Cambashi Analyses MCAD in Europe, Mideast, Africa
 CAMBRIDGE,
UK, Feb 14, 2008 - In its latest figures released today, engineering and
enterprise IT applications market research and analysis consultants,
Cambashi, estimates that in 2007 the revenues of all disciplines’
engineering applications software in the European, Middle East and African (EMEA)
region grew 17% to US$ 4.1 Bn. In 2008, Cambashi forecasts that it will grow
9% to over US$ 4.5 Bn. Weakening of the US$ against European currencies in
2007 accounted for about half of the increase, so in real terms, 2007 growth
in Europe was closer to 8%.
The engineering applications software market includes tools to assist
mechanical, architectural and infrastructure design. Mechanical remains the
largest segment of the market, at nearly 60% and grew at a slightly faster
rate than the market as a whole.
Focus on Mechanical Design & Manufacturing
Mike Evans, Director of Research at Cambashi, comments: “Despite the
economic and geo-political uncertainties which we have seen in 2007, strong
demand continues as companies to invest in new design and engineering
software tools. The current more competitive environment means an increased
focus on the design aspects of manufacturing”
Despite perceptions that manufacturing is moving from Europe to Asia,
Europe, with nearly 41%, has now overtaken North America as the largest
regional market, worldwide, compared to just over 37% for North America.
The Big Four Software Providers
Four providers accounted for 59% of the mechanical design and
manufacturing market in 2007: Autodesk’s Mechanical Division; Dassault
Systems; PTC; and Siemens PLM Software (formerly UGS). All have performed
well, increasing their proportion of the market from over 56% in 2004. A
significant part of their growth comes from acquisitions. Since 2005, nearly
a quarter of the growth of the top four providers and over half the growth
of the top ten providers has come from acquisitions. Autodesk has announced
14 acquisitions, PTC 10, Dassault Systems seven, but Siemens PLM just one.
Autodesk - Pervasive technology, executing well
Autodesk, of the four, has the broadest target markets including AEC, GIS
and Entertainment . In the Manufacturing Division (excluding AutoCAD & LT)
revenues grew at 26% in Europe, to US$ 170m. Autodesk has been particularly
successful in moving its large 2D customer base onto newer 3D applications.
It helps the transition to occur at a pace and price that customers can
accommodate.
From less than 17% in 2005, Inventor is now nearly 20% of all European
revenues. Cambashi expects to see a similar pattern in 2008. With further
new products, and niche application acquisitions, there seems little doubt
that Autodesk has found the right formula.
Dassault Systems - Technology vision – In it for the long haul
Dassault Systems takes a longer-term view than most providers and offers
big customers their unique vision of the future. Despite reorganizing their
distribution and dealer arrangements with IBM, Dassault still grew at 15% in
Europe in 2007, with revenues of over US$ 780m.
Growth of the SolidWorks business, with European revenues at US$ 145m,
continued at 20%. However, CATIA business slowed to single digit growth in
2007.
Large acquisitions in the last few years have boosted both revenues and
the breadth of the portfolio. The MatrixOne acquisition ensured that their
ENOVIA business grew by over 50% in Europe in 2007, to nearly US$ 160m,
whilst ABAQUS ensured SIMULIA grew at about 13%.
There is an ongoing change in the IBM relationship, whereby IBM focuses
on large accounts while Dassault takes on more sales responsibility for
CATIA business partners who mainly sell into medium sized customers. This
change did not really impact revenue in 2007. In 2008, it will raise
revenues as the partners will be resellers on a lower margin than IBM could
negotiate. However, Cambashi believes that this will be moderate as
reorganization of sales channels and partners may disrupt some business.
PTC - Comeback kid - Recovery on the horizon?
PTC appears to have turned a corner in Europe with revenue growth of 22%
on 2006, to US$ 360m, though new license revenues stalled in late 2007. With
Pro/Engineer WildFire, PTC is unique amongst the top developers to have the
same product in both the mainstream 3D modeling market and the high-end.
Windchill continues to make progress – Cambashi estimates that it is now
around 38% of EMEA revenues, compared to 35% last year, though, as with much
PLM, large implementations tend to be limited as much by available human
resources as by the vagaries of sales and economic cycles.
The resilience of PTC is underlined by their large user base, partly
resulting from years of acquisitions. Maintenance revenues are over 43% of
total revenues.
PTC’s series of small acquisitions have broadened what was already a wide
portfolio of applications. The inclusion of around US$ 40m from the CoCreate
acquisition to European revenues should ensure that similar revenue growth
will be seen in 2008.
The revitalization of the reseller channel for Pro/Engineer WildFire is
one of the reasons Cambashi sees revenues from this source perhaps back to
the levels they were in 2004, at nearly 21% of total revenues.
Siemens PLM Software - A Safe Pair of Hands
Siemens PLM Software grew at over 16% in EMEA in 2007, to nearly US$
560m, driven in part by a pent-up demand from their user base. NX, including
analysis products, looks to have particularly benefited. Before now,
ownership and product integration issues have prevented many existing
customers from committing to the next product line. Cambashi estimates NX
growth of over 14%; it now accounts for more than half total EMEA revenues.
SolidEdge growth increased and enjoyed above-average growth across EMEA.
Teamcenter PLM grew 13% and Tecnomatix revenues grew 10%
In the future, Cambashi expects synergies within the Siemens group to
help speed the uptake of PLM in manufacturing enterprises, integrating
design and automation within manufacturing IT. With the acquisition of UGS
PLM, Siemens now has a leadership position in both automation and design,
two of the three pillars of manufacturing IT, they now only lack an ERP
offering to deliver a full set of software applications to industry.
About Cambashi
Cambashi, based in Cambridge, provides independent research and analysis
of the business reasons to use of IT in industry world-wide. Its specialist
fields include Engineering and Enterprise applications and the
infrastructure to enable industrial firms to use IT effectively. Cambashi
publishes market size estimates in the Engineering Applications Market
Observatory. Its clients vary in size from small to large and include most
of the leading software vendors and many pioneering IT users. Cambashi is a
member of CATN, an international association of consultants. For more
information visit at www.cambashi.com.
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Source: Material used in press releases is often supplied by external
sources and used as is.
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