Global Electronic Design Automation Tools (EDA) Market - Segmented by Product Type, End User (Automotive, Consumer Electronics, Communication), and Geography - Growth, Trends, and Forecast (2018 - 2023)
The Global Electronic Design Automation Tools Market (henceforth referred to as the market studied) was valued at USD 8.83 billion in 2017, and is projected to reach USD 15.79 billion by 2023, registering a CAGR of 10.1%, during the forecast period of 2018-2023.
Electronic Design Automation consists of software tools used in the designing of electronic systems and components such as integrated circuits and printed circuit boards. The tools allow hardware and software providers to design and simulate several electronic components and systems. The demand for EDA tools has increased significantly due to the reduction in time of electronics component or system design with EDA. Additionally, the intense competition in the electronics industry made the manufacturers address such issues. Increasing automation in automobiles along with rapid growth of connected devices is expected to increase the demand for advanced semiconductor devices, thereby increasing the growth of Electronic Design Tools market.
Factors Driving the Electronic Design Automation Tools Market
EDA is an inevitable part of semiconductor designing, therefore, the growth of the semiconductor industry positively impacts the EDA tools market. The automotive, IoT and AI sectors drive the Semiconductor market which requires electronic devices with complex designs. That’s where EDA tools come into the picture. With EDA tools the electronic devices manufacturing companies can benefit in terms of the design time, errors and cost. Therefore, the adoption of EDA tools is expected to increase along with the changing demand across sectors like automobile, consumer electronics etc. In the automobile industry, new ADAS safety features, such as automatic emergency braking systems (EBS), are attracting car buyers and insurance companies to avoid costly crashes. Also, governments are stepping in- the US National Highway Traffic Safety Administration announced that it would require automatic emergency braking as a standard feature on new cars by 2022. The net effect of all this is the creation of strong demand for automotive electronics. So as to meet the market needs, the automobile manufacturers' will have huge requirements for these electronic devices. This need, therefore, is said to propel the growth of the EDA tools market.
Electronic Design Automation Tools Market by Product - Semiconductor Intellectual Property holds the major share
Semiconductor intellectual property (SIP) has existed since the advent of the semiconductor industry. In the early years, IC Suppliers such as Fairchild, Intel, TI, and Motorola developed proprietary SIP for their internal use. They fiercely protected their SIP through patents, trade secrets, and other legal protections. Occasionally SIP was licensed to third parties, but this tended to be the exception rather than the rule. Over the last decade, IC design productivity has failed to keep pace with Moore’s Law and a “design gap” has emerged. In response to this increased capacity, IC suppliers were looking for ways to reduce the gap between designing within a given time frame while still meeting schedules and the capacity of the silicon. Consequently, They began to develop reusable SIP that contained increasingly complex functionality. As the foundry model emerged, fabless IC companies adopted customer-owned tooling (COT) design flow and a block-based design methodology partly to leverage the cost advantages of the Foundry model, but also to allow mobility of design. Eventually, all companies are expected to buy IP over time because it leads to higher ROI and nobody could risk the factor of time. In the coming decade, It is expected if any company would be developing IP internally if they can be bought off the shelf which makes the market for IP robust at least during the forecast period.
EDA Tools Market by Application - Communication holds the major market share
According to TSMC, The communications sector, particularly the Smartphone the segment posted a 6% and 3% growth in unit shipments for 2016 and 2017. Although the growth is slowing down, continuing transition to 4G/LTE and LTE-Advanced will bring about mid-single digit growth to the Smartphone market in 2018. Smartphones with increasing performance, longer battery life, and more intelligent features will continue to propel buying interests. The increasing popularity of low-end smartphones in emerging countries will also drive the growth of the sector. Improved performance, longer battery life, biosensors, more AI features will continue to propel Smartphone sales; and the increasing popularity of low-end smart phones in emerging countries will also drive growth in this sector. Low-power IC is an essential requirement among handset manufacturers. The SoC design for more optimized cost, power and form factor, and the appetite for higher performance to run AI applications, complex software, and higher resolution video will continue to accelerate the migration to advanced process technologies will directly drive the EDA tools market during the forecast period.
North America Occupies the largest Share In Electronic Design Automation Tools Market
The global semiconductor industry has increased by more than 20% in 2017, and it is expected to grow at the same rate due to fabless companies demand in the market, which in turn augments the growth of semiconductor foundries market during the forecast period. North America will be the major revenue contributor to the market by 2021 because fabless semiconductor companies, integrated device manufacturers and foundries are the customers for semiconductor foundries. The major fabless companies in the region are AMD, Apple, Broadcom, Qualcomm, NVIDIA, Marvell and Xilinx. North America is playing a crucial role in advanced semiconductor system design and manufacturing. The US is home to global leaders in the three categories of semiconductor companies which include Intel (IDM), Global foundries (U.S./Dubai) (foundry), and Qualcomm (fabless). U.S. companies lead in both the IDM and fabless shares of the world IC market, with 50 percent and 63%, respectively. In 2017, globally fabless companies have made a revenue of USD 100 billion. The estimated contribution to the semiconductor industry is expected to be more than 50% was made by the companies mentioned above, which positively impact the EDA tools market during the forecast period.
EDA Tools Market - Competitive Intelligence
Synopsys is estimated to be the market leader in 2017 by generating USD 2.72 billion in revenue, representing a strong 12.80% year-over-year growth, after registering a moderate growth in 2016. In the core EDA segment of the EDA tools industry, total revenue was USD 1.36 billion in 2017, up 7% year-over-year, close to the 6% growth in 2016. In 2016, Mentor Graphics did not achieve expectations. Revenues of USD 1.18 billion were down 5% from 2015. However, Automotive customer bookings increased over 20% compared to fiscal 2015. Cadence product and maintenance revenue increased during fiscal 2017, as compared to fiscal 2016, primarily because of growth in software and IP businesses, partially offset by lower revenue from emulation and prototyping hardware.
Key Developments in the Market
- April 2018- Cadence Expands Virtuoso Platform with Enhanced System Design, Advanced Node Support down to 5nm, and Simulation-Driven Layout.
Major Players - Altium Ltd, Ansys Inc., Cadence Design Systems Inc., Keysight Technologies Inc., Agnisys Technology Pvt Ltd, Aldec Inc., Lauterbach Gmbh, Mentor Graphic Corporation (Siemens PLM Software Ltd), Synopsys Inc., Xilinx Inc., and Zuken Inc., among others.
Reasons to Purchase the Report
- Impact of growing semiconductor industry
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- Growth of various products such as printed circuit board (PCB), integrated circuits (IC)
- Regional analysis of the market
- Identify the latest developments, market shares and strategies employed by the major market players.
- 3 months analyst supports along with the Market Estimate sheet (in Excel).
Customization of the Report
- This report can be customized to meet your requirements. Please connect with our representative, who will ensure you get a report that suits your needs.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook