SOURCE: Cambashi

Cambashi

November 06, 2013 15:43 ET

Cambashi Research Reveals CAM Market Concentrating Outside the U.S.

Turmoil Beneath the Surface Despite Steady Growth

CAMBRIDGE, UNITED KINGDOM--(Marketwired - Nov 6, 2013) - Cambashi, a leading global industry analyst and market consulting firm, today announced its latest research showing that the world-wide market for Computer Aided Manufacturing (CAM) software tools this year is expected to grow to $1.3 billion (USD). After several post-financial crisis years of double digit catch up growth, the market has returned to its longer term trend with an expected 6% growth over 2012.

New CAM Integrations

CAM tools bridge the gap between the design, the machine tool and shop floor operations. Historically, the focus has been on ensuring that the geometry authored in Computer Aided Design software tools is easily communicated to the CAM tool. Often a custom post-processor creates an efficient link between the CAM tool and the machine tool. That means many CAD tool suppliers and machine tool suppliers also supply CAM.

The boundary between CAM tools and other Production Engineering software tools is on the move. CAM tools can also integrate with instrumentation to identify and locate the work piece; can monitor tool wear; and link to materials handling. They can exchange information with other shop floor applications such as Product and Operations Definition, Manufacturing Execution Systems and Manufacturing Process Management.

These developments are merging the CAM market landscape into the Plant Floor Software space creating a significantly bigger market opportunity. But existing CAM providers will face competition from existing Plant Floor Software suppliers.

A Diverse Market

Product Lifecycle Management suppliers: Dassault Systèmes; PTC; and Siemens PLM account for just over a third of the market. Autodesk recently acquired technology from Danish HMSWorks and its tool integrated with Inventor is now in Beta test.

PLM suppliers are making factory floor related acquisitions. Dassault Systèmes acquired InterCIM in 2011 and Apriso in 2013. Siemens PLM acquired Vistagy in 2011 and Preactor in 2013. Earlier, PTC acquired NC Graphics and Polyplan.

The remaining two thirds of the CAM market is supplied by some 200 specialist CAM tool providers. Their share has grown over the past five years.

A Concentrating Market

The leading specialist, Vero Software, has a market share of only 8%. It is a primary actor in concentrating the market. Since 2011, when it acquired Planit International, which had itself made a string of acquisitions, it has acquired Sescoi of France and SURFCAM of the USA.

Of other leading specialist suppliers, only one, CNC Software originates in the USA. NTT Data and C&G Systems are from Japan; Delcam from the UK, Cimatron and SolidCAM from Israel; Tebis and OPENMIND from Germany; 20-20 Technologies from Canada; DP Technology and Alma/Missler from France.

Several providers are concentrating the market. Delcam, which has one of the fastest rates of organic growth, also acquired a minority stake in Fabbify, a German software developer specialising in additive machining. In 2008, Cimatron acquired Gibbs of the USA. In 2012, Missler Software entered into a strategic union with another French CAM company, Alma.

According to Tony Christian, Cambashi Director, "The CAM tools market is highly fragmented. Developments in shop floor automation are likely to create new opportunities but it's not clear which of PLM, MES or specialist CAM tool providers will deliver them. We expect further technology acquisitions."

Cambashi's research on the CAM market is available in report form and extracts will be published in trade press articles over the coming months.

About Cambashi

Cambashi is a market research, industry analysis and consulting firm based in Cambridge, UK, and Boston, MA, US. Our independent research and analysis delivers compelling insights on the use of IT to address business issues in manufacturing, process, distribution, energy, utilities and construction industries. Our consulting analysts partner with clients worldwide to clarify decisions, assess trends, articulate value and craft an effective path to market rewards. We deliver global market data and industry training, and apply our extensive industry knowledge to each client's unique situation. www.cambashi.com

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2013 Forecast Market Shares

The information in this press release is from a wide variety of sources that represent the best information available to Cambashi Limited. This report includes our interpretation of information in the public domain or released by responsible officers in relevant organisations. Some information is from sources we cannot verify. We survey judgement samples, and results are not statistically significant unless so stated. Cambashi Limited cannot guarantee that the report is accurate or complete. Information changes with time. The analysis, opinions and estimates in this report reflect our judgements as of writing but are subject to change without notice. Cambashi Limited shall not be liable for any loss or injury resulting from use of this information. All company name and product trademarks are the property of their respective owners. Cambashi Limited may have a consulting relationship with a company being reported on. It is not an offer to sell or a solicitation of an offer to buy any securities. Cambashi Limited, its staff, their families and associates may or may not have a position in or with respect to any securities mentioned herein.

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