electronic design automation eda software market size, share, growth drivers, trends, opportunities & forecast 2025–2030
Description
Electronic Design Automation (EDA) Software Market Overview
The Electronic Design Automation (EDA) Software Market is valued at USD 12 billion, based on a five-year historical analysis. Growth is primarily driven by the increasing demand for advanced electronic systems, the proliferation of IoT devices, and the need for efficient design processes in semiconductor manufacturing. Additional growth drivers include the integration of artificial intelligence and machine learning into EDA tools, enabling faster and more accurate design iterations, and the expansion of automotive electronics and 5G technology implementation . The market is also supported by the rising complexity of electronic designs, necessitating sophisticated software solutions for design, simulation, and verification.
Key players in this market include the United States, Japan, and Germany, which dominate due to their strong technological infrastructure, significant investments in research and development, and a high concentration of leading semiconductor companies. The presence of major universities and research institutions in these countries further enhances innovation and development in EDA software .
In 2023, the European Union implemented the Digital Markets Act (Regulation (EU) 2022/1925), issued by the European Parliament and Council. This regulation aims to ensure fair competition in the digital sector, including EDA software, by mandating transparency in pricing and interoperability among software tools. The Act requires gatekeeper companies to provide access to data and ensure compatibility with third-party software, promoting a more competitive environment that benefits both developers and end-users .
Electronic Design Automation (EDA) Software Market Segmentation
By Type:
The EDA software market is segmented into Schematic Capture Tools, PCB Design Software, IC Design Tools, Simulation and Verification Tools, Layout Design Software, Design Management Tools, Logic Synthesis Tools, Physical Synthesis Tools, Power Optimization Tools, and Others. PCB Design Software currently leads the market, driven by increasing demand for printed circuit boards in consumer electronics and automotive applications. The rise in smart devices, electric vehicles, and miniaturized electronics has further fueled the need for efficient PCB design solutions .
By End-User:
The EDA software market is also segmented by end-user industries, including Consumer Electronics, Automotive (including ADAS/EV), Telecommunications, Aerospace and Defense, Healthcare, Industrial Automation, Semiconductor Manufacturing, and Others. The Automotive sector is currently the dominant end-user, driven by rapid adoption of electric vehicles, advanced driver-assistance systems (ADAS), and the increasing integration of electronics in vehicles. The need for high-performance and reliable electronic systems in vehicles has led to increased investments in EDA tools tailored for automotive applications .
Electronic Design Automation (EDA) Software Market Competitive Landscape
The Electronic Design Automation (EDA) Software Market is characterized by a dynamic mix of regional and international players. Leading participants such as Synopsys, Inc., Cadence Design Systems, Inc., Siemens EDA (formerly Mentor Graphics Corporation), ANSYS, Inc., Altium Limited, Keysight Technologies, Inc., Zuken Inc., National Instruments Corporation, Silvaco, Inc., AWR Corporation (now part of Cadence Design Systems, Inc.), Xilinx, Inc. (now part of AMD), Infineon Technologies AG, Texas Instruments Incorporated, STMicroelectronics N.V., Microchip Technology Incorporated, Altair Engineering Inc., Dassault Systèmes SE, Autodesk, Inc., S2C Limited, Tanner EDA (now part of Mentor/Siemens EDA) contribute to innovation, geographic expansion, and service delivery in this space.
Synopsys, Inc.
1986
Mountain View, California, USA
Cadence Design Systems, Inc.
1988
San Jose, California, USA
Siemens EDA
1981
Wilsonville, Oregon, USA
ANSYS, Inc.
1970
Pittsburgh, Pennsylvania, USA
Altium Limited
1985
San Diego, California, USA
Company
Establishment Year
Headquarters
Group Size (Large, Medium, or Small as per industry convention)
Annual Revenue (USD)
Revenue Growth Rate (%)
Market Share (%)
R&D Expenditure (% of Revenue)
Number of Patents Filed
Electronic Design Automation (EDA) Software Market Industry Analysis
Growth Drivers
Increasing Demand for Complex Electronic Systems:
The global electronics market is projected to reach $1.1 trillion in future, driven by the need for advanced electronic systems in sectors like automotive and telecommunications. This surge necessitates sophisticated EDA tools to manage intricate designs, with a reported 30% increase in design complexity over the past five years. As companies strive for innovation, the demand for EDA software that can handle these complexities is expected to rise significantly.
Advancements in Semiconductor Technology:
The semiconductor industry is anticipated to grow to $600 billion in future, fueled by innovations in chip design and manufacturing processes. With the introduction of 5nm and 3nm technologies, EDA software must evolve to support these advancements. The increasing integration of AI in semiconductor design is projected to enhance design efficiency by 25%, further driving the demand for advanced EDA solutions tailored to these new technologies.
