It’s good to grow. Growth doesn’t solve all problems but it helps. One interesting aspect of recessions is that companies tend to falter coming out of a recession rather than during one. It’s a combination of the fact that negative growth can be blamed on the recession, therefore hiding problems, and overreacting to the downturn. That is cutting too deep into the muscle of the company along with, or in some cases instead of, the fat.
We obviously are coming out of this downturn with a different market alignment. Synopsys leads its two competitors by 11 %. Mentor comes in as number two and Cadence, who had the market lead coming into the recession, is number three (See Figure S-1).
However Mentor and Cadence came out of the recession growing at 11% where Synopsys showed only a 2% gain in 2010. It should be an interesting next few years.
EDA Growth came in at 8.8% in 2010. We are expecting the overall market to continue with a five year CAGR of 8.2%. The trends are a slow growing RTL & Below market. IC CAD holding its place as the backbone of EDA growth. PCB showing more strength, than in the past, as it leads the way into the next era of True System Design Automation driven by the Automotive and Aerospace markets. ESL is by far the fastest growing market showing numbers that could mean we are moving into the prayed for hockey stick curve (See Figure S-2).
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