Engineering Software (Russian Market)

The engineering software market in IDC terminology includes:

• Computer-aided design (Mechanical CAD) software,
• Automated Process Control (Mechanical CAM) software
• Automated Engineering Software (Mechanical CAE),
• Product Data Collaborative Management (cPDM) software and
• other engineering software.

2023

Russian enterprises will take away licenses for foreign CAD - due to new EU sanctions

On December 18, 2023, the EU Council adopted the 12th package of sanctions against Russia. One of the bans concerns the supply of software for enterprise management, as well as for industrial design and production. Read more here.

Techmash creates a platform for industrial design for 865 million rubles

Included in the "Rostec concern" Tehmash began to develop a platform for industrial design. The company invests 865 million in this project. rubles The product is planned to be created in 2025. More. here

In Russia, approved projects on import substitution of software for railway engineering for 10.6 billion rubles

On December 1, 2023, it became known that the Russian railway engineering industry (ZHDM) is initiating a large-scale import substitution plan in the field of software. A total of more than 10 billion rubles will be spent on the transfer of IT systems from foreign products to domestic solutions.

According to reports, CNews we are talking about the rejection of products, and Siemens GE PTC other foreign companies that have stopped supporting customers Russia in connection with the formed geopolitical situation. Executive Secretary of the Industrial Competence Center (ICC) of the ZHDM Sergey Khomyakov said that in 2022 11 applications were received for the creation of products with a total value of 10.6 billion rubles, which have the status of particularly significant projects. As of the end of November 2023, four products were approved, the work on which is estimated at a total of 8.3 billion rubles.

The Russian industry of railway engineering (ZHM) initiates a large-scale import substitution plan in the field of software

One of these projects is the Smart Diagnostic platform: the customer is Metrovagonmash (part of Transmashholding), the contractor is Clover Group. The cost of development is 1.25 billion rubles. The Smart Diagnostics system will allow technical control, analysis and forecasting of the state of rolling stock installations. The product is designed "to improve the reliability and uninterrupted operation of production, as well as to optimize the processes of technical and preventive maintenance of equipment with a systematic transition to service according to the actual state."

The second approved project is the "Digital Product Form (Passport)," created to ensure the protection of production potential and improve product quality. The application for the development of a product worth 250 million rubles came from LokoTech-Service, and КонтропТуГоу.ру was chosen as the contractor.

Two more products are called "1D-Design" and "Requirements Management." The first of these solutions is designed to reduce the time and cost of producing new and upgrading existing products. The second system, as reflected in the name, is designed to manage requirements, including design processes for a given cost price. The customers of the projects are Metrovagonmash and Transmashholding, respectively, and the performers have not been identified. The total cost of two products is 6.8 billion rubles.^[1]

Russian CAD- and PLM-solutions have been created, in which 1.2 billion rubles have been invested

On October 12, 2023, it became known about the creation in Russia of domestic CAD- and PLM-solutions, in which 1.2 billion rubles were invested. We are talking about the products of the company "ASCONS," which have already begun to be tested by the United Engine Corporation (UEC) (part of the state corporation "Rostec"). Read more here.

Software developers asked Mishustin not to allow forced licensing of foreign engineering software

On January 31, 2023, the Domestic software association "," which includes more than 260 Russian IT companies, sent Mikhail Mishustin a letter to the Prime Minister in which it asked not to allow forced licensing of foreign. software We are talking about computer-aided design systems (), CAD modeling systems for construction objects (), BIM solutions for product life cycles management (), PLM etc.

As Kommersant writes with reference to this letter, its authors fear that due to forced licensing of foreign software, foreign vendors (Autodesk, SolidWorks, Altium, etc.) will retain consumers in Russia, which "reduces the market for domestic manufacturers."

Domestic software manufacturers believe that forced licensing of foreign software reduces the market for domestic manufacturers

Guardant business development manager Mikhail Chukhlomin points out that by March 2023, the share of Russian engineering software in the domestic market is, depending on the assessment, from 41% to 58%. But in many niches there are no analogues of foreign solutions.

Vitaly Balanda, director of consulting at Reksoft, agrees with him, noting that in some cases Russian developments only fragmentally cover the needs of complex science-intensive engineering, and do not provide a comprehensive replacement. Sergey Shiferson, Managing Partner of Touch Development Company, confirmed that the search for alternatives to many foreign solutions in Russia has not yet led to anything.

According to the source of the publication on the chip market, the design centers "have learned to work in the current conditions" and do not experience the need for urgent development of domestic software analogues. The interlocutor expresses doubts about "the quality of the results of the use of such software, as well as its compatibility with the technical processes of factories."

The publication reminds that compulsory licensing of foreign software has been discussed since 2022. At the end of February 2023, the head of the Ministry of Digital Science Maksut Shadayev said that the department would submit proposals by the end of March on "regulating the forced use of software from vendors from unfriendly countries who left Russia."^[2]

2022

The share of Russian CAD in public procurement exceeded 90%

The share of domestic engineering software, the so-called CAD or CAD (computer-aided design tools), in public procurement for the first time exceeded 90% and reached 93.39% in 2022, which is 67.7 percentage points more than a year earlier. This is followed by the monitoring data of the Center for Competencies in Import Substitution in the Field of Information and Communication Technologies (CKIT), which were published in July 2023.

