Electronic Design Automation Market by Product Category (CAE, Semiconductor IP, PCB & MCM), Deployment Mode(On-premises, Cloud-based), End-Use Application, End User (Consumer Electronics Industry, Automotive, Healthcare), Region - Global Forecast to 2028
[263 Pages Report] The global electronic design automation was valued at USD 14.5 billion in 2022 and is estimated to reach
USD 26.2 billion by 2028, registering a CAGR of 9.8% during the forecast period. The increasing demand for complex integrated circuits (ICs) is driving the growth of the electronic design automation market. the advancement in technology has made it possible to produce smaller and more powerful electronic devices, such as smartphones, smartwatches, and laptops, which have become ubiquitous in our daily lives. Additionally, the increasing availability and affordability of high-speed internet connections have enabled the development of new applications and services that rely on these devices, such as streaming services, social media platforms.
Electronic Design Automation Market Forecast to 2028
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Market Dynamics:
Driver: Growing miniaturization in various industries
In today's era of advanced electronics, the trend towards miniaturization has allowed companies in various industries including healthcare, consumer electronics, aerospace and defense, automotive and others to develop compact electronic devices. These devices integrate miniaturized semiconductor components, such as surgical devices and blood glucose monitors in healthcare, fitness watches in wearable devices, automotive subsystems in the automotive industry, and smart baggage tags. Miniaturization has several benefits, including freeing up space for additional features and more effective batteries. The growing awareness among consumers for fitness is driving the demand for compact fitness devices like smartwatches and fitness trackers. As a result, companies are encouraged to develop innovative products with enhanced features, while researchers are focusing on cost-effective and reliable product development using electronic design tools.
In addition, the use of portable devices has become increasingly popular among media professionals due to the growing need for live coverage of various events such as riots, accidents, sports, and political events. Due to the impracticality of using bulky TV production trucks to reach these events, the demand for portable handheld devices has increased. These devices can be easily carried in backpacks and transported to the event location quickly. As a result, the demand for compact devices in different industries has created opportunities for the semiconductor industry to produce miniaturized components, which is having a positive impact on the electronic design automation market.
Restraint: Constant technological changes
The semiconductor industry is constantly evolving and is characterized by ever-changing technology. With each leap, new technologies are introduced that disrupt the market equilibrium. This trend also applies to the integrated circuit (IC) industry where the process nodes of a semiconductor chip play a crucial role. The change in nodes affects the complexity of chip design, form factor, and IP core design architecture. As a result, system-on-chip (SoC) design faces technical challenges related to device integration and the development of new design methodologies. As technology nodes continuously evolve, their sizes change, necessitating changes in IP core design architecture. To keep up with the changing technology, most semiconductor companies are enhancing their electronic design automation solutions to match the evolving needs.
Opportunity: Increasing demand for electronic design automation solutions in aerospace & defense industry
The aerospace and defense industry requires semiconductor chips and circuits that can function in high temperatures and radiations. Therefore, these chips need to be integrated into small, less dense form factors using special materials. Due to their critical nature, chips and circuits are tested rigorously to ensure they are efficient and resistant to failure as non-performance could have severe consequences. To meet the requirements of avionics systems, programmable chip platforms are rapidly being incorporated into semiconductors using enhanced electronic design automation solutions. Consequently, there is high demand for technical manufacturing processes with special functionalities, as well as extended product accessibility and support. Leading companies in the electronic design automation market, such as Synopsys, Cadence, and Siemens EDA, offer solutions tailored for the aerospace and defense industry. For example, Cadence Design Systems is an integrated circuit design supplier for aerospace and defense industry with Defense Microelectronics Activity (DMEA) accreditation. These factors are expected to create lucrative opportunities for the growth of the electronic design automation market in the near future.
Challenge: High complexity due to continuous technological changes and large volume of data
The ever-evolving nature of technology in the semiconductor industry leads to changes in chip sizes, necessitating alterations in IP core design infrastructure and resulting in design complexities and chip form factor. As a result, EDA providers frequently need to develop new design methodologies, creating challenges in the electronic design automation market. Furthermore, the increasing amount of data required for EDA solutions poses a challenge for vendors, who must keep up with the demand for faster processing due to accelerated development cycles in the semiconductor industry. Other hindrances to the growth of the electronic design automation market include increasing design complexity, on-demand compute requirements, the use of hybrid cloud for design workloads, and industry consolidation.
