Cambashi Product Observatory – Top AEC/MFG/GIS software providers revenue breakdown

by David Land

The data used in the charts below is from the Cambashi Product Observatory for the 30 main providers of technical applications software used in design (e.g. CAD / CAM / CAE / PLM etc…) which Cambashi monitor for 2016.

Figure 1: Software Revenue Distribution by Geographic Region and Application Segment for 2016

Software revenues of the providers

This first chart (Figure 1) shows the software revenues of the providers grouped within the main application segments across the 3 geographic regions they operate in: Americas (AMER), Asia/Pacific (APAC) and Europe, Middle-East and Africa (EMEA).

We have then split across the 3 main applications segments:

  • Architecture, Engineering and Construction (AEC) – is a sub-segment of technical applications. These applications are used to create, store and edit data relating to the design, construction and operation of built form structures. Examples where AEC software is used include: mines and quarries, buildings, roadways, rail infrastructure, tunnels, sewers, bridges, industrial plants, oil & gas platforms, refineries and stadia. Example software types include: architectural design, civil engineering design, structural analysis, BIM (Building Information Modelling) and process plant design.
  • Manufacturing (MFG) – These applications are used to assist with tasks carried out during the design, manufacture and operation of discrete items, and in the design and operation of continuous manufacturing processes. Examples of where MFG software is used include: aerospace, automotive, machinery and processedor packaged consumer goods. Example software types include: CAD, CAE, CAM and PLM.
  • Geospatial (GIS) – These applications are used to collect, store, edit and analyse spatially-encoded data. Typically information is displayed as maps for the purposes of trend identification, problem solving and providing geographic context. Examples of how GIS software is used include: vehicle routing logistics, land composition and elevation analysis for agriculture or construction. Example software types include: desktop mapping, cartography and routing applications.

Some examples of the companies (not all) within these segments are:

  • AEC: Autodesk, Bentley Systems, FUKUI Computer, Nemetschek and Trimble
  • MFG: Dassault Systèmes, PTC, Siemens PLM and Ansys
  • GIS: ESRI, MapInfo, Intergraph and GE Smallworld

But, there are some providers that cross into multiple segments like Autodesk, Bentley Systems and Intergraph.

We do have Visualisation (VIZ) and Other (OTH) segments in the Product Observatory but we have excluded them from this chart.

The main things that stand out are:

  • EMEA is the largest geographic region, closely followed by AMER then APAC
  • MFG is the biggest segment in each of the geographic regions
  • GIS has much more exposure in AMER and EMEA than it does in APAC
  • AEC is largest in EMEA than the other regions
  • GIS is largest in AMER than the other regions
  • MFG is largest in EMEA than the other regions

Full revenue breakdown

The following charts are showing the full revenue type breakdown by geographic region for the application segments of AEC, MFG & GIS.

The following definitions show what you are actually looking at and how we define revenue type:

New licence revenues (‘Licence’) – The amount of company revenues associated with a product line, providing new software with this category of product or service.

New Software revenues include sales of new sofware licences to both new and existing customers.

Maintenance and subscriptions (‘Maint & Subs’) – The amount of of company revenues associated with a product line, providing ongoing software licensing with this category of product or service.

Maintenance Software includes all Maintenance, Rental, Subscriptions and Upgrade revenues in whatever business model the provider uses to generate recurring revenue whether by the charging of annual subscriptions for the right to use software; providing software maintenance and regular updates; or upgrades to new versions or bundles of software.

Services – Revenue from those services associated with the implementation of solutions by the provider of software to end-users or systems integrators, sales and distribution partners.

Typically these include a large component of training services, end-user software support, installation and implementation consultancy and software customizations and integrations provided for individual end-users. [This specifically excludes professional services relating to business or management consulting often offered by larger software suppliers, which are part of independent professional services.]

Figure 2: Distribution for AEC revenue type in each geographic region for 2016

So what stands out in AEC?

So, within AEC the main things that stand out are:

  • Maintenance and subscriptions are the largest area of the revenue types in AEC – This is a trend that is going to continue with Autodesk’s business model transition to its subscription model with the end of perpetual licence sales by Q3 2016
  • New licence revenues are have a larger share in APAC than the other GEOs
  • EMEA and AMER have similar revenue type profiles in AEC – as they have established providers in these regions like Autodesk, Bentley and Nemetschek
  • Very Low services share in APAC compared to MFG % GIS (see Figure 3).
Figure 3: Distribution for MFG revenue type in each geographic region for 2016

What does Manufacturing look like? 

In MFG the main things to note are:

  • Maintenance and subscriptions are the largest area of the revenue types but not in the same range as AEC – mainly driven again by the switch to subscription model which is happening in the main providers like Dassault, PTC and Siemens PLM.
  • New Licence revenue has a larger proportion in MFG than AEC
  • MFG has a larger share of services within its revenue compared to AEC, but less than GIS
Figure 4: Distribution for GIS revenue type in each geographic region for 2016

 And finally GIS

Within GIS we notice:

  • New licence revenue has a larger proportion in GIS than the other areas
  • AMER has the largest share driven by ESRI which is the dominant player in the segment, as well as the other larger players like Pitney Bowes MapInfo and Hexagon Safety & Infrastructure (was Intergraph SG&I)
  • APAC has a similar GIS share compared to AEC and MFG

Cambashi Market Observatories

The data for the graphs discussed above come from the Cambashi Market Observatories.

Click on the links below to find out more, or view our webinar series to understand just some other ways that Cambashi’s Market Data can be used to guide crucial business decisions:

  • The Cambashi Product Observatory segments the technical applications market by product group, revenue stream and geographic area for the top 28 software providers
  • The Cambashi Country Observatory provides a snapshot of market opportunity by investigating technical application spend across 50 countries worldwide
  • The Cambashi Industry Observatory breaks down global technical applications spend into over 100 industry classifications in over 50 countries
  • The Cambashi Employment Observatory highlights the potential user base for technical software in over 100 different industries and occupations and across 50 countries
  • The Cambashi Provider by Industry Observatory maps the revenues of the top 28 global technical applications providers across 11 major industry sectors
  • The Cambashi System Engineering and Embedded Software Observatory captures provider revenues of over 300 companies to help you to identify market trends and growth opportunities

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