Global Cloud EDA Market 2016-2020

Overview of the global cloud electronic design automation (EDA) market

Market research analysts at Technavio have predicted that the global cloud electronic design automation (EDA) market will grow steadily during the forecast period and will post a CAGR of almost 7% by 2020. The adoption of EDA leads to a reduction in the design time, errors, and cost and is mainly used in the manufacture of aerospace and defense equipment. For instance, Bell Helicopter adopted Mentor Graphics Capital product family to streamline the wiring design process for their Bell 525 Relentless program. The company used Capital Suite, an advanced electrical system, and wire harness design software suite to reduce the time taken in electrical system integration by eliminating prototypes. Capital Logic, Capital Integrator, and Capital AutoView software are few other software adopted by the company to streamline and improve the relentless electrical system design process subsequently, providing a faster time to market. The reduction in design time is one of the major advantages that EDA offers and will be one of the primary factors fueling the growth of the cloud EDA market.

The requirement of a huge capital investment by customers is one of the primary barriers affecting the growth of the cloud EDA market. As a result, the coming years will witness the shift from a perpetual model to a subscription-based licensing model. A subscription license model will help vendors offer their users features to create a mix of desired EDA tools and also provide upgrades and maintenance facilities. Moreover, a subscription model will considerably reduce the total cost of operation enabling several large companies and small and medium-sized enterprises to have easy access to EDA tools.

Competitive landscape and key vendors

Though the global cloud EDA market is not capital-intensive, it is labor-intensive and demands the presence of a large number of EDA expert professionals. This acts a major barrier for new players to enter the market. The market is primarily dominated by three major players such as Cadence Design Systems, Synopsis, and Mentor Graphics who with their extensive capital and marketing resources compete with each other for a considerable revenue share of the market. In addition to these leading players, the market is also marked by the presence of small EDA companies with limited capital. These companies offer their innovative solutions at affordable prices and pose a stiff competition to the major players.

The leading vendors in the market are -

• Cadence Design Systems
• Mentor Graphics
• Synopsys

The other prominent vendors in the market are Agilent, Agnisys, Aldec, Ansys, JEDA Technologies, MunEDA, Sigrity, and Zuken.

Segmentation by product and analysis of the cloud EDA market

• CAE
• SIP (semiconductor intellectual property)
• IC physical design and verification
• Printed circuit board (PCB) and multi-chip module (MCM)

During 2015, the CAE market segment accounted for almost 39% of the total market shares and dominated this market. The segment consists of several software including electronic security level (ESL), register transfer level (RTL) simulation, hardware-assisted verification, analysis tool, and analog and mixed signal simulator. ESL tools will be the major contributor to the market in this segment and the growth of this segment will mainly attribute to the system-level approach of the tools that enables users to design, verify, and simulate simultaneously at much lower costs and lesser time.

Geographical segmentation and analysis of the cloud EDA market

• Americas
• APAC
• EMEA

In terms of geographical regions, this market study estimates that the Americas will be the major revenue contributor to the cloud EDA market in the next four years and will post an impressive revenue of almost USD 313 million by 2020. The rise in adoption of electronic features and components in cars, the introduction of favorable government policies, and the development of miniaturized electronic products are some of the major factors that will drive the demand for EDA tools in this region. The presence of the leading EDA vendors and the rise in usage of semiconductors in end-products will also provide for the growth of the market in this region.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global cloud EDA market?
• What are the key market trends impacting the growth of the global cloud EDA market?
• What are the challenges to market growth?
• Who are the key vendors in the global cloud EDA market?
• What are the market opportunities and threats faced by the vendors in the global cloud EDA market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global cloud EDA market?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Global Electronic Design Automation Market 2016-2020
• Global EDA Market in the Aerospace and Defense Sector 2015-2019
• Global EDA Market in the Automotive Industry 2015-2019

Electronic design automation, or EDA, is a sub-segment of software tools that is used for designing electronic systems like integrated circuits and printed circuit boards. EDA is also known as electronic computer-aided design (ECAD). The chip designers use these tools in a design flow to devise and examine semiconductor chips.  The cloud EDA software license includes perpetual licenses or periodic licenses, which are also referred to as subscription. Perpetual licenses are one-time investments, after which the software can be used for an indefinite period. Vendors in the market also provide pay-per-use subscription models and services as per the cloud-based offerings. Cadence, Mentor Graphics, and Synopsys will be some of the prominent players in this market space.

The report, global cloud EDA market, is part of Technavio’s ICT research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as automatic identification system, cloud computing, data center, enterprise application, IT security, ITO and BPO, and product lifecycle management. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.