'CAD' stands for Computer-Aided Design, which is a technology used in engineering and design to create precision drawings and models. CAD software enables designers to produce detailed 2D and 3D representations of physical objects, facilitating visualization and analysis. It enhances productivity by automating repetitive tasks and allows for easy modifications and iterations. CAD is widely utilized in various industries, including architecture, engineering, and manufacturing, streamlining the design process and improving collaboration.