Electronic Design Automation (EDA)

Global Electronic Design Automation (EDA) Market to Reach US$27.6 Billion by 2030

The global market for Electronic Design Automation (EDA) estimated at US$17.4 Billion in the year 2024, is expected to reach US$27.6 Billion by 2030, growing at a CAGR of 8.0% over the analysis period 2024-2030. Computer-Aided Engineering (CAE), one of the segments analyzed in the report, is expected to record a 8.8% CAGR and reach US$8.8 Billion by the end of the analysis period. Growth in the Semiconductor Intellectual Property (SIP) segment is estimated at 7.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$4.7 Billion While China is Forecast to Grow at 11.4% CAGR

The Electronic Design Automation (EDA) market in the U.S. is estimated at US$4.7 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$5.7 Billion by the year 2030 trailing a CAGR of 11.4% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 5.8% and 6.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.3% CAGR.

Global Electronic Design Automation (EDA) Market - Key Trends and Drivers Summarized

Electronic Design Automation (EDA): Driving Innovation in Semiconductor Design

Electronic Design Automation (EDA) refers to the category of software tools used for designing electronic systems, including integrated circuits (ICs), printed circuit boards (PCBs) and others. EDA tools are critical in the semiconductor industry, enabling designers to develop, verify, and simulate the performance of complex electronic circuits before they are physically manufactured. These tools encompass a wide range of functions, from schematic capture and layout design to timing analysis and signal integrity testing. EDA has revolutionized the way electronic devices are designed, allowing for the rapid development of increasingly sophisticated and miniaturized components that are foundational to modern electronics. As the demand for advanced electronic devices continues to grow, EDA tools are becoming indispensable for semiconductor manufacturers and designers worldwide.

How Are Technological Advancements Enhancing Electronic Design Automation?

Technological advancements are continuously enhancing the capabilities of Electronic Design Automation tools, making them more powerful, efficient, and user-friendly. The integration of artificial intelligence (AI) and machine learning (ML) into EDA tools is one of the most significant advancements, enabling more intelligent design automation processes that can predict and optimize circuit performance. AI-driven tools can analyze vast amounts of design data to identify potential issues and suggest improvements, reducing the time and effort required for manual design iterations. Additionally, the advent of cloud-based EDA platforms has made these tools more accessible and scalable, allowing design teams to collaborate in real-time across different locations and leverage high-performance computing resources to handle complex simulations. The development of advanced verification and validation techniques, such as formal verification and hardware emulation, has also improved the accuracy and reliability of EDA tools, ensuring that designs meet the required specifications and standards before fabrication. These technological innovations are driving the widespread adoption of EDA tools across the semiconductor industry.

What Are the Key Applications and Benefits of Electronic Design Automation?

Electronic Design Automation tools are used in a variety of applications across the semiconductor and electronics industries, offering numerous benefits that streamline the design process and enhance the quality of electronic products. In the design of integrated circuits, EDA tools are essential for managing the complexity of modern ICs, which can contain billions of transistors. These tools enable designers to create detailed layouts, simulate circuit behavior, and optimize performance, ensuring that the final product meets both functional and power efficiency requirements. In the automotive industry, EDA tools are used to design and verify electronic systems that control everything from engine performance to advanced driver-assistance systems (ADAS). The telecommunications industry relies on EDA tools to develop high-frequency circuits for mobile devices, base stations, and satellite communications. The primary benefits of EDA tools include reduced design time, improved accuracy, lower costs, and the ability to innovate rapidly. By leveraging these tools, companies can bring new products to market faster and with greater confidence in their performance and reliability.

What Factors Are Driving the Growth in the Electronic Design Automation Market?

The growth in the Electronic Design Automation market is driven by several factors. The increasing complexity of semiconductor designs, driven by advancements in AI, IoT, and 5G technologies, is a significant driver, as more sophisticated tools are required to manage the intricate design processes. Technological advancements in AI, cloud computing, and hardware emulation are also propelling market growth, as these innovations enhance the capabilities and accessibility of EDA tools. The rising demand for smaller, more powerful electronic devices is further boosting the market, as EDA tools enable the miniaturization of circuits without compromising performance. Additionally, the expansion of industries such as automotive, telecommunications, and consumer electronics is contributing to market growth, as these sectors rely heavily on advanced semiconductor designs. The increasing emphasis on reducing time-to-market and improving design efficiency is also supporting the growth of the EDA market. These factors, combined with continuous innovation in design automation technologies, are driving the sustained growth of the Electronic Design Automation market.

SCOPE OF STUDY:

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

Segments:
Offering (Computer-Aided Engineering (CAE), Semiconductor Intellectual Property (SIP), IC Physical Design & Verification, Printed Circuit Board & Multi-chip Module (PCB & MCM), Services); Deployment (On-Premise Deployment, Cloud Deployment); Application (Microprocessors & Controllers Application, Memory Management Unit (MMU) Application, Other Applications); End-Use (Consumer Electronics End-Use, Telecom & Datacenter End-Use, Automotive End-Use, Industrial End-Use, Healthcare End-Use, Aerospace & Defense End-Use, Other End-Uses)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.

Select Competitors (Total 48 Featured) -

• Advanced Micro Devices, Inc.
• Aldec, Inc.
• ANSYS, Inc.
• Cadence Design Systems, Inc.
• eInfochips
• Hammerspace
• iuvo Technologies
• Keysight Technologies, Inc.
• Pulsic
• Saros Technology

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 artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

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CHINA
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EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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