SAN JOSE, CA — The Market Statistics Service for the electronic design automation (EDA) Consortium has released a report that the industry revenue for Q4 of 2003 was $1,021 million, a 13% increase over Q4 2002. This was the first time in two years that industry revenue from reporting companies topped $1 billion, and the first quarter since Q1 2001 to show double-digit revenue growth. For the full year 2003, revenue totaled $3,825 million, which was 3% more than $3,709 million reported in 2002.
"In the fourth quarter of 2003 the EDA industry showed a return to solid growth," said Walden C. Rhines, chairman of the EDA Consortium and chairman and CEO of Mentor Graphics Corporation. "It appears that the strength of recovery in the semiconductor and systems industries is having a good effect on EDA."
Reporting EDA companies employed 18,900 professionals in Q4 2003, 4% more than Q4 2002. This repeated the 4% year-over-year employment increase posted in Q3.
The Consortium's largest tool category, Computer-Aided Engineering (CAE), generated revenue of $480 million in Q4 2003, 8% more than the same period in 2002. IC Physical Design & Verification achieved a new revenue record for the category and led all tool categories in revenue growth in Q4, surging ahead 33% when compared to the same period in 2002 to reach $347 million. Revenue for Printed Circuit Board (PCB) and Multi-Chip Module (MCM) Layout totaled $83 million in Q4 2003, 9% less than in Q4 2002. The EDA industry's Semiconductor Intellectual Property (SIP) revenue totaled $47 million in Q4 2003, 4% less than Q4 2002. For 2003, SIP revenue increased to $195 million (vs. $135 million in 2002) due in part to new company participation.
EDA Services revenue was $64 million in Q4 2003, up 6% from Q4 2002. Services revenue totaled $249 million in 2003, 9% less than 2002.
Western Europe led all regions for revenue growth in Q4 2003, increasing by 20% over Q4 2002 to reach $197 million. For the full year 2003, revenue from Western Europe was $716 million, a 4% increase over 2002, and 19% of global revenue in 2003.
North America, EDA's largest customer base, purchased $568 million of EDA products and services in Q4 2003, a 12% increase over Q4 2002. For all of 2003, North American revenue was $1,999 million (52% global share), 6% less than 2002.
In Q4 alone, revenue from Japan grew 9% to $158 million. Japan led all regions for revenue growth for the full year, increasing 28% over 2002 revenue to reach $749 million in 2003—a new record for the region. EDA sales in Japan constituted 20% of the global total in 2003, making Japan the second largest EDA market.
