CIMdata PLM Industry Summary Online Archive
12 April 2007
CIMdata News
CIMdata Reports that NC Software Market Grows by 6.9% in 2006
CIMdata consulting and research firm estimates that based on end user payments, the worldwide NC software and related services market grew by 6.9% in 2006 to reach a level of $1.31 billion. Moreover, CIMdata estimates that in 2007 these payments will further increase by 6.4% to reach a level of $1.40 billion. If so, this will be four consecutive years with a growth rate of 6% or more. There was no growth from 2000 through 2003 when the NC software market was in a recession. Since then, this market has shown steady growth as global economies have improved, there has been worldwide growth in sale of machine tools and manufacturing output, greater emphasis is being placed on efficient operation of machine tools as manufacturing firms must enhance their competitive position, and the overall PLM (Product Lifecycle Management) market, of which CAM is a component, has shown strong growth. CAM software purchases are directly related to all of these factors. The size of the NC software and related services market, based on end user payments, is shown in the following chart:
NC Market Revenue Growth History
The annual percentage year to year growth rate is shown in the following chart. It can be seen that the annual growth rate was on a declining path from 1997 to 2001, but then turned around and has been on an upward path since that time.
Annual Percentage Year to Year Growth Rate
The above information is contained in Version 16 of the CIMdata NC Software and Related Services Market Assessment Report that will be available for purchase from CIMdata. Mr. Alan Christman, CIMdata Chairman and primary author of the report, commented, "Even though software to control machine tools to cut parts is a relatively mature market, it has been active and exciting in the past several years. Some software vendors have had revenue growth of as much as 40% per year, a number of significant acquisitions have been made, integration with other elements of manufacturing software is occurring, new manufacturing areas such as China are emerging, corporations are placing greater emphasis on streamlining manufacturing operations, and the underlying CAM software technology continues to evolve."
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