CIMdata publishes global NC market analysis report

NC market grew 5.4% in 2013.

CIMdata, Inc., the global PLM strategic management consulting and research firm has announced the release of the 2014 CIMdata NC Market Analysis Report (MAR), the twenty-third annual study of the global Numerical Control (NC) market. CIMdata estimates that based on end-user payments, the worldwide NC software and related services market grew by 5.4% in calendar year 2013. The estimated end-user payments grew from $1.56 billion in 2012 to $1.64 billion in 2013. The market growth rate reflects solid overall NC spending, continuing the recovery from the downturn in the global economy. CIMdata projects that in 2014 growth in manufacturing will continue and end-user payments for NC software will increase by 6.3% to $1.74 billion.

Since 2002, the NC software market has shown modest but steady growth as global economies generally improved. There has been worldwide growth in the sale of machine tools and manufacturing output, greater emphasis has been placed on the efficient operation of machine tools as manufacturing firms have strengthened their competitive positions and the overall PLM (Product Lifecycle Management) market, of which CAM software is a component, has continued on a strong growth path during this period. CAM software purchases are related to all of these factors — particularly machine tool sales.


Market share of NC providers based on industrial seats installed (source:CIMData)

The size and growth of the NC software and related services market based on end-user payments is shown in the chart below. It can also be seen that approximately one-third of the end-user payments result in reseller revenues and approximately two-thirds of the revenues are payments made directly to software suppliers.

Report lists Vero as top CAM software supplier
The CIMdata report details how Vero has more than double the number of installed software licenses than any other software vendor and represents more than 20 percent of market share in the CAM-focused software business.

In addition, CIMdata found that Vero was again able to increase its market share in terms of direct revenue. The company’s share of vendor direct revenues grew to more than $110 million, representing a market share in excess of 10 percent, with further growth predicted for 2014.

Finally, with a growth rate of 49.3 percent, the CIMdata report also confirmed that Vero Software is the fastest growing company out of all top 25 ranking companies named in the NC Market report.

Headquartered in England, Vero Software designs, develops, and supplies CAD/CAM/CAE software. The company’s brands include Alphacam, Cabinet Vision, Edgecam, Machining Strategist, PEPS, Radan, Smirt, Surfcam, WorkNC and VISI.

Vero sells and supports its range of products through its direct offices in the UK, Italy, France, Germany, Netherlands, USA, Brazil, India, Japan, South Korea and China, and through a comprehensive global reseller network across more than 45 countries.


Market share of the largest NC Providers by Direct Revenue (source:CIMData)

CAM Software is used to generate machining programs corresponding to part designs. Short for “computer-aided manufacturing,” CAM creates these programs for CNC machine tools including machining centers, lathes and EDM machines. Sometimes, machining programs can be written and input manually, right at the machine’s control. However, if the workpiece geometry is at all complex, or if the machined features are numerous, then generally CAM software is essential for generating the program both accurately and quickly. In general, CAM development has proceeded along two different tracks. Geometry-based CAM systems used in die/mold machining and other applications focus on complex milled geometries. Algorithms provide specific and efficient ways for machining complex geometries with both high precision and long tool life. By contrast, feature-based CAM systems are generally used in the production machining of geometrically simpler components. These latter CAM systems are often engineered to automate otherwise repetitive programming tasks such as assigning similar tools to similar features.

The 2014 version of the NC MAR is a 120-page report containing 22 charts and 39 tables of data detailing the worldwide NC market along a number of dimensions. It also includes a discussion of trends in the CAM industry and updates on the top CAM solution providers. The 2014 CIMdata NC Market Analysis Report is available for purchase at: