Electronic Design Automation Industry Grows $1,408.8 Million in Q2 2007

The EDA Consortium’s Market Statistics Service (MSS) announced that the electronic design automation (EDA) industry revenue for Q2 of 2007 grew 11.4 percent to $1,408.8 million, versus $1,264.8 million in Q2 2006. The four-quarter average growth rate, which compares the most recent four quarters to the same four quarters in the prior year, was 14.6%.

“The EDA industry continues to see steady growth, maintaining the momentum that began this time last year,” said Aart de Geus, chairman of the EDA Consortium and chairman and CEO of Synopsys, Inc. “North America, Europe and rest of world all saw sequential growth in Q2 2007.”

Companies that were tracked employed 26,164 professionals in Q2 2007, up 7.4 percent from the 24,362 employed in Q2 2006.

“The industry grew at a healthy clip again this quarter; this is particularly true for EDA in which two of the three revenue categories enjoyed double-digit growth which is above the industry average,” said Robert Gardner, executive director, EDA Consortium.

Revenue by Product Category
EDA’s largest category, Computer-Aided Engineering (CAE), generated revenue of $538.9 million in Q2 2007, 12.8 percent more than the same period in 2006. The four quarter moving average CAE growth rate was 11.8 percent.

IC Physical Design & Verification revenue increased 15.8 percent to $397.2 million in Q2 2007, compared to the same quarter in 2006. The four quarter moving average growth rate was 14.9 percent for IC Physical Design & Verification.

Semiconductor Intellectual Property (SIP) revenue totaled $269.2 million in Q2 2007, a 7.1 percent increase over Q2 2006. The four quarter moving average growth rate for SIP was 18.1 percent.

Services revenue was $84.8 million in Q2 2007, up 11.1 percent from Q2 2006. The four quarter moving average growth rate was 9.5 percent for Services.

Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue increased 1.9 percent over Q2 2006 to $118.7 million. The four quarter moving average growth rate for PCB & MCM was high at 22.3 percent.

Revenue by Consuming Region
North America, EDA’s largest region, purchased $679.2 million of EDA products and services in Q2 2007, a 13.2 percent increase over Q2 2006. The four quarter moving average growth rate was 19.9 percent for North America.

Western Europe revenue was up 7.9 percent in Q2 2007 with revenues of $245.7 million compared to Q2 2006. The four quarter moving average growth for Western Europe was 8.7 percent.

2007 Q2 revenue from Japan declined 8.5 percent compared to Q2 2006 to $244.8 million. The four quarter moving average decrease was 1.0 percent for Japan.

Rest-of-World (ROW) continued to extend previous years of revenue growth by increasing 41.2 percent to $239.0 million in Q2 2007 compared to the same quarter in 2006. The four quarter moving average growth was also strong at 31.7 percent.

About the MSS Report
The EDA Consortium’s Market Statistics Service reports EDA industry revenue data quarterly and is available by annual subscription. Both public and private companies contribute data to the report. Each quarterly report is published approximately three months after quarter close. MSS report data is segmented as follows: revenue type (product licenses and maintenance, services, and SIP), application (CAE, PCB/MCM Layout, and IC Physical Design and Verification), operating system (UNIX vs. Windows) and region (North America, Western Europe, Japan, and Rest of World), with many subcategories of detail provided. The report also tracks total employment of the reporting companies.

About the EDA Consortium
The EDA Consortium is the international association of companies that provide design tools and services that enable engineers to create the world’s electronic products used for communications, computer, space technology, medical, automotive, industrial equipment, and consumer electronics markets among others. For more information about the EDA Consortium or to subscribe to the Market Statistics Service call (408) 287-3322 or email mss@edac.org.

The information supplied by the EDA Consortium is believed to be accurate and reliable, but the Consortium assumes no responsibility for any errors that may appear in this document.