Cloud Electronic Design Automation

Global Cloud Electronic Design Automation Market to Reach US$15.8 Billion by 2030

The global market for Cloud Electronic Design Automation estimated at US$10.6 Billion in the year 2024, is expected to reach US$15.8 Billion by 2030, growing at a CAGR of 6.9% over the analysis period 2024-2030. Computer Aided Engineering Type, one of the segments analyzed in the report, is expected to record a 8.8% CAGR and reach US$6.9 Billion by the end of the analysis period. Growth in the Semiconductor Intellectual Property Type segment is estimated at 4.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$2.9 Billion While China is Forecast to Grow at 11.2% CAGR

The Cloud Electronic Design Automation market in the U.S. is estimated at US$2.9 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$3.4 Billion by the year 2030 trailing a CAGR of 11.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.3% and 6.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.6% CAGR.

Global Cloud Electronic Design Automation (EDA) Market – Key Trends & Drivers Summarized

The global cloud Electronic Design Automation (EDA) market is undergoing rapid expansion, driven by the need for faster, scalable, and more collaborative semiconductor and electronic system design. Traditionally reliant on on-premise infrastructure, EDA tools are now being delivered via cloud platforms, transforming how engineers and design teams develop, simulate, verify, and test complex electronic systems. Cloud EDA enables seamless access to high-performance computing (HPC) environments, significantly reducing time-to-market for chip designs while optimizing compute costs. The shift is being accelerated by rising design complexity, increased demand for ASICs and SoCs, and the proliferation of AI, 5G, and IoT applications.

Cloud-based deployment allows for dynamic resource allocation, enabling engineers to access compute-intensive tools such as logic synthesis, physical verification, and emulation without local hardware constraints. Furthermore, the ability to collaborate globally in real time—especially in hybrid and remote work environments—makes cloud EDA a strategic priority for fabless design houses, IP vendors, and semiconductor foundries. As chip development cycles become shorter and product innovation cycles intensify, cloud EDA is increasingly seen as essential for achieving agility, innovation scalability, and development transparency.

How Is Technological Evolution Catalyzing the Shift Toward Cloud EDA?

Technological advancements in cloud infrastructure, virtualization, and container orchestration are catalyzing the adoption of cloud EDA solutions. Enhanced GPU and CPU capabilities offered by cloud providers allow for efficient simulation and modeling of highly complex architectures without the need for capital-intensive on-premise HPC clusters. Cloud-native EDA platforms are now leveraging Kubernetes and Docker for scalable workload distribution, enabling flexible deployment across hybrid cloud environments. This is particularly beneficial for iterative design validation, which often requires massive computational bursts during peak design phases.

Moreover, EDA vendors are increasingly offering their tools in SaaS and PaaS models, integrated with APIs and AI/ML modules that accelerate error detection, logic optimization, and layout verification. Features like auto-scaling, pay-per-use licensing, and secure data backup are further enhancing the commercial appeal of cloud EDA systems. Security, once a major concern, is being addressed through advanced encryption, zero-trust architectures, and secure multi-tenancy, encouraging larger enterprises to transition mission-critical design workloads to the cloud. This technological readiness is enabling rapid prototyping and concurrent multi-user access—two critical demands in today’s chip design landscape.

In What Ways Are Industry Verticals and End-Use Segments Adopting Cloud EDA?

Cloud EDA adoption is spreading across diverse end-use segments, with varying degrees of urgency and sophistication. Semiconductor and fabless chip companies are the primary adopters, leveraging cloud tools for logic design, timing analysis, and yield optimization in nanometer-scale nodes. These players benefit from faster simulation and verification cycles and improved design iteration throughput. Consumer electronics and mobile device manufacturers are also turning to cloud EDA to handle increasing demand for high-performance, energy-efficient chips required for next-gen wearables, AR/VR devices, and edge computing systems.

In the automotive sector, the transition toward electric vehicles and autonomous systems has intensified the demand for custom ASICs and high-reliability chips, prompting OEMs and Tier-1 suppliers to adopt cloud EDA for functional safety verification and hardware-software co-design. Additionally, aerospace and defense contractors are using cloud-based design workflows to enable secure, collaborative R&D across geographically dispersed teams. Even academic institutions and research labs are incorporating cloud EDA to teach modern VLSI workflows and run experimental design projects without needing expensive local infrastructure.

What Is Propelling the Growth of the Cloud EDA Market?

The growth in the cloud Electronic Design Automation market is driven by several factors closely tied to innovation demands, infrastructure scalability, and development agility. A key growth driver is the escalating complexity of chip architectures due to advancements in AI, machine learning, and high-bandwidth communication technologies. This complexity necessitates powerful simulation and testing environments, which are better served by scalable cloud infrastructure. Additionally, the global shift toward digital engineering and agile development methodologies is increasing the need for parallel design processes and integrated, cross-functional platforms—all of which are supported by cloud EDA.

The rise of distributed design teams in a post-pandemic world is another catalyst, fueling the need for cloud-native collaboration tools. Furthermore, increasing investment in 3nm and 2nm node designs is pushing EDA workloads beyond traditional infrastructure capabilities, creating a natural shift toward elastic compute environments. EDA vendors’ partnerships with major cloud service providers, combined with regulatory approvals for secure cloud-based development, are also accelerating market momentum. Lastly, the strategic imperative for faster time-to-silicon and competitive differentiation is driving organizations to adopt cloud EDA platforms as an enabler of continuous innovation in electronics design.

SCOPE OF STUDY:

The report analyzes the Cloud Electronic Design Automation market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Type (Computer Aided Engineering Type, Semiconductor Intellectual Property Type, IC Physical Design & Verification Type, Printed Circuit Board & Multi-Chip Module Type); Application (Automotive Application, Consumer Electronics Application, Aerospace & Defense Application, Industrial Application, Healthcare Application, Telecommunication Application)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 34 Featured) -

• Agilent Technologies
• Agnisys Inc.
• Altium Limited
• ANSYS Inc.
• Autodesk Inc.
• Blue Pearl Software Inc.
• Cadence Design Systems Inc.
• Concept Engineering GmbH
• Dassault Systèmes
• Dolphin Design
• Empyrean Software
• Forte Design Systems
• Frontline PCB Solutions
• JEDA Technologies
• Keysight Technologies
• Lattice Semiconductor Corporation
• Mentor Graphics Corporation (Siemens EDA)
• Nimbic Inc.
• OneSpin Solutions GmbH
• Real Intent Inc.

AI INTEGRATIONS
We`re transforming market and competitive intelligence with validated expert content and AI tools.

Instead of following the general norm of querying LLMs and Industry-specific SLMs, we built repositories of content curated from domain experts worldwide including video transcripts, blogs, search engines research, and massive amounts of enterprise, product/service, and market data.

TARIFF IMPACT FACTOR
Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by increasing the Cost of Goods Sold (COGS), reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.