Today, diffusion bonding remains a common application for Hot Isostatic Pressing (HIP) of high-performance components. Encapsulation technologies and HIP enable a premium material in powder form to clad a solid substrate and densify to produce a high-performance surface for corrosion- or wear protection. The manufacture of near-net-shape components with precise tolerance saves tremendously the cost of secondary machining or manual rework which are usually aimed for a better surface finish. To achieve required coating thickness and shape by predicting the shrinkage of the capsule, numerical studies of the densification process of the coating layer are conducted by FEM simulation in ABAQUS. Metal-ceramic composite powder and nickel based alloy substrate are studied, whereas mild steel is used as the capsule material. The capsule shape is redesigned by “Invert Optimization” tool based on parametric modelling, which is verified by several HIP cycles in experiments. Theoretical and experimental results show high consistency.