AI in Product Design Revenue to Reach US$4.3 Billion by 2035 as Suppliers Race to Embed Intelligence into Engineering Workflows

ABI Research reported projected growth for AI revenue tied to product design and said the value of AI in engineering work will depend on how it is embedded into design workflows. The report links near-term adoption in mechanical design and simulation to longer-term differentiation based on workflows rather than standalone copilots.

According to the report, revenue attributable to AI in product design would rise from US$628 million in 2025 to US$4.3 billion in 2035, with a 21.3% compound annual growth rate. ABI Research said adoption of AI in mechanical product design and simulation involved 62% of manufacturers at the time of the findings, with 89% expecting AI projects within the next three years.

ABI Research stated that adoption was higher among large enterprises, with 71% of manufacturers with more than 10,000 employees deploying AI in mechanical design and simulation, rising to 96% over the next three years. It also said the product design revenue landscape remained dominated by Autodesk, Dassault Systèmes, and PTC, which together accounted for 92.2% of product design revenue, while other providers were adding AI-driven exploration and optimization capabilities.

ABI Research described competition as including CAD vendors embedding AI assistants and intelligence-layer providers including Neural Concept, nTop, PhysicsX, Rescale, and SolverX, along with startups including Adam CAD, BuildCAD AI, Spectral Labs, and Zoo Design, which it associated with AI-native design generation approaches.

“Product design AI is moving into a new phase of maturity,” said Carter Gordon, Industry Analyst at ABI Research. “Copilots and low-friction automation remain important because they solve immediate workflow pain points, but real differentiation will come from AI that can understand models, connect design with simulation, and help engineers make better decisions faster.”

Provided by Globe Newswire on behalf of ABI Research. Click to read original content. The original article was written by Decision Insights Editorial.