CAD/CAM/CAE : electronic design automation, 1992 - Archive Server

• Growth will be relatively unaffected by the
advent of the EC. The effects of 1992 will
be evolutionary, not revolutionary. Growth
is expected for European vendors as they
expand into other European markets. To
date, many European vendors have competed
often only in their country of origin.
During the next forecast period, European
vendors increasingly -will expand their operations
to become more competitive across
the European community. Furthermore,
German companies and German subsidiaries
of international companies increasingly are
expanding into Eastern European countries.
Asian Forecast Drivers
The Asian market grew 4 percent in 1991 to
$4.0 billion and its forecast CAGR for revenue
is 7 percent through 1996. The main issues
driving the Asian forecast are as follows:
• In Japan, unexpected sluggishness has
resulted from an abrupt end to the long
boom of private fixed investment. This has
followed a marked erosion of business confidence,
partly associated with a continued
unwinding of speculative activities in asset
markets. CAD/CAM/CAE/GIS market growth
will be limited in the short term as Japan
recoups from these recent changes.
• Shifting labor costs will affect growth among
countries. Labor costs in Japan, Korea,
Taiwan, and Hong Kong will continue to
increase, which will result in growing
demand for productivity tools including
CAD/CAM/CAE/GIS. Industries with bluecollar
workers will transfer operations to
Indonesia, Malaysia, the Philippines,
Thailand, and the Republic of China; Japan,
Korea, Taiwan, and Hong Kong will grow
based on the work of the white-collar
workers. Remote design and manufacturing
sites also will encourage the growth of
electronic-data sharing and thus CAD/CAM/
CAE/GIS across Asia.
• Growth is less likely in some Asian countries
because of the lack of stringent
intellectual property rights. Most Asian countries,
with the exception of Japan, have few
laws governing intellectual property rights.
Many companies will be hesitant to invest
or set up operations in a region -where they
will receive no design protection.
CAD/CAM/CAE—^Electronic Design Automation Applications
Applications
Table 2 shows the CAD/CAM/CAE/GIS market
software revenue forecast by application, as
well as the forecast change in mix between
bundled and unbundled software revenue.
Figure 3 shows the CAD/CAM/CAE/GIS forecast
by application.
Mechanical
©1992 Dataquest Incorporated October—Reproduction Proliibited
The mechanical software market grew 7 percent
in 1991, and its forecast CAGR for the
1991 to 1996 period is 5 percent. The main
issues driving the mechanical forecast are as
follows:
• Mechanical CAD/CAM/CAE indispensability
is increasing. Market pressures to produce
higher-quality, ergonomically correct designs
with shorter production cycles is making
mechanical CAD/CAM/CAE a necessity in all
manufacturing industries. Several recent enduser
surveys indicate the levels of drafting,
conceptual, and detail design work done
with mechanical CAD/CAJVI/CAE tools have
surpassed 90 percent at many sites. The
use of mechanical CAD/CAM/CAE tools in
various departments also has high-market
penetration. As the complexity of the design
increases, the need to share information
increases, and the benefits of automation
improve dramatically. This results in an
increase in the level of indispensability.
• Integration 's driving significant savings. A
hidden benefit when all potential users
at a site have ftill access to mechanical
CAD/CAM/CAE comes from the elimination
of redundant processes or systems. Unfortunately,
this is difficult to accomplish in a
mechanical design and manufacturing environment
because so many people need to
have access to some part of the engineering
database. It is difficult to even identify
everyone, let alone actually set up a system
that totally replaces the manual operation;
but, it is happening. Slowly, a number of
users are building integrated systems that
effectively share engineering data between
departments and supplier companies. Some
vertical markets have taken this to the level
of implementing standards for the sharing
of data for a whole industry. The German
automobile industry is a good example.