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Posts Tagged ‘CIMdata’

NC Software Sales Making a Strong Comeback

Thursday, May 3rd, 2012

I recently read some encouraging news from CIMdata contained in its soon-to-be-published Version 21 of the CIMdata NC Market Analysis Report. They estimate, that based on end-user payments, the worldwide NC software and related services market grew by 14.4% in 2011. The estimated end-user payments grew from $1.333 billion in 2010 to $1.525 billion in 2011. The market growth rate in 2011 reflects strong overall PLM spending, continuing the recovery from the downturn in the global economy that manifested itself in dramatically higher machine tool sales into the manufacturing industry. Estimates are that worldwide shipments of machine tools increased by 35% from 2010 to 2011, which is directly related to the volume of CAM software employed to drive these tools. CIMdata projects that in 2012 growth in manufacturing will continue and end-user payments for NC software will increase by 12.4% to $1.714 billion.

Since 2002, the NC software market has shown modest but steady growth as global economies generally improved. There has been worldwide growth in the sale of machine tools and manufacturing output; greater emphasis has been placed on the efficient operation of machine tools as manufacturing firms have strengthened their competitive positions, and the overall PLM market, of which CAM software is a component, has continued on a strong growth path during this period. CAM software purchases are related to all of these factors—particularly machine tool sales.

Alan Christman, CIMdata’s Chairman and author of the NC Market Analysis Report said, “2011 was an excellent year for manufacturers and most providers of NC software. Most firms saw good growth in 2011, and CIMdata expects this growth to continue in 2012 and beyond. The continued strength and growing importance of global manufacturing powers like China and other emerging economies should result in increased investment in advanced technologies like CAD, CAM, and other segments of the overall PLM market. We have seen moves documented in the popular press to bring manufacturing back to the US, which will require still more investment in advanced manufacturing technologies to be competitive with economies with lower labor costs. The next few years should continue to be strong for NC and the broader PLM market.”

This is good news for not only the NC software market, because since 2009, when all engineering/technical software sales sucked, most manufacturing software sectors are today experiencing and enjoying a resurgence in sales. So, is engineering software for manufacturing really emerging from the depths of despair of just a couple of years ago? I’d have to say, yes. Not only are sales stronger, but a number of software vendors have socked enough cash away to make a number of notable acquisitions, making them stronger. Sales aren’t like the “old days” yet, but indicators are definitely moving in a positive direction.

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