The use of design, engineering, and PLM applications is growing in emerging markets, according to new research from Cambashi. The company released the “Cambashi Provider by Industry Observatory” report as part of the Q2 2013 edition of its Cambashi Market Observatories, which present its research into engineering/design applications.
The latest market data for emerging markets derived from the Cambashi Country Observatory (Q2 2013) shows that, in 2012, technical application spending in emerging countries (Brazil, Russia, India, China, plus Columbia, Indonesia, Turkey and Vietnam) grew 12 percent to $1.7 billion (USD).
The forecast predicts continued growth on technical application investment in the manufacturing industry sector among the larger economies in the emerging markets. Cambashi predicts Vietnam to have higher growth in 2013 and 2014 than India, second only to China.
“The continued growth in spending on technical applications in emerging markets, despite the economic slowdown even in the former main players China and India, is driven by two trends,” said Tony Christian, marketing director at Cambashi. “The first is the continuing modernization of the manufacturing and construction industries in those countries. The second is the expansion of their industrial capabilities from the former low-wage, ‘low tech’ manufacturing activities typically outsourced by Western firms. The emerging countries have built on this base to cover the entire value chain, including leading edge design and product development.”
China accounts for the largest share, at 42 percent, of the market for technical application expenditure in emerging countries. According to Cambashi market research, while China continues with strong technical applications growth, thanks to its manufacturing industry driving investment, Russia will not match the performance of 2012 and is likely to slow down in 2013 due to falling global demand for its main exports of oil and gas.
However, a second generation of nations that account for 11 percent of technical application expenditure in emerging countries (Columbia, Indonesia, Vietnam, and Turkey) is also making good progress, and growing faster than North America (U.S., Canada, and Mexico).
For more information, visit Cambashi.
Sources: Press materials received from the company and additional information gleaned from the company’s website.