CAD is used to design, develop and optimze all kinds of things, from nuts and bolts to entire sky scrapers. CAD is mainly used for detailed engineering of 3D models and/or 2D drawings of physical components, but it is also used throughout the engineering process from conceptual design and layout of products, through strength and dynamic analysis of assemblies to definition of manufacturing methods of components. In today's world, where everything is digital, CAD is more important than ever.
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