Rise of IoT and Connected Devices:
The Internet of Things (IoT) market is expected to reach $1.6 trillion in future, leading to a surge in demand for EDA software that can facilitate the design of interconnected devices. With over 75 billion IoT devices projected to be in use in future, the need for efficient design tools that can manage the complexities of these devices is critical. This trend is pushing EDA software developers to innovate and adapt their offerings to meet market needs.
Market Challenges
High Cost of EDA Software Solutions:
The average cost of EDA software solutions can exceed $100,000 per license, posing a significant barrier for small to medium-sized enterprises. This high investment can limit access to advanced design tools, hindering innovation and competitiveness. As companies face budget constraints, the reluctance to invest in costly EDA solutions may slow down the adoption of necessary technologies, impacting overall market growth.
Shortage of Skilled Professionals:
The EDA industry is currently facing a talent gap, with an estimated shortage of 1.4 million skilled professionals in future. This shortage is exacerbated by the rapid pace of technological advancements, which require continuous learning and adaptation. Companies are struggling to find qualified engineers who can effectively utilize EDA tools, leading to project delays and increased operational costs, ultimately affecting market dynamics.
Electronic Design Automation (EDA) Software Market Future Outlook
The future of the EDA software market is poised for transformative growth, driven by technological advancements and evolving industry needs. As artificial intelligence and machine learning become integral to design processes, EDA tools will increasingly incorporate these technologies to enhance efficiency and accuracy. Additionally, the push for sustainable design practices will lead to innovations that prioritize environmental considerations, shaping the future landscape of electronic design and manufacturing.
Market Opportunities
Expansion in Emerging Markets:
Emerging markets, particularly in Asia-Pacific, are projected to see a 20% increase in electronics manufacturing in future. This growth presents significant opportunities for EDA software providers to establish a foothold in these regions, catering to the rising demand for advanced design tools tailored to local industries and fostering innovation in electronic design.
Adoption of Cloud-Based EDA Solutions:
The shift towards cloud-based EDA solutions is gaining momentum, with an expected market growth of 15% annually. This trend allows companies to reduce costs associated with hardware and maintenance while enhancing collaboration across teams. As more organizations em
ace remote work, cloud-based EDA tools will become essential for efficient design processes, creating new avenues for market expansion.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
The Electronic Design Automation (EDA) Software Market is valued at USD 12 billion, based on a five-year historical analysis. Growth is primarily driven by the increasing demand for advanced electronic systems, the proliferation of IoT devices, and the need for efficient design processes in semiconductor manufacturing. Additional growth drivers include the integration of artificial intelligence and machine learning into EDA tools, enabling faster and more accurate design iterations, and the expansion of automotive electronics and 5G technology implementation . The market is also supported by the rising complexity of electronic designs, necessitating sophisticated software solutions for design, simulation, and verification.
Key players in this market include the United States, Japan, and Germany, which dominate due to their strong technological infrastructure, significant investments in research and development, and a high concentration of leading semiconductor companies. The presence of major universities and research institutions in these countries further enhances innovation and development in EDA software .
In 2023, the European Union implemented the Digital Markets Act (Regulation (EU) 2022/1925), issued by the European Parliament and Council. This regulation aims to ensure fair competition in the digital sector, including EDA software, by mandating transparency in pricing and interoperability among software tools. The Act requires gatekeeper companies to provide access to data and ensure compatibility with third-party software, promoting a more competitive environment that benefits both developers and end-users .
Electronic Design Automation (EDA) Software Market Segmentation
By Type:
The EDA software market is segmented into Schematic Capture Tools, PCB Design Software, IC Design Tools, Simulation and Verification Tools, Layout Design Software, Design Management Tools, Logic Synthesis Tools, Physical Synthesis Tools, Power Optimization Tools, and Others. PCB Design Software currently leads the market, driven by increasing demand for printed circuit boards in consumer electronics and automotive applications. The rise in smart devices, electric vehicles, and miniaturized electronics has further fueled the need for efficient PCB design solutions .
By End-User:
The EDA software market is also segmented by end-user industries, including Consumer Electronics, Automotive (including ADAS/EV), Telecommunications, Aerospace and Defense, Healthcare, Industrial Automation, Semiconductor Manufacturing, and Others. The Automotive sector is currently the dominant end-user, driven by rapid adoption of electric vehicles, advanced driver-assistance systems (ADAS), and the increasing integration of electronics in vehicles. The need for high-performance and reliable electronic systems in vehicles has led to increased investments in EDA tools tailored for automotive applications .
