For the full year 2004 the industry's revenues totaled $4,019 million, 2.8 percent more than $3911 million reported in 2003, despite a decline in the money spent on physical design and verification tools.

In addition, North America, EDA's largest customer base, continued a downward trend from the previous quarter's numbers.

North America, purchased $494 million of EDA products and services in Q4 2004, a 14 percent decline from Q4 2003, but slightly up on the $472 million of EDA products and services bought in North America in Q3 2004. For all of 2004, North American revenue was $1,950 million (49 percent global share), 4 percent less than 2003. North America was the only region to decline for the quarter and for the year.

In contrast Western Europe led all regions for revenue growth in Q4 2004, increasing by 33 percent over Q4 2003 to reach $268 million. For the full year 2004, revenue from Western Europe was $820 million, a 12 percent increase over 2003, making Western Europe the second largest EDA market and 20 percent of global revenue in 2004. In Q4, revenue from Japan grew 14 percent year-on-year to $188 million. In 2004 Japan increased 2 percent over 2003 revenue to reach $783 million in 2004 - a new record for the region. EDA sales in Japan constituted 19 percent of the global total in 2004.

The Rest-of-the-World (ROW) region achieved 23 percent year-on-year revenue growth to $128 million in Q4 2004. Revenue from ROW led all regions for revenue growth for the full year 2004 with an increase of 22 percent over 2003 to $466 million, equivalent to 12 percent of global 2004 revenue.

EDAC divides tool sales into five categories; computer-aided engineering (CAE), IC physical design and verification, printed circuit board (PCB) and multi-chip module (MCM) layout, semiconductor intellectual property, and services.

The largest is CAE, which generated revenue of $523 million in Q4 2004, 9 percent more than the same period in 2003. CAE revenue for all of 2004 totaled $1,919 million, a 5 percent increase over 2003.

IC physical design and verification decreased 6 percent to $326 million in Q4 2004 over the same quarter in 2003. For the full year 2004, IC Physical Design & Verification revenue totaled $1,165 million, a 4 percent decrease over 2003.

Employment by EDA companies also grew strongly during 2004. Reporting companies employed 20,962 professionals in Q4 2004, 10 percent more than Q4 2003, according to the EDAC statistics.