As Vedomosti writes with reference to the CCIT study, in 2022, government agencies and state-owned companies acquired CAD for 1.6 billion rubles, which is 36.2% less than a year ago (2.5 billion rubles). Purchases of similar software of foreign, mixed or indefinite origin by government agencies in 2022 amounted to 112 million rubles, which is 98.4%, or 64 times, lower than in 2021, when they reached 7.2 billion rubles. Most actively in this category in 2022, domestic products nanoCAD, Compass and ADEM-VX were bought: they accounted for 57% of the volume of purchases in monetary terms.

The share of domestic engineering software in public procurement for the first time exceeded 90%

The departure of foreign vendors from the Russian market led to serious problems with system and engineering software for many domestic customer companies, Valery Volynkin, manager of the Transformation Strategy practice at Reksoft consulting, explained to Vedomosti. The reaction of most enterprises was to revise and assess the state of their IT systems and plan the transition of critical processes to domestic software.

But public procurement accounts for no more than 5% of the entire engineering software market, draws the attention of the deputy general director for product development and GR in the developer of AR solutions "Glazar" Alexander Bayev. It is also necessary to separate purchases and the actual use of certain solutions, he recalls. The newspaper indicates that CAD systems are used in various industries, including industrial equipment development, mechanical engineering, design of industrial facilities, as well as in the construction of buildings.

The volume of purchases of Russian software, of course, was influenced by the departure of foreign manufacturers from the Russian market

According to the newspaper interviewed by the publication, the volume of purchases of Russian software, of course, was influenced by the departure of foreign manufacturers from the Russian market. For example, in 2022, well-known foreign CAD manufacturers Siemens NX, Dassault CATIA, Solidworks left the market, Renat Lashin, executive director of ARPP Domestic Software, told Vedomosti. Russian manufacturers ASCON, Top Systems and Nanosoft Development hastened to take their place, added Yuri Krylov, technical director of the Zyfra group of companies.

2022 was marked by an important collective victory for Russian developers: since the launch of system measures aimed at import substitution of software in 2015, purchases of Russian solutions in terms of volume have exceeded 54% of all software purchases, exceeding purchases of foreign software in the ratio of 2:1, says Ilya Massukh, director of the Central KIT. - It is important to continue this trend and further develop the domestic software industry, prioritizing the demand, software and hardware compatibility of Russian IT products.

According to statistics provided in the roadmap "New Industrial Software," by the beginning of 2022 there were 1,323 CAD and PLM programs in Russia. Developers must increase their number to 2082 by 2024, and by 2030 - to 3669. According to the document, by 2025 the share of Russian industrial software should grow from 41% to 58%, and by 2030 it should be 90%.

The financial component of the development of 2,300 engineering programs in the roadmap is given only partially. It says that the volume of extrabudgetary funds in the period from 2020 to 2025. should amount to 30.4 billion rubles, plus another 9.6 billion rubles for that time should be invested by Rosatom^[3]

Russian CAD developers asked the government for 30 billion rubles of state support

In April 2022, the Basis consortium (among the founders are the developers of the system software ASCON, Scan, Eremex, Omega, the Institute of Engineering Physics and the Association of Electronic Engineering) sent a proposal to the Ministry of Digital Development to develop a strategy for the development of Russian computer-aided design (CAD) systems.

We are talking about the creation of Russian CAD systems that can be used to design electronics. As the Kommersant newspaper reported in early May 2022, the project could take from 20 to 30 billion rubles.

Russian CAD developers asked the government for 30 billion rubles of state support

In the current situation caused by the start of the Russian special operation in Ukraine and the subsequent Western sanctions, foreign CAD developers such as Synopsys, Cadence and Mentor Graphics stopped selling new licenses in the Russian Federation. At the same time, already purchased products will not be updated. In this regard, the creation of domestic analogues is required.

Experts interviewed by the publication say that Russia has solutions for designing individual electronics elements, but there is no software with which to develop processors, and in the near future it is unlikely to appear. The creation of such software can take at least two or three years.

The head of the board of directors of BASEALT, Alexei Smirnov, in a conversation with the publication, added that CAD for the development of microelectronics, as a rule, contain components focused on specific plants.

The Ministry of Industry and Trade emphasized to the newspaper that Russia has "a traditionally strong school for the development of CAD," but domestic programs "do not cover the entire list of necessary tools."

Now there is such a situation when a number of our iron developers critically depend on the American CAD on which they work, "said Vasily Shpak, deputy head of the Ministry of Industry and Trade, in March 2022.[4]

Sales of Russian engineering software in a state-owned company in 2021 increased by 50%

The total volume of state purchases of engineering software in 2021 increased by 19.4%, from 3.6 billion to 4.3 billion rubles. Moreover, purchases of domestic engineering software increased by 47.6%, from 927.6 million to 1.37 billion rubles, while sales of foreign software increased by only 7.4%, from 2.7 billion to 2.9 billion rubles.

