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The electronic design automation (EDA) market size is estimated to grow at a CAGR of 9.76% between 2022 and 2027. The market size is forecast to increase by USD 7,504.13 million. The growth of the market depends on several factors, including the growing significance of EDA in the electronic design process, the growing significance of EDA in the electronic design process, and the increasing relevance of EDA. Electronic design automation (EDA) is a set of software, hardware, and essential services for designing complex next-generation electronics systems or products such as printed circuit boards and integrated circuit boards, chips, and semiconductor devices. EDA assists in the definition, planning, design, implementation, verification, and manufacturing of semiconductor devices or chips. It also helps predict circuit behavior, assemble circuit elements, and anticipate chip performance.
This electronic design automation market report extensively covers market segmentation by product type (semiconductor IP, CAE, IC physical design and verification, PCB and multi-chip module, and services), deployment (on-premises and cloud-based), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing significance of EDA in the electronic design process is driving growth in the market. The global market for semiconductors has been significantly enhanced by the growing demand for electronic devices. Semiconductors are used in all devices such as smartphones, wearables, and the forthcoming IoT. With the growing popularity of these devices, capital investments in the semiconductor industry have increased exponentially over the years.
However, the global semiconductor market is recording a rapid technological transformation. This is giving rise to rapid product developments and reduced time-to-market for developed products. In PCBs which are to comply with ICs, one of the main focus areas for PCB manufacturers, embedded semiconductors should be integrated. This has compelled PCB manufacturers to extensively use EDA tools to design products to support the trend of miniaturization. Therefore, the growing significance of EDA in the electronic design process will drive the growth of the global electronic automation market during the forecast period.
Machine learning disrupting the global EDA market is a primary trend in market growth. Machine learning is beginning to have an impact on the global electronic design automation Market. Machine learning tools allow for the recommendation of solutions to common problems, and this will take much less time for the design team. The approach through machine learning consequently reduces the cost of designs. The reduction of the cost of design theoretically expands the market for EDA tools. It creates opportunities for new designs and companies requiring more chips.
Moreover, machine learning is one of the up-to-the-minute areas of development for the semiconductor industry. Packaging and optimization of solutions into usable forms for battery-operated consumers or the automotive sector, as well as IoT products, is a possibility. Therefore, the factors like machine learning disrupting the global electronic design automation market can drive the growth of the global electronic design automation market during the forecast period.
The increased risk of cyber threats is a major challenge faced by the electronic design automation market. The reputations of the vendors and their businesses could be affected by any compromises of information related to business or customers due to cyber attacks as well as other security breaches. The electronic design automation (EDA) market vendors store sensitive data, including IP, proprietary business information, private customer data, and confidential employee information, in their data centers and on their networks.
Moreover, despite high-security measures, the IT infrastructure might be vulnerable to attacks by hackers or can be breached owing to employee error or other commotions that could lead to unauthorized disclosure or loss of delicate information. It is often based on the sophistication of security methods that techniques to gain unauthorized access to networks and disrupt systems change. The techniques generally cannot be recognized until tried against a target. Therefore, the increased risk of cyber threats will negatively impact the growth of the global electronic design automation market during the forecast period.
The market share growth by the semiconductor IP segment will be significant during the forecast period. The semiconductor IP market segment held the largest share of the global electronic design automation (EDA) market in 2021. New products have emerged due to the increasing complexity of semiconductor designs and production techniques as well as their integration with advanced technologies. This is increasing the number of IPs being registered in the semiconductor industry.
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The semiconductor IP segments showed a gradual increase in the market share of USD 3,028.41 million in 2017 and continued to grow by 2021. The semiconductor industry has been recording increased demand for many devices, including sensors, chips, radio frequency (RF) components, and memory devices. The increasing use of semiconductors in a range of sectors, e.g. automotive, energy, medical care, and engineering, has led to this demand. Such factors will increase segment growth during the forecast period.
