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The semiconductor fabrication software market is estimated to grow at a CAGR of 1.77% between 2022 and 2027. The size of the market is forecast to increase by USD 586.17 million. The growth of the market depends on several factors, including the growing complexity of semiconductor device designs, the increasing requirement for SoC technology, and the demand for miniaturized electronic devices of high precision across sectors.
This report extensively covers market segmentation by solution (CAE, IC physical design and verification, PCB and MCM, fab management software, and others), end-user (process documentation, process integration, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). 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 reports categorize the global semiconductor fabrication software market as a part of the global information technology (IT) consulting and other services market within the global IT services market. The parent market, the global IT services market, covers companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and Internet services. The global IT consulting and other services market covers companies that provide information technology consulting and information management services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The growing complexity of semiconductor device designs is notably driving the market growth, although factors such as global chip shortage 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 Fabrication Software Market Driver
The growing complexity of semiconductor device designs is notably driving the market growth. The semiconductor industry has a definite need for high functionality, performance, and bandwidth. The increasing complexity of semiconductor chip design has made the manufacturing process of semiconductor devices complex and complicated. Some major chip makers, such as Intel and Samsung, are trying to avoid this effect by adding more engineers to design teams. However, this affects their research and development costs as more capital is used to pay employee salaries. This explains the growing need for multi-function ICs.
Semiconductor manufacturers do not differentiate manufacturing but instead focus on functions and performance characteristics to gain a competitive advantage in the market. The complexity of semiconductor design has created a demand for advanced software tools for semiconductor design and manufacturing. Technavio believes that the complexity and smaller footprint of nodes will benefit the market during the forecast period.
Key Semiconductor Fabrication Software Market Trend
The high need for semiconductor memory devices is the key trend driving the market growth. Semiconductor manufacturers are shifting their focus from logic, analogue, and discrete devices to memory devices such as 3D NAND and dynamic random access memory (DRAM). The main reason for this change is the high growth potential of devices in the semiconductor memory market. This need is complemented by the dynamics of the consumer electronics market, which offers new opportunities for sellers.
The additional features such as more resistance to vibration, low chances of corruption due to impact, less possibility of data loss, etc. require precise chip fabrication, for which semiconductor fabrication software solutions are a necessity. OEMs of high-functionality smartphones, tablet PCs, PDAs, and notebooks are expected to launch new products integrated with 3D NAND during the forecast period. Thus, the market is expected to foresee significant growth during the forecast period.
Key Semiconductor Fabrication Software Market Challenge
Global chip shortage is the major challenge impeding the market growth. A global shortage of chips has affected the electronics industry, limiting the world's ability to produce everything from cars to consumer goods, and driving up prices. Procurement problems are even negatively affecting chip manufacturers, at least indirectly, adding to the confusion in the semiconductor industry.
Widespread shortages prevent companies from replenishing inventories. Chip orders are usually placed several months in advance, but take longer than usual to fulfil. Electronics companies deal with lead times of over 28 weeks for almost all types of chips. Companies ordered more wood chips than needed to build inventories, which squeezed capacity and drove up costs. Many chip manufacturers require consumers to commit to long-term non-cancellable orders to avoid duplicate orders. Such factors may hinder the growth of the market during the forecast period.
Key Semiconductor Fabrication Software 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 Fabrication Software 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.
Synopsys Inc. - The company offers semiconductor fabrication software such as Odyssey under its semiconductor and system design segment. The segment includes EDA, IP, System Integration, and others. Additionally, the company offers a comprehensive solution for building integrity including security, quality, and compliance testing for the customers.
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.
Based on solutions, the market is segmented into CAE, IC physical design and verification, PCB and MCM, fab management software, and others. The market share growth by the CAE segment will be significant during the forecast period. The CAE segment refers to a particular software used for engineering tasks. This segment includes tools such as electronic system level (ESL), register transfer level (RTL) simulation, hardware-assisted verification, analysis tool, synthesis, analogue and mixed signal simulator, formal verification, design input, and logic and formal verification. ESL tools play a vital role in this segment as it is the fastest-growing segment compared to other CAE segments. The main growth factor here is the systematic approach of the tools. This allows end users to design, verify and simulate at lower costs and in less time. RTL tools allow end users to verify logic designs in the RTL language.
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The CAE segment showed a gradual increase in the market share of USD 2,733.17 million in 2017 and continued to grow by 2021. These tools also provide an abstract of the complex circuit diagram, which is then used to extract root-level circuit writings. The CAE segment will witness slow growth during the forecast period as most users already own licenses for EDA software due to the contractual business model adopted by the EDA vendors. These tools are used for solving partial differential equations and boundary values problems or deriving algorithms to deal with problems in fluid flows or carrying out flight tests.
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APAC is projected to contribute 57% to market growth by 2023. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC generates the highest revenue for the global semiconductor fabrication software market. The region has transformed itself into an electronics manufacturing hub. Most of the major countries in the region, such as Japan, South Korea, Taiwan, and China, are known for their electronic device manufacturing capabilities. Developing countries such as India are also treading the same path with the emergence of several home-grown brands such as Micromax. The Indian government has also started the Make in India initiative to promote manufacturing in the country. This initiative will likely give a boost to the manufacturing sector in the region, creating the need for semiconductor fabrication software solutions during the forecast period.
In 2021, the initiation of large-scale vaccination drives carried out by the governments in APAC led to the lifting of lockdown restrictions. This resulted in the resumption of activities in end-user industries, which increased the demand for semiconductors in the region. Such factors have positively impacted the regional market. Moreover, increasing investments by electronics manufacturers will contribute to the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by solution, end-user, and region.
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Semiconductor Fabrication Software Market Scope |
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Report Coverage |
Details |
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Page number |
176 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 1.77% |
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Market growth 2023-2027 |
USD 586.17 million |
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Market structure |
Fragmented |
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YoY growth (%) |
2.0 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 57% |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Advanced Micro Devices Inc., Agnisys Inc., Aldec Inc., ANSYS Inc., Applied Materials Inc., Cadence Design Systems Inc., Cantier Systems Pte Ltd., Fabmatics GmbH, KLA Corp., Lam Research Corp., Mindteck India Ltd., Onto Innovation Inc., PDF Solutions Inc., Sasken Technologies Ltd., Siemens AG, Synopsys Inc., The PEER Group Inc., Thermo Fisher Scientific Inc., Tismo Technology Solutions Pvt. Ltd., and Zuken Inc. |
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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. |
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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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Solution
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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