The total number of purchases in 2021 increased by 16%, from 417 to 482. In terms of the number of transactions, domestic engineering software has already "overtaken" foreign software: 51% of the tenders played are purchases of Russian solutions, 49% - foreign ones. Such figures with TAdviser were shared by ASCON.

In 2021, more Russian engineering systems were delivered to the public sector than foreign ones. Photo - MC "Phoenix"

The largest supplier to the domestic market was the American company Intergraph, which supplies data visualization, design and modeling solutions. She won two tenders for Atomenergoproekt for a total of 679.7 million rubles.

The second place in terms of public procurement in 2021 was taken by Ansys, which promotes the eponymous software system of finite element analysis on the Russian market. She sold 584 million rubles to government software agencies. In third place is Bentley Systems, which earned 309.7 million rubles on the Russian public sector. Autodesk and Aveva earned slightly less in 2021, 306.5 million and 305.4 million rubles, respectively.

In March 2022, Intergraph, Ansys, Autodesk and Aveva announced their withdrawal from the Russian market. In contrast, Bentley Systems assured that it would continue to work in Russia.

The revenue of the largest domestic suppliers of engineering software - Ascona, Nanosoft and RFNC-VNIIEF - from government contracts of 389.6 million, 387.6 million and 212.2 million rubles, respectively.

As the chief engineer of one of the enterprises near Moscow noted, official purchases do not quite correctly characterize the engineering software market, Russia since not only private, but also state-owned companies often use unlicensed software. According to him, it is difficult to assess the level of piracy in the country. But it's not just our problem. Even Western industrial groups purchase new versions of engineering software only in extreme cases, as it is very expensive. Often, engineers of the world's largest giants work in systems that have not been updated for 3-5 years.

A domestic PLM complex for mechanical engineering has been created. By 2025, aircraft and shipbuilders will be able to use it

Russian enterprises massively use foreign engineering software - Siemens, Dassault Systemes, Autodesk, etc., because there are no domestic fully functional analogues of heavy PLM complexes in Russia. Those Russian solutions that are available on the market so far close only a part of the functionality of foreign CAD, CAE, CAM, CAPP, MES, PDM, PLM and other engineering systems. With their help, until recently, it was impossible to create complex projects that included millions of parts, for example, turbines, aircraft, sea and river ships.

In 2015, Russian engineering software developers merged into the Development consortium in order to evolutionarily assemble a fully functional PLM complex from individual systems and solutions based on their own geometric core, which can compete with Western developments. As of 2022, Development includes ASCON, TeSIS, Eremex, ADEM, APM and Sigma Technology. The partners of the consortium are Laduga, SeaProject, Digital Manufactory.

Alexander Golikov, Chairman of the Board of Directors of ASCON Group of Companies, said that in 2019 the consortium published a roadmap for the creation of a heavy PLM complex. By April 2022, a solution has been created that allows you to design high-complexity engineering products. It is being tested at production, after which it will be finalized. According to him, the Russian PLM complex can already be used in mechanical engineering. Read more here

2021: A consortium of CAD developers has been created in Russia

July 6, 2021 it was announced the creation Russia Consortium of systems in Russian developers. CAD/CAE The corresponding agreement was concluded by the general director of RuSat - Digital Solutions Vera Gurova LLC, the head of the FSUE department Sergei VNIIEF Aksenov, the managing director of the Engineering and Technical Center DZHET JSC Alexei Kovalevich, the general director of CJSC, the Top Systems Sergey Kuraksin general director of LLC, and the 3V Service Vyacheslav Petukhov deputy general director for sales of LLC. Fidesys These companies were Maxim Sonnov the first to enter the consortium. More. here

2020

New CAD electronics standards will be created in Russia to replace those developed in the 80s

Rosstandart created a technical committee (TC) 165 "Computer-Aided Electronics Design Systems" on the basis of the Asonika Research Institute. The corresponding order was posted on the official website of the department at the end of April 2020.

According to the head of the committee, general director of the Asonik Research Institute Alexander Shalumov, the committee has already held its first meeting remotely, within which it plans to develop more than 40 new standards over the next three years. According to Shalumov, these documents "should fill the gap existing in Russia" in the field of standardization of CAD electronics. The head of Asonika did not specify exactly what standards the committee plans to develop.

Before the creation of the TC, Alexander Shalumov developed and submitted to Rosstandart a roadmap for the development of "CAD electronics above the world level," the key provisions of which subsequently formed the basis of the committee's program of activities.

In the process of preparing my proposals on CAD electronics for the working group of the Ministry of Industry and Trade to develop a strategy for the development of electronics until 2030, I drew attention to the lack of modern CAD standards. I found that the last standards were developed in the 80s. And they are hopelessly outdated, "Alexander Shalumov told TAdviser.

