EDA Industry Revenue Up 8.5% in Q2, But PCB Drops

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The EDA Consortium (EDAC) Market Statistics Service (MSS) has announced that the Electronic Design Automation (EDA) industry revenue increased 8.5 percent for Q2 2015 to $1.9 billion, compared to $1.75 billion in Q2 2014. But PCB and MCM revenue dropped 13 percent compared to Q2 2014. The four-quarters moving average, which compares the most recent four quarters to the prior four quarters, also increased by 8.5 percent.

"The EDA industry continues to show solid revenue growth in the second quarter, with double digit growth in semiconductor IP and services," said Walden C. Rhines, board sponsor for the EDAC MSS and chairman and CEO of Mentor Graphics. "CAE and IC physical design also reported solid growth. Geographically, all regions except Japan saw revenue increases, especially Asia/Pacific."

Companies that were tracked employed a record 32,806 professionals in Q2 2015, an increase of 4.9 percent compared to the 31,259 people employed in Q2 2014, and up 2.1 percent compared to Q1 2015.

The complete quarterly MSS report, containing detailed revenue information broken out by both categories and geographic regions, is available to members of the EDA Consortium.

Revenue by Product Category

The largest category, Computer Aided Engineering (CAE), generated revenue of $657.2 million in Q2 2015, which represents a 9.6 percent increase compared to Q2 2014. The four-quarters moving average for CAE decreased 0.3 percent.

IC Physical Design & Verification revenue was $379.2 million in Q2 2015, a 6 percent increase compared to Q2 2014. The four-quarters moving average increased 10 percent.

Printed Circuit Board and Multi-Chip Module (PCB & MCM) revenue of $155.3 million for Q2 2015 represents a decrease of 13 percent compared to Q2 2014. The four-quarters moving average for PCB & MCM decreased 3.1 percent.

Semiconductor Intellectual Property (SIP) revenue totaled $611.7 million in Q2 2015, a 15 percent increase compared to Q2 2014. The four-quarters moving average increased 22.1 percent.

Services revenue was $103.1 million in Q2 2015, an increase of 14.7 percent compared to Q2 2014. The four-quarters moving average increased 11.5 percent.

Revenue by Region

The Americas, EDA's largest region, purchased $870.3 million of EDA products and services in Q2 2015, an increase of 9.5 percent compared to Q2 2014. The four-quarters moving average for the Americas increased 11.2 percent.

Revenue in Europe, the Middle East, and Africa (EMEA) increased 5.2 percent in Q2 2015 compared to Q2 2014 on revenues of $305.4 million. The EMEA four-quarters moving average increased 0.7 percent.

Second quarter 2015 revenue from Japan decreased 3.4 percent to $182.8 million compared to Q2 2014. The four-quarters moving average for Japan decreased 10.4 percent.

The Asia/Pacific (APAC) region revenue increased to $548.1 million in Q2 2015, an increase of 13.2 percent compared to the second quarter of 2014. The four-quarters moving average increased 17.6 percent.

About the MSS Report

The EDA Consortium Market Statistics Service reports EDA industry revenue data quarterly and is available to EDAC members. Both public and private companies contribute data to the report. Each quarterly report is published approximately three months after quarter close. MSS report data is segmented as follows: revenue type (product licenses and maintenance, services, and SIP), application (CAE, PCB/MCM Layout, and IC Physical Design & Verification), and region (the Americas, Europe Middle East and Africa, Japan, and Asia Pacific), with many subcategories of detail provided. The report also tracks total employment of the reporting companies.

About the EDA Consortium

The Electronic Design Automation Consortium, EDAC, is the international association representing companies that develop and provide software tools, services, intellectual property and hardware that make it possible for hardware and software engineers to create the world's electronic products. EDAC's member companies deliver the critical technology and solutions needed to design and verify the semiconductors and associated software, packaging and interconnect technologies that enable the manufacturing of these products. Our member companies impact every conceivable segment of the electronics market, from communications, computers, networking, space technology, medical and industrial equipment to consumer electronics and the emerging IoT (Internet of Things) markets.