Electronic Design Automation Software Market

Electronic Design Automation Software Market Outlook (2024 to 2034)

The global electronic design automation software market is estimated to have a value of US$ 12 billion in 2024. The market has been forecast to climb to US$ 27.15 billion by the end of 2034, expanding at a noteworthy CAGR of 8.5% between 2024 and 2034.

Electronic design automation (EDA) software is increasingly vital for developers creating printed circuit boards (PCBs) and other circuitry due to the growing complexity of designs. EDA software facilitates the design, modeling, simulation, testing, and analysis of circuits, helping developers preempt potential issues before production.

Key Market Growth Drivers

• The market is closely linked with semiconductor manufacturing, embedded software, and emerging fields such as photonics and micromechanics, all-embracing miniaturization, and system integration.
• Collaboration within the EDA ecosystem with component developers (e.g., RFIC), subsystem developers (e.g., radars), and system developers (e.g., autonomous vehicles) enhances integration and performance.
• Increasing adoption of connected devices and IoT drives demand for EDA software, especially with advanced processors adopting FinFET architecture.
• Growing complexity of IC systems, higher performance demands, cost considerations, and shorter development cycles contribute to sustained market expansion.

Report Attribute	Detail
EDA Software Market Size (2024E)	US$ 12 Billion
Projected Market Value (2034F)	US$ 27.15 Billion
Global Market Growth Rate (2024 to 2034)	8.5% CAGR
East Asia Market Growth Rate (2024 to 2034)	9.9% CAGR
North America Market Growth Rate (2024 to 2034)	7.6% CAGR
Design Segment Value (2024E)	US$ 5.28 Billion
Cloud Segment Value (2024E)	US$ 4.56 Billion
Key Companies Profiled	Cadence Design Systems, Inc.; Electro-System Co., Ltd.; EMA Design Automation, Inc.; Faraday & Future Inc.; Intel Corporation; Intercept Technology; Keysight Technologies; Microsemi; Pulsic Limited; Siemens; Silvaco, Inc.; Synopsis, Inc.; Tabula; Aldec, Inc.; Altair Engineering Inc.; Altium Limited.

Why is Electronic Design Automation Software in Such High Demand?

“Technological Advancements Leading to Increasingly Complex Integrated Circuits”

As technological advancements progress, integrated circuits grow increasingly intricate, heightening the demand for advanced electronic design automation (EDA) software tools. Designers seek software capable of managing complex designs, high-speed signals, and multi-domain simulation to ensure functionality and reliability.

Rise of IoT devices and artificial intelligence (AI) necessitates specialized EDA software, spurring innovation in tools with demands for high-performance computing, efficient power management, and integration of diverse sensor data. A shift towards system-level design methodologies, where hardware and software are co-designed and tested, supports EDA software in accelerating time to market and ensuring optimization and compatibility across complex systems.

“Integration of Complete Electronic Systems into Single SoC Platforms”

A system on a chip (SoC) integrates a complete electronic or computer system onto a single platform, increasingly utilized in various electronics like laptops and desktops. Future projections indicate a sharp rise in demand for SoC test platforms driven by technological platform advancements.

The evolution of SoC also stimulates growth in the semiconductor IP market. Innovations in EDA software become imperative to address the growing complexity of programmable components. While existing SoCs and CPU models have endured, new EDA design tools must overcome challenges such as slow simulation speeds, limited validation support, synthesis complexities, and restricted architectural modeling capabilities. These are major drivers for electronic design automation software market growth.

What are the Key Challenges Faced by EDA Software Providers?

“Stringent Power and Performance Demands and Rapid Evolution in Chip Design”

The semiconductor industry is swiftly evolving thanks to progress in chip design, integration technologies, and manufacturing processes. EDA software manufacturers must keep pace with these advancements to provide tools that support the latest design methodologies and capabilities.

Modern integrated circuits (ICs) are increasingly intricate, incorporating multiple functionalities, high-speed signals, and demanding power and performance requirements. EDA software must address these complexities to ensure accurate design simulation, verification, and validation.

Country-wise Insights

Software for electronic design automation, or EDA, is essential for the creation of integrated circuits (ICs) and electronic systems. North America is estimated to account for 38% share of the global market in 2024.

How is the Adoption of New Technologies Influencing Market Growth in the United States?

“Focus on Reducing Vulnerabilities and Maintaining Optimal System Performance”

Attribute	United States
Market Value (2024E)	US$ 3.28 Billion
Growth Rate (2024 to 2034)	7.3% CAGR
Projected Value (2034F)	US$ 6.65 Billion

Due to extensive industrialization and urbanization processes, the United States is attracting substantial interest of market players. The rising use of electronic design automation tools in industries such as consumer electronics and automotive is a major electronic design automation software market trend. Significant advancements in manufacturing and semiconductor industries have resulted in substantial market growth over the years. Additionally, the presence of well-known companies in the automotive, consumer electronics, and other industries, including Keysight Technologies, Synopsys, Ansys Inc., and Xilinx, among others, is anticipated to fuel market growth during the projection period.

