CIMdata PLM Industry Summary Online Archive

16 June 2009

CIMdata News

CAM Software Market Leaders Named by CIMdata

In the recently-released Version 18 of the NC Software and Related Services Market Assessment Report, consulting and research firm CIMdata, Inc. named the worldwide CAM software market leaders for 2008 and projected those expected to be market leaders in 2009. For 2008, Dassault Systèmes was the market leader on the basis of both vendor revenues received and end-user payments for CAM software and services, Planit Holdings was the leader on the basis of both industrial seats shipped and installed, while CNC Software’s Mastercam was the leader in both industrial seats shipped and installed by brand name. Cimatron was named as the most rapidly-growing vendor.

Mr. Alan Christman, CIMdata Chairman and primary author of the report noted that, “Even though there have been a number of recent mergers and acquisitions, the CAM software market continues to be highly-fragmented and competitive. There is no single vendor or small group of vendors that dominate the worldwide market.” CIMdata tracks approximately 50 CAM software vendors and the rankings in the report list 20-30 vendors, depending upon the category. Many NC software vendors did well even in a difficult economic environment. CIMdata has previously reported that the global NC software market is estimated to have grown by 5.2% in 2008, but the growth rate is expected to slow considerably in 2009.

The 2008 leading vendors on the basis of CAM software and services revenue received were Dassault Systèmes, Siemens PLM Software, Delcam, PTC, Planit Holdings, Cimatron, NDES (formerly Hitachi Zosen Systems), Tebis, Missler Software, and OPEN MIND Technologies. Dassault Systèmes and Siemens PLM Software were the clear market leaders with double-digit market shares and a combined market share of 28.2%. Delcam was listed as the largest specialist supplier, and for the first time moved ahead of PTC in the rankings into the number three position. The remaining eight vendors in the top 10 had a combined market share of 38.8% and the remainder of the vendors below the top 10 had a combined market share of 33.0%. This data is shown in the following chart.

2008 Marketshare of the Largest NC Vendors at the Vendor Level

The top five worldwide leaders in 2008 on the basis of end-user payments were identical to those shown above for revenue received, i.e. Dassault Systèmes, Siemens PLM Software, Delcam, PTC, and Planit Holdings. However, there were differences among the second five grouping. The second five positions on the basis of end-user payments were held by CNC Software, Cimatron, NDES, Sescoi, and Tebis. The changes typically reflect a greater use of resellers as compared to direct sales.

The estimated worldwide 2008 top five vendors on the basis of CAM industrial seats shipped were Planit Holdings, CNC Software, Dassault Systèmes, Delcam, and Siemens PLM Software. The seat count rankings are significantly different than the vendor revenue rankings. For example, Planit Holdings and CNC Software were listed as the leading vendors on the basis of industrial seats shipped, but were only ranked numbers 5 and 11 respectively on the basis of vendor revenue received. The 2008 rankings on the basis of industrial seats shipped by brand were CNC Software’s Mastercam, Dassault Systèmes’ CATIA, PTC’s Pro/E, Siemens’ PLM Software NX, and Planit Holdings’ EDGECAM. The changes in rankings are primarily due to the differences in level and breadth of product and associated software pricing among the vendors.

The worldwide five most rapidly-growing CAM software vendors on the basis of revenue received in 2008 as compared to 2007, were Cimatron, OPEN MIND Technologies, CNC Software, Delcam, and MachineWorks. Each achieved double-digit revenue growth in 2008. The Cimatron growth was in excess of 45%, but a significant portion of the growth can be attributed to the acquisition of Gibbs and Associates, which became effective in 2008. Over the previous five years, SolidCAM had been the consistent growth leader with annual growth rates in the 30% range; however in 2008, their growth rate declined to a more moderate 7.7%. CIMdata is projecting that the five most rapidly-growing companies in 2009 will be SPRING Technologies, Geometric Technologies, SolidCAM, OPEN MIND Technologies, and Delcam. It can be noted that OPEN MIND Technologies and Delcam are the only two companies expected to be among the top five most rapidly-growing companies in both years.

Other vendor rankings contained in Version 18 of the NC Market Assessment Report include those for the educational market, those based on revenue by geography and industry, those for verification and post-processing vendors, the total number of people in a company, product development, direct sales, and the number of resellers per company. Version 18 of the NC Software and Services Market Assessment Report is available for purchase by contacting CIMdata at +1 (734) 668-9922 or by emailing info@cimdata.com.

About CIMdata

CIMdata, a leading independent worldwide firm, provides strategic consulting to maximize an enterprise’s ability to design and deliver innovative products and services through the application of Product Lifecycle Management (PLM) solutions. Since its founding more than 25 years ago, CIMdata has delivered world-class knowledge, expertise, and best-practice methods on PLM solutions. These solutions incorporate both business processes and a wide-ranging set of PLM enabling technologies.

CIMdata works with both industrial organizations and suppliers of technologies and services seeking competitive advantage in the global economy. CIMdata helps industrial organizations establish effective PLM strategies, assists in the identification of requirements and selection of PLM technologies, helps organizations optimize their operational structure and processes to implement solutions, and assists in the deployment of these solutions. For PLM solution suppliers, CIMdata helps define business and market strategies, delivers worldwide market information and analyses, provides education and support for internal sales and marketing teams, as well as overall support at all stages of business and product programs to make them optimally effective in their markets.

In addition to consulting, CIMdata conducts research, provides PLM-focused subscription services, and produces several commercial publications. The company also provides industry education through PLM certificate programs, seminars, and conferences worldwide. CIMdata serves clients around the world from offices in North America, Europe, and Asia Pacific.

To learn more about CIMdata’s services, visit our website at www.CIMdata.com or contact CIMdata at: 3909 Research Park Drive, Ann Arbor, MI 48108, USA. Tel: +1 (734) 668-9922. Fax: +1 (734) 668-1957; or at Siriusdreef 17-27, 2132 WT Hoofddorp, The Netherlands. Tel: +31 (0)23 568-9385. Fax: +31 (0)23 568-9111.

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