To create new standards, a strategy for their development was needed. It was included in the roadmap, after which it was reviewed and supported by Rosstandart.

I was asked to create a CAD Electronics TC to solve the problem with standards, "Alexander Shalumov informed TAdviser.

Before the creation of the TC, Alexander Shalumov developed and submitted to Rosstandart a roadmap for the development of "CAD electronics above the world level," the key provisions of which subsequently formed the basis of the committee's program of activities. (photo - forum.43oh.com)

In addition to the Asonika Research Institute, the created committee included such organizations as:

• Skolkovo Foundation;
• "Helicopters of Russia";
• Russian Technological University MIREA;
• Ostek Electro;
• "ASKM Progress."

Sergey Ilyin, General Director of ASKM Progress, has been appointed Executive Secretary of TK 165.

The tasks of the committee include the following initiatives related to the CAD of electronics:

• formation of a program for creating national profile standards;
• consideration of proposals for the application of international and regional standards at the national and interstate levels;
• conducting scientific, technical, legal and regulatory examinations of draft national and interstate standards and draft amendments to existing standards, as well as submitting them for approval to the relevant federal executive body;
• regular verification of the national and interstate standards in force in Russia and assigned to them in order to identify the need to update or cancel them;
• assessment of the feasibility of approval of preliminary national standards assigned to the TC as national standards of Russia based on the results of monitoring their application;
• consideration of proposals on the abolition of national and interstate standards in force in Russia and assigned to the TC and proposals on the unilateral termination of the application of interstate standards in Russia;
• consideration of proposals for the development of international standards, including on the basis of national and interstate standards enshrined in TC 165;
• expert examination of official translations into Russian of international and regional standards, national standards and codes of practice of foreign countries;
• prepare conclusions on the possibility of applying international and regional standards, national standards and codes of practice of foreign countries in the field of CAD electronics to confirm compliance with the requirements of technical regulations and include these standards and codes of practice in the relevant lists of technical regulations.

The roadmap for the development of "CAD electronics above the world level" was published by Alexander Shalumov for public discussion on the official website of the Asonika Research Institute on January 9, 2020. According to him, the document was also sent for consideration to "all interested parties, and above all - developers and users of CAD electronics." Who exactly Shalumov did not specify.

According to the results of public discussion, which was planned to be completed on March 31, 2020, the head of Asonika hoped to make the final version of the roadmap. Further, Shalumov planned to publish a roadmap on the website of the Asonika Research Institute and send a link to the document to various state structures interested in CAD electronics, as well as to heads of concerns, corporations, enterprises, universities that are potential consumers of these systems.

However, as of April 28, 2020, the roadmap is still at the stage of public discussion and the date of its appearance in the final version is unknown.

I received official letters from key market players. With some of them, I held face-to-face meetings on their territory. For example, with the Ministry of Industry and Trade, which is most interested in everyone. But I would like to discuss the roadmap with a number of leading enterprises, including Russian Space Systems, "Alexander Shalumov told TAdviser.

At the same time, from his words it follows that after appearing in the final version, the road map can be changed.

The roadmap is a dynamic document, and it will constantly develop as new proposals become available and as new tasks appear in the field of CAD electronics, "said Alexander Shalumov.

Russian manufacturers of engineering software began to win the market from foreign developers

The total volume of purchases of foreign and Russian engineering software for government agencies and state-owned companies in 2019 remained at about the same level in monetary terms as a year earlier, but at the same time the volume of purchases of domestic software and the share of local manufacturers grew. This is evidenced by the results of the annual monitoring of the official portal of public procurement of Zakupki.gov.ru conducted by the Russian software developer "ASCON." The company shared them with TAdviser in March 2020.

Foreign manufacturers continue to lead, but the gap is narrowing

The calculation was made at the final purchase price. The analysis of "ASCON" showed that the volume of purchases amounted to 3.66 billion rubles against 3.71 billion rubles in 2018. This means a decrease of 1.4%. And the number of purchases for 2019 amounted to 452, which is 13% less than the previous year.

The volume of purchases of foreign engineering software is 2.8 billion rubles against 2.97 billion rubles in 2018, which is 5% less than in the previous year. The volume of purchases of Russian software increased by 13.7%, to 847 million rubles.

The share of Russian manufacturers of engineering software in 2019 amounted to 45% in terms of quantity and 23% of the total amount of all purchases in rubles. This is the highest figure for 2016-2019, according to ASCON.

The leader among foreign manufacturers of engineering software is Siemens PLM. In 2019, customers purchased its software for 892 million rubles. This is 7% lower than in 2018. In second place is Intergraph with a procurement volume of 539 million rubles, an increase of 10%. As last year, Ansys ranks third, the volume of purchases amounted to 362.3 million rubles, but it decreased by 8.5% by 2018.

