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The semiconductor IP market is estimated to grow by USD 1.98 billion at a CAGR of 5.91% between 2022 and 2027. The market's growth hinges on several factors, such as intricate chip designs and the adoption of multi-core technologies, a rising need for advanced System-on-Chip (SoC) solutions, and an increasing demand for mobile computing devices. These elements collectively drive the development and innovation in semiconductor technologies, particularly in the realm of SoC chips. The complexity of modern chip designs, coupled with the need for enhanced performance and energy efficiency, has led to a surge in demand for SoC chips tailored for various applications. Moreover, the proliferation of mobile devices and the growing reliance on computing power in everyday life further underscore the importance of advancements in SoC technology.
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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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).
The market share growth by the mobile computing devices segment will be significant during the forecast period. System designers in the market prioritize functionalities and features over premium products in sectors such as telecommunications, automotive, consumer electronics, industrial devices, and emerging technologies.
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The mobile computing devices segment was valued at USD 1.48 billion in 2017. This trend is driven by the need for innovation, cost-effectiveness, and design efficiency in product launches. They play a crucial role in this process, enabling collaboration between companies and reducing development expenses. Chip reliability, performance, and operational efficiency are key considerations in SoC designs for electronic devices, including smartphones, IoT devices, and automotive systems. Semiconductor manufacturers focus on CPU SIP, memory modules, analog circuits, and interface modules to meet the demands of various industries, from healthcare and industrial robots to mining and construction. Amidst intense competition and market expansion, intellectual property protection through research and development and patent infringement laws is essential. 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.
Another region offering significant growth opportunities to companies is North America. System designers in North America, particularly in the US and Canada, play a pivotal role in the market. The process in this region is characterized by significant development expenses, driven by a focus on operational efficiency and innovation. IP cores are a key component of this process, with telecommunications, automotive, consumer electronics, industrial devices, and emerging technologies being major sectors for their application. Collaboration between fabless semiconductor companies and IP providers is essential for time-to-market and cost-effectiveness. Semiconductor manufacturers and chip/SOC designers in North America are at the forefront of innovation, with product launches in areas such as SoC designs for electronic devices, including smartphones and IoT devices, automotive systems, and processors for the healthcare industry, industrial robots, mining and construction, and CPU SIPs. Intellectual property protection is crucial in this competitive market, with a focus on design efficiency, chip reliability, and performance. The market expansion includes research and development in areas such as memory modules, analog circuits, interface modules, and patent infringement concerns. 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.
The market plays a crucial role in system design and chip development for various industries, including telecommunications, automotive, consumer electronics, industrial devices, and emerging technologies. System designers rely on IP cores, such as processors, memory modules, analog circuits, interface modules, and SoC designs, to enhance operational efficiency, reduce development expenses, and ensure chip reliability and performance. Semiconductor manufacturers and IC designers collaborate to create innovative solutions for product launches, enabling market expansion and competition in the electronics industry. Time-to-market and cost-effectiveness are essential factors driving the demand for IP cores. However, intellectual property rights and patent infringement concerns remain significant challenges in the market. Research and development in emerging technologies, such as IoT devices, smartphones, and automotive systems, continue to fuel the growth of the market. Collaboration between industry leaders and academic institutions is essential to drive innovation and address the evolving needs of the semiconductor industry. 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.
The increasing demand for modern SoC chips is notably driving market growth. The market in the semiconductor industry is experiencing significant growth due to the increasing demand for System-on-Chip (SoC) solutions with advanced functionalities and superior performance. These companies and providers are at the forefront of this trend, delivering Application-Specific Integrated Circuits (ASICs) for various sectors, including telecommunications, defense, and IoT. Technological innovations, such as Artificial Intelligence (AI) and biochemical analysis equipment, require high-performing ICs. The theft and trade regulations pose challenges to the industry, necessitating import-export analysis.
Semiconductor manufacturers are investing in new architectures and designs, such as silicon photonics, to meet these demands. Intel and Gordon Moore's prediction of a doubling of transistors on integrated circuits every two years continues to drive advancements in computing, video capturing, mobile connectivity, battery life, and security features. The telecommunications industry's focus on communication tools, teleconferencing instruments, networking, video communication, voice communication, wired infrastructure, and wireless infrastructure further fuels the need for IC technology advancements. This will result in higher revenue generation for memory IP providers, which will drive the growth of the global market during the forecast period.
The emergence of IoT is an emerging trend in the market. The market for semiconductor technologies plays a significant role in various industries, including defense, telecommunications, and the Internet of Things (IoT). IP companies and providers collaborate with Original Equipment Manufacturers (OEMs), Original Design Manufacturers (ODMs), research institutions, and industry participants to develop System-on-Chip (SoC) solutions and Application-Specific Integrated Circuits (ASICs). These technological innovations include IP for transistors, integrated circuits, and manufacturing processes, such as silicon photonics. Key applications include biochemical analysis equipment, communication tools like teleconferencing instruments, networking, video communication, voice communication, wired infrastructure, and wireless infrastructure.
The market is subject to trade regulations and import-export analysis. IP theft is a concern, necessitating robust security features. Key players in the market include Intel and Gordon Moore's Intel Research. Technological innovations include advancements in battery life, computing, video capturing, mobile connectivity, and security features. The market is crucial for the development of IC technology in various sectors, including telecommunications, defense, and AI applications like artificial intelligence and machine learning. Thus, the emergence of IoT is one of the growing trends expected to drive the growth of the global market during the forecast period.
Integration and verification problems of semiconductor IP are the major challenges impeding the market. Integration and verification problems pose significant challenges in the market, especially as the defense sector and various industries heavily rely on Application-Specific IP cores for advanced technologies. The extensive use of third-party IP from numerous companies has resulted in a vast IP inventory, requiring proper maintenance of data, including RTL and documentation, aligned with licensing criteria.
IP theft and trade regulations further complicate matters, necessitating import-export analysis. Technological innovations and continuous evolution in semiconductor technology impact various sectors, including battery life, computing, video capturing, mobile connectivity, and security features, making integration and verification of semiconductor IP cores a critical and complex task. Biochemical analysis equipment, remote learning policies, communication tools, teleconferencing instruments, networking, and voice/video communication all require efficient integration and verification of IP cores, highlighting the challenges faced by the industry. This can hamper the growth of the global market during the forecast period.
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 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.
CAST Inc. - The company 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 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments
The market is a significant segment of the electronics industry, with various players offering a wide range of intellectual property (IP) solutions. These IP cores include memory, processor, connectivity, and other functional blocks, designed to meet the specific requirements of semiconductor companies. The chip industry relies on these IP cores to reduce development time and costs, improve performance, and ensure compatibility with industry standards. Companies like Synopsys, Cadence, and ARM are prominent players in this market, offering comprehensive IP portfolios for various applications. Procurement of these IP cores involves careful consideration of factors such as performance, power consumption, area, cost, and compatibility with existing designs. The market for semiconductor IP is expected to grow, driven by the increasing demand for advanced technologies in various industries, including automotive, consumer electronics, and telecommunications.
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 1.97 billion |
Market structure |
USD 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 Companies, Market Positioning of Companies, 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 Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market 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. |
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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 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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