[Herald Interview] Zyx Technology aims to shatter AutoCAD dominance

South Korean design software developer Zyx Technology CEO Choi Jong-bok (Im Se-joon/The Korea Herald)

South Korean design software developer Zyx Technology plans to enter overseas markets next year with its own computer-aided design (CAD) program as an affordable alternative for budget conscious, small-sized architectural firms.

ZyxCAD is a homegrown CAD program developed by Zyx Technology. The design program was launched in August 2022 as an alternative to AutoCAD, an industry-leading software that has dominated the global market for the past few decades.

"Many companies are shifting to cheaper alternative CAD programs from subscription-based AutoCAD, which is relatively more expensive," Choi said.

In the industries that use CAD programs, AutoCAD has been the most widely used program for many years. But small- and mid-sized firms in particular have been increasingly burdened by AutoCAD's high price tag, Choi noted.

According to Choi, the Korean market for alternative CAD programs has expanded over the last decade, especially during and after the COVID-19 pandemic as more companies try to reduce their budgets amid worldwide economic challenges.

For example, annual sales of another alternative CAD program called ZwCAD in South Korea has increased to 13 billion won ($9.9 million) in 2023 since it began from zero 11 years ago. The market share of ZwCAD is estimated at around 10 percent, while the combined market share of alternative CAD programs is expected to reach almost 30 percent.

Choi expects ZyxCAD to successfully increase its presence in the markers here and abroad.

ZyxCAD's user interface and functions are designed to be almost identical to AutoCAD to minimize the stress of switching over, according to Choi.

Users also only have to pay once to get permanent access to ZyxCAD, while AutoCAD users have to pay on a yearly subscription basis. “The cost of ZyxCAD is around 50 percent of the cost of using AutoCAD,” Choi said.

Choi said the company will advance its marketing efforts to increase its share in the domestic market, where it aims to sell 3,000 copies.

“In Korea, over 90 percent of architectural firms are operated by a single person. Those small-sized architectural firms that want to minimize their budgets are Zyx Technology’s target customers,” Choi said.

The company will also reach out to both public and private companies here which use CAD programs, Choi added. Companies like telecommunications giant KT and the Korea Forest Service are Zyx Technology’s potential clients.

Currently, Zyx Technology has about 150 clients, including Korea's No. 2 steelmaker Hyundai Steel.

Meanwhile, the firm is also aiming to sell 3,000 copies overseas.

"The company will enter the Vietnamese market first next year and the Japanese market afterwards,” Choi said. “Zyx Technology will also accelerate its research and development to improve its artificial intelligence-based 3D modeling solution Works, and make ZyxCAD compatible with more third party design features,” Choi said.

By Shim Woo-hyun(ws@heraldcorp.com)