Of the Russian organizations, the Development consortium retains the first place in terms of share in money with an indicator of 41.4%. It includes the companies ASCON, Tesis, Adem, NTC APM, Eremex. The main share in this indicator is occupied by ASCON - 35.3%. The consortium's share in the total volume of purchases of foreign and Russian engineering software amounted to 9.5% in 2019. The indicator remained at the level of 2018.

The volume of purchases of CSoft (includes CSoft and Nanosoft) among Russian manufacturers of engineering software in 2019 amounted to 32.7%.

The largest acquisition of software through public procurement in 2019 was the contract of the engineering company ASE (part of Rosatom) for the supply of Intergraph and CAXperts software in the amount of about 525 million rubles. It is followed by the purchase of Gazprom Design in the amount of about 154 million rubles. The company acquired TDMS software from CSoft.

Why the share of Russian manufacturers is growing

Director of Strategic Development of ASCON Evgeny Bakhin believes that the trend towards an increase in the share of Russian manufacturers in the procurement of engineering software with several processes. Firstly, this is a very serious increase in functionality and industry applications in many domestic software products, he said.

Since 2014-2015. Large high-tech corporations and integrated structures in the Russian industry have become more open for dialogue with the Russian IT industry, have shown their tasks and their requirements for IT support for the design, production and life cycle of complex products, says Evgeny Bakhin. - In response, the development companies began to quickly work out these more complex tasks in the new engineering software, began to cooperate to create powerful end-to-end solutions, increased their competencies for large implementation projects, including with the replacement of previously used foreign IT solutions.

Secondly, a certain consensus has developed among the largest high-tech industrial companies, specialized federal educational institutions, leading technical universities, and the IT industry, Bakhin believes. First of all, it developed for defense industry enterprises, and then began to expand to the entire industry of the Russian Federation. In the current external conditions, the phased expansion of the use of domestic IT solutions and, in general, its own solutions for the digital industry is a strategic life necessity for the preservation and development of the entire high-tech engineering of the Russian Federation and related industries.

Thirdly, digitalization no longer needs to be advertised, specially promoted, convinced by the leaders and chief specialists of enterprises. They had the time and opportunity to deeply understand the possibilities and limitations of IT solutions at their enterprises, to develop normal and pragmatic strategies for their application, to get acquainted with both hype and real practical experience both domestically and in the world, - says the director of strategic development "ASCON."

In this regard, domestic development companies are expected to implement complex but feasible requirements, compliance with the level of quality and industrial reliability of software, a deep understanding of the specifics of industries and their products, and the ability to carry out complex and distributed projects for creating and maintaining corporate IT systems.

Anna Shevchenko, Marketing Director of Nanosoft Development, says that the growth rate of the share of domestic software in procurement is steadily increasing every year. This is due to state policy, a number of regulatory measures, support for domestic developers. Increasing profits allows domestic manufacturers to invest more in development, quickly develop products, adapt them to the peculiarities of Russian customers.

The situation is also affected by the rise in prices for products of Western producers and their systematic policy to change the licensing system, for which many Russian enterprises are not yet ready, Shevchenko said.

From negative factors: often skeptical attitude of customers towards Russian products. But we are working on it, and overall we see great prospects. So, in general, we believe that the growth corresponds to the readiness of the market for the transition to domestic products, - says the representative of Nanosoft Development.

Using the example of their company, Nanosoft feels the support of the state at several levels, added Anna Shevchenko. Firstly: recommendations on import substitution for large industrial enterprises and state corporations. They do not always work, but in general the dynamics are obvious.

Secondly, subsidizing small and medium-sized businesses for the purchase of domestic software. And, thirdly, financial support for the development and implementation of domestic engineering software within the framework of a scientific, technical and innovation policy.

The share of imported engineering software in state-owned companies continues to be high, but tends to decline "(photo - plm-ural.ru)"

Rosatom, which is developing its own software, including engineering software packages that are also offered to the external market, believes that the result identified by ASCON looks optimistic, but there are no fundamental changes in the strategies of domestic companies.

The basis for purchases of foreign software was technical support from the vendor and the "extreme" purchase of license packages to complete previously launched projects. Developers of domestic engineering software are just starting to create ecosystems in many market sectors. The result would be much better with a developed consulting infrastructure, "Yevgeny Abakumov, director of the Rosatom IT department, told TAdviser.

In his opinion, changes in the market structure are associated with two widely known factors: precedents of the refusal of foreign companies to sell license packages and comprehensive state support for domestic developers.

State support is differential and designed for a long period. Evgeny Abakumov believes that we will see more significant results in the future for 3-5 years, when engineering software will be organically integrated into the business processes of enterprises.

It should be noted that the import substitution strategy in the field of engineering software does not rely on simple replacement of software packages, but on the targeted development of scientific and production technologies, - added the director of the IT department of Rosatom.

What to expect from 2020

Evgeny Abakumov from Rosatom believes that the trend of import substitution has only emerged in 2019. If this year it turns out to establish the work of engineering and IT consulting in the field of introducing new production technologies based on domestic solutions, the growth rate of purchases of Russian engineering software should go to another level, he said in a conversation with TAdviser.

