SOURCE: Cambashi


November 29, 2016 13:33 ET

Worldwide growth in engineering software appears faster in Architecture Engineering and Construction rather than Manufacturing

CAMBRIDGE, UNITED KINGDOM--(Marketwired - Nov 29, 2016) - Cambashi, a leading global industry analyst and market consulting firm, today announced the 2016 third quarter update to its market data resource, the Cambashi Market Observatories. These observatories provide a comprehensive, quantitative view of the engineering software market -- CAD, CAM, BIM, GIS, PLM, and Visualization software tools and IoT development tools -- and ensure a sound basis for analyzing size, growth, movement and other trends to support planning at local, regional and global levels.

Licencing changes visible in segment growth
The Cambashi Market Observatories present spending on engineering and design software in terms of five key segments -- Architecture Engineering and Construction (AEC), Geospatial, Manufacturing, Visualization and Other. The latest country data shows these segments to be growing at significantly different rates. In 2016 we estimate that Geospatial will have the highest growth, followed by Manufacturing, then AEC, then Visualization.

Forecasts then project a complete change around with 2017 growth ordered with AEC growing fastest, then Visualization, then Manufacturing and finally Geospatial. 

Behind this apparent turnaround is the continuing march toward subscription based pricing in this field. The major providers are all offering their new customers subscriptions, with one taking the most robust approach by offering subscriptions as the only option to new customers.

This is causing a hiccup in the growth patterns as revenues drop -- temporarily -- then recover as the financial benefits of subscription pricing hit the bottom line.

Change is normal
The impact of the U.S. Presidential election is yet to become apparent in the forecasts for this industry, but it will almost certainly have an effect. The promise of increased investment in infrastructure in the U.S. is likely to pull-through investment in design and engineering software, whereas uncertainty over possible changes in trading policy, import tariffs, and environmental regulation may have less positive consequences.

A 360 degree perspective
The Cambashi Market Observatories are a set of consistent and multi-perspective datasets for the technical software market. They provide detailed information on software spend by country, industry and product and the size of user communities, for a range of technical software application types, including:

  • PLM
  • BIM
  • AEC
  • GIS
  • IoT (software development tools)

Each data set provides a different way of measuring the use of software in industry, and can be used in combination to support business planning at global, regional and local levels. The methodology combines public and 3rd party data sources with Cambashi's quantitative and qualitative research in each of these market views. Developed over 25 years, the combination of top down macroeconomic, industry detail and bottom up supply side (software provider) views leads to a highly consistent, multi-granular view of the market. In detail these views are:

  • The Cambashi Product Observatory segments the technical applications market by product group, revenue stream and major geographic area for the top 28 software providers
    • Sources: Cambashi provider research, public financial data
  • The Cambashi Country Observatory provides a snapshot of market opportunity by investigating technical application spend across more than 50 countries worldwide
    • Sources: Oxford Economics, IMF, World Bank, EITO, national statistics
  • The Cambashi Industry Observatory breaks down global technical applications spend into over 100 industry classifications in over 50 countries
    • Sources: Oxford economics, national statistics, Kew Associates, Cambashi research
  • The Cambashi Employment Observatory highlights the potential user base for technical software in over 100 different industries and occupations and across 50 countries
    • Sources: National statistics, ILO, Cambashi research
  • The Cambashi Provider by Industry Observatory maps the revenues of the top 28 global technical applications providers across 11 major industry sectors and 3 major geographies.
    • Sources: Cambashi provider research, Product and Industry Observatories
  • The Cambashi System Engineering and Embedded Software Observatory captures provider revenues of over 300 software providers by major geography and revenue coverage of SMART industries in 8 major segments in 50 countries.
    • Sources: Cambashi provider research, public financial data, Industry Observatory

About Cambashi
Cambashi is a market research, industry analysis and consulting firm doing business from its global HQ in Cambridge, UK. Its 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. The Cambashi Market Observatories provide companies worldwide with the objective information needed to clarify decisions assess trends and develop effective marketing strategies. In addition to delivering global market data and related consulting services, Cambashi offers a unique web-based industry training curriculum.

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