CBS62logoNEW2013_blue_final_header_White wwj950-sm2011b 971-ticket-35smb 35h_CBSSportsRad_Detroit

CIMdata Reports NC Software Market Grew 7.6 Percent In 2010

View Comments
cimdata
mattroush Matt Roush
Matt Roush joined WWJ Newsradio 950 in September 2001 to spearhead the...
Read More

CIMdata Inc., the leading global PLM consulting and research firm announces that based on end-user spending, the worldwide numerical control software and related services market grew by 7.6 percent in 2010.

The estimated end-user spending grew from $1.239 billion in 2009 to $1.333 billion in 2010.

The increase in the market growth in 2010 reflected the rebound in the global economy, and the return to overall growth of the product lifecycle management market. This is also reflected in the increase in global machine tool sales into the manufacturing industry, which grew 21 percent to $66.3 billion in 2010 over the 2009 estimate of $57.4 billion.

Going forward, CIMdata projects that the rebound in manufacturing will continue, and estimates that end-user spending for NC software will increase by 6 percent in 2011 to $1.412 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 position, and the overall PLM market, of which computer aided manufacturing software is a component, has continued on strong growth during this period. CAM software purchase increases are related to all of these factors — particularly machine tool sales.

The size and growth of the NC software and related services market based on end-user payments is shown in the chart below.

The chart illustrates that approximately one-third of the end-user spending results from reseller revenues, and the other two-thirds are direct payments to software vendors. The chart’s information is contained in the soon-to-be-issued Version 20 of the CIMdata NC Market Analysis Report.

“2010 saw recovery in the manufacturing sector, and software investments soon followed,” said Stan Przybylinski, CIMdata’s director of research. “This is consistent with our results from our global PLM market analysis.”

Added Alan Christman, CIMdata’s chairman and long-time author of the NC Market Analysis Report: “2009 was a difficult year for manufacturers and most providers of NC software. Most firms saw good growth in 2010, and CIMdata expects this growth to continue in 2011 and beyond. The growing strength and 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. As importantly, there is some move 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 be really interesting for NC and the broader PLM market.”

CIMdata provides strategic management consulting to maximize an enterprise’s ability to design and deliver innovative products and services through the application of PLM systems. Since its founding in 1983, CIMdata has delivered world-class knowledge, expertise, and best-practice methods on PLM solutions. These solutions incorporate both business processes and a wide-ranging set of PLM enabling technologies.

More at www.CIMdata.com.

View Comments
blog comments powered by Disqus