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and 4.75% respectively. Once the crisis is over, in 20112013, the growth rates should turn to grow reaching7.


Product Lifecycle Management (PLM) is the art of managing the entire lifecycle of a product from its conceptiontodisposal.

Since 2003 Autodesk leads PLM industry, with 9% of the total market. In 2008 its revenues reached $2.3bln,despiteadisappointingfourthquarter.Losses of Autodesk continued also in the first quarter 2009, with revenue down to 29% and $32 million loss. To retain growth rate and margins, Autodesk might acquireothercompaniesandcutcostsdrastically. PLMsoftwaregivecompaniesaviewoneveryaspect of their product development process. The definition is clear, but is the sense clear as well? The fact is, thereisnoPLMsoftwareuniquelyidentifiableassuch. PLM is about the integration of different software: CADtodrawaproduct,CAEtotestit,CAMtomakeit, PDM to manage product data and DM to plan the production. Dassault Systemes holds 7% of PLM market, with $1.6bln revenue in 2008. It recently reported a revenuegrowthof1%inthe1stquarterof2009. Six percent of PLM market belong to Siemens PLM Software,in2008itsrevenuesreached$1.5bln. The forth leader is PTC, with 4% of market share. In 2008 it reached $1.1bln. In the same year European marketofPTCgrewby20%,reaching$0.45bln,while Americanmarketgrewonlyby0.2%.

ThePLMmarketisgrowingfast,from$24blnin2007 to$27blnin2008.Almostallexpertsagreeonthefact that the organic growth of the market (which means without considering mergers and acquisitions) will continue. Nevertheless, in the past few years the market has been growing on a slower pace than in previousyears.Thepeakofgrowthrateswasreached in 2007 (almost 13%), while in 2009 and 2010 the predictedgrowthofPLMmarketwillbeofonly3.75%

CADstandsforComputerAidedDesign.CADsoftware areusedforthedesignofobjectsoncomputer,from aircraft components to special effects in Hollywood movies. ComputerAidedDesign,ordraftingprogramscomein twoforms:2Dand3D.3Ddesignscanbeviewedfrom any angle; drawings can be zoomedin and out or rotated and geometry can be easily changed with a mouse click. Today's CAD systems can even turn 3D modelsintoanimationsorvideos.

In 2008 CAD revenues reached $6bln. The market continuestogrowfast(butonaslowerpace):whileit mayseemthattheCADindustryisaterritoryonlyof engineersandothergeekyguys,thetruthisthatCAD isinvolvedineverythingthatisbuilt. CADisbothavisualfrontendforproductsandagate to information about how to build the product and howmuchwillcost. Very little is known about AEC market. What can be statedisthatitsvaluein2007amounted$0.7bln.

In the last 10 years the use of CAD expanded drastically, also thanks to the price of the software. While in eighties CAD systems were sold for over $100K a seat, today the average price for a basic mechanicalCADseatisaround$12K,whileAutoCadLT costsaround$1,200. Despite the price decrease, and the more functionalities offered by 3D, 63% of CAD users are stillworkingwith2Dsystems. AEC stands for Architecture, Engineering & Construction. AEC software are made specifically for architecture, engineering and construction firms. These products range from general purpose design tools to sectorspecific products such as commercial, industrialandresidentialdesignsoftware. While it may seem the same as CAD software, AEC contains some additional feature, like construction cost databases or the most recent regulations regardingarchitecture. In2007,theleaderofCADmarketwasAutodeskwith 36% of market share. Its product, AutoCAD, initially releasedin1982,wasoneofthefirstCADprogramsto runonpersonalcomputers. Dassault Systemes has 19% of CAD market share, whileSiemensPLMSoftwareandPTCearned12%and 11% of market share, respectively. The four biggest market players hold 78% of the market which is thereforeveryconsolidated. Some of biggest AEC market players are Dassault SystemesandAutodesk.

CAE (ComputerAided Engineering) is the study of behaviorofaproductindifferentconditionswiththe help of computer. CAE software are used to analyze performanceofproducts,withoutbuildingprototypes. In any stage of the process of development of a new product, engineers need to test the behavior of their concept. Instead of building prototypes and testing theminlabs,CAEsoftwareusesdigitalmodelscreated with CAD, to simulate physical phenomena through numericalmethods.

CAE market is highly fragmented, the top five share only 30% altogether. The leader is ANSYS with $385mln revenues in 2007 and 46% growth. In 2006 ANSYSacquiredFluent,andin2008Ansoft. The second player is MSC Software, who lost the leadershipin2006.In2007MSCregistered$247mlnin revenues,5%lessthanayearbefore,andanetlossof $1.6mln.Recentlytopexecutivesgaveresignations. DassaultSystemesandSiemensPLMreached$237mln and$188mlnrespectively. In 2007, EDA market was lead by three American companies, whose compound revenue reached $3.7bln, corresponding to 64% of the total market share.Thereforethemarkedisquiteconsolidated. ThesethreecompaniesareSynopsys,CadenceDesign Systems and Mentor Graphics, with market value on March 2009 of $2.6B, $990mln and $410mln respectively. Itisworthmentioningthatin2008ANSYS,theleader of CAE, entered EDA market with the acquisition of AnsoftoneofEDAmarketplayers.Thecompanywas acquired for $832mln (LINK), which was 8.5 times morethantheannualrevenueofthecompany.