Electronic Design Automation Market Ecosystem
The electronic design automation market is consolidated, with major companies such as Cadence Design Systems, Inc., Siemens, Synopsys, Inc., ANSYS, Inc., and Keysight Technologies, Inc., and numerous small- and medium-sized enterprises. Almost all players offer a wide range of products, including computer-aided engineering (CAE), IC physical design & verification, PCB & MCM, semiconductor IPs, as well as services. These solutions are widely used in the automotive, healthcare, aerospace & defense, telecom and data center, consumer electronics industries, and the industrial sector.
Based on deployment on premise segment is expected to have highest market share during the forecast period.
The major share of the electronic design automation market is currently held by the on-premise segment, which is driven by the need to manage highly complex chip designs, vast datasets, and the low risk and complexity involved in migrating to new operational processes for chip design, manufacturing, and verification. Many semiconductor manufacturing companies are currently deploying on-premise electronic design automation solutions in their operational processes to improve their efficiency and productivity. Moreover, the on-premise segment provides better control over the entire design process, which is a critical factor in ensuring data security and intellectual property protection. Additionally, the on-premise solutions enable companies to customize the EDA tools based on their specific needs, which may not be possible with cloud-based solutions. However, the adoption of cloud-based solutions is also increasing rapidly due to the benefits it offers such as cost-effectiveness, flexibility, scalability, and ease of deployment.
Based on end use application, the memory management units segment is projected to record the highest CAGR during the forecast period.
Memory management unit is an essential component for efficient functioning of processors as it manages the memory accesses requested by the processor. With the increasing digitalization across various industries, there is a growing need for faster processors and efficient memory management tools. This has resulted in the memory management unit segment of the electronic design automation market expected to witness the highest CAGR during the forecast period.
Based on end user, consumer electronics industry end user held the largest share which is expected to continue during the forecast period.
The consumer electronics segment has dominated the electronic design automation market in recent years due to the increasing sophistication of electronics and rising demand for advanced gadgets such as smart TVs and smartphones. The segment is expected to continue its rapid growth during the forecast period, fueled by advancements in technology and rising disposable incomes across the world.
Based on region, Asia Pacific is projected to contribute the largest share for the electronic design automation market.
The Asia Pacific (APAC) region dominates the electronic design automation market, holding the largest share. This can be attributed to the strong foothold of the semiconductor industry in countries like China, Japan, South Korea, and Taiwan, which are major contributors to the growth of the EDA market. In addition, the presence of several semiconductor foundries, coupled with the rising demand for electronic devices and high-tech products, is expected to further fuel the growth of the EDA market in the APAC region.
Electronic Design Automation Market by Region
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Key Market Players
The electronic design automation market is dominated by a few globally established players such as Cadence Design Systems, Inc. (US), Synopsys, Inc. (US), Siemens (Germany), ANSYS, Inc. (US), Keysight Technologies, Inc. (US), Advance Micro Devices (US), eInfochips (US), Altium Limited (Australia), Zuken Inc. (Japan), Silvaco, Inc. (US).
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Report Metric |
Details |
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Market Size Availability for Years |
2019–2028 |
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Base Year |
2022 |
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Forecast Period |
2023–2028 |
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Forecast Units |
Value (USD) |
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Segments Covered |
By product category, deployment mode, end-use application, and end user, and region |
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Geographies Covered |
North America, Europe, Asia Pacific, and Rest of the world |
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Companies Covered |
Cadence Design Systems, Inc. (US), Synopsys, Inc. (US), Siemens (Germany), ANSYS, Inc. (US), Keysight Technologies, Inc. (US), Advance Micro Devices (US), eInfochips (US), Altium Limited (Australia), Zuken Inc. (Japan), Silvaco, Inc. (US). |
Electronic Design Automation Market Highlights
This research report categorizes the electronic design automation market based on product category, deployment mode, end-use application, and end user, and region
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Based on deployment mode: |
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Recent Developments
- In February 2023, Ansys has expanded the collaboration with Microsoft to increase the availability of the simulation solutions on Microsoft Azure cloud-computing platform. This provides the customers browser-based location independent access. It also deepens the commitment of Ansys to provide cloud-based access to advanced simulation solutions.
