EDA Industry – 2006

The EDA Consortium’s Market Statistics Service (MSS) recently released data about the electronic design automation (EDA) industry. Revenue for Q4 of 2006 was $1,493 million, which is a 19% increase over Q4 2005. For the full year 2006, revenue totaled a record $5,274 million, which was 15% more than the $4,575 million recorded in 2005. The increase reflects both the continuing growth of the industry as a whole and the growth of the MSS program, which enjoyed a net increase in the number of participating companies compared to the previous year.

Here is a quick summary of their data:

  • Total EDA and SIP (semiconductor intellectual property) Product and Maintenance revenue (excluding services) increased 20% over Q4 2005 and posted a record high quarter of $1,416 million revenue in Q4 2006.
  • Companies tracked in the MSS employed 25,390 professionals in Q4 2006, 10% more than Q4 2005.
  • EDA’s largest tool category, Computer-Aided Engineering (CAE), generated revenue of $634 million in Q4 2006, 17% more than the same period in 2005. CAE revenue was at, $2,190 million for all of 2006, up 14% compared to 2005.
  • IC Physical Design & Verification increased 11% to $385 million in Q4 2006 over the same quarter in 2005. For the full year 2006, IC Physical Design & Verification revenue totaled $1,396 million, a 16% increase over 2005.
  • The EDA industry’s SIP revenue totaled $274 million in Q4 2006, 31% greater than Q4 2005. For 2006, SIP revenue increased by 21% to $989 million versus $817 million in 2005.
  • Revenue for Printed Circuit Board (PCB) and Multi-Chip Module (MCM) Layout totaled $123 million in Q4 2006, a 41% increase over $87 in Q4 2005. PCB and MCM Layout revenue totaled $391 million for all of 2006, up 14% compared to 2005.
  • EDA Services revenue was $77 million in Q4 2006, up 12% from Q4 2005. Services revenue totaled $308 million in 2006, up 9% compared to 2005.
  • North America, EDA’s largest customer base with 53% global share, purchased $788 million of EDA and SIP products and services in Q4 2006, a 39% increase over Q4 2005. For all of 2006, North American revenue was $2,589, an increase of 22% compared to 2005.
  • In Q4 2006, Western Europe revenue increased by 6% from Q4 2005 to $287 million. For the full year 2006, revenue from Western Europe was $977 million, an increase of 12% over 2005. Western Europe had a 19% share of global revenue in 2006.
  • In Q4, revenue from Japan decreased 10% to $230 million. Japan revenue increased slightly by 3% to $1,051 million in 2006. EDA sales in Japan constituted 15% of the global total in 2006.
  • Rest-of-world (ROW) growth increased 19% in Q4 2006, to $188 million. Revenue from ROW grew at a rate second only to North America in 2006, increasing 19% for the year to $657 million. ROW is 13% of global 2006 revenue.

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