How the situation will develop in the economy of the Russian Federation and in the global economy, no one knows for sure, only estimates and a set of potential scenarios are possible, believes Evgeny Bakhin from ASCON. And the key question is not at all in the course of the dollar, euro or yuan: this only partially affects.

The fundamental question for 2020 is whether we will begin in the Russian Federation and the EAS to revive our own self-sufficient technological zone and a generally self-sufficient market for the consumption of our industrial products. This requires only a few things, big: money, engineering and working personnel, tough protection of their market, - said Bakhin. - If we go in this direction, then there will be a huge amount of work for everyone who is connected directly with the design and production, and with the maintenance of these tasks. Because even not even frontal, but at least in several priority industries, production growth will require huge efforts, including from suppliers of engineering software, enterprise management systems, and so on throughout the list of IT solutions.

If there is no movement in this direction or there will be a pause, then tactical factors will influence: individual programs to support industries, preservation of financing in the defense industry, exchange rates, regulatory influence of the state on the priority use of domestic IT systems, etc. But, of course, the general state of industry will dominate, as a result of the situation in the Russian economy, says the representative of ASCON.

Anna Shevchenko from Nanosoft Development believes that the share of domestic engineering software in the total volume of purchases will grow. At the same time, the crisis is always a time of rapid growth in efficiency, quick and productive solutions, she added.

2016

Foreign engineering software continues to lead state-owned companies by a wide margin

In 2016, imported engineering software continued to lead by a wide margin over domestic procurement of government agencies and state-owned companies. This is evidenced by the results of the annual monitoring of the official portal of public procurement of Zakupki.gov.ru, which was conducted by ASCON.

The company tracked purchases of engineering software products of various classes and services for their implementation, technical support and training of users. The statistics included purchases of foreign software with a starting price of 1 million rubles and domestic - with a price of 500 thousand rubles. At the same time, only the purchases that took place were taken into account, where the supplier was determined and the protocol was posted.

ASCON calculated that over the year foreign software and related services were purchased in the amount of about 3.5 billion rubles, while for Russian software the same figure is about 742 million rubles. Siemens PLM Software became the leader in public procurement - its software counted public procurement in the amount of more than 1.3 billion rubles as part of 56 tenders. It is followed by Intergraph with purchases of 610 million rubles in 11 tenders. In third place is ASCON with 83 purchases totaling 304 million rubles.

Siemens PLM products are very popular in Russian state-owned companies

The largest purchase took place in the daughter of Rosatom - Atomkomplekt. For 549.8 million rubles, she entered into an agreement with Neolant for the supply of licenses and the provision of technical support services for Intergraph software. About 400 million rubles in several purchases acquired Siemens PLM software "AK named after S.V. Ilyushin." Sukhoi also acquired software and technical support from the same manufacturer for about 260 million rubles in several purchases.

State departments practically do not use engineering software, therefore, the existing legislative measures of state support for the domestic engineering software sector have a minimal impact, believes Andrei Seravkin, executive and commercial director of CSoft Group of Companies. Additional initiatives of the state to stimulate import substitution of software in companies with state participation began to work towards the end of the year and also could not significantly affect its results, he said.

Among the reasons that slow down the more active transition to Russian engineering software, Seravkin calls the rather high inertia of state-owned companies and the public sector - they need time to reorient budgets planned for a specific software manufacturer. In addition, it is often impossible to painlessly refuse to purchase technical support for Western software without previously introducing a domestic analogue without stopping the production process. Another deterrent is that part of the tasks today is more effectively solved using Western technologies. Although, the representative of CSoft notes, all the tasks in which mass solutions are used are quite on hand for domestic developers today.

We work with many customers who simply could not plan budgets in favor of domestic software, and have import substitution plans in the near future. Also last year, many pilot projects were held or launched to analyze the capabilities of Russian software in comparison with the Western software used. The results of such projects and tests are quite successful, so I expect that in the next two years the number of major transactions for the purchase of Russian engineering software and the market share of domestic manufacturers will increase significantly, "said Andrei Seravkin in a conversation with TAdviser.

In the Nanosoft company, about half of its sales are broadly attributed to the share of state-owned companies and the public sector. Denis Ozhigin, technical director of Nanosoft, does not think that state-owned companies are very different from other design organizations, and the problems of switching to domestic software for design, in his opinion, are common to everyone. Among the factors holding back a more active transition to domestic software, it highlights the level of development of Russian software - Russian CAD launched much later than Western ones. Another factor is the complexity of the software, and therefore it takes time and methodical work to implement it. The transition and weak efforts in the field of Russian software development, as well as fear of changes in organizations, are restrained.

In addition, the more complex the subject area, the more time it takes to change. Now the process of switching to Russian software is underway, but it is difficult to make it in 3-5 years, notes Denis Ozhigin. More time is needed for software development, training of specialists, implementation, revision. We need a self-developing market. It just started to add up.

