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ESD Alliance Reports EDA Industry Sees Highest Quarterly Revenue Increase In Five Years


News provided by

Electronic System Design (ESD) Alliance

Mar 27, 2017, 09:00 ET

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SAN JOSE, Calif., March 27, 2017 /PRNewswire/ -- The Electronic System Design (ESD) Alliance Market Statistics Service (MSS) today announced that the Electronic Design Automation (EDA) industry revenue increased 18.9 percent for Q4 2016 to $2455 million, compared to $2064.5 million in Q4 2015. The four-quarters moving average, which compares the most recent four quarters to the prior four quarters, increased by 9.2 percent.

"The EDA industry reported double-digit growth for Q4 in all four geographic regions – Americas, Europe, Middle East and Africa, Japan, and Asia/Pacific.  The Americas reported more than $1B for Q4, an all-time record, and Japan grew in double digits for the full year," said Walden C. Rhines, board sponsor for the ESD Alliance MSS and chairman and CEO of Mentor Graphics. "All product categories also saw very solid fourth quarter growth with CAE, Semiconductor IP, IC Physical Design & Verification and PCB/MCM reporting double-digit increases."

Companies that were tracked employed 36,412 professionals in Q4 2016, an increase of 6.6 percent compared to the 34,169 people employed in Q4 2015, and up 2.5 percent compared to Q3 2016.

The complete quarterly MSS report, containing detailed revenue information broken out by both categories and geographic regions, is available to members of the ESD Alliance.

Revenue by Product Category
Computer Aided Engineering (CAE), generated revenue of $757.5 million in Q4 2016, which represents a 17.4 percent increase compared to Q4 2015. The four-quarters moving average for CAE increased 5.3 percent.

IC Physical Design & Verification revenue was $495.6 million in Q4 2016, an 11.5 percent increase compared to Q4 2015. The four-quarters moving average increased 8.6 percent.

Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue of $235.4 million for Q4 2016 represents an increase of 42.5 percent compared to Q4 2015. The four-quarters moving average for PCB & MCM increased 13.5 percent.

Semiconductor Intellectual Property (SIP) revenue totaled $856.4 million in Q4 2016, a 22 percent increase compared to Q4 2015. The four-quarters moving average increased 13.5 percent.

Services revenue was $110.1 million in Q4 2016, an increase of 2.8 percent compared to Q4 2015. The four-quarters moving average increased 2.3 percent.

Revenue by Region
The Americas, EDA's largest region, purchased $1048.5 million of EDA products and services in Q4 2016, an increase of 15.7 percent compared to Q4 2015. The four-quarters moving average for the Americas increased 6.2 percent.

Revenue in Europe, the Middle East, and Africa (EMEA) increased 20.6 percent in Q4 2016 compared to Q4 2015 on revenues of $389.9 million. The EMEA four-quarters moving average increased 5.4 percent.

Fourth quarter 2016 revenue from Japan increased 20.3 percent to $227.7 million compared to Q4 2015. The four-quarters moving average for Japan increased 12.7 percent.

The Asia/Pacific (APAC) region revenue increased to $788.9 million in Q4 2016, an increase of 22.2 percent compared to the fourth quarter of 2015. The four-quarters moving average increased 14.6 percent.

The complete MSS report, available to the ESD Alliance members, contains additional detail for countries in the Asia/Pacific region.

About the MSS Report
The ESD Alliance Market Statistics Service reports EDA industry revenue data quarterly and is available to Alliance members. 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 & Verification), and region (the Americas, Europe Middle East and Africa, Japan, and Asia Pacific), with many subcategories of detail provided. The report also tracks total employment of the reporting companies.

About the ESD Alliance
The Electronic System Design Alliance (ESD Alliance) is an international association of companies that provide goods and services that are the foundation of the semiconductor design ecosystem. This ecosystem encompasses all of the activities required to create a semiconductor design and associated hardware and software for manufacturing and delivery of new electronic products.

Member companies include developers and suppliers of EDA, semiconductor IP, embedded software, packaging, PCB/interconnect and others. Collectively, they provide the software, services, intellectual property and hardware needed to design and verify semiconductors, associated software, packaging and interconnect technologies for the manufacturing of these products. Markets served by these products range from computers, communications, networking, medical and industrial equipment, automotive electronics, and consumer electronics to emerging markets such as the Internet of Things (IoT). For more information about the ESD Alliance, visit http://esd-alliance.org/.

The information supplied by the ESD Alliance is believed to be accurate and reliable, but the ESD Alliance assumes no responsibility for any errors that may appear in this document. All trademarks and registered trademarks are the property of their respective owners.

Press Contacts:  

Paul Cohen, ESD Alliance, 978-769-2106 
Suzanne Graham, Mentor Graphics, 503-685-7789

SOURCE Electronic System Design (ESD) Alliance

Related Links

http://esd-alliance.org/

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