Systems Performance Modeling Leads Digital Prototyping Market Growth
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Systems Performance Modeling Leads Digital Prototyping Market Growth


CONTACT: Tom Greaves ( Email Contact)
PHONE: (+1) 617.354.2339

Pressure to Cut Costs and Speed Development by Reducing Physical Prototyping Driving Stepped-Up Investments

Systems Performance Growth Forecast 14% Annually Through 2007;
MSC, LMS, Fluent, Altair, PTC, Moldflow, ANSYS, ESI Among Market Leaders

Structural Analysis Growth Forecast 6% Annually Through 2007; Market Leaders Include MSC, ANSYS, EDS PLM, Dassault, PTC, Altair

Cambridge, MA, February 27, 2003 -- Systems performance modeling will enjoy vigorous growth of 14% annually over the next five years, topping $1.4 billion in 2007, by Daratech’s forecast. Driving this growth in this breakout segment of the digital prototyping (CAE) market are the pressures on manufacturers to drive cost out of product development and shorten time-to-market by reducing physical prototype counts, while improving product quality to rein in warranty expenses. Also spurring investment in digital prototyping is the rapidly improving price/performance of high-performance computers, together with better-quality deployment, implementation and training, as well as growing user and management confidence in simulation accuracy and correlation with physical test results.

Underscoring the pressures driving global manufacturers to step up their CAE investments, Ned McClurg, vice president and general manager of engineering operations at General Motors Powertrain, says his top priorities are speed, cost and quality. Speed in product development, he says, will come from faster design iterations, eliminating or reducing physical prototypes, and improving physical test through focused optimization strategies. Cost targets include lowering physical-test costs, using less experimental material, and reducing product costs by better balancing of requirements. Quality initiatives include improved requirements engineering, better design engineering, and Six Sigma variation analysis. All of these, says McClurg, are part of what GM calls its "Move to Math."

Similarly, BMW Group’s new "virtual car process" marks a fundamental shift from physical-prototype-based vehicle development to "complete digital processes from concept through maintenance," says Anton Cremers, vice president of IT development and purchasing for BMW AG. Noted for producing several different brands – BMW, Mini, and now Rolls-Royce – none focused on the mass market, Cremers says the move to digital processes is essential in helping the company shorten product development cycles while managing increasing product-line breadth and complexity.

Digital prototyping is also a priority at Ford Motor Company. For example, in crash analysis, the goal is "to have zero [physical] prototypes, so all the prototypes are digital prototypes," says Dr. Priyah Prasad, a senior technical fellow and manager of safety R&D at Ford. "We do not want to run any tests" – a key, he says, to speeding product development and validation.

Systems performance software market leaders include MSC.Software, LMS International, Fluent and Altair Engineering, among others. MSC.Software Corporation (Los Angeles, CA), the number one provider, significantly expanded and further strengthened its offerings in this area with its acquisition of Mechanical Dynamics, Inc., a pioneer in mechanical systems simulation. LMS International NV (Leuven, Belgium), another market leader, possesses deep competence in solving some of the most difficult and subtle problems faced by manufacturers today—the engineering of critical, exacting performance attributes such as the ride, handling and overall customer experience of an automobile. Fluent, Inc. (Lebanon, NH), also one of the industry’s leaders, is a pioneering developer and market leader in computational fluid dynamics. Altair Engineering, Inc. (Troy, MI), another major market presence, was founded in 1985 as a product development consulting company, and today has five business lines: Product Design and Development consulting services, Enterprise Process Management Consulting, Commercial Software Products, Client Site Services, and Enterprise Computing for high-performance computing resource management technology and implementation consulting.

Structural analysis software market leaders include MSC.Software, ANSYS, EDS PLM Solutions and Dassault Systè­¥s, among others. MSC.Software, the market leader and an industry pioneer, has seen its MSC.Nastran offering win very wide acceptance in the aerospace industry, as well as broad use among auto makers. ANSYS Inc. (Canonsburg, PA), another market leader, has in recent quarters shown an impressive ability to generate strong growth in all geographies despite the challenging global economic environment. EDS PLM Solutions (Cypress, CA), another leading provider created in the merger of the former UGS and SDRC within EDS Corporation, combines the enduring strength of SDRC in CAE pre- and post-processing with the prowess of the former UGS in this area. Dassault Systemes S.A. (Suresnes, France), also a significant market presence, further strengthened its position when it acquired SRAC (Structural Research & Analysis Corporation), the Los Angeles-based developer of COSMOS and other popular digital prototyping products.

In Daratech’s market taxonomy, the systems performance segment of the digital prototyping and simulation market includes solvers plus pre- and post-processors for CFD (computational fluid dynamics), crash, dynamics and motion, forging and mold design, durability and fatigue, heat transfer and thermal interactions, NVH (noise, vibration and harshness) and control systems design, as well as analysis optimization, process modeling and results visualization.

Structural analysis, essentially the traditional CAE domain, includes solvers plus pre- and post-processors for finite element and structural analysis. The structural analysis segment of the market will see average growth of 6% annually over the next five years to nearly $1 billion in 2007. Taking both the systems performance and structural analysis segments together, Daratech projects the overall digital prototyping and simulation market will grow an average of 11.5% annually over the next five years to nearly $2.5 billion in 2007.

These and related issues will be the focus of daratechiDPS2003—Intelligent Digital Prototyping Strategies, taking place June 9-10, 2003 in Novi, Michigan, USA. The conference will focus on how effectively today’s digital prototyping and physical testing processes and tools are meeting auto makers’ urgent requirements to shorten product development cycles, manage increasing model complexity and variety, lower development costs by reducing physical prototypes, and reduce warranty exposure, expensive recalls and product failures. For information contact Tom Greaves, Daratech, Inc., tel. (+1) 617.354.2339, ext. 3141, email Email Contact,

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[NOTE TO EDITORS: This release is revised and updated on an ongoing basis to reflect changing market conditions. Also, while Daratech adheres to the highest standards of care and due diligence in gathering and reporting information, it is impossible to guarantee that inaccurate, incomplete or ambiguous statements were not inadvertently included in this release. Before publishing this release, please phone Daratech at (+1) 617.354.2339 to be sure you are working with the latest version, and to receive any corrections or amplifications that have been made since this release was issued.]