and unlock new growth opportunities.
Managers and Supervisors in AEC industry: Fragmented vs Matured markets
Understanding employment patterns and management structures is key to uncovering market potential in various industries and countries. We delve into the Architecture, Engineering, and Construction (AEC) sector to highlight these differences.
The Architecture, Engineering, and Construction (AEC) industry presents a clear picture of how market dynamics influence management structures and, by extension, software needs. The number of managers and supervisors varies significantly across countries, reflecting different market structures, economic development stages, and industry practices. See the examples of fragmented and mature markets below.
Fragmented Markets: Mexico & Vietnam
Mexico and Vietnam show particularly high numbers of AEC supervisors relative to their overall workforce size. This indicates a highly fragmented market with many mid-size and small firms. In these markets, software solutions that cater to individual or small team licensing models would be highly effective
Mature Markets: U.S. & China
The U.S. and China, in contrast, represent more mature and consolidated markets, though with different internal dynamics. Their large numbers of managers reflect substantial investment in planning, coordination, and oversight, often correlating with higher technology adoption.
Comparing Software Spending & Licensing Models
Each region and country displays unique revenue and spend patterns, indicating varying market dynamics and economic environments. Understanding these differences is crucial for software providers.
Management Density
Significant differences in management density across regions impact software licensing potential.
Tailored Licensing Models
Software providers should consider varied licensing models to match market structures.
Feature Expectations
Particular occupations spend differently on software, indicating potential variations in feature needs.
For example, while enterprise licensing may work well in the U.S., given its high proportion of managers and established corporate structures, individual or small-team licenses might be more suitable for markets like Vietnam, which are characterized by many smaller firms and project-based leadership. Token- or pay-per-use licensing models could serve as an alternative for these small teams. Additionally, Autodesk has recently explored the possibility of “outcome pricing”, where companies use the software for free, and Autodesk receives a share of the final product or building sales.
Recognizing that different occupations spend differently on software reveals varying feature expectations. Developers could consider tiered, market-specific products to boost adoption and revenue.
Unlock Deeper Insights into Employment Trends: Request the current sample of the Employment Observatory today
Emerging drivers for Industrial AI and its impact
One of the most important topics these days in any industry is AI. We’re noticing important distinctions emerge between ‘Consumer AI’ and ‘Industrial AI’—particularly in the Engineering, Manufacturing, and Industrial software sectors.
As we observe important trends and opportunities emerging in the industrial software markets, we’re excited to provide succinct ‘Cambashi Views’ to summarize key insights on emerging drivers for Industrial AI.
AI increases the value of software by adding capability
Various estimates put the US software industry growth from AI as high as 4% of GDP from 2024 – 2028 (mainly through SaaS + agentic AI)
AI can auto-generate code for new features and applications and automate customer facing functions (thus reducing staff costs)
But this may not be easily monetized as:
- Customers expect software to evolve with new features
- Customers will also reduce staff so fewer software licences will be needed
- AI-native competitors may enter the market offering lower prices
If you have any questions or need more details, feel free to contact us.
About Cambashi
Cambashi is a global market research, industry analysis, consulting and training firm, mainly focused on the AEC, Manufacturing and Industrial software markets.
For over 40 years, Cambashi has delivered objective market research, industry analysis, and consulting services focused on engineering and industrial software markets.
80% of leading BIM (Building Information Modeling) and MFG (Manufacturing) Design and Engineering software vendors rely on Cambashi data.
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