Electronic Design Automation Market Forecasts to 2028 – Global Analysis By Product (Semiconductor IP, Computer-aided Engineering (CAE) and Other Products), Deployment Mode (Cloud-based and On-Premises), Application (Memory Management Units, Microprocessors & Microcontrollers and Other Applications), End User and Geography
According to Stratistics MRC, the Global Electronic Design Automation Market is accounted for $14.5 billion in 2022 and is expected to reach $28.3 billion by 2028 growing at a CAGR of 11.8% during the forecast period. Circuit board designs are created using a variety of software tools known as electronic design automation, sometimes known as electronic computer-aided design tools. In order to produce integrated circuits (ICs) and other electronic components, it makes use of integrated layouts of analogue and digital designs. This helps to reduce production costs, shorten the time needed to design ICs, and get rid of manufacturing mistakes. Because of these advantages, it has many applications in a wide range of sectors, including aerospace, defence, healthcare, telecom, and automotive.
According to World Semiconductor Trade Statistics (WSTS), the semiconductor industry is expected to grow by 10.9% in 2021, which is a significant growth compared to the previous year's growth, approximately amounting to USD 488 billion.Market Dynamics:Driver:
Growing miniaturization in various industries
The trend towards miniaturisation in modern sophisticated electronics era has enabled businesses in a variety of sectors, including healthcare, consumer electronics, aerospace and defence, automotive, and others, to manufacture compact electronic equipment. These products, which include smart luggage tags, blood glucose monitors, fitness trackers, automotive subsystems, and surgical gadgets in the healthcare sector, integrate miniaturised semiconductor components. As a result, businesses are driven to create novel items with improved features, and academics are concentrating on producing trustworthy and affordable products by applying electronic design tools.Restraint:
Constant technological changes
Technology is always developing, and this is evident in the semiconductor business. New technologies are developed at a rapid pace, upsetting the market's equilibrium. The integrated circuit (IC) industry is also affected by this trend because semiconductor chips' process nodes are so important. The complexity of chip design, form size, and IP core design architecture are all impacted by the change in nodes. System-on-chip (SoC) design consequently encounters technological difficulties with regard to device integration and the creation of new design techniques. The majority of semiconductor companies are improving their electronic design automation solutions to meet the increasing demands in order to keep up with the changing technology.Opportunity:
Increasing demand for electronic design automation solutions in aerospace & defense industry
Chips and circuits for semiconductors that can operate in extreme heat and radiation are needed by the aerospace and defence industries. These chips must therefore be merged utilising specific materials into tiny, less dense form factors. Chips and circuits are carefully tested to make sure they are effective and resistant to failure because their failure could have serious repercussions. Using improved electronic design automation techniques, programmable chip platforms are quickly being implemented into semiconductors to fulfil the needs of avionics systems. The need for sophisticated manufacturing processes with specialised functions, as well as for expanded product accessibility and support, is therefore very strong.Threat:
High complexity due to continuous technological changes and large volume of data
The semiconductor industry's constant technological advancements cause changes in chip sizes, which force changes in IP core design architecture and increase design complexity and chip form factor. Additionally, the growing amount of data needed for EDA solutions is a problem for providers, who must meet the demand for faster processing due to the semiconductor industry's accelerated development cycles. The growing complexity of designs, the need for on-demand computing, the usage of hybrid clouds for design workloads, and industry consolidation are other challenges to the expansion of the market for electrical design automation.
The publication of COVID-19 is anticipated to have a substantial effect on the expansion of the industry for electrical design automation. Due to a number of variables, including a reduction in semiconductor sector profits in 2020, a slowdown in production and a shortage of raw material supply, spending on the electronic design automation industry is predicted to slow compared to projections made before the epidemic. To continue operations in order to meet customer demand and normalise the industry supply chain, some semiconductor businesses have petitioned government officials to categorise activity in the sector as critical.
The microprocessors & microcontrollers segment is expected to be the largest during the forecast period
The microprocessors & microcontrollers segment is estimated to have a lucrative growth, as a result of the widespread usage of microprocessors and controllers in printers, televisions, video players, laptops, and other consumer devices. During the forecast period, the segment growth is also anticipated to be fueled by the expanding use of microprocessors and controllers in smartcard applications, automated controls, sensing applications, and other smart devices.
The consumer electronics segment is expected to have the highest CAGR during the forecast period
The consumer electronics segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the rising demand for cutting-edge devices like smart TVs and smartphones and the increasing intricacy of electronics. Technology developments and increased disposable incomes around the world are projected to drive the segment's continued strong expansion over the forecast period.
Region with highest share:
Asia Pacific is projected to hold the largest market share during the forecast period since the semiconductor industry has a stronghold in nations like China, Japan, South Korea, and Taiwan, all of which have a significant impact on the expansion of the EDA market. Additional factors that are anticipated to contribute to the EDA market's expansion in the APAC region include the existence of numerous semiconductor foundries and the growing demand for electronic gadgets and high-tech goods.Region with highest CAGR:
North America is projected to have the highest CAGR over the forecast period, owing to significant technological developments. The area is a pioneer in the adoption and development of cutting-edge technologies, including 5G for smartphone users. The expansion of the electronic design automation (EDA) market is additionally fueled by the availability of a developed internet and wireless infrastructure and government assistance for the development of IoT-based technologies.
Key players in the market
Some of the key players profiled in the Electronic Design Automation Market include Advanced Micro Devices Inc., Cadence Design Systems, Inc., ElectroMagneticWorks, Inc., Siemens, Schindler & Schill GmbH, Zuken Inc., Synopsys, Inc., Keysight Technologies, Inc., Altair Engineering, Inc., eInfochips, ANSYS, Inc., EnSilica, Silvaco, Inc., Altium Limited and Mirabilis Design Inc.Key Developments:
In February 2023, Ansys has expanded the collaboration with Microsoft to increase the availability of the simulation solutions on Microsoft Azure cloud-computing platform. This provides the customers browser-based location independent access. It also deepens the commitment of Ansys to provide cloud-based access to advanced simulation solutions.
In January 2023, Siemens Digital Industries has launched Questa- a verification IQ software which helps the logic verification team to overcome the challenges in design complexity of ICs. Questa is powered by artificial intelligence and helps to accelerate verification closure, optimize the resources, and streamline traceability.
In November 2022, Siemens has acquired Avery Design Systems, Inc. which is a simulation-independent verification IP supplier. The company has planned to add Avery to Siemens portfolio as a part of electronic design verification (EDA) integrated circuits verification offerings.
In June 2022, Keysight Technologies Inc. has launched PathWave Advanced Design System (ADS) 2023, which addresses design complexity and higher frequency in the radio frequency (RF) and microwave industry
• Semiconductor IP
• Computer-aided Engineering (CAE)
• PCB & MCM
• IC Physical Design & Verification
• Other Products
Deployment Modes Covered:
• Memory Management Units
• Microprocessors & Microcontrollers
• Other Applications
End Users Covered:
• Telecom and Data Centre Industry
• Automotive Industry
• Industrial Sector
• Healthcare Industry
• Consumer Electronics Industry
• Aerospace & Defense Industry
• Other End Users
• North America
o Rest of Europe
• Asia Pacific
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o South Africa
o Rest of Middle East & AfricaWhat our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements