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Product category: Recruitment, Reports and Resources
News Release from: EDA Consortium
Edited by the Electronicstalk Editorial Team on 18 January 2007

EDA industry growth accelerates

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The electronic design automation industry's revenue for Q3 of 2006 was US $1309 million, compared with $1122 million in Q3 2005.

The EDA Consortium's Market Statistics Service (MSS) has announced that the electronic design automation (EDA) industry revenue for Q3 of 2006 grew to US $1309 million compared with $1122 million in Q3 2005 This increase reflects both the continuing growth of the industry as a whole and the growth of the MSS programme, which enjoyed a net increase in the number of participating companies compared with the same quarter last year

The MSS average annual growth rate comparing the most recent four quarters to the same four quarters in the prior year was 12%.

When comparing the same quarter in 2005, revenue in Q3 2006 jumped by 17%.

"The MSS is not only a key indicator of the health of the EDA industry, it also tells us how the industry landscape is shifting in response to global competition and strong consumer demand for our customers' semiconductor products", said Aart de Geus, Chairman of the EDA Consortium and Chairman and CEO of Synopsys.

"Long-standing EDA categories are registering their strongest growth in at least five years".

"This is alongside our most recently expanded segment, semiconductor IP, which is currently growing at a fast pace".

The number of EDA industry employees has also grown worldwide.

Companies tracked in the MSS employed 25,018 professionals in Q3 2006, up 11% from 22,462 in Q3 2005.

While individual company revenue is not revealed in the MSS, a complete listing of reporting companies for each major product category is shown in the full report.

A net total of six new reporting companies were added to the MSS between Q3 2005 and Q3 2006.

Because the total number of companies reporting to the MSS can change from quarter to quarter, comparing revenue growth for the most recent four quarters with the same four quarters in the previous year provides a longer-term industry view as well as mitigates seasonal fluctuations.

EDA's largest product segment, computer-aided engineering, generated revenue of $533 million in Q3 2006, 13% more than the same period in 2005.

In Q3 2006, CAE represented 40% of industry revenue.

IC physical design and verification revenue increased 19% to $354 million in Q3 2006 compared with the same quarter in 2005.

This segment is the second largest in the MSS, representing 27% of industry revenue.

Semiconductor intellectual property (SIP) revenue totalled $246 million in Q3 2006, a 24% increase compared with Q3 2005.

SIP has become the third-largest segment in the MSS, delivering 19% of industry revenue.

Printed circuit board and multichip module revenue increased 24% to $101 million in Q3 2006 compared with Q3 2005.

In Q3 2006, PCB represented 8% of revenue.

Services revenue was $75 million in Q3 2006, up 4% from Q3 2005.

Services represented 6% of industry revenue in the quarter.

North America, EDA's largest region, purchased $634 million of EDA products and services in Q3 2006, a 19% increase over Q3 2005.

Western Europe revenue was up 14% in Q3 2006 with revenues of $249 million.

Q3 2006 revenue from Japan grew 8% in Q3 2005 to $262 million.

Revenue in the rest of the world (ROW) increased 27% to $164 million in Q3 2006 compared with the same quarter a year earlier.

The EDA Consortium's 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 licences and maintenance, services and SIP), application (CAE, PCB/MCM layout, and IC physical design and verification), operating system (Unix versus 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.

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