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AI in Product Design Revenue to Reach US$4.3 Billion by 2035 as Suppliers Race to Embed Intelligence into Engineering WorkflowsNEW YORK, Aug. 12, 2026 (GLOBE NEWSWIRE) -- A new report from global technology intelligence firm ABI Research finds that revenue attributable to AI in product design will grow from US$628 million in 2025 to US$4.3 billion in 2035, reflecting a 21.3% CAGR. The findings show that while AI adoption is already strong in mechanical product design and simulation, the market’s long-term value will come from embedding AI directly into engineering workflows rather than relying on standalone copilots. “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.” Mechanical product design and simulation is already the leading business area for AI deployment among manufacturers, with 62% currently undertaking AI projects there and 89% expecting to do so within the next 3 years. Adoption is especially strong among large enterprises, where 71% of manufacturers with more than 10,000 employees are already deploying AI in mechanical design and simulation, rising to 96% over the next 3 years, as these organizations have the capital and incentive to connect CAD, simulation, and product lifecycle management into broader AI-enabled ecosystems. The market remains dominated by major CAD providers, with Autodesk, Dassault Systèmes, PTC, and Siemens collectively accounting for 92.2% of product design revenue, but AI is opening new competitive fronts fo both incumbents and specialists. Alongside CAD vendors embedding AI assistants and workflow automation, intelligence-layer providers such as Neural Concept, nTop, PhysicsX, Rescale, and SolverX are adding AI-driven exploration and optimization capabilities, while startups including Adam CAD, BuildCAD AI, Spectral Labs, and Zoo Design are pushing AI-native approaches to design generation. “The next decade of competition in product design will not be defined simply by who can generate geometry,” Gordon says. “The leaders will be the suppliers that combine generative design, simulation feedback, engineering reasoning, and institutional knowledge into a practical design partner, while also giving customers a clear framework for adoption and change management.” These findings are from ABI Research’s Product Design: AI Maturity and Differentiation report, part of the company’s Industrial & Manufacturing Technologies research service, which includes research, data, and ABI Insights. About ABI Research ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers. ABI Research?????????????,?????????,???????????????????????,??????????????,??????????????????????????,?????????? For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com. Contact Info: 
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