A new report released from engineering and enterprise IT applications market research and analysis consultant, Cambashi, reveals some interesting figures about the mechanical segment of engineering applications software market and the performance of the industry’s four key providers. Cambashi estimates that in 2007 the revenues of all disciplines’ engineering applications software in the European,
Middle East and African (EMEA) region grew 7% to nearly Euro 3.0 Bn. In 2008, the report forecasts similar growth to over Euro 3.2 Bn.

The engineering applications software market includes tools to assist mechanical, architectural and infrastructure design. Mechanical remains the largest segment of the market, with nearly 60% or Euro 1.8 Bn, and grew at 7.6%, slightly faster than the market as a whole. The report adds that despite perceptions that manufacturing is moving from Europe to Asia, Europe, with nearly 41%, has now overtaken North America as the largest regional market, worldwide, compared to just over 37% for North America.

(EMEA Top four Engineering Applications Providers Manufacturing Revenues in Million Euros)

Cambashi’s report also states that four providers accounted for 59% of the mechanical design & manufacturing market in 2007: Dassault Systèmes; PTC; Siemens PLM Software and Autodesk’s Mechanical Division. All have performed well, says Cambashi, increasing their proportion of the market from over 56% in 2004. A significant part of their growth comes from acquisitions. Since 2005, nearly a quarter of the growth of the top four providers and over half the growth of the top ten providers has come from acquisitions. Dassault Systemes has announced 14 acquisitions.

Dassault Systèmes takes a longer-term view than most providers and offers big customers their unique vision of the future, says the report. Despite reorganizing its distribution and dealer arrangements with IBM, Dassault still grew at 5% in Europe in 2007, with revenues of over €570m.

Large acquisitions in the last few years have boosted both revenues and the breadth of DS portfolio. The MatrixOne acquisition ensured that their ENOVIA business grew by over 50% in Europe in 2007, to nearly US$ 160m, whilst ABAQUS ensured SIMULIA grew at about 13%.

There is an ongoing change in the IBM relationship, whereby IBM focuses on large accounts while Dassault takes on more sales responsibility for CATIA business partners who mainly sell into medium sized customers. This change did not really impact revenue in 2007. In 2008, it will raise revenues as the partners will be resellers on a lower margin than IBM could negotiate.

Courtesy: www.cambashi.com