Electronic Design Automation Market Outlook (2022-2032)

The global electronic design market was valued at US$ 12.5 Billion in 2021 and is likely to reach US$ 13.5 Billion in 2022, experiencing a Y-o-Y expansion of 8%. Across the 2022-2032 forecast period, the market is projected to increase at a 7.8% CAGR, securing US$ 28.6 Billion by the 2032 end.

The global electronic design automation market is expected to procure an absolute dollar growth of US$ 15.1 Billion until 2032. The market is projected to have flourished at a growth rate of 8.3% from 2015 to 2021. While the U.S market is anticipated to secure the forefront position, garnering US$ 9.3 Billion by 2032, China is likely to value US$ 2.1 Billion by 2032. The cloud-based segment is expected to dominate the market by deployment mode while recording a CAGR of 6.9% from 2022-2032.

Electronic Design Automation Revenue Analysis 2015-2021 vs. Future Outlook 2022-2032

As per the market research and competitive intelligence provider Fact. MR, the electronic design automation market witnessed a CAGR of 8.3% from 2015-2021. As the demand for complex integrated circuits (ICs) rises, the market for electronic design automation is strengthening. Also, the surging adoption of connected devices is another factor propelling the market expansion from 2015-2021.

Rapid increment in the adoption of connected devices like smartphones, smart home systems, and wearables has made a significant contribution to develop the industry from 2015-2021. The growing demand for high-performance with minimal power consumption capability is projected to have propelled the market during the aforementioned timeframe.

The number of devices connected through IoT is likely to reach 50 Billion by 2025. The growing application of interconnected devices would comprise security systems, home appliances, portable medical devices, smartwatches, smart meters and fitness trackers, among others. Such devices would be compact in size and cheaper, and some of these devices would communicate and operate autonomously. From 2022-2032, the global electronic design automation market is expected to grow 2.1x.

Salient Electronic Design Automation Market Growth Drivers

Rising Adoption of FinFET Architecture to Boost the Industry

Increasing adoption of FinFET architecture for producing advanced modern processors is expected to benefit the market in the forecast period. Growing usage of SoC technology and the rising penetration of IoT, VR, and AI are speculated to be the most significant factors driving the market in the assessment period. Players are taking various initiatives to develop the FinFET architecture, which is expected to positively influence the market.

For instance, in April 2022, GBT Technologies Inc. announced to develop Gate-All-Around FET (GAA FET) support for its integrated circuits, and productivity enhancement EDA write for us technology. The tool works on Integrated Circuit (IC) layout data, checking manufacturing, geometrical, and electrical design rules correctness during the construction of an IC layout, thereby developing a Rule-Aware mask design environment. Owing to such initiatives, the market is likely to witness significant growth in the assessment period.

EDA solutions assist in addressing new challenges such as double-patterning & 3D transistors, introduced by 16/14nm and 20nm planar and below FinFET manufacturing rules with 3D-IC integration. It also helps Early RTL design exploration and block feasibility analysis, in-design exploration, physical guidance from synthesis to place and route, and others. Therefore, such advantages of EDA solutions for FinFET architecture are likely to augment the market expansion during the forecast period.

Growing demand for smaller and portable electronic devices and growing demand for machine learning for EDA is anticipated to offer remunerative opportunities to the electronic design automation market in coming years.

Emerging Trend of EDA toolset with Machine Learning Capabilities with AI to Benefit the Industry

The emerging trend of EDA toolset with ML capabilities along with the advanced technologies like cloud and AI, are expected to contribute to the market expansion in the forecast period. Also, investments made in the concerned field to reduce the number of errors to save time are anticipated to offer good results to the market in the assessment period. For instance, in June 2020, Samsung Electronics Co. Ltd announced to launch the Samsung Advanced Foundry Ecosystem (SAFE) Cloud Design Platform (CDP). The initiative was taken in collaboration with Rescale, an eminent name in high-performance computing (HPC) applications in the cloud. SAFE CDP provides a secure sign condition verified with cloud companies.

