Although the chairman of the EDA Consortium says the industry
continued to strengthen in Q4, revenue for the EDA market grew a
modest five per cent over Q4 2004 to $1.3bn.
For the full year 2005, revenue totaled a record $4.6bn, which
was three per cent above the $4.4bn in 2004.
“The EDA industry continued to strengthen in the fourth quarter.
Revenues were up in all regions and most product lines,” said Wally
Rhines, chairman of the EDA Consortium and chairman and CEO of
Mentor Graphics.
Product and maintenance revenue excluding services
increased five per cent over Q4 2004 and posted a record high
quarter of $1.2bn revenue in Q4 2005.
Reporting companies employed 22,832 professionals in Q4
2005, two per cent more than Q4 2004.
EDA’s largest tool category, computer-aided engineering (CAE),
generated revenue of $542m in Q4 2005, four per cent more than the
same period in 2004. CAE revenue at $1.9bn for full year 2005 was
flat compared to 2004.
The IC physical design and verification segment
increased six per cent to $346m in Q4 2005 over the same quarter
2004. For the full year 2005, the segment’s revenue totaled
$1.2bn, four per cent above 2004.
Revenue for printed circuit board (PCB) and multi-chip module
(MCM) layout tools totaled $87m in Q4 2005, a four per cent
decrease over Q4 2004. PCB and MCM layout tool revenue totaled
$342m for all of 2005, flat compared to 2004.
The EDA industry’s semiconductor intellectual property (SIP)
revenue totaled $209m in Q4 2005, 13 per cent greater than Q4 2004.
For 2005, SIP revenue increased by 12 per cent to $816m versus
$731m in 2004. To more completely represent SIP, the market
statistics service was expanded beginning in 2005 to include SIP
revenue data from publicly available sources. Past quarters were
updated in the report so that annual and quarterly comparisons
include the publicly available data.
EDA services revenue was $69m in Q4 2005, up two per cent from
Q4 2004. Services revenue totaled $282m in 2005, nearly flat as in
2004.
North America, EDA’s largest customer base with 45 per cent
global share, purchased $569m of EDA and SIP products and services
in Q4 2005, a five per cent increase over Q4 2004. For all of 2005,
North American revenue was $2.1bn, flat compared to 2004.
Western Europe in Q4 2005 decreased by three per cent from Q4
2004 to $272m. For the full year 2005, revenue from Western Europe
was $872m, a one per cent increase over 2004. Western Europe had a
22 per cent share of global revenue in 2005.
In Q4, revenue from Japan grew 12 per cent to $256m. Japan
continued to extend previous years of revenue growth by increasing
10 per cent to $1m in 2005 – a new record for the region. EDA sales
in Japan constituted 20 per cent of the global total in 2005.
Rest-of-world (ROW) growth increased 12 per cent in Q4 2005, to
$552m. Revenue from ROW grew at a rate second only to Japan in
2005, increasing seven per cent for the year to $552m, or 13 per
cent of global 2005 revenue.
www.edac.org