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EDA market blooms despite Japan's fall

January 16, 2014 // Peter Clarke

EDA market blooms despite Japan's fall

Global sales of EDA tools in the third quarter of 2013 were driven upwards by demand for physical design and verification tools and semiconductor IP, according to the EDA Consortium (EDAC) Market Statistics Service (MSS).

In geographic terms strengthening demand in the Asia-Pacific region more than made up for falling demand in Japan according to EDAC numbers while the Americas and European regions both grew.

The global EDA software and services market was worth $1.73 billion, in 3Q13, up by 6.8 percent when compared with the same quarter a year before, the statistics service said. Sequential EDA revenue for Q3 2013 increased 4.6 percent compared to Q2 2013.

By category of software the largest sector, computer aided engineering, showed just 1.7 percent year-on-year growth to achieve revenue of $643.5 million and PCB design software sales declined by 0.3 percent to $152.5 million.

Growth was driven by IC physical design and verification software – up 11.1 percent on annual basis; semiconductor IP licensing – up 12.7 percent; and services revenue – up 10.4 percent. In 3Q13 these markets stood at $362.9 million, $476.9 million and $93.5 million, respectively, according to EDAC.

By region the Asia/Pacific region showed strongest annual growth, followed by the Americas, Europe in that order. Japan's market contracted significantly on an annual basis.

The Americas, EDA's largest region, purchased $770.7 million of EDA products and services in Q3 2013, an increase of 7.7 percent compared to Q3 2012. The Asia/Pacific (APAC) region revenue increased to $449.3 million in Q3 2013, an increase of 14.4 percent. Revenue in Europe, the Middle East, and Africa (EMEA) was up 6.7 percent to $285.5 million and Japan decreased by 8.2 percent $223.8 million compared to Q3 2012.

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