Very rarely a single CAE software is enough for the entire product design process, therefore there are many specialized for specific disciplines. Around 30% of CAE users perform structural analysis, 20% fluid flow analysis, 16% dynamics analysis and other 16% thermalanalysis. EDA (Electronic Design Automation) is a class of software for designing and producing electronic systems like computer chips or cellular phones. As electronics become even more pervasive, the EDA industryisvitaltothesuccessofglobaleconomy.

In2008CAEmarketreached$2.8bln,growingby4.9%. Thecrisisdecreasedinvestmentsin2007themarket grewtwiceasfast.TheEuropeanshareofCAEmarket accounted for 52%, 56% and 62% in 2005, 2006 and 2007, respectively. This is the result of the fast EuropeanCAEmarketgrowthin2007itgrewby11%, reaching $1.6bln. The market value of EDA reached $5.8blnin2007whichis8.7%morethantheprevious year.

CAM stands for computer aided manufacturing, and means the use of software to manufacture products. In brief, it translates the design of a product created oncomputerwithComputerAidedDesigntools(CAD), into manufacturing instructions for numerical controlledmachinetools. In conjunction with CAD, computeraided manufacturing reduces the costs of producing goods, by minimizing the involvement of human operators. While CAD removes the need to retain a team of drafters, CAM removes the need for factory workers. Thesedevelopmentsresultinloweroperationalcosts, lower end product prices and increased profits for manufacturers. DM (Digital manufacturing) is a way to plan and simulate the manufacturing process in a virtual environment. Basically it allows you to build the product virtually and decide the most suited tools to usetomanufacturetheproduct,inwhichsequenceto assembletheproduct,howtoplaceworkplacesinthe factory. It helps therefore to optimize the manufacturing process. For example, Digital Manufacturing solutions helped trim General Motors vehicledevelopmenttimesinhalf.

market is relatively mature, [] integration with other manufacturing software is occurring, new manufacturing areas such as China are emerging, [] and the underlying CAM software technology continuestoevolve. Few years ago industry analyst firms predicted that the digital manufacturing tools market would more thandoublebetween2006and2011,growingfroman estimated $436mln to more than $1 billion. These predictionsresultedwrong,withDMindustryreaching only$470mlnin2007.

CAM software market continues to be highly fragmented and competitive. In 2007 the market leader was Dassault Systemes with 15% of market share. Siemens PLMSoftware earned13%, PTC 7%. The worldwide five most rapidlygrowing CAM software vendors on the basis of revenue received in 2007,ascomparedto2006,wereSolidCAM,Cimatron, OPENMIND,MisslerSoftware,andDassaultSystmes. In 2008, Siemens PLM Software was recognized the market leader in Digital Manufacturing market segment. There is few recent data on Digital Manufacturing software market leaders, it is known though that another important market player is DassaultSystemeswithitsDelmiapackage.

In 2008 the CAM software market grew by 5.2% and reachedthelevelof$1.47billion.Itisprojectedthatin 2009thegrowthratewillslowto1.3%.Thisreduction inthegrowthrateisaresultofadownturninaglobal economy in the manufacturing industry. CIMdata Chairman said that Even though the CAM software

SI (System Integrators) are companies that link together different computing systems and software applications and make them talk to each other. By doing so, for example, a CAD software bought from one company, CAM software bought from another company and PDM developed inhouse can communicatetoeachother:CADcansenddirectlythe data to CAM, and PDM can extract and keep all the necessarydata. VAR(ValueAddedReseller)isacompanythattakesan existing product, adds its own "value" usually in the form of a specific application for the product and resellsitasanewproductor"package." For example, a company may take a CAE software, personalize it for a specific application (e.g. water floodsimulation)andsellit.


PDM stands for Product Data Management, and means software that are dedicated to capturing and maintaining all the information on products through theirdevelopment. Informationhandledusuallyincludesdesigngeometry, bill of material, engineering drawings, product specifications, numericalcontrol machine tool programs, analysis results, and many other items everything that regards the product developed. PDM assures that the right information is available to the right person at the right time and in the right form. Thus, PDM improves the communication among different groups and gives a possibility to collaborate inamoreefficientway. Typical users of PDM have traditionally included designers and engineers. Nowadays though, PDM systems are used by managers, marketing, shipping and manufacturing personnel: all of them have realizedthatthePDMsoftwarehelpstoachievefaster work, fewer errors, greater cooperation, and smoother work flow. This translates into cost savings andtimereductions.

In 2007, the market of System Integrators and Value Added Resellers grew to $4.3bln from $4,1bln in 2006.IBMistheworldlargestsystemintegrator,while othersinclude:Capgemini,AccentureandEricsson. IBM is the world largest system integrator, while othersinclude:Capgemini,AccentureandEricsson. As to valueadded resellers, no freely available data currently exists on largest VARs. As an example though, we can mention the company IDAC FEA UK, whichisaisaValueAddedResellerforawiderange of engineering analysis software, including the full ANSYSsimulationsuite.

ThePDMmarketreached$2.7blnin2007,growingby 11% to $3bln in 2008. In 2008 it accounted for more than 10% of the total PLM market revenue. With the growing amount of data available and exchanged, it can be predicted that in the future the need to manage it will be always increasing, and that PDM marketwillcontinuetogrow.

There isnodata available on the PDM market shares in recent years. We can though know the market shares of PDM market in 2004. Knowing that 2004 PDMmarketrevenuesamountedto$1.73bln,andthe revenue of PDM market players, it is possible to say that the largest company was UGS, now known as SiemensPLMSoftware(10%ofPDMmarket),Dassault Systmes(9%),SAP(6%),andPTC(5%).

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