As immersive 3D user interfaces reach broader acceptance, their use as sketching media is attracting both commercial and academic interests. So far, little is known about user requirements and cognitive aspects of immersive 3D sketching. Also the latter's integration into the workflow of virtual product development is far from being solved. We present results from two focus group expert discussions, a comparative user study on immersive 3D sketching conducted among professional furniture designers and a qualitative content analysis of user statements. The results of the focus group discussions show a strong interest in using the three-dimensional (3D) space as a medium for conceptual design. Users expect it to provide new means for the sketching process, namely spatiality, one-to-one proportions, associations, and formability. Eight groups of functions required for 3D sketching were outlined during the discussions. The comparative study was intended to find and investigate advantages of immersive three-dimensional space and its additional degrees-of-freedom for creative/reflective externalization processes. We compared a 3D and a 2D baseline condition in the same technical environment, a VR-Cave system. In both conditions, no haptic feedback was provided and the 2D condition was not intended to simulate traditional 2D sketching (on paper). The results from our user study show that both the sketching process and the resulting sketches differ in the 2D and 3D condition, namely in terms of the perceived fluency of sketch creation, in terms of the perceived appropriateness for the task, and in terms of the perceived stimulation by the medium, the movement speed, the sketch sizes, the degree of detail, the functional aspects, and the usage time. In order to validate the results of the focus group discussions, we produced a questionnaire to check for the subjectively perceived advantages and disadvantages in both the 2D and 3D conditions. A qualitative content analysis of the user statements revealed that the biggest advantage of 3D sketching lies in the sketching process itself. In particular, the participants emphasized the system's ability to foster inspiration and to improve the recognition of spatiality and spatial thinking. We argue that both 2D and 3D sketching are relevant for early conceptual design. As we progress towards 3D sketching, new tangible interactive tools are needed, which account for the user's perceptual and cognitive abilities.