German market dominates electrotechnical design

Edited by the Engineeringtalk editorial team Jul 20, 2006

A study of the market for electrotechnical design software in EMEA indicates an overall market valued at Eur 97 million in 2005, representing a growth of some 7% over the previous year.

Cambashi, the engineering IT industry analysis and market research consultancy, has recently completed a study of the market for electrotechnical (ET) design software in the countries of Europe, the Middle East and Africa (EMEA).

The results of the study indicate an overall market valued, in terms of software sales, at Eur 97 million ($120 million approximately) in 2005, representing a growth of some 7% over the previous year.

A similar rate of growth is expected for 2006.

The study also revealed that there are marked differences between the various EMEA countries in the level of sophistication of the CAD systems used for electrotechnical design.

More sophisticated users spend more.

The German-speaking countries represented some 57% of ET software sales by value in 2005, with France accounting for a further 18% and the UK, Italy, Spain and the Nordic countries each representing anything between 6 and 3% of sales value.

The study also identified several broad, underlying development trends common to the region, such as industry sector specialisation in software development and mergers and acquisitions among developers.

Nick Ballard, Senior Consultant, Cambashi, stated: "Electrotechnical, or ET design software is used across a wide variety of industries, including construction, machinery, process and discrete manufacturing, power and water utilities, domestic electrical appliances and automotive and aerospace design and manufacturing".

"However in EMEA, whilst basic, general-purpose CAD has been used for some time to aid ET design, little use has been made of sophisticated, integrated ET CAD systems outside of Germany and France".

"The key differences between systems are the degrees to which intelligent information exists and can be re-used and in the way documentation is managed and maintained", he explained.

"So in the two largest markets for ET CAD software there are some very strong domestic software developers who lead the way, such as Aucotec, CIMTeam, Eplan, IGE-XAO and TCS.

Elsewhere, local heroes like ACERI in Spain, or AutoCAD and similar 2D CAD systems together with low-cost symbols libraries and add-on applications, such as WSCAD, are the predominant tools used".

Although shipments and users of ET CAD systems increased in 2005, developer revenues did not keep pace due largely to new users' investments being made mainly in general purpose CAD software with addon tools, often as an initial trial.

However, Cambashi's research indicates that as users begin to see the benefits of integrated ET design solutions, the market for these is likely to expand over the next two to five years, driven by a number of developing trends.

First, the export market for machinery and equipment has improved for German manufacturers, resulting in increased investment in new tools from the German-speaking producers.

Second, the specialisation of ET CAD systems is becoming apparent, with editions for specific industry sectors, such as water, oil and gas, construction and manufacturing being introduced.

And third, as mechatronic systems replace electro-mechanical controls in cars and machines, more intelligent, embedded systems become standard.

To support these, more sophisticated wire harness design applications, often targeting the automotive industry, are being developed.

Finally, the increasing need to improve profitability, quality and performance in the sales to assembly process is driving higher degrees of intelligence and automation in the design toolset.