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How big is the market? And how easily users will switch given if they are comfortable with the existing software?

by var1234 11y ago

chroem- 11y ago
Excellent questions! Engineeing services have 167 billion dollars of annual revenue in the US, and 773 billion globally. Because this software augments engineers' productivity while simultaneously improving the quality of their work, we expect to be able to achieve an appreciable percentage of that revenue number at full maturity. Current adoption of topology optimization software in industry is negligible for the reasons mentioned earlier. Only the largest players in the market have access to it, and even then it's only applied to a limited domain of problems. Our goal is to bring this technology into wider adoption in industry by making it more financially accessible. We are aiming at small and medium sized engineering firms. We also plan to integrate this software with the CAD platforms which our users are already familiar with, by offering a selection of plugins for these existing software packages.
- petra 11y ago
  First, I really like your startup, best of luck with it :) >> Only the largest players in the market have access to it, and even then it's only applied to a limited domain of problems In that case, why it's applied only to a limited domain ? It's not a financial issue, the fixed costs are already paid ? Or in most cases capacity if full and it would require expensive purchases ?
  - chroem- 11y ago
    Thanks! Most licensing is done on a per-seat basis for existing solutions. Additonally, the firms capable of swallowing the initial capital cost tend to be quite large and segmented into multiple divisions, e.g. Boeing or General Electric. Different divisions have different priorities within the company, different operating budgets, etc. Often a division's revenue won't be enough to justify the investment.

How big is the market? And how easily users will switch given if they are comfortable with the existing software?

by var1234 11y ago

How big is the market? And how easily users will switch given if they are comfortable with the existing software?

Excellent questions! Engineeing services have 167 billion dollars of annual revenue in the US, and 773 billion globally. Because this software augments engineers' productivity while simultaneously improving the quality of their work, we expect to be able to achieve an appreciable percentage of that revenue number at full maturity. Current adoption of topology optimization software in industry is negligible for the reasons mentioned earlier. Only the largest players in the market have access to it, and even then it's only applied to a limited domain of problems. Our goal is to bring this technology into wider adoption in industry by making it more financially accessible. We are aiming at small and medium sized engineering firms. We also plan to integrate this software with the CAD platforms which our users are already familiar with, by offering a selection of plugins for these existing software packages.

petra 11y ago
First, I really like your startup, best of luck with it :) >> Only the largest players in the market have access to it, and even then it's only applied to a limited domain of problems In that case, why it's applied only to a limited domain ? It's not a financial issue, the fixed costs are already paid ? Or in most cases capacity if full and it would require expensive purchases ?
- chroem- 11y ago
  Thanks! Most licensing is done on a per-seat basis for existing solutions. Additonally, the firms capable of swallowing the initial capital cost tend to be quite large and segmented into multiple divisions, e.g. Boeing or General Electric. Different divisions have different priorities within the company, different operating budgets, etc. Often a division's revenue won't be enough to justify the investment.