What Makes China the Growth Epicenter for Electronic Design Automation in East Asia?

“Focus on Offering Lower-Cost Platforms by Manufacturers”

Attribute	China
Market Value (2024E)	US$ 1.29 Billion
Growth Rate (2024 to 2034)	9.6% CAGR
Projected Value (2034F)	US$ 3.22 Billion

Rising demand for cutting-edge technologies in consumer electronics, automobiles, and smart home appliances in China is set to drive market expansion. Moreover, with the US ban on EDA tools, domestic software developers are creating their own solutions, creating new opportunities in this sector.

These developments are expected to accelerate market growth in China. Furthermore, the rise of manufacturers gaining market control and offering these platforms at reduced prices is another key driver for electronic design automation software market growth.

Category-wise Insights

Electronic design automation software market size expansion is directly proportional to the rising demand for semiconductors and electronics. Any innovations in semiconductor-related products are expected to create ample opportunities for EDA software vendors.

The manufacture of electronics, ranging from computer chips and cell phones to controls for automobiles, uses EDA software. The design segment is expected to account for 44% of the global market, and the simulation segment is set to occupy 30% share. As per deployment, the on-premise segment is estimated to hold 62% of the global electronic design automation software market share.

Why is On-premise Deployment of EDA Software Rising Faster?

“On-Premise Deployment Facilitating Complete Control Over Enterprise Data”

Attribute	On-Premise
Segment Value (2024E)	US$ 7.44 Billion
Growth Rate (2024 to 2034)	7.8% CAGR
Projected Value (2034F)	US$ 15.74 Billion

Electronic design automation software handles sensitive intellectual property (IP) and design data. Due to security concerns, many businesses are hesitant to store and process their designs off-site or in the cloud, particularly in sectors like semiconductor manufacturing. Businesses can apply strict security measures and keep complete control over their data with on-premise deployment.

Large datasets are produced by EDA tools, which frequently demand powerful computer resources. When these technologies are deployed on-site, they can take advantage of local processing power, which reduces latency and boosts performance in contrast to cloud-based solutions where processing speed is impacted by network delays. There are strict regulations governing data storage and access in some industries, such as aerospace and defense. On-premise deployment keeps all design and sensitive data inside of their controlled environments, making it easier for businesses to comply with these regulations.

Why Does the Design Segment Occupy a Significant Market Share?

“Necessity of EDA Tools for Design Validation and Verification”

Attribute	Design
Segment Value (2024E)	US$ 5.28 Billion
Growth Rate (2024 to 2034)	8.7% CAGR
Projected Value (2034F)	US$ 12.21 Billion

Modern electronic designs, such as integrated circuits (ICs), system-on-chips (SoCs), and printed circuit boards (PCBs), are highly intricate, involving layered combinations of mixed-signal, analog, and digital components. Design-specific EDA software provides tailored tools and workflows to efficiently handle this complexity.

EDA tools are essential for validating and verifying designs against specifications and requirements. EDA software ensures designs meet functional and performance criteria through simulation, emulation, and verification tools before physical prototyping or production.

Competitive Landscape

Key players in the electronic design automation software industry are constantly innovating their software to address contemporary challenges in electronic system production, driven by the emergence of VLSI systems.

• In February 2023, Ansys expanded its partnership with Microsoft to bring more of its simulation software to Microsoft's Azure cloud platform. Customers now have more access to these tools and can use them from anywhere at any time using any web browser. It reaffirms Ansys' dedication to offering cutting-edge cloud-based simulation solutions.
• Siemens Digital Industries introduced Questa, a verification intelligence program, in January 2023. This tool assists the logic verification team in overcoming the difficulties posed by the intricacy of integrated circuit design. Questa is an artificial intelligence platform that facilitates expedited verification closure, resource optimization, and traceability.
• In February 2022, Intel announced a partnership with the world’s top EDA software firms, Siemens EDA, Ansys, Cadence, and Synopsis as a part of the IFS Acceleration program to build an ecosystem to support and service its new foundry service business. This association will let software providers fine-tune their chip design software for Intel’s latest process and packaging technologies.

Fact.MR provides detailed information about the price points of leading providers of electronic design automation software positioned across the world, sales growth, production capacity, and technological advancements, in this recently updated market report.

Segmentation of EDA Software Market Research

• By Type :

  • Design
  • Simulation
  • Verification

• By Operating System :

  • Windows
  • MAC
  • Linux
  • Unix

• By Source Code :

  • Open Source
  • Proprietary

• By Deployment :

  • On-premise
  • Cloud

• By End User :

  • Educational & Training
  • Professional

• By Region :

  • North America
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Western Europe
  • Eastern Europe
  • Middle East & Africa