Electronic Design Automation (EDA) Software Market Competitive Landscape
The Electronic Design Automation (EDA) Software Market is characterized by a dynamic mix of regional and international players. Leading participants such as Synopsys, Inc., Cadence Design Systems, Inc., Siemens EDA (formerly Mentor Graphics Corporation), ANSYS, Inc., Altium Limited, Keysight Technologies, Inc., Zuken Inc., National Instruments Corporation, Silvaco, Inc., AWR Corporation (now part of Cadence Design Systems, Inc.), Xilinx, Inc. (now part of AMD), Infineon Technologies AG, Texas Instruments Incorporated, STMicroelectronics N.V., Microchip Technology Incorporated, Altair Engineering Inc., Dassault Systèmes SE, Autodesk, Inc., S2C Limited, Tanner EDA (now part of Mentor/Siemens EDA) contribute to innovation, geographic expansion, and service delivery in this space.
Synopsys, Inc.
1986
Mountain View, California, USA
Cadence Design Systems, Inc.
1988
San Jose, California, USA
Siemens EDA
1981
Wilsonville, Oregon, USA
ANSYS, Inc.
1970
Pittsburgh, Pennsylvania, USA
Altium Limited
1985
San Diego, California, USA
Company
Establishment Year
Headquarters
Group Size (Large, Medium, or Small as per industry convention)
Annual Revenue (USD)
Revenue Growth Rate (%)
Market Share (%)
R&D Expenditure (% of Revenue)
Number of Patents Filed
Electronic Design Automation (EDA) Software Market Industry Analysis
Growth Drivers
Increasing Demand for Complex Electronic Systems:
The global electronics market is projected to reach $1.1 trillion in future, driven by the need for advanced electronic systems in sectors like automotive and telecommunications. This surge necessitates sophisticated EDA tools to manage intricate designs, with a reported 30% increase in design complexity over the past five years. As companies strive for innovation, the demand for EDA software that can handle these complexities is expected to rise significantly.
Advancements in Semiconductor Technology:
The semiconductor industry is anticipated to grow to $600 billion in future, fueled by innovations in chip design and manufacturing processes. With the introduction of 5nm and 3nm technologies, EDA software must evolve to support these advancements. The increasing integration of AI in semiconductor design is projected to enhance design efficiency by 25%, further driving the demand for advanced EDA solutions tailored to these new technologies.
Rise of IoT and Connected Devices:
The Internet of Things (IoT) market is expected to reach $1.6 trillion in future, leading to a surge in demand for EDA software that can facilitate the design of interconnected devices. With over 75 billion IoT devices projected to be in use in future, the need for efficient design tools that can manage the complexities of these devices is critical. This trend is pushing EDA software developers to innovate and adapt their offerings to meet market needs.
Market Challenges
High Cost of EDA Software Solutions:
The average cost of EDA software solutions can exceed $100,000 per license, posing a significant barrier for small to medium-sized enterprises. This high investment can limit access to advanced design tools, hindering innovation and competitiveness. As companies face budget constraints, the reluctance to invest in costly EDA solutions may slow down the adoption of necessary technologies, impacting overall market growth.
Shortage of Skilled Professionals:
The EDA industry is currently facing a talent gap, with an estimated shortage of 1.4 million skilled professionals in future. This shortage is exacerbated by the rapid pace of technological advancements, which require continuous learning and adaptation. Companies are struggling to find qualified engineers who can effectively utilize EDA tools, leading to project delays and increased operational costs, ultimately affecting market dynamics.
Electronic Design Automation (EDA) Software Market Future Outlook
The future of the EDA software market is poised for transformative growth, driven by technological advancements and evolving industry needs. As artificial intelligence and machine learning become integral to design processes, EDA tools will increasingly incorporate these technologies to enhance efficiency and accuracy. Additionally, the push for sustainable design practices will lead to innovations that prioritize environmental considerations, shaping the future landscape of electronic design and manufacturing.
Market Opportunities
Expansion in Emerging Markets:
Emerging markets, particularly in Asia-Pacific, are projected to see a 20% increase in electronics manufacturing in future. This growth presents significant opportunities for EDA software providers to establish a foothold in these regions, catering to the rising demand for advanced design tools tailored to local industries and fostering innovation in electronic design.
