Forecasts Show Recovery is Coming

By DE Editors

Half year figures from engineering and enterprise IT applications market research and analysis firm, Cambashi, show that growth in expenditures on software for technical applications is on track for positive recovery by the second half of 2010. Spending on technical applications software includes AEC (architecture, engineering & construction), geospatial (GIS) and manufacturing (CAD/CAM/CAE and PDM/PLM) applications.

The V-shaped recovery predicted at the beginning of the year is borne out by latest economic data, with the strongest expectations in the Asia-Pacific (APAC) region. The “Cambashi Country Observatory” model shows the growth in technical applications software spending in most individual countries of APAC, notably India and China, remaining positive and returning to double digits next year. Only Japan, with its unique economic structure, is experiencing a similar decline to the major western countries.

The overall picture from the Americas is strongly influenced by the situation in the United States itself, which has both the steepest decline and the steepest recovery. In 2011, driven by expected double-digit growth in investment, Cambashi expects around 8 percent growth in technical applications. By contrast the countries of Central and South America are riding the credit crunch more evenly, largely due to economies focused toward production sectors. In Europe the picture is more balanced with each of the major economies of western Europe following the same pattern of decline and recovery. 

“Apart from Japan, the Asia Pacific nations are proving most resilient to the economic crisis due to a lower intensity of financial services and a higher proportion of value added from production, coupled with a relatively low cost workforce,” says Aslihan Yener, consultant at Cambashi. “This continued expansion in the APAC region supports sales of technical application software.”

These results are available in the latest version of the “Cambashi Country Observatory,” which uses Cambashi’s market models to estimate market size and growth for more than 50 countries worldwide.

For more information, visit Cambashi.

Sources: Press materials received from the company and additional information gleaned from the company's website.