Dow Jones Newswires
Rebound In Computer Design Software Mkt Expected In '99
By MARK BOSLET
NEW YORK -- The market for computer-aided design software should rebound significantly this year as software developers have introduced new technology, an industry researcher said.
The market for CAD software used for mechanical design should grow 16.7% in 1999 compared with 9.8% in 1998, according to a forecast from Daratech Inc. of Cambridge, Mass. Worldwide sales in 1999 should come to $6.2 billion, the study said.
"It's quite a rebound" driven by revamped product lines from many vendors and strong manufacturing economies around the globe, said Daratech Vice President Bruce Jenkins.
Software developers also have come out with more modestly priced product lines that open up the market to a new class of buyers, he said.
Jenkins said Daratech based its study on the first quarter results of industry vendors and on projections the companies had for the remainder of the year.
"Engineering and manufacturing companies are stepping up their capital investments" and vendors continue to push into industries that have room for growth, such as the automotive industry, the report said.
Among the fastest growing companies will be Dassault Systemes SA (DASTY), which should see computer design software sales climb 26% to more than $1.1 billion, Daratech said.
Parametric Technology Corp. (PMTC) should see sales of its mechanical-design software increase 24% to more than $1.2 billion, the report said.
Computer-design software sales at other major companies should grow, with sales at Unigraphics Solutions Inc. (UGS) up 22.6%; Autodesk Inc. (ADKS), up 20%; International Business Machines Corp. (IBM), up 19%; and Structural Dynamics Research Corp. (SDRC), up 16.6%.
-By Mark Boslet; 201 938-5154.
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