In the near future, against the background of state initiatives in the field of import substitution, Nanosoft expects a change in the situation with the purchase of domestic engineering software.

Import substitution creates that revolutionary prerequisite, a push that helps change the situation in the software market. The most important thing that should create import substitution is to encourage the market to find Russian solutions. The search will lead to competition, and competition will lead to the emergence of new solutions on the market, - said TAdviser technical director of Nanosoft.

The Russian office of Dassault Systèmes noted that import substitution initiatives were also taken in other large countries, for example, in China, where the company has been operating for a long time.

Thanks to our locally established portfolio, companies and government agencies have made a fundamental decision to use our software and industry solutions, including in strategically important institutions, the company said.

Procurement of engineering software in the 1st half of the year

Despite state initiatives to stimulate import substitution of software, in the field of engineering software, purchases of foreign products continue to prevail over domestic ones by a significant margin in terms of quantity and price. This is indicated by the monitoring data of the official Zakupki.gov.ru portal conducted by ASCON.

The company calculated how many purchases of foreign CAE/CAD/CAM PLMPDM and/systems and their support services were placed in the first half of 2016 with an initial price of 1 million rubles and a Russian price of 500 thousand rubles. During the specified period, foreign software accounted for about 125 trades totaling over 2.1 billion rubles. In the case of Russian software, similar indicators amounted to about 95 placed trades totaling about 188 million rubles.

The largest purchases of foreign engineering software - with an initial price of over 100 million rubles - are made mainly by state corporations such as Rosatom, Rostec, Gazprom and their subsidiaries. The largest one-time purchase of foreign software in six months was made by the subsidiary of Rosatom, Atomkomplekt. For 549.8 million rubles, she entered into an agreement with Neolant for the supply of licenses and the provision of technical support services for Intergraph software . Among the largest purchases is also a tender for the supply of Siemens products with an initial price of 290 million rubles for AK named after S.V. Ilyushin.

Domestic software cannot fully cover all design needs both in industry and in construction, Denis Marinich, director of the CAD/GIS department at Softline, said in a conversation with TAdviser, speaking about the reasons for the current situation with import substitution. Over the past 25 years, Russian companies have actively used foreign software and have accumulated a huge intellectual baggage of data, which practically cannot be translated or adapted by domestic products, he said.

Denis Marinenkov, director of the engineering models division of the Neolant Group of Companies, believes that it is incorrect to say that Russian customers are inactive in import substitution: they do not always have the opportunity to choose. There is a situation on the Russian software market when the main part of the engineering software products necessary to perform complex technical calculations is indeed developed abroad, he notes. As an example, he cited software used in geology and field development.

There are many examples when one import solution for functionality is covered only by the joint use of several Russian analogues. But to do this, the customer must change the technology chain, integrate several new products into their business processes, ensure their integration and joint interaction. This is money, time and experienced specialists, which are not always enough in the Russian market, - says the representative of Neolant. - The transition to a new Russian engineering complex, even if it is cheaper, is not an easy task. This fact gives a potential customer a formal reason to abandon domestic development in favor of foreign software.

Denis Marinenkov added that the transition to a new software product is also a retraining of people, loss of time, money and, worst of all, a decrease in production rates and high risks of erroneous decisions in new software. Not all customers are ready for this, so they continue to buy imported software, he said.

The opinion of a colleague from Neolant is shared by Anastasia Morozova, CEO of Autodesk in Russia.

Companies have trained employees to work with the product, employees have developed certain habits, large developed bases and archives have already been created, practices have been obtained to include new employees in the work process. In order to break all this and switch to new software, even close in fact, huge investments are needed, and significant changes within the company that need to be managed, and, which is extremely important, you need to clearly understand why what has been breaking for a long time and successfully works, "Morozova believes.

ASCON CEO Maxim Bogdanov notes that there are tasks that are not yet closed by domestic products, but even in this case there are a lot of opportunities for their use. In his opinion, the company pushes economic feasibility and security considerations to replace foreign engineering software. As a rule, market, commercial enterprises are guided by economic expediency for three main reasons, Bogdanov believes: "a significant increase in the cost of owning foreign software and new jobs due to a change in the exchange rate; the transition of a number of foreign vendors from the sale of licenses to a subscription model unfavorable from the point of view of customers; sanctions, the existing risk of refusal to support foreign software. "

According to Bogdanov, the economic factor does not work with large industrial corporations, most of which are related to the state: for decades they have invested in the introduction of foreign CAD and PLM systems and so far do not lack funds for IT. Foreign software is purchased here in large volumes and for several years in advance.

The general director of ASCON added that the security factor is still weak, with the exception of cases of inclusion in the sanctions list and difficulties in updating. The regulations for the use of imported software in closed circuits have not been tightened, there is also no forced motivation in the form of pressure from government agencies, procurement control, he says. For there to be a real result, it is necessary to build a long-term policy with an eye on 20 years in advance, Bogdanov said.

