CIMdata PLM Industry Summary Online Archive

3 April 2008

Industry-Wide News

EDA Consortium Reports 6.7 Percent Industry Revenue Growth in Fourth Quarter 2007

The EDA Consortium Market Statistics Service (MSS) announced that the electronic design automation (EDA) industry revenue for Q4 2007 grew 6.7 percent to $1,602.7 million, versus $1,501.9 million in Q4 2006. The four-quarter average growth rate, which compares the most recent four quarters to the same four quarters in the prior year, was 9.1 percent.

“The reported worldwide EDA industry showed continued growth in Q4 2007, with double digit growth in Japan and the Rest-of-World,” said Robert Gardner, executive director, EDA Consortium. “Overall industry revenue increased relative to both Q4 2006 and the four quarter moving average. EDA employment has seen steady growth over the course of 2007.”

Companies that were tracked employed 27,563 professionals in Q4 2007, up 7.7 percent from the 25,586 employed in Q4 2006.

Revenue by Product Category

EDA’s largest category, Computer Aided Engineering (CAE), generated revenue of $663.6 million in Q4 2007, representing a 13.5 percent increase over the same period in 2006. The four quarter moving average CAE growth rate was 12.2 percent.

For IC Physical Design & Verification, the next largest category, revenue increased to $440.5 million in Q4 2007, a 14.3 percent increase compared to Q4 2006. The four quarter moving average growth rate was 12.3 percent for IC Physical Design & Verification.

Semiconductor Intellectual Property (SIP) revenue totaled $265.4 million in Q4 2007, a 6.3 percent decrease over Q4 2006. The four quarter moving average growth rate for SIP remained positive at 4.1 percent.

Services revenue was $79.4 million in Q4 2007, up 3.0 percent from Q4 2006. The four quarter moving average growth rate was 9.3 percent for services.

Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue decreased 10.4 percent over Q4 2006 to $153.8 million. The four quarter moving average growth rate for PCB & MCM showed a 1.5 percent decrease.

Revenue by Consuming Region

North America, EDA’s largest region, purchased $735.9 million of EDA products and services in Q4 2007. Although this represents a 5.6 percent decrease compared to a strong Q4 2006, the four quarter moving average growth rate was up 2.8 percent for North America.

Western Europe revenue was up 9.8 percent in Q4 2007 compared to Q4 2006, with revenues of $316.9 million. The four quarter moving average growth for Western Europe was 9.9 percent.

2007 Q4 revenue from Japan increased 30.4 percent to $316.0 million compared to Q4 2006. The four quarter moving average increase was 10.1 percent for Japan.

Rest-of-World (ROW) continued to extend previous years of revenue growth by increasing to $233.8 million, a 22.1 percent increase compared to the same quarter in 2006. The four quarter moving average growth was also strong at 30.8 percent.

About the MSS Report

The EDA Consortium Market Statistics Service reports EDA industry revenue data quarterly and is available by annual subscription. Both public and private companies contribute data to the report. Each quarterly report is published approximately three months after quarter close. MSS report data is segmented as follows: revenue type (product licenses and maintenance, services, and SIP), application (CAE, PCB/MCM Layout, and IC Physical Design and Verification), operating system (UNIX vs. Windows) and region (North America, Western Europe, Japan, and Rest of World), with many subcategories of detail provided. The report also tracks total employment of the reporting companies.

About the EDA Consortium

The EDA Consortium is the international association of companies that provide design tools and services that enable engineers to create the world’s electronic products used for communications, computer, space technology, medical, automotive, industrial equipment, and consumer electronics markets among others. For more information about the EDA Consortium visit http://www.edac.org, or to subscribe to the Market Statistics Service call (408) 287-3322 or email mss08@edac.org.

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