- In January 2023, Siemens Digital Industries has launched Questa- a verification IQ software which helps the logic verification team to overcome the challenges in design complexity of ICs. Questa is powered by artificial intelligence and helps to accelerate verification closure, optimize the resources, and streamline traceability.
- In November 2022, eInfochips has partnered with Ambarella, Inc., an edge AI semiconductor company to expand the design and development services for AI camera products.
- In November 2022, Siemens has acquired Avery Design Systems, Inc. which is a simulation-independent verification IP supplier. The company has planned to add Avery to Siemens portfolio as a part of electronic design verification (EDA) integrated circuits verification offerings.
- In June 2022, Keysight Technologies Inc. has launched PathWave Advanced Design System (ADS) 2023, which addresses design complexity and higher frequency in the radio frequency (RF) and microwave industry
Frequently Asked Questions (FAQ):
Which are the major companies in the electronic design automation market? What are their major strategies to strengthen their market presence?
The major companies in the electronic design automation market are – Cadence Design Systems, Inc. (US), Synopsys, Inc. (US), Siemens (Germany), ANSYS, Inc. (US), and Keysight Technologies, Inc. (US). The strategies adopted by these players are product launches, collaborations, and partnerships.
Which is the potential market for the electronic design automation in terms of the region?
The APAC region is expected to dominate the electronic design automation market due to the presence of largest semiconductor companies in the countries like China, Japan, and South Korea.
What are the opportunities for new market entrants?
There are significant opportunities in the electronic design automation market for start-up companies. With the rising need for miniaturized components, the demand for electronic design automation is also rising.
What are the drivers and opportunities for the electronic design automation market?
Factors such as increasing demand for complex integrated circuits (ICs) and growing demand for technologically advanced consumer electronics are among the driving factors of the electronic design automation market. Moreover growing adoption of cloud-based services to create lucrative opportunities in the electronic design automation market.
Who are the major end users of the electronic design automation that are expected to drive the growth of the market in the next 5 years?
The major end users of the electronic design automation are consumer electronics, automotive industry, and aerospace and defense industry are expected to have a significant share in this market.
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To estimate the size of the electronic design automation market, the study utilized four major activities. Exhaustive secondary research was conducted to gather information on the market, as well as its peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. Finally, market breakdown and data triangulation methods were utilized to estimate the market size for different segments and subsegments.
Secondary Research
In the secondary research process, various sources have been referred to for identifying and collecting information for this study on the electronic design automation market. Secondary sources considered for this research study include included corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers; certified publications; articles by recognized authors; directories; and databases. The secondary data was collected and analyzed to determine the overall market size, further validated through primary research.
List of key secondary sources
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SOURCE NAME |
WEBLINK |
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Chinese American Semiconductor Professional Association |
https://www.caspa.com/ |
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GaN Consortium |
https://www.gan-conso.jp/index.html |
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Global Semiconductor Alliance |
https://www.gsaglobal.org/ |
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MIPI Alliance |
https://www.mipi.org/ |
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Silicon Integration Initiative |
https://si2.org/ |
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SEMI ESDA |
https://www.semi.org/en/communities/esda |
Primary Research
To gather insights on market statistics, revenue data, market breakdowns, size estimations, and forecasting, primary interviews were conducted. Additionally, primary research was used to comprehend the various technology, application, vertical, and regional trends. Interviews with stakeholders from the demand side, including CIOs, CTOs, CSOs, and customer/end user installation teams using electronic design automation solutions, were also conducted to understand their perspective on suppliers, products, component providers, and their current and future use of electronic design automation, which will impact the overall market. Several primary interviews were conducted across major countries of North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
To estimate and validate the size of the electronic design automation market and its submarkets, both top-down and bottom-up approaches were utilized. Secondary research was conducted to identify the key players in the market, and primary and secondary research was used to determine their market share in specific regions. The entire process involved studying the annual and financial reports of top players and conducting extensive interviews with industry leaders such as CEOs, VPs, directors, and marketing executives. Secondary sources were used to determine all percentage shares and breakdowns, which were then verified through primary sources. All parameters that could impact the markets covered in this research study were accounted for, analyzed in detail, verified through primary research, and consolidated to obtain the final quantitative and qualitative data.
