Embedded Design Automation Tools Takes Big Hit in 2002

4/29/2003 - While the overall embedded software market suffered one of its worst years on record in 2002, one of the hardest hit product categories was design automation tools (DATs). Recently completed research by Venture Development Corporation (VDC) reveals that the market for DATs declined by over 12% in 2002. The market to software modeling tools and dynamic systems design tools - which together make up the DAT category - slipped to $363 million. VDC is forecasting this market to return to growth in 2003, though the increase will not match the fast growth seen from 1998 to 2000.

“The market for embedded design automation tools was hit by a number of factors in 2002 including a decline in the broader embedded market, overexposure to the telecom industry reduced spending on discretionary software development tools and ongoing ease-of-use concerns,” said Chris Lanfear, Director of VDC's Embedded Software Research Group. He added, “That said, the long-term prospects for these tools look bright given the increasing time to market pressures that are being shouldered by embedded developers. DATs offer many tangible benefits in terms of coding efficiency, software quality and quantifiable ROI.”

The Mathworks remains the leading vendor of design automation tools due to its domination of the market for dynamic systems design tools, which allow developers to model, simulate and build systems that interact with the physical world. The company's entrenched position and broad appeal in the resilient automotive and aerospace markets shielded it from the worst of the downturn. Rounding out the top five vendors (in rank order) are: Rational Software (now part of IBM), ETAS, Telelogic and dSpace.

About VDC
Founded in 1971, VDC is a technology market research and consulting firm that specializes in industrial and commercial electronics, computing, communications, software and power systems markets.

Previous Page | News by Category | News Search

If you found this page useful, bookmark and share it on: