EDA market keeps growing

LONDON – Demand for EDA tools and services in the Americas and Asia-Pacific regions extended an annual growth run for the worldwide EDA industry into its 11th quarter in the third quarter of 2012 and more than made up for a drop of sales in Japan, according to the EDA Consortium (EDAC) industry body.

Global EDA and services revenue grew to $1,619.9 million in the third quarter, up 4.9 percent from the third quarter of 2011, EDAC announced. Market expansion slowed from the run of double-digit percentage growth figures posted over the previous two years but the market was still able to grow 1.7 percent on a sequential basis.

The four-quarters moving average of market value, which compares the most recent four quarters to the prior four quarters, increased by 8.8 percent, also a decline in growth, from a figure for the previous quarter of 12 percent.

"The EDA industry recorded its eleventh consecutive year-over-year quarterly growth. Asia-Pacific led the way with double-digit growth, while all other regions except Japan were also positive," said Walden Rhines, board sponsor for the EDAC market statistics service and chairman and CEO of Mentor Graphics, in a statement.

The EDA industry also continues to grow employment with companies tracked by EDAC employing 28,877 people in 3Q12, an increase of 6.3 percent compared to 27,162 people employed in 3Q11, and up 2.4 percent compared to 2Q12.

The largest category within EDA, computer aided engineering (CAE), also demonstrated the highest growth in 3Q12. CAE generated revenue of $632.5 million in Q3 2012, which represents an 11.6 percent increase over Q3 2011. The four-quarters moving average for CAE increased 11.0 percent.

IC Physical design and verification revenue decreased to $326.7 million in Q3 2012, a 3.4 percent decrease compared to Q3 2011. Nonetheless, the four-quarters moving average increased 12.2 percent.

The Americas region remained the largest in EDA purchasing $715.7 million of EDA products and services in 3Q12, an increase of 1.3 percent compared to 11. The Asia-Pacific region increased revenue to $392.8 million in 3Q12, an increase of 21.8 percent compared to the third quarter in 2011. Revenue in Europe, the Middle East, and Africa (EMEA) was up 3.8 percent in 3Q12 compared to 3Q11 on revenues of $267.5 million. Japan decreased 5.1 percent to $243.9 million compared to 3Q11.




Click on image to enlarge.
Third quarter 2012 reveue by segment and geographic region in dollar millions. Source: EDA Consortium.


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www.edac.org

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