The growing demand for miniature electronic devices and rising adoption of SoC technology across several sectors such as AI and IoT are anticipated to benefit the market in coming years. Moreover, AI is offering EDA various opportunities for tackling the growing complications in silicon technologies, escalating product timelines, and allowing engineering teams to scale.

While developed countries such as the U.S, the U.K, and others are likely to accumulate significant market value, regions such as APAC are projected to exhibit the fastest growth rate in the assessment period. Emerging economies like India, China, and Japan are set to procure high positions in the market. Expansion of the regional market can be attributed to the application of modern technologies in various sectors. For instance, in March 2022, UST, a digital transformation solutions company, and Karnataka Information Technology Venture (KITVEN) Fund, jointly invested in Calligo Technologies, which is a data science and machine learning products and services company, as a part of ‘Make in India’ initiative. Such developments are expected to propel the regional market and also spike the market growth graph at a global level.

Factors Hindering the Electronic Design Automation Market Growth

Continuous Technological Changes to Hamper the Market Expansion

Continuous technological changes result in changes in their size. Therefore, it becomes important for the semiconductor chip companies to change the IP core design architecture. Changes in nodes of a semiconductor chip result in design complexities, IP core design architecture, and chip form factor. Thus, technical obstacles to device integration and the development of new design methodology are some of the challenges prevailing in the industry.

Several players are taking actions to enhance their product’s electronic design automation solutions to meet the requirement of changing technology. In an occurrence, in July 2021, Cadence Design Systems Inc announced the launch of Cadence Cerebrus Intelligent Chip Explorers. It is a modern ML-based device that automates and scales digital chip design, enabling clients to meet tedious chip design objectives efficiently.

Vendors in the electronic design automation market have been taking continuous efforts to update and develop their solutions to accommodate to the changing IP core design architecture. Therefore, continuous developments in technologies have enhanced the overall expenses associated with the production of semiconductor chips, thereby, limiting the market growth.

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Country-Wise Analysis

How opportunistic will the Market for Electronic Design Automation be across the U.S?

Increasing Adoption of EDA tools in Automotive, Consumer Electronics, and other sectors to propel the Market

As per the analysis by Fact. MR, the U.S market is expected to garner US$ 9.3 Billion by 2032. The estimated CAGR of the region is 7.3% from 2022-2032. The growth of the regional market can be attributed to the increasing adoption of EDA tools in sectors such as automotive, and consumer electronics, among others. There has been a significant development in the semiconductor sector and manufacturing industry, which has propelled significant growth in the market in the forecast period. Moreover, the presence of established players in the field of automotive, consumer electronics, et al, such as; Keysight Technologies, Synopsys, Ansys Inc., and Xilinx, among others are expected to drive the market expansion in the forecast period.

Players in the region are making efforts to accelerate their digital transformation, which will augment the market growth in the coming years. For instance, in November 2020, EMA design automation expanded its operations in North America by adding the Trilogic EDA engineering sales and support team to offer advanced technologies and aid the EDA industry expansion in the U.S

The United States is a lucrative country in terms of manufacturing, designing, and research in the semiconductor sector. Expanding end-user sectors such as; consumer electronics, and automotive will assist in market growth. As per Semiconductor Industry Association (SIA), the semiconductor industry employs approximately a quarter of a million workers in the United States.

What are the Prospects of Market Growth in the Asia-Pacific?

A strong foothold of the Semiconductor Industry in Emerging Countries to Benefit the Region, China to take Lead

APAC is anticipated to be the most lucrative region in the global electronic design automation market during the forecast period. The regional growth can be attributed to a strong foothold of the semiconductor sector in developing countries such as; China, Japan, and South Korea. According to Fact.MR’s analysis, the market in China is expected to garner US$ 2.1 Billion, while recording a CAGR of 7.1% from 2022-2032. Japan is estimated at US$ 1.8 Billion, exhibiting a 6.5% growth rate during the forecast period. And, South Korea is likely to garner US$ 1.1 Billion and a 6.1% CAGR in the assessment period.

