and 4.75% respectively. Once the crisis is over, in 2011‐2013, the growth rates should turn to grow reaching 7.5% PLM PLM EXPLAINED Product Lifecycle Management (PLM) is the art of managing the entire lifecycle of a product from its conception to disposal. PLM MARKET LEADERS Since 2003 Autodesk leads PLM industry, with 9% of the total market. In 2008 its revenues reached $2.3bln, despite a disappointing fourth quarter. Losses of Autodesk continued also in the first quarter 2009, with revenue down to 29% and $32 million loss. To retain growth rate and margins, Autodesk might acquire other companies and cut costs drastically. Dassault Systemes holds 7% of PLM market, with PLM software give companies a view on every aspect $1.6bln revenue in 2008. It recently reported a of their product development process. The definition revenue growth of 1% in the 1st quarter of 2009. is clear, but is the sense clear as well? The fact is, there is no PLM‐software uniquely identifiable as such. Six percent of PLM market belong to Siemens PLM Software, in 2008 its revenues reached $1.5bln. PLM is about the integration of different software: CAD to draw a product, CAE to test it, CAM to make it, The forth leader is PTC, with 4% of market share. In PDM to manage product data and DM to plan the 2008 it reached $1.1bln. In the same year European production. market of PTC grew by 20%, reaching $0.45bln, while American market grew only by 0.2%. PLM MARKET VALUE AND GROWTH The PLM market is growing fast, from $24bln in 2007 to $27bln in 2008. Almost all experts agree on the fact that the organic growth of the market (which means without considering mergers and acquisitions) will continue. Nevertheless, in the past few years the market has been growing on a slower pace than in previous years. The peak of growth rates was reached in 2007 (almost 13%), while in 2009 and 2010 the predicted growth of PLM market will be of only 3.75% CAD MARKET VALUE AND GROWTH CAD & AEC In 2008 CAD revenues reached $6bln. The market continues to grow fast (but on a slower pace): while it CAD & AEC EXPLAINED may seem that the CAD industry is a territory only of engineers and other geeky guys, the truth is that CAD CAD stands for Computer Aided Design. CAD software is involved in everything that is built. are used for the design of objects on computer, from aircraft components to special effects in Hollywood CAD is both a visual front‐end for products and a gate movies. to information about how to build the product and how much will cost. Computer Aided Design, or drafting programs come in two forms: 2D and 3D. 3D designs can be viewed from Very little is known about AEC market. What can be any angle; drawings can be zoomed‐in and out or stated is that its value in 2007 amounted $0.7bln. rotated and geometry can be easily changed with a mouse click. Today's CAD systems can even turn 3D models into animations or videos. CAD MARKET LEADERS In 2007, the leader of CAD market was Autodesk with 36% of market share. Its product, AutoCAD, initially In the last 10 years the use of CAD expanded released in 1982, was one of the first CAD programs to drastically, also thanks to the price of the software. run on personal computers. While in eighties CAD systems were sold for over Dassault Systemes has 19% of CAD market share, $100K a seat, today the average price for a basic while Siemens PLM Software and PTC earned 12% and mechanical CAD seat is around $12K, while AutoCad LT 11% of market share, respectively. The four biggest costs around $1,200. market players hold 78% of the market – which is Despite the price decrease, and the more therefore very consolidated. functionalities offered by 3D, 63% of CAD users are Some of biggest AEC market players are Dassault still working with 2D systems. Systemes and Autodesk. AEC stands for Architecture, Engineering & Construction. AEC software are made specifically for architecture, engineering and construction firms. These products range from general purpose design tools to sector‐specific products such as commercial, industrial and residential design software. While it may seem the same as CAD software, AEC contains some additional feature, like construction cost databases or the most recent regulations regarding architecture. CAE & EDA CAE & EDA EXPLAINED CAE (Computer‐Aided Engineering) is the study of behavior of a product in different conditions with the help of computer. CAE software are used to analyze performance of products, without building prototypes. In any stage of the process of development of a new product, engineers need to test the behavior of their CAE & EDA MARKET LEADERS concept. Instead of building prototypes and testing CAE market is highly fragmented, the top five share them in labs, CAE software uses digital models created only 30% altogether. The leader is ANSYS with with CAD, to simulate physical phenomena through $385mln revenues in 2007 and 46% growth. In 2006 numerical methods. ANSYS acquired Fluent, and in 2008 Ansoft. The second player is MSC Software, who lost the leadership in 2006. In 2007 MSC registered $247mln in revenues, 5% less than a year before, and a net loss of $1.6mln. Recently top executives gave resignations. Dassault Systemes and Siemens PLM reached $237mln and $188mln respectively. In 2007, EDA market was lead by three American companies, whose compound revenue reached $3.7bln, corresponding to 64% of the total market Very rarely a single CAE software is enough for the share. Therefore the marked is quite consolidated. entire product design process, therefore there are many specialized for specific disciplines. Around 30% These three companies are Synopsys, Cadence Design of CAE users perform structural analysis, 20% ‐fluid Systems and Mentor Graphics, with market value on flow analysis, 16% ‐dynamics analysis and other 16% March 2009 of $2.6B, $990mln and $410mln thermal analysis. respectively. EDA (Electronic Design Automation) is a class of It is worth mentioning that in 2008 ANSYS, the leader software for designing and producing electronic of CAE, entered EDA market with the acquisition of systems like computer chips or cellular phones. As Ansoft ‐one of EDA market players. The company was electronics become even more pervasive, the EDA acquired for $832mln (LINK), which was 8.5 times industry is vital to the success of global economy. more than the annual revenue of the company. CAE & EDA MARKET VALUE AND GROWTH In 2008 CAE market reached $2.8bln, growing by 4.9%. The crisis decreased investments – in 2007 the market grew twice as fast. The European share of CAE market accounted for 