Each quarter, the EDA Consortium publishes the Market Statistics Service (MSS) report containing detailed revenue data for the EDA industry. According to the latest information distributed by EDAC, overall fourth quarter 2011 EDA revenues increased 12.8% compared to the same period in 2010. Total revenue for Q4 was $1700.1 million. it is very interesting to me to note that the most authoritative research service covering EDA from the financial industry reports that revenues for the same period were $1.41 billion corresponding to an increase of 13% over the same period a year ago. There is clearly a discontinuity in the numbers.
EDAC can only use actual figures reported by its corporate members. Unfortunately for the consortium, Synopsys, a member, no longer shares its data with the organization and a few other large vendors of EDA tools are not members of EDAC. The result is that EDAC estimates the market contributions of important, non-reporting, companies and this can lead to inaccuracies. The error seems to be around 0.02% which is well within the acceptable error for forecasting purposes.
For the entire 2011 calendar year total EDA revenues were estimated to be $5.069 or 13.5% greater than 2010. The three largest companies (Cadence, Mentor, and Synopsys) account for approximately 75% of total revenue, while another half-a-dozen companies add another 13.6% to the total. Although 2012 appears to be a good year, growth will slow to a projected 7-8%.
Areas that will contribute significantly to the growth in revenue include: heterogeneous system designs, virtual prototyping, formal verification, emulation, power consumption analysis, and layout optimization.
The slowdown is due to two major factors: worldwide economy and a decrease in number of electronics companies using the very latest manufacturing process. (more…)