Presence of established semiconductor sector players in China such as; HiSilicon (China), Semiconductor Manufacturing International Corporation (China), and others are projected to spike the market expansion in the forecast period and strengthen the industry. China is likely to lead the region owing to the growing US-China tensions and supportive government subsidies. As per SIA, China’s semiconductor industry recorded an annual growth of 30.6% to procure US$ 39.8 Billion in 2020, against USD 13 Billion and a 3.8% growth rate, five years ago.

In August 2020, the Government of China announced various policies and rules to promote the semiconductor sector. In August 2020, China’s State Council announced various policies to boost the development of the IC industry and Software industry. China’s new rules encourage the US and foreign semiconductor players to transfer IP, and R&D operations in China, thus, propelling the market in China.

Category-Wise Insights

Based on Product Category, Which Segment is Likely to Lead the Market?

IC Physical Design & Verification Segment to Dominate the Market

As per the analysis, based on product category, the IC physical design & verification segment is likely to dominate the market during the forecast period. The segment is likely to garner a 7.3% CAGR from 2022-2032.

The complexity of Semiconductor verification and manufacturing requirements is increasing on a continuous basis, which makes it a complex task for IC design companies to offer cutting-edge and efficient products. In order to meet the demand and achieve certain goals, players demand electronic design automation solutions that can give trustworthy results and aid in achieving their objectives.

By Deployment mode, Which Segment is anticipated to dominate the Market?

Cloud-based Segment to Secure Forefront Position

According to the analysis, the deployment segment is expected to be dominated by the Cloud-based category. The segment is estimated at 6.9% CAGR during the forecast period.

Cloud-based solutions are expected to offer efficient results in high-sped operations processes, lessen costs associated with the production of semiconductor chips, and fasten developments and innovation while reducing operational costs. Such factors are attributed to augmenting the segmental growth during the forecast period.

Competitive Landscape

Players in the electronic design automation market are undertaking various technologically advanced solutions to offer efficient solutions to their customers. As the competition increases in the market, vendors of the industry are taking various efforts to strategically collaborate with players around the globe. Some recent updates about the industry are as follows:

• In July 2021, Zuken Inc. launched CR-8000 2021. It is a developed version of CR-8000 that principally focuses on early design analysis and reuse functionality.
• In April 2021, ANSYS, Inc. announced a strategic collaboration with Advanced Micro Devices, Inc. The collaboration will assist engineering teams across the industries to enhance unique and innovative product design by developing modeling run times. The 3rd Gen AMD EPYC 7003 Series processors increase Ansys simulations’ run time by 2x.

Key Segments Covered in the Global Electronic Design Automation Market Study

• Electronic Design Automation Market by Product

  • Electronic Design Automation for Computer-aided Engineering
  • Electronic Design Automation for IC Physical Design & Verification
  • Electronic Design Automation for PCB & MCM
  • Electronic Design Automation for Semiconductor IP
  • Electronic Design Automation for Services

• Electronic Design Automation by Deployment Mode

  • Electronic Design Automation by Cloud-based
  • Electronic Design Automation by On-Premises

• Electronic Design Automation by Application

  • Electronic Design Automation for Microprocessors & Microcontrollers
  • Electronic Design Automation for Memory Management Units
  • Others (Interfaces, FPGAs, ADCs, DACs, and Mixed ICs)

• Electronic Design Automation by End User

  • Electronic Design Automation for Automotive Industry
  • Electronic Design Automation for Healthcare Industry
  • Electronic Design Automation for Aerospace & Defense Industry
  • Electronic Design Automation for Telecom and Data Centre Industry
  • Electronic Design Automation for Consumer Electronics Industry
  • Electronic Design Automation for Industrial Sector
  • Others (Banking, Financial Services, and Insurance (BFSI), Commercial Sectors, and Textile Industry)

• Electronic Design Automation by Region

  • North America Electronic Design Automation Market
  • Europe Electronic Design Automation Market
  • Asia-Pacific Electronic Design Automation Market
  • Middle East & Africa Electronic Design Automation Market
  • Latin America Electronic Design Automation Market