NC SOFTWARE MARKET GROWS BY 7.2 PERCENT
What Recession? Steady market growth continues and is targeted to reach $1.5 billion this year.
Posted: June 5, 2008
Consulting and research firm www.CIMdata.com (Ann Arbor, MI) estimates that, based on end user payments, the worldwide NC software and related services market grew by 7.2 percent in 2007 to reach a level of $1.4 billion. Moreover, CIMdata estimates that in 2008 these payments will further increase, by 7.8 percent, to reach a level of $1.5 billion. If so, this will be five consecutive years with a growth rate of 5 percent or more. There was no growth from 2000 through 2003 when the NC software market was in a recession.
Since then, this market has shown steady growth as global economies have improved, there has been worldwide growth in sale of machine tools and manufacturing output, greater emphasis is being placed on efficient operation of machine tools as manufacturing firms must enhance their competitive position, and the overall PLM (Product Lifecycle Management) market (of which CAM is a component) has shown strong growth. CAM software purchases are directly related to all of these factors. The size of the NC software and related services market, based on end user payments, is shown in Figure 1.
The annual percentage year-to-year growth rate is shown in Figure 2. It can be seen that the annual growth rate was on a declining path from 1997 to 2001, but then turned around and has been on an upward path since that time.
?Even though the CAM software market (software to control machine tools cutting parts) is a relatively mature market, it has been active and exciting in the past several years,? comments Alan Christman, CIMdata chairman and primary author of the report. ?Some software vendors have had annual revenue growth rates of over 30 percent per year, a number of significant acquisitions or mergers have been made, integration with other elements of manufacturing software is occurring, new manufacturing areas such as China are emerging, corporations are placing greater emphasis on streamlining manufacturing operations, and the underlying CAM software technology continues to evolve.?
The information presented in these charts is contained in Version 17 of the CIMdata NC Software and Related Services Market Assessment Report that is available for purchase from the company.
www.CIMdata.com, 3909 Research Park Drive, Ann Arbor, MI 48108, 734-668-9922, Fax: 734-668-1957, www.CIMdata.com.
Subscribe to learn the latest in manufacturing.
