© Jakub Jirsak Dreamstime.com Analysis | March 30, 2020
8% growth in 2019 drives tenth consecutive year of EDA growth
The Electronic System Design (ESD) Alliance Market Statistics Service (MSS) says that the Electronic Design Automation (EDA) industry revenue increased 2.2% for Q4 2019 to USD 2626.3 million, compared to USD 2570.1 million in Q4 2018.
For 2019, the EDA industry revenue reached USD 10.2 billion which was an 8.3% increase over 2018. “The EDA industry reported increased revenue in Q4 compared to Q4 2018, in part due to strong growth in Europe, Middle East and Africa,” said Walden C. Rhines, CEO Emeritus of Mentor, a Siemens Business. “The Printed Circuit Board and Multi-Chip Module category also reported double digit gains in Q4. For the full year 2019, we saw increased growth in all four of the major EDA categories - CAE, PCB & MCM, IC Physical Design and Verification, and SIP as well as in the Americas, EMEA, and Asia-Pacific regions.” Companies that were tracked employed 45,416 professionals in Q4 2019, an increase of 6.1% compared to the 42,790 employed in Q4 2018, and up 1% compared to Q3 2019. 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 USD 874.4 million in Q4 2019, which represents a 1% increase compared to Q4 2018. The four-quarters moving average for CAE increased 6.5%. IC Physical Design & Verification revenue was USD 466.4 million in Q4 2019, a 3.9% decrease compared to Q4 2018. The four-quarters moving average increased 9.5%. Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue of USD 295.3 million for Q4 2019 represents an increase of 19.4% compared to Q4 2018. The four-quarters moving average for PCB & MCM increased 15.1%. Semiconductor Intellectual Property (SIP) revenue totaled USD 900.6 million in Q4 2019, a 4% increase compared to Q4 2018. The four-quarters moving average increased 10.1%. Services revenue was USD 89.6 million in Q4 2019, a decrease of 15% compared to Q4 2018. The four-quarters moving average decreased 10.9%. Revenue by Region The Americas, EDA’s largest region, purchased USD 1125.6 million of EDA products and services in Q4 2019, a decrease of 2.9% compared to Q4 2018. The four-quarters moving average for the Americas increased 2.4%. Revenue in Europe, the Middle East, and Africa (EMEA) increased 31% in Q4 2019 compared to Q4 2018 on revenues of USD 445.1 million. The EMEA four-quarters moving average increased 8.6%. Fourth quarter 2019 revenue from Japan decreased 6% to USD 211.4 million compared to Q4 2018. The four-quarters moving average for Japan decreased 6.7%. The Asia/Pacific (APAC) region revenue decreased to USD 844.2 million in Q4 2019, a decrease of 0.2% compared to the fourth quarter of 2018. The four-quarters moving average increased 13.6%.