Electronic Design Automation Industry – Q4 2008

According to the EDA Consortium (EDAC) Market Statistics Service (MSS), the Q4 2008 electronic design automation (EDA) industry revenue dropped by 17.7% to $1318.7 million (compared to $1602.7 million in Q4 2007). The four-quarter moving average declined 9.4%. Companies that were tracked employed 27,311 professionals in Q4 2008, a decline of 0.9% from the 27,562 employed in Q4 2007, and a decrease of 3.1% from the 28,176 employed in Q3 2008.

Product Category Highlights

  • Computer Aided Engineering (CAE)
    Generated revenue of $501.8 million in Q4 2008. This is a 24.4% decline over the same period in 2007. The four-quarter moving average for CAE decreased by 12.3%.
  • IC Physical Design and Verification
    Revenue dropped to $296.5 million in Q4 2008, a 32.7% decline compared to Q4 2007. The four-quarter moving average decreased 22.5% for IC Physical Design and Verification.
  • Printed Circuit Board and Multi-Chip Module (PCB and MCM)
    Revenue was reduced by 11.6% compared to Q4 2007, to $135.9 million. The four-quarter moving average for PCB and MCM increased 0.4%.
  • Semiconductor Intellectual Property (SIP)
    Revenue totaled $285.5 million in Q4 2008, a 7.6% gain over Q4 2007. The four-quarter moving average for SIP was up 2.3%.
  • Services
    Revenue was $98.9 million in Q4 2008, an increase of 24.5% from Q4 2007. The four-quarter moving average for services was up 19%.

Region Highlights

  • North America
    Purchased $569.1 million of EDA products and services in Q4 2008, which represents a 22.7% drop compared to Q4 2007. The four-quarter moving average declined 14.8% for North America.
  • Western Europe
    Revenue declined 8.4% in Q4 2008 compared to Q4 2007, with revenues of $290.3 million. The four-quarter moving average for Western Europe was down 1.2%.
  • Japan
    Revenue was reduced by 17.3% to $261.3 million compared to Q4 2007. The four-quarter moving average for Japan declined 5.8%.
  • Rest-of-World (ROW)
    Revenue dropped to $197.9 million in Q4 2008, a 15.4% decline compared to the same quarter in 2007. The four-quarter moving average decreased by 7.9%.

More info: EDA Consortium