Conversations about import substitution of software, including engineering, have been going on since 2014 and various steps are being taken to speed up this process. Recognizing that the existing domestic software is able to close not all engineering tasks and put forward initiatives for projects to develop solutions with broader capabilities.

Funding for such initiatives is estimated at large sums. So, in 2014, the Kazan Aviation Institute (KNITU-KAI named after Tupolev), MSTU named after Bauman and the Republic of Tatarstan announced^[5] to create a consortium for the development of domestic engineering products of the full cycle, estimating the necessary amount of funding from the budget at 61.7 billion rubles in the period until 2021. In 2015, Russian development companies submitted^[6] Mass] Communications in the Ministry of Communications for state financing of the development of various types of domestic engineering software.

As of mid-2016, measures to support such events are still under development. In July, First Deputy Minister of Industry and Trade of the Russian Federation Gleb Nikitin reported^[7] Industry and Trade, that the Ministry of Industry and Trade, together with the Ministry of Communications, initiated the development of a draft subprogram "Development of domestic engineering software," which will combine a set of measures aimed at the formation and development in Russia of an innovative and sustainable engineering software market, as well as support for domestic developers.

2013: IDC forecast - sales growth of no more than 15%

Industrial production continues to decline in Russia, which negatively affects the consumption of computer-aided design (CAD) software products, and IDC analysts expect that the growth of the Russian engineering software market in 2013 will not exceed 15% compared to 2012.

2012: Market Size $204.6 Million

The volume of the Russian engineering software market in 2012, according to IDC research, increased by 20.2% in monetary terms, compared to 2011 and reached $204.6 million. The main share of the Russian market in 2012 was controlled by large international suppliers.

Investments in the construction industry and industrial production became the main factors in the growth of the Russian engineering software market in 2012. A positive impact on the market was also the need for automation and optimization of space and infrastructure management in large enterprises.

According to earlier forecasts of IDC, the volume of the Russian engineering software market was supposed to increase in 2012 by 18% compared to the level of 2011 due to continued investment in industrial production and construction. According to the forecasts of Softline, by the end of 2012, the market was expected to grow more than in 2011, which, according to Alexei Sidorov, Head of Engineering, CAD Department\GIS Softline, is associated with the establishment of political stability in the country.

According to the estimates of RTS Russia General Director Alexander Tasev, for 2012 the growth of certain engineering industries was expected to be higher than the average 18%.

"For example, transport and military-industrial complex will develop faster due to state investment programs. Infrastructure projects will also grow, in particular, railway transport thanks to major events in Russia. In addition, many industrial managers have become aware of the business benefits that PDM (PLM) systems bring. This understanding can lead to further growth, "the expert predicted

2011

Market size $162 million (+ 23.8 %)

According to IDC, the Russian engineering software market in 2011 grew by 23.8% in monetary terms compared to the previous year and reached $162 million. Most of the market participants surveyed by TAdviser agreed with this assessment.

In 2011, one of the key factors affecting the development of this segment of the software market was a significant increase in prices for raw materials, primarily energy, noted in 2011, which contributed to the influx of investments in the modernization of industrial production and in the construction industry.

In addition, the low base factor and initiatives of some engineering software manufacturers to legalize unlicensed software still have their influence, IDC experts say.

The growth rate of 23.8% is due to a greater extent to the effect of a low base among most international suppliers, according to ASCON. "All the figures given in the study describe the average pattern. Some of the players had large contracts last year, others were transferred to this one, "company representatives commented on TAdviser.

In general, Alexander Tasev, General Director of RTS Russia, also agrees with the results of the study. "I would like to clarify that the IDC methodology includes the calculation of the net income of engineering software vendors. If we take into account the participation of system integrators, then the market volume is much larger, "said the top manager of RTS.

Market segments

Some functional segments of the engineering software market in Russia are less saturated than more mature markets, "said Viktor Tsygankov, IDC software market analyst.

According to him, the need to modernize the fixed assets of industrial enterprises and construction organizations can have a positive impact on the consumption of software for joint management of product data and applications for automation and support of electronic development, management of data on architectural and engineering structures and other engineering functions.

Vendor Items

The main share of the Russian engineering software market in 2011, according to IDC, was controlled by large international suppliers. The shares of vendors in this market in IDC are not disclosed.

From the reports of vendors it is known that, for example, the developer of CAM systems, the English company Delcam announced revenue in Russia in the amount of $3 million in 2011 (an increase of 30% per year). Indirectly, Autodesk's results can be judged by an official press release on the results of the first quarter: in emerging markets, which include Russia and the CIS, - 6% growth.

Another major vendor, RTS Corporation, in the spring of 2012 announced sales growth of 45% in Russia in the segment of industrial business platforms of the PLM class. In early 2012, the Russian office of RTS signed several more large contracts with leading Russian companies.

The largest among domestic players in the Russian engineering software market is ASCON. In the first quarter of 2012, ASCON showed 30% revenue growth, while IDC speaks of a slowdown and predicts it at 18% for 2012.

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• CAD (Global Market)

Notes