Electronic Design Automation (EDA) Market - By Product (Computer-aided Engineering, IC Physical Design & Verification, Printed Circuit Board & Multi-chip Module, Semiconductor Intellectual Property, Services), By Application & Forecast, 2023 – 2032

Electronic Design Automation Market Size

Electronic Design Automation Market was valued at USD 12.9 billion in 2022 and is estimated to register a CAGR of over 10% between 2023 and 2032. The proliferation of cloud services is significantly propelling the global market statistics. Cloud-based EDA tools offer scalability, collaboration, and cost efficiency, enabling engineers to access powerful software and resources remotely. For instance, in March 2022, Synopsys introduced a cloud-based Software-as-a-Service (SaaS) solution, revolutionizing chip development with scalable accessibility. These platforms offer scalable and flexible resources including virtual machines, storage, and networking to host EDA applications & data. EDA tools are deployed as SaaS solutions, allowing users to access them over the internet. This eliminates the need for on-premises installations and provides greater flexibility in terms of licensing and resource allocation.
 

EDA tools enable engineers to create virtual prototypes of electronic circuits and systems, simulating their behavior under various conditions. Functional simulation ensures the logical correctness of the design, timing analysis assesses signal propagation times, power analysis measures energy consumption, and thermal analysis evaluates heat dissipation. These simulations help engineers identify issues, optimize designs, and validate performance, ensuring the reliability and functionality of electronic products before physical prototypes are built.

A key challenge in the market is the availability of counterfeit products and electronic devices. The availability of low-cost forged products is posing a hurdle for the computer-aided engineering market growth. Online retailing has also contributed to the rising number of counterfeit products. The EDA market is in its nascent stage in many developing and underdeveloped countries, resulting in the absence of structured regulations mandating the development and implementation of EDA tools. There are no specific laws concerning IP infringement in several underdeveloped countries. This also restricts EDA solution providers from expanding their regional presence in developing economies.
 

Impact of COVID-19 pandemic

The COVID-19 pandemic significantly impacted the electronic design automation market. Supply chain disruptions, factory closures, and reduced consumer spending led to project delays and cancelations for many electronics companies. Uncertainties and economic challenges led to reduced investments in new technologies, affecting the demand for EDA tools. Furthermore, remote work setups posed collaboration challenges, slowing down development processes. These factors combined hampered the Electronic Design Automation (EDA) market growth during the pandemic.
 

Electronic Design Automation Market Trends

The proliferation of the Internet of Things (IoT) and connected devices is a significant factor driving the expansion of the electronic design automation (EDA) market. With the rising adoption of IoT, there is a surge in the number of connected devices including smart home appliances, wearables, and industrial sensors. For instance, in August 2023, Reliance Jio introduced Smart Home Services that allow users to seamlessly control home appliances. These services will stimulate the demand for sophisticated IoT and electronic systems. Each of these devices requires electronic components and circuitry for their functionality, increasing the demand for electronic design and EDA solutions.
 

The growing demand for electronic design automation (EDA) tools in the automotive sector is propelling the market significantly. As vehicles become more complex with advanced electronics, EDA tools play a vital role in designing Integrated Circuits (ICs), sensors, and control systems. They enable automotive engineers to develop sophisticated electronic components, ensuring safety, connectivity, and energy efficiency. With the rise of electric and autonomous vehicles, the demand for EDA tools has surged, propelling innovations, and enhancing the overall driving experience.
 

Electronic Design Automation Market Analysis

Based on the product, the market is divided into computer-aided engineering (CAE), IC physical design & verification, printed circuit board (PCB) & multi-chip module (MCM), semiconductor intellectual property (SIP), and services. In 2022, the semiconductor intellectual property (SIP) segment held a market share of around 37%. Customized SIP solutions offer advantages in terms of optimizing performance, reducing power consumption, and adhering to size & form factor constraints. This customization also provides a competitive edge by fulfilling specialized application needs while enabling companies to differentiate themselves in the market, enhance energy efficiency, and adapt to evolving technological trends. Custom SIP solutions can incorporate security features, intellectual property protection, and end-to-end compatibility, offering comprehensive & bespoke semiconductor solutions for a wide range of customers and applications.
 

Based on the application, the market is categorized into aerospace & defense, automotive, consumer electronics, industrial, medical, and telecommunications. The consumer electronics segment accounted for a market share of around 30% in 2022. The rising disposable income in developing economies has resulted in the growing adoption of smart devices such as smartphones, laptops, and tablets. Smartphone manufacturers are focused on integrating maximum features into phones while maintaining the compactness of the device. The trend of device miniaturization has also gained popularity. Consumers are using wearable fitness devices that can be connected to other fitness equipment and mobile applications. The demand for EDA tools that enable the development of high-performance compact PCBs is expected to increase. The growing trend of smart homes has also resulted in the rising adoption of soundbars, wireless home theater systems, and smart speakers, which require high-performance ICs for efficient functioning, further supporting the market growth.
 

Asia Pacific dominated the global electronic design automation market with a major share of over 40% in 2022. The demand for designing complex electronic systems in automobiles is fueling the Asia Pacific Electronic Design Automation (EDA) market growth. As automotive companies in the region focus on developing advanced features, such as autonomous driving, connectivity, and electric powertrains, there is a heightened need for sophisticated EDA tools. For instance, in October 2023, Maruti Suzuki announced plans to introduce ADAS technology in its vehicles. The company aims to launch the ADAS-equipped Grand Vitara in the first quarter of 2024. This move signifies the growing trend of integrating advanced driver assistance features in automobiles, thereby enhancing safety and the driving experience.
 

Electronic Design Automation Market Share

The major players operating in the electronic design automation industry are:

• Agnisys Inc
• Altium Limited
• Ansys
• Autodesk Inc
• Cadence Design Systems, Inc
• Keysight Technologies Inc
• Siemens AG
• Synopsys Inc
• Aldec Inc
• Intercept Technology Inc
• Dolphin Design
• Labcenter Electronics Ltd

The competitive landscape of the electronic design automation business is intense, with leading players investing in research, innovations, and strategic partnerships. These firms constantly strive for market share by offering cutting-edge tools, comprehensive solutions, and exceptional customer support, driving the industry's evolution.
 

Electronic Design Automation Industry News

• In October 2023, Siemens Digital Industries Software, introduced Tessent RTL Pro, an advanced software solution designed to assist IC design teams in optimizing and expediting various essential Design-for-Test (DFT) tasks for its upcoming generation designs.
   

The electronic design automation (EDA) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD billion) from 2018 to 2032 for the following segments:

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Market, By Product

• Computer-aided Engineering (CAE)
• IC physical design & verification
• Printed Circuit Board (PCB) & Multi-chip Module (MCM)
• Semiconductor Intellectual Property (SIP)
• Services

  Market, By Application

• Aerospace & defense
• Automotive
• Consumer electronics
• Industrial
• Medical
• Telecommunications

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia