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Generative Artificial Intelligence (AI) In Product Design Market Revenue Outlook: What CAGR Lies Ahead Through 2030?
The generative artificial intelligence (AI) in product design market size has seen rapid growth in recent years. This market is anticipated to expand from $15.78 billion in 2025 to $17.69 billion in 2026, with a compound annual growth rate (CAGR) of 12.1%. Historically, this growth has been fueled by the need for faster product development, rising design complexity, the adoption of CAD tools, the demand for cost efficient prototyping, and digital transformation in manufacturing.
The market for generative artificial intelligence (AI) in product design is projected to experience substantial expansion over the coming years, reaching $27.67 billion in 2030 at a compound annual growth rate (CAGR) of 11.8%. This anticipated growth during the forecast period can be attributed to several factors, including the integration of AI into design processes, increasing demand for sustainable product design, the use of cloud-based collaboration tools, the expansion of digital twins, and manufacturing driven by customization. Key trends anticipated during the same period encompass AI-driven design exploration, automated design optimization, generative simulation models, capabilities for mass customization, and AI-supported prototyping.
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Generative Artificial Intelligence (AI) In Product Design Market Growth Drivers: What’s Behind The Acceleration?
The increasing focus on smart infrastructure initiatives is set to propel the growth of the generative artificial intelligence (AI) in product design market moving forward. Smart infrastructure projects are defined as endeavors that utilize cutting-edge technologies and data-driven methods to improve the conceptualization, operation, and management of infrastructure systems. This rising emphasis on smart infrastructure is driven by the imperative for sustainable urban development to efficiently manage population expansion, alongside advancements in Internet of Things (IoT) technology, which enable continuous monitoring and data-informed decision-making. Generative AI in product design supports smart infrastructure projects by optimizing design workflows, facilitating the creation of inventive and efficient solutions through rapid analysis of extensive datasets and the simulation of various scenarios. For instance, in February 2024, the Institute of the Americas, a US-based non-profit, independent organization, reported an acceleration in global smart city momentum, with spending expected to exceed $190 billion by the end of 2023. Additionally, regional IoT connections are projected to reach 1.2–1.3 billion by 2025, and IoT revenue in Latin America is forecasted to surpass $47 billion by 2025. Industrial IoT deployments are increasingly concentrated in smart buildings and smart utilities, representing one-third and 23 percent, respectively, by 2025. Thus, the heightened focus on smart infrastructure projects is driving expansion within the generative artificial intelligence (AI) in product design market.
Generative Artificial Intelligence (AI) In Product Design Market Segmentation And Category Overview
The generative artificial intelligence (AI) in product design market covered in this report is segmented –
1) By Deployment Model: Cloud-Based, On-Premises
2) By Application: Design Exploration And Ideation, Design Optimization And Simulation, Customization And Personalization, Other Applications
3) By End-User: Automotive Manufacturers, Healthcare And Medical Device Manufacturers, Contraction And Architecture Firms, Other End-Users
Subsegments:
1) By Cloud-Based: Public Cloud Generative Artificial Intelligence (AI) Product Design Platforms, Private Cloud Generative Artificial Intelligence (AI) Product Design Platforms, Hybrid Cloud Generative Artificial Intelligence (AI) Product Design Solutions, Software-As-A-Service (SaaS) Generative Artificial Intelligence (AI) Design Tools
2) By On-Premises: Enterprise On-Premises Generative Artificial Intelligence (AI) Product Design Systems, Department-Level On-Premises Generative Artificial Intelligence (AI) Design Solutions, Custom-Deployed On-Premises Generative Artificial Intelligence (AI) Design Platforms, Secure In-House Generative Artificial Intelligence (AI) Product Design Tools
Generative Artificial Intelligence (AI) In Product Design Market Trends: What’s Defining The Industry’s Next Phase?
Leading companies operating in the generative artificial intelligence (AI) in product design market are developing advanced technological solutions, including generative AI specifically for digital product design, to improve the design process across diverse industries. Generative AI for digital product design refers to the utilization of artificial intelligence technologies to assist in the creation and development of digital products such as websites, applications, and user interfaces. As an illustration, in June 2023, Flytxt, a Netherlands-based provider of AI-powered SaaS solutions, introduced a Generative AI tool aimed at enhancing digital product design by enabling the quicker and more effective creation of high-performing products. This innovative tool addresses the difficulties involved in rapidly producing effective products. It systematically evaluates numerous product designs to pinpoint optimal choices, fine-tuning aspects like price points, product attributes, and bundling options to achieve business objectives such as increasing revenue and retaining customers. This application of generative AI is significant for its capacity to ensure transparency in decision-making, allowing product managers to review and comprehend the reasoning behind AI-generated designs before releasing products.
Generative Artificial Intelligence (AI) In Product Design Market Competitive Analysis Of Leading Industry Participants
Major companies operating in the generative artificial intelligence (AI) in product design market are Microsoft Corporation, Amazon Web Services Inc., Siemens AG, International Business Machines Corporation (IBM), NVIDIA Corporation, Adobe Inc., Dassault Systèmes SE, Hexagon AB, Autodesk Inc., ANSYS Inc., PTC Inc., Unity Technologies Inc., Bentley Systems Incorporated, Altair Engineering Inc., Xometry Inc., nTopology Inc., Onshape Inc., ParaMatters, Dyndrite, MSC Software, Spectral Labs, GenCAD‑3D, CADScribe, Shapr3D, SimScale
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Generative Artificial Intelligence (AI) In Product Design Market Geographic Spread And Regional Opportunities
North America was the largest region in the generative artificial intelligence (AI) in product design market in 2025. The regions covered in the generative artificial intelligence (AI) in product design market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