Adoption of Cloud-Based EDA Solutions:
The shift towards cloud-based EDA solutions is gaining momentum, with an expected market growth of 15% annually. This trend allows companies to reduce costs associated with hardware and maintenance while enhancing collaboration across teams. As more organizations em
ace remote work, cloud-based EDA tools will become essential for efficient design processes, creating new avenues for market expansion.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
Table of Contents
98 Pages
- 1. electronic design automation eda software size, share, growth drivers, trends, opportunities & – Market Overview
- 1.1. Definition and Scope
- 1.2. Market Taxonomy
- 1.3. Market Growth Rate
- 1.4. Market Segmentation Overview
- 2. electronic design automation eda software size, share, growth drivers, trends, opportunities & – Market Size (in USD Bn), 2019–2024
- 2.1. Historical Market Size
- 2.2. Year-on-Year Growth Analysis
- 2.3. Key Market Developments and Milestones
- 3. electronic design automation eda software size, share, growth drivers, trends, opportunities & – Market Analysis
- 3.1. Growth Drivers
- 3.1.1. Increasing demand for complex electronic systems
- 3.1.2. Advancements in semiconductor technology
- 3.1.3. Rise of IoT and connected devices
- 3.1.4. Growing need for automation in design processes
- 3.2. Restraints
- 3.2.1. High cost of EDA software solutions
- 3.2.2. Rapid technological changes
- 3.2.3. Shortage of skilled professionals
- 3.2.4. Integration issues with existing systems
- 3.3. Opportunities
- 3.3.1. Expansion in emerging markets
- 3.3.2. Increased investment in R&D
- 3.3.3. Adoption of cloud-based EDA solutions
- 3.3.4. Collaborations and partnerships for innovation
- 3.4. Trends
- 3.4.1. Shift towards AI and machine learning in EDA
- 3.4.2. Growing emphasis on sustainability in design
- 3.4.3. Rise of open-source EDA tools
- 3.4.4. Increasing focus on cybersecurity in electronic design
- 3.5. Government Regulation
- 3.5.1. Compliance with international standards
- 3.5.2. Regulations on data privacy and security
- 3.5.3. Incentives for R&D in electronic design
- 3.5.4. Environmental regulations impacting manufacturing
- 3.6. SWOT Analysis
- 3.7. Stakeholder Ecosystem
- 3.8. Competition Ecosystem
- 4. electronic design automation eda software size, share, growth drivers, trends, opportunities & – Market Segmentation, 2024
- 4.1. By Type (in Value %)
- 4.1.1. Schematic Capture Tools
- 4.1.2. PCB Design Software
- 4.1.3. IC Design Tools
- 4.1.4. Simulation and Verification Tools
- 4.1.5. Others
- 4.2. By End-User (in Value %)
- 4.2.1. Consumer Electronics
- 4.2.2. Automotive (including ADAS/EV)
- 4.2.3. Telecommunications
- 4.2.4. Aerospace and Defense
- 4.2.5. Others
- 4.3. By Application (in Value %)
- 4.3.1. Integrated Circuit (IC) Design
- 4.3.2. PCB Design
- 4.3.3. System on Chip (SoC) Design
- 4.3.4. Others
- 4.4. By Deployment Model (in Value %)
- 4.4.1. On-Premises
- 4.4.2. Cloud-Based
- 4.4.3. Hybrid
- 4.5. By Pricing Model (in Value %)
- 4.5.1. Subscription-Based
- 4.5.2. One-Time License
- 4.5.3. Pay-As-You-Go
- 4.6. By Region (in Value %)
- 4.6.1. North India
- 4.6.2. South India
- 4.6.3. East India
- 4.6.4. West India
- 4.6.5. Central India
- 4.6.6. Northeast India
- 4.6.7. Union Territories
- 5. electronic design automation eda software size, share, growth drivers, trends, opportunities & – Market Cross Comparison
- 5.1. Detailed Profiles of Major Companies
- 5.1.1. Synopsys, Inc.
- 5.1.2. Cadence Design Systems, Inc.
- 5.1.3. Siemens EDA (formerly Mentor Graphics Corporation)
- 5.1.4. ANSYS, Inc.
- 5.1.5. Altium Limited
- 5.2. Cross Comparison Parameters
- 5.2.1. Annual Revenue (USD)
- 5.2.2. Market Share (%)
- 5.2.3. R&D Expenditure (% of Revenue)
- 5.2.4. Number of Patents Filed
- 5.2.5. Customer Retention Rate (%)
- 6. electronic design automation eda software size, share, growth drivers, trends, opportunities & – Market Regulatory Framework
- 6.1. Industry Standards
- 6.2. Compliance Requirements and Audits
- 6.3. Certification Processes
- 7. electronic design automation eda software size, share, growth drivers, trends, opportunities & – Market Future Size (in USD Bn), 2025–2030
- 7.1. Future Market Size Projections
- 7.2. Key Factors Driving Future Market Growth
- 8. electronic design automation eda software size, share, growth drivers, trends, opportunities & – Market Future Segmentation, 2030
- 8.1. By Type (in Value %)
- 8.2. By End-User (in Value %)
- 8.3. By Application (in Value %)
- 8.4. By Deployment Model (in Value %)
- 8.5. By Pricing Model (in Value %)
- 8.6. By Region (in Value %)
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