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Engineering Design Tools and BIM Market Update is an in-house interview series that provides listeners an opportunity to hear from the analysts themselves about their most recent findings and key takeaways. For more than three decades, ARC Advisory Group has been recognized globally for its detailed market analyses and unrivaled accuracy. Producing a market research analysis requires an immense amount of effort, expertise, and attention to detail. Expect questions regarding scope, major trends, supplier landscapes, and much more. This installment is with Ralph Rio, who explains his market analysis on Engineering Design Tools and BIM Market Update.
What is the scope of the market analysis report?
Engineering design tools, that side of it is software that people use to design a plant, Infrastructure like bridges as well as commercial buildings. Perhaps, if you're in the office, you're probably in a commercial building right now. It's used to design and the construction of those types of assets. We are a modern society, and all these things are needed by modern society, people need roads, bridges, and water treatment. That’s the infrastructure. If they need more products that they are going to buy, that drives the building of process plants.
What is the supplier landscape? Who are some of the large and small key players? Any up and comers?
It’s a very complicated and complex supplier landscape. This is a mature market so there is a lot of segmentation and you’ve got process plants, infrastructure, and those are all different types of assets. Suppliers have tended to differentiate themselves by focusing on industries or a particular asset. There are some suppliers that are good at infrastructure bridges, roads, etc. Other suppliers are good at process plants, such as oil & gas and chemicals. They tend to differentiate by offering functions specific to those vertical industries. There are still other suppliers who are still really into buildings, building construction, design, etc. Buildings may seem simple, but they have plumbing and electrical infrastructure, and you must make it substantial in case of a natural emergency.
What is the growth or success factors within this industry?
The market is growing much more rapidly than other software market areas and much higher than the general population. You’d think a mature market would grow with the size change of the population; it's vastly exceeding that. One reason for the growth must be the licensing model, they’ve gone from perpetual licenses with a big upfront cost to subscription services. That reduces the upfront cost by 60%, on average it’s 30-40% of the first-year costs. It’s now simpler to buy and less expensive, with a huge increase in the number of seats.
Second thing, there is a growing middle class which correlates to living in better, bigger, and safer places that require extensive infrastructure buildout that requires BIM software. Growth can be directly correlated to generally better living conditions.
The third one I'm going to mention has to do with climate change. You may think about, well, you know, windmills, solar, yes, you use engineering design software to design those assets. What is going on is who is taking the existing capabilities and making them more energy efficient. We see a lot of upgrades going on and sometimes completely replacing a plant, so that it is much more energy efficient and safer, fewer environmental issues, and stuff like that.
View the entire interview here.
Ralph's focus areas include engineering design software for plants and BIM, Digital Twins, and global service providers (GSP).
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