Computer-aided engineering (CAE) refers to register-transfer level (RTL) simulation, electronic system levels (ESLs), analysis, hardware-assisted verification, synthesis, analog and mixed-signal simulators, design entry, formal verification, and logic and formal verification tools and software. The CAE system will help to simplify the production of electronic devices when design models are converted in manufacture instructions for machines. The CAE involves a system-level approach that allows end-users to perform a large number of tasks, such as design, analysis, simulation, validation, and the manufacturing of engineering products. CFD produces a simple draft of the complex circuit diagram that is used to obtain the basic level of circuit writing. Therefore, all such factors will drive the growth of the CAE segment in the global electronic design automation market during the forecast period.
The on-premises deployment segment refers to the traditional approach of deploying software or applications on local servers or computing infrastructure that is owned and managed by an organization. On-premises infrastructure gives the organization complete control over the resources, services, and data. The performance of the On-premises systems provides certain advantages, such as latency. On-premises provide provision to store data locally, allowing greater control, which will avoid the cases of sensitive data leaving the company. All these advantages make the on-premises software highly preferable to the chip designers. EDA workflows include front-end design, backend workloads, as well as performance stimulation and verification and include timing and power analysis, design rule checkups, and other applications from the backend workload to prepare a chip for production.
The cloud-based market segment is growing at a rapid pace. Semiconductor companies are progressively focusing on reducing their IT infrastructure costs and improving the agility, flexibility, and efficiency of designing operations. The rapid change in the marketing landscape and proliferation of content and channels drive marketers to adopt solutions that are scalable, consistent, and that support improved quality. It's easy to use cloud-based software wherever and whenever you want. For the purpose of implementing cost-efficient and adaptable IT solutions for storing digital content and files, cloud computing products have been adopted. The benefits of cloud-based software are that it offers flexible models (public, private, or hybrid), remote access, simplified IT management, cost-efficiency, and mobility. However, data centers necessitate enormous processing power. Furthermore, as more critical applications are moving to the cloud, software security, and data privacy are growing concerns.
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APAC is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The growing concentration of electronic manufacturers and the presence of a large number of semiconductor foundries in the region are primarily propelling the growth of the electronic design automation (EDA) market in APAC. In terms of strong semiconductor value chain establishments, countries such as China, Taiwan, and South Korea have grown exponentially.
Furthermore, the region has a high presence of electronic device manufacturers that need EDA software tools to operate. The increasing number of manufacturers in APAC, particularly China and India (with substantial investments and government backing), would drive the growth of the market in the region during the forecast period.
The outbreak of COVID-19 in 2020 negatively impacted the growth of the electronic design automation market in APAC. However, the large-scale vaccination drives that are conducted by the governments across the region in the first half of 2021 helped stabilize the situation. As a result, operations in the industrial and manufacturing sectors resumed. Demand for electronic design automation in this region is expected to grow as a result of increasing demand for advanced devices, such as smartphones and consumer electronics. Therefore, such factors will drive the growth of the electronic design automation market in the region during the forecast period.
The Electronic Design Automation Market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Electronic Design Automation Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Advanced Micro Devices Inc - The company offers a wide range of electronic design automation software and services under its subsidiary Xilinx Inc.
Agnisys Inc. - The company offers electronic design automation such as IDesignSpec, IDS NextGen, and others.
Aldec Inc.- The company offers electronic design automation such as a lint pro and others.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The electronic design automation market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Electronic Design Automation Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.76% |
Market growth 2023-2027 |
USD 7,504.13 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.03 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 45% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Micro Devices Inc, Agnisys Inc., Aldec Inc., ANSYS Inc., Autodesk Inc., Cadence Design Systems Inc., ElectroMagneticWorks Inc., Eremex Ltd., Intercept Technology Inc., Keysight Technologies Inc., Labcenter Electronics, Mirabilis Design Inc, National Instruments Corp., Siemens AG, Sigasi NV, Silvaco Inc., Synopsys Inc., Verific Design Automation Inc., WestDev Ltd., and Zuken Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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