52%, 56% and 62% in 2005, 2006 and 2007, respectively. This is the result of the fast European CAE market growth –in 2007 it grew by 11%, reaching $1.6bln. The market value of EDA reached $5.8bln in 2007 which is 8.7% more than the previous year. market is relatively mature,  integration with other manufacturing software is occurring, new CAM & DM manufacturing areas such as China are emerging,  and the underlying CAM software technology CAM & DM EXPLAINED continues to evolve”. CAM stands for computer aided manufacturing, and Few years ago industry analyst firms predicted that means the use of software to manufacture products. the digital manufacturing tools market would more In brief, it translates the design of a product created than double between 2006 and 2011, growing from an on computer with Computer Aided Design tools (CAD), estimated $436mln to more than $1 billion. These into manufacturing instructions for numerical predictions resulted wrong, with DM industry reaching controlled machine tools. only $470mln in 2007. In conjunction with CAD, computer‐aided manufacturing reduces the costs of producing goods, by minimizing the involvement of human operators. While CAD removes the need to retain a team of drafters, CAM removes the need for factory workers. These developments result in lower operational costs, lower end product prices and increased profits for manufacturers. DM (Digital manufacturing) is a way to plan and simulate the manufacturing process in a virtual environment. Basically it allows you to build the CAM & DM MARKET LEADERS product virtually and decide the most suited tools to CAM software market continues to be highly‐ use to manufacture the product, in which sequence to fragmented and competitive. In 2007 the market assemble the product, how to place workplaces in the leader was Dassault Systemes with 15% of market factory. It helps therefore to optimize the share. Siemens PLM Software earned 13%, PTC – 7%. manufacturing process. For example, Digital The worldwide five most rapidly‐growing CAM Manufacturing solutions helped trim General Motors’ software vendors on the basis of revenue received in vehicle development times in half. 2007, as compared to 2006, were SolidCAM, Cimatron, OPEN MIND, Missler Software, and Dassault Systèmes. In 2008, Siemens PLM Software was recognized the market leader in Digital Manufacturing market segment. There is few recent data on Digital Manufacturing software market leaders, it is known though that another important market player is Dassault Systemes with its Delmia package. CAM & DM MARKET VALUE AND GROWTH In 2008 the CAM software market grew by 5.2% and reached the level of $1.47 billion. It is projected that in 2009 the growth rate will slow to 1.3%. This reduction in the growth rate is a result of a downturn in a global economy in the manufacturing industry. CIMdata Chairman said that “Even though the CAM software SI & VAR PDM SI & VAR EXPLAINED PDM EXPLAINED SI (System Integrators) are companies that link together different computing systems and software PDM stands for Product Data Management, and applications and make them “talk” to each other. By means software that are dedicated to capturing and doing so, for example, a CAD software bought from maintaining all the information on products through one company, CAM software bought from another their development. company and PDM developed in‐house can communicate to each other: CAD can send directly the Information handled usually includes design geometry, data to CAM, and PDM can extract and keep all the bill of material, engineering drawings, product necessary data. specifications, numerical‐control machine tool programs, analysis results, and many other items – VAR (Value‐Added Reseller) is a company that takes an everything that regards the product developed. PDM existing product, adds its own "value" usually in the assures that the right information is available to the form of a specific application for the product and right person at the right time and in the right form. resells it as a new product or "package." Thus, PDM improves the communication among different groups and gives a possibility to collaborate For example, a company may take a CAE software, in a more efficient way. personalize it for a specific application (e.g. water flood simulation) and sell it. Typical users of PDM have traditionally included designers and engineers. Nowadays though, PDM systems are used by managers, marketing, shipping and manufacturing personnel: all of them have SI&VAR MARKET VALUE AND LEADERS realized that the PDM software helps to achieve faster In 2007, the market of System Integrators and Value work, fewer errors, greater cooperation, and Added Resellers grew to $4.3bln ‐ from $4,1bln in smoother work flow. This translates into cost savings 2006. IBM is the world largest system integrator, while and time reductions. others include: Capgemini, Accenture and Ericsson. IBM is the world largest system integrator, while others include: Capgemini, Accenture and Ericsson. As to value‐added resellers, no freely available data currently exists on largest VARs. As an example though, we can mention the company IDAC FEA UK, which is a “is a Value Added Reseller for a wide range of engineering analysis software, including the full ANSYS simulation suite”. PDM MARKET VALUE AND GROWTH The PDM market reached $2.7bln in 2007, growing by 11% to $3bln in 2008. In 2008 it accounted for more than 10% of the total PLM market revenue. With the growing amount of data available and exchanged, it can be predicted that in the future the need to manage it will be always increasing, and that PDM market will continue to grow. PDM MARKET LEADERS There is no data available on the PDM market shares in recent years. We can though know the market shares of PDM market in 2004. Knowing that 2004 PDM market revenues amounted to $1.73bln, and the revenue of PDM market players, it is possible to say that the largest company was UGS, now known as Siemens PLM Software (10% of PDM market), Dassault Systèmes (9%), SAP (6%), and PTC (5%). not constitute or imply its endorsement, recommendation, or favoring by us. This document may contain live references (or pointers) to information created and maintained by other organizations. We do not control and cannot guarantee the relevance, timeliness, or accuracy of these outside materials. We provide no warranty, expressed or implied, as to the accuracy, reliability or completeness of furnished While we make every effort to provide accurate and data. 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