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The semiconductor IP market is estimated to grow at a CAGR of 5.91% between 2022 and 2027. The size of the market is forecast to increase by USD 1,978.77 million. The growth of the market depends on several factors, including complex chip designs and the use of multi-core technologies, increasing demand for modern SoC chips, and growing demand for mobile computing devices.
This report extensively covers market segmentation by application (mobile computing devices, consumer electronics, automotive, industrial automation, and others), end-user (fabless semiconductor companies, IDMS, and foundries), form factor (processor IP, physical IP, and digital IP), and geography (North America, APAC, 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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Technavio categorizes the global semiconductor IP market as a part of the global semiconductor equipment market within the global semiconductors and semiconductor equipment market. The parent global semiconductor equipment market covers manufacturers of semiconductor equipment, including manufacturers of raw materials and equipment used in the solar power market. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The growing demand for mobile computing devices is notably driving the market growth, although factors such as integration and verification problems of semiconductor IP may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Semiconductor IP Market Driver
The growing demand for mobile computing devices is notably driving market growth. The growth in the semiconductor industry is proportional to the growth in the consumer electronics industry. Therefore, since consumer electronic devices such as laptops, smartphones, and tablets have witnessed significant growth in the last decade there has also been an increase in the sales of semiconductors.
The global mobile computing devices market will witness high growth during the forecast period because of the emergence of several new players which are introducing products at competitive prices. The growing number of functionalities in these devices due to the development of advanced technologies is generating a tremendous amount of data that needs to be stored. Therefore, memory chip manufacturers are focusing on the development of SoCs, which store large amounts of data, occupy less space, and are easily scalable to large densities. This is creating the need for memory IP for the development of multi-functional SoCs. Most mobile SoC designers use high-quality third-party IP blocks to reduce the risk of design integration in a device and delay in the delivery of end-products to the market. This will result in higher revenue generation for memory IP providers, which will drive the growth of the global market during the forecast period.
Significant Semiconductor IP Market Trend
The emergence of IoT is an emerging trend in the market. A network of physical objects or things implanted with electronic components, sensors, software, and network connectivity can be defined as IoT. This involves M2M communication, enabling devices to exchange and act upon information fed into the system. It integrates machine learning and big data technology which enables an operator across industries to effectively pick on inefficiencies and solve problems much faster during the production process, thereby achieving operational excellence.
Furthermore, the emergence of IoT is expected to accelerate the design and development of new memory architecture for the development of memory ICs, thereby resulting in a higher demand for memory IPs. Thus, the emergence of IoT is one of the growing trends expected to drive the growth of the global market during the forecast period.
Major Semiconductor IP Market Challenge
Integration and verification problems of semiconductor IP are the major challenges impeding the market. According to observations and research, it has been found that design engineers face a huge challenge at the time of integrating their acquired semiconductor IP blocks from third-party IP vendors on SoCs. The risk of such IP integration increases with the number of IP blocks to be used, along with the IP design complexity. The cost of IP integration doubles the cost of acquiring those IPs. The increase in the number of IP blocks will also increase production time. Further, during the integration of semiconductor IP, the acquired IP blocks must be compatible with other cores of IP.
The complexity of IP blocks will pose more challenges for the SoC designers to integrate the acquired IP blocks into the design IP base. This challenge will add to the liabilities of a company unless a very exhaustive measure is adopted to tackle it. This can hamper the growth of the global market during the forecast period.
Key Semiconductor IP Market Customer Landscape
The 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 Semiconductor IP Market Customer Landscape
Vendors 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.
CAST Inc. - The company operates under one segment. The company under this segment offers Silicon IP Cores for ASIC and FPGA. The key offerings of the company include semiconductor IP.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the mobile computing devices segment will be significant during the forecast period. In 2022, the mobile computing devices segment dominated the global semiconductor IP market, owing to the growth in the adoption of mobile computing devices, such as smartphones and tablets.
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The mobile computing devices segment was valued at USD 1,489.48 million in 2017 and continued to grow until 2021. Leading electronic device vendors are developing innovative products that are strategically priced. Features and functionalities are prima facie and must beat the price as these devices cannot be priced very high. This shows that these markets give greater importance to functionalities and features over premium products, thereby creating the need for third-party IP cores. Such factors are expected to drive the growth of the segment during the forecast period.
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APAC is estimated to contribute 49% 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.
In 2022, North America dominated the global market. The growth of the market in the region is driven by the presence of leading fabless semiconductor companies and technological advances. Countries such as the US and Canada are expected to be the major contributors to the growth of the market in the region.
The US market is a stable market for R&D advances with respect to semiconductor designs and IP cores due to sound macroeconomic factors such as a strong economy, favorable government policies, growing demand, and early acceptance of consumer electronics devices. The development is promoted through showcasing numerous technological and semiconductor conferences held in the region. This offers an opportunity to showcase advances in semiconductor technology and the creation of new IPs in the semiconductor market. Moreover, with the growing significance of IoT along with the presence of leading semiconductor device manufacturers such as Intel, the market for semiconductor IP is expected to grow during the forecast period.
In 2020, the outbreak of COVID-19 severely affected the growth of the semiconductor IP market in North America. However, the initiation of vaccination drives across North America in 2021 helped industries reopen and resume operations. This has increased the demand for semiconductors for several applications from the end-user industries in the first half of 2021. Moreover, the vendors in the market are focusing on collaborations and new developments that will help them to recover market growth during the forecast period. Such partnerships and advances by vendors are anticipated to propel the growth of the semiconductor IP market in North America during the forecast period.
The 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. The market has been segmented by Application (Mobile computing devices, Consumer electronics, Automotive, Industrial automation, and Others), End-user (Fabless semiconductor companies, IDMs, and Foundries), Form Factor (Processor IP, Physical IP, and Digital IP), and Geography (North America, APAC, Europe, South America, and Middle East and Africa).
Semiconductor IP Market Scope |
|
Report Coverage |
Details |
Page number |
191 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.91% |
Market growth 2023-2027 |
USD 1,978.77 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
-2.05 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, South Korea, Japan, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Achronix Semiconductor Corp., Advanced Micro Devices Inc., Arm Ltd., Arteric Inc., Cadence Design Systems Inc., CAST Inc., CEVA Inc., Dolphin Design SAS, Dream Chip Technologies GmbH, eMemory Technology Inc., Faraday Technology Corp., Imagination Technologies Ltd., Lattice Semiconductor Corp., Perceptia Devices Australia Pty Ltd., Rambus Inc, Siemens AG, VeriSilicon Microelectronics Shanghai Co. Ltd., videantis GmbH, Synopsys Inc., and Alphawave IP Group plc |
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 report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Market Segmentation by Form Factor
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
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