Electronic Design Automation Market Size, share & Analysis

Updated on : Sep 12, 2024

Electronic Design Automation Market Size, Share & Growth

[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

To know about the assumptions considered for the study, Request for Free Sample Report

Electronic Design Automation Market Trends & 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

To know about the assumptions considered for the study, download the pdf brochure

Top Companies Electronic Design Automation Market

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).

Want to explore hidden markets that can drive new revenue in Electronic Design Automation Market?

Unlock Insights

Scope of the Report

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

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):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst