Electronic Design Automation Software

Global Electronic Design Automation Software Market to Reach US$40.3 Billion by 2030

The global market for Electronic Design Automation Software estimated at US$25.6 Billion in the year 2024, is expected to reach US$40.3 Billion by 2030, growing at a CAGR of 7.8% over the analysis period 2024-2030. Computer-aided Engineering, one of the segments analyzed in the report, is expected to record a 9.2% CAGR and reach US$15.8 Billion by the end of the analysis period. Growth in the IC Physical Design & Verification segment is estimated at 7.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$7.0 Billion While China is Forecast to Grow at 12.4% CAGR

The Electronic Design Automation Software market in the U.S. is estimated at US$7.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$8.7 Billion by the year 2030 trailing a CAGR of 12.4% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.8% and 7.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.2% CAGR.

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

Why Is Electronic Design Automation (EDA) Software Critical for Semiconductor Innovation?

Electronic Design Automation (EDA) software is a fundamental tool in the semiconductor and electronics industries, enabling engineers to design, simulate, verify, and manufacture complex integrated circuits (ICs) and printed circuit boards (PCBs). As demand for high-performance computing, 5G networks, artificial intelligence (AI), and IoT devices surges, EDA software is becoming increasingly essential for developing next-generation semiconductors that power advanced electronic systems.

The transition to smaller and more powerful semiconductor nodes, such as 3nm and 2nm chips, has intensified the need for sophisticated EDA tools that facilitate highly precise and efficient chip design. Additionally, the rise of system-on-chip (SoC) architectures, heterogeneous integration, and 3D IC packaging has further expanded the role of EDA software in modern electronics development. Companies in the semiconductor space are leveraging AI-driven design automation, cloud-based simulations, and digital twins to accelerate chip innovation while reducing time-to-market.

What Are the Latest Innovations in EDA Software?

One of the biggest breakthroughs in EDA technology is the integration of AI and machine learning into design workflows, enabling predictive analytics, automated error detection, and optimization of circuit layouts. AI-powered EDA tools can now identify design inefficiencies and suggest optimizations, significantly improving design accuracy and reducing development cycles.

Another key innovation is the emergence of cloud-based EDA platforms that enable collaborative chip design across distributed teams. Cloud computing allows engineers to run large-scale simulations without the need for expensive on-premises infrastructure, making advanced semiconductor design more accessible and cost-effective. Additionally, the adoption of open-source hardware design methodologies is gaining traction, allowing for more innovation in custom silicon development, particularly for AI accelerators and domain-specific chips.

How Are Market Trends and Regulatory Policies Influencing EDA Software Adoption?

The global semiconductor shortage and increasing demand for high-performance computing have led to record investments in semiconductor R&D, driving greater adoption of EDA software. Governments worldwide are prioritizing semiconductor self-sufficiency, with initiatives such as the U.S. CHIPS Act and the European Chips Act promoting local semiconductor manufacturing. These policies are encouraging greater investment in EDA tools to enhance domestic chip design capabilities.

Market trends indicate a growing preference for electronic system-level (ESL) design, where EDA software is used to develop entire electronic systems rather than just individual chips. This approach is crucial for designing AI-powered devices, autonomous vehicles, and next-generation communication systems. Additionally, the expansion of RISC-V open-source processor architectures is fueling demand for EDA tools tailored to custom chip development.

What Is Driving the Growth of the EDA Software Market?

The growth in the EDA software market is driven by increasing complexity in semiconductor design, rising demand for AI-driven automation, and government-led investments in semiconductor manufacturing. As companies push the boundaries of Moore’s Law, EDA tools are becoming indispensable for designing advanced ICs, SoCs, and chiplets.

End-use expansion is another key driver, with EDA software being widely adopted in automotive electronics, aerospace, telecommunications, and consumer electronics. The integration of AI-powered design optimization, cloud-based simulation, and quantum computing for circuit modeling is further accelerating market adoption. Additionally, strategic partnerships between semiconductor foundries, AI chip designers, and EDA software providers are fostering innovation, ensuring that EDA tools continue to evolve to meet the demands of next-generation chip development.

SCOPE OF STUDY:

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

Segments:
Product (Computer-aided Engineering, IC Physical Design & Verification, Printed Circuit Board & Multi-chip Module, Semiconductor Intellectual Property, Services); Deployment (Cloud, On-Premise); End-Use (Aerospace & Defense, Automotive, Healthcare, Industrial, Consumer Electronics, Others)

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 32 Featured) -

• Agnisys, Inc.
• Aldec, Inc.
• Altium Limited
• Altair Engineering Inc.
• ANSYS, Inc.
• Autodesk, Inc.
• Cadence Design Systems, Inc.
• Dassault Systèmes SE
• Empyrean Technology
• Keysight Technologies Inc.
• Lauterbach GmbH
• Mentor Graphics (Siemens EDA)
• Microsemi Corporation
• National Instruments Corporation
• Silvaco, Inc.
• Synopsys, Inc.
• The MathWorks, Inc.
• Vennsa Technologies
• Xilinx, Inc.
• Zuken 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.