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EDA: 8 Consecutive Years Of Growth

Strength across geographies and tool segments kept revenue strong.

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The Electronic System Design (ESD) Alliance Market Statistics Service (MSS) reported today that revenue for Electronic Design Automation (EDA) industry increased 10.7 percent for Q4 2017 to $2718.6 million, compared to $2455 million in Q4 2016. The four-quarters moving average was up by 9.5 percent. This compares the most recent four quarters to the prior four quarters.

“It was a terrific quarter and a great year. The EDA industry is doing really well. If you look worldwide, the four quarter moving average is just under 10 percent, so it’s been a really good period for EDA in general,” according to Walden C. Rhines, board sponsor for the ESD Alliance MSS and president and CEO of Mentor, a Siemens business.

The EDA industry reported increases in all product categories in Q4, with double digit increases in CAE, IC Physical Design & Verification, and Semiconductor IP, representing eight consecutive years of industry growth. Geographically, the Americas and Asia-Pacific reported double-digit growth in 2017.

Companies that were tracked employed 39,363 professionals in Q4 2017, an increase of 9.8 percent compared to the 36,412 employed in Q4 2016, and up 2.4 percent compared to Q3 2017.

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.

By product category, Computer Aided Engineering (CAE), generated revenue of $848.1 million in Q4 2017, which represents a 12 percent increase compared to Q4 2016. The four-quarters moving average for CAE increased 7.8 percent.

IC Physical Design & Verification revenue was $549.8 million in Q4 2017, an 11 percent increase compared to Q4 2016. The four-quarters moving average increased 6.0 percent.

Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue of $241.1 million for Q4 2017 represents an increase of 2.4 percent compared to Q4 2016. The four-quarters moving average for PCB & MCM increased 8.1 percent.

Semiconductor Intellectual Property (SIP) revenue totaled $961.5 million in Q4 2017, a 12.3 percent increase compared to Q4 2016. The four-quarters moving average increased 14.4percent.

Services revenue was $118.1 million in Q4 2017, an increase of 7.2 percent compared to Q4 2016. The four-quarters moving average increased 3 percent.

By region, the Americas, EDA’s largest region, purchased $1252.8 million of EDA products and services in Q4 2017, an increase of 19.5 percent compared to Q4 2016. The four-quarters moving average for the Americas increased 10.9 percent.

Revenue in Europe, the Middle East, and Africa (EMEA) decreased 0.9 percent in Q4 2017 compared to Q4 2016 on revenues of $386.3 million. The EMEA four-quarters moving average increased 4.6 percent.

Fourth quarter 2017 revenue from Japan increased 0.5 percent to $228.9 million compared to Q4 2016. The four-quarters moving average for Japan increased 3.2 percent.

The Asia/Pacific (APAC) region revenue increased to $850.7 million in Q4 2017, an increase of 7.8 percent compared to the fourth quarter of 2016. The four-quarters moving average increased 12 percent.

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



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