- Identification of the revenue generated by each company from electronic design automation solutions.
- Determination of the average selling prices of electronic design automation solutions globally.
- Conducting multiple discussion sessions with key opinion leaders to understand the various product categories in the electronic design automation market, their usage in different applications, and analyzing the work breakdown carried out by each key company.
- Verification and crosschecking of estimates at every level with key opinion leaders such as CEOs, directors, operation managers, and domain experts from MarketsandMarkets.
- Study of various paid and unpaid sources of information, including annual reports, press releases, white papers, and databases, to track the company and region-specific developments in the electronic design automation market.
The top-down approach has been used to estimate and validate the total size of the electronic design automation market.
- Initially, the focus was on top-line investments and expenditures within the electronic design automation ecosystem.
- The market was then divided based on product category, deployment mode, end-use application, and end user, and key developments in each area were listed.
- Major players in the electronic design automation market were identified through secondary research based on their product category, deployment mode, end-use application, and penetration in various end-user segments. The information was then verified with industry experts.
- Revenues, product mix, geographic presence, and key applications offered by all identified players were analyzed to estimate the percentage splits for all key segments.
- The splits were then discussed with industry experts to validate the information and identify key growth areas within all key segments.
- Breaking down the global market based on verified splits and key growth pockets across all segments
Data Triangulation
Once the overall size of the electronic design automation market was determined using the methods described above, it was divided into multiple segments and subsegments. Market engineering was performed for each segment and subsegment using market breakdown and data triangulation methods, as applicable, to obtain accurate statistics. To triangulate the data, various factors and trends from the demand and supply sides were studied. The market was validated using both top-down and bottom-up approaches.
Market Definition
Electronic design automation (EDA) solutions are utilized in the creation and development of electronic systems like integrated circuits (ICs) and printed circuit boards (PCBs). The domain of EDA solutions encompasses hardware, software, and services with the shared objective of aiding in the planning, definition, design, implementation, verification, and manufacture of semiconductor devices or chips. Although EDA solutions are not directly used in the production of chips, they play a crucial role in three ways. Firstly, electronic design automation tools are employed in designing and assessing the semiconductor manufacturing process to ensure that they offer the necessary performance and density. Secondly, they are utilized to verify that a design fulfills all prerequisites. The third aspect is still in its early stages, whereby monitoring of the device's performance from post-manufacturing testing to deployment in manufacturing process fields is required.
Key Stakeholders
- Component Manufacturers
- Government and Research Organizations
- HVAC Contractors
- HVAC System Providers
- HVAC Software and Service Providers
- Maintenance and Service Providers
- Original Equipment Manufacturers (OEMs)
- Professional Services/Solution Providers
- Research Institutions and Organizations
- System Integrators
Report Objectives
- To describe and forecast the size of the electronic design automation market in terms of value.
- To describe and forecast the size of the electronic design automation market based on product category, deployment mode, end-use application, and end user.
- To describe and forecast the market size for 4 key regions: North America, Europe, Asia Pacific (APAC), and Rest of the World (ROW) in terms of value.
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the growth of the electronic design automation market.
- To provide a detailed overview of the supply chain pertaining to the electronic design automation ecosystem, along with the average selling prices of electronic design automation software subscriptions
- To strategically analyze the ecosystem, tariffs and regulations, patent landscape, trade landscape, and case studies pertaining to the market
- To describe the detailed impact of the recession on the market
- To strategically analyze micromarkets1 with regard to individual growth trends, prospects, and contributions to the overall market
- To analyze opportunities in the market for stakeholders and provide a competitive landscape of the market
- To analyze competitive developments such as product launches, expansions, partnerships, collaborations, contracts, and mergers and acquisitions in the electronic design automation market
- To strategically profile the key players in the electronic design automation market and comprehensively analyze their market ranking and core competencies.
Available customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Detailed analysis and profiling of additional market players (up to 5)
- Additional country-level analysis of the electronic design automation market
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the electronic design automation market.
Generating Response ...
Growth opportunities and latent adjacency in Electronic Design Automation Market