Electronic Design Automation Market

Electronic Design Automation Market Outlook (2024 to 2034)

The global electronic design automation market is expected to reach a value of US$ 18.45 billion in 2024, as revealed in an updated Fact.MR research report. Worldwide demand for electronic design automation solutions is analyzed to increase at 7.4% CAGR and reach a market value of US$ 37.68 billion by 2034.

Increasing adoption of advanced vehicle technologies like infotainment systems, electric components, and ADAS is fueling the semiconductor chip demand. Electronic design automation (EDA) tools play a crucial role in designing and validating complex automotive systems. The automotive industry's robust growth positively influences trends in the EDA market.

EDA tools provide effective solutions for designing complex ICs, helping designers manage complexities and achieve desired performance, functionality, and power efficiency. The rising demand for advanced electronic technologies drives the need for robust EDA solutions.

Continuous advancements in semiconductor architectures and technologies push market players to innovate and upgrade tools that support trends like artificial intelligence, IoT, and 5G. Technological progress in EDA tools–synthesis, simulation, physical design, and verification–is a key driver of global market expansion.

• Worldwide demand for IC physical design & verification systems is forecasted to rise at a CAGR of 6.3% and reach a market value of US$ 10.17 billion by 2034.
• North America is evaluated to capture a share of 35% of the global market by 2034-end.
• The market in Japan is projected to expand at a CAGR of 9% from 2024 to 2034.

Report Attribute	Detail
Electronic Design Automation Market Size (2024E)	US$ 18.45 Billion
Forecasted Market Value (2034F)	US$ 37.68 Billion
Global Market Growth Rate (2024 to 2034)	7.4% CAGR
South Korea Market Growth Rate (2024 to 2034)	9.2% CAGR
Europe Market Share (2034F)	25%
Market Share of Microprocessors & Microcontrollers (2034F)	53%
Key Companies Profiled	Cadence Design Systems; Keysight Technologies, Inc.; Siemens; Ansys Inc.; Synopsys Inc.; Zuken Inc.; Altium Limited; Elnfochips; Advance Micro Devices; Silvaco, Inc.

Which Factors are Uplifting Demand for EDA Solutions Worldwide?

“Growing Adoption of FinFET Architecture Pushing Demand for EDA Software”

Rising preference for FinFET architecture for the production of advanced modern processors is benefiting global market growth. The increasing use of SoC technology and growing penetration of VR, AI, and IoT are contributing to electronic design automation market growth. Several market players are taking initiatives for the development of FinFET architecture.

For instance :

• GBT Technologies, Inc., in April 2022, announced the development of GAA FET (Gate-All-Around FET) support for productivity enhancement and integrated circuits. These tools are used for checking manufacturing, electrical, and geometrical design rules at the time of constructing the IC layout.

EDA solutions are used in assisting block feasibility analysis, early RTL design exploration, physical guidance from synthesis to route and place, and in-design exploration. These advantages of EDA solutions for use in FinFET architecture are augmenting global market growth. Moreover, an increasing demand for portable and smaller electronic devices along with rising requirements for machine learning are creating remunerative opportunities for market players.

“Integration of EDA Toolset with ML Technologies”

Integrating EDA tools with ML capabilities and some other advanced technologies, such as AI and cloud, are contributing to market growth. Furthermore, growing investments in these tools help in reducing the chances of errors for saving time.

For instance :

• Samsung Electronics Co. Ltd., in June 2020, announced the launching of SAFE (Samsung Advanced Foundry Ecosystem) CDP (Cloud Design Platform). This initiative was completed in collaboration with Rescale, which offers services in the cloud.

What are the Impediments Faced by EDA Solution Providers?

“Continuous Changes in Technology Hampering Market Progress”

Technological advancements result in constant changes in tool size. Thereby, it becomes pivotal for the companies offering semiconductor chips for changing IP core design architecture. These changes in nodes contribute to complexities in design, chip form factor, and IP core design architecture, thus impeding the expansion of the electronic design automation market size. These technical obstacles in new design development and device integration are creating challenges for market players.

What is Helping Start-ups Achieve a Strong Market Position?

“Growing Use of EDA Solutions in Aerospace and Defense Sectors”

Semiconductor chips and circuits play critical roles in aerospace and defense, where they must operate effectively under high radiation and varying temperature conditions. To meet these demands, these chips are integrated into less dense, smaller form factors using specialized materials. Startups are increasingly investing in programmable chip platforms and enhanced EDA software to meet the growing demand for semiconductor-based avionics systems.

Country-wise Insights

North America is forecasted to capture 35% of the global electronic design automation market share by 2034-end. The presence of some leading market players, such as Ansys Inc., Synopsys, Keysight Technologies, and Xilinx are contributing to the regional market growth.

For instance :

• EMA Design Automation, in November 2020, expanded its operation in the North American region while adding sales of Trilogic EDA engineering and supporting team for offering advanced technologies and aiding in revenue share.

An increasing focus of market players on cutting-edge technologies, such as machine learning, 5G technology, and artificial intelligence is driving demand for advanced EDA solutions.

Why is the United States Generating Profitable Opportunities for Market Players?

“Increased Adoption of EDA Tools across Consumer Electronics and Automotive Sectors”

Attribute	United States
Market Value (2024E)	US$ 5.05 Billion
Growth Rate (2024 to 2034)	6.2% CAGR
Projected Value (2034F)	US$ 9.23 Billion

By 2034, the United States is projected to account for 70% share of the North America market. There has been a significant rise in EDA tool adoption across diverse sectors including consumer electronics and automotive. Advancements in manufacturing and the semiconductor industry are a key electronic design automation market trend. Silicon Valley, within the United States, stands out as a leading hub for innovation in electronics and semiconductor technologies.

How is the Market for Electronic Design Automation Evolving in China?

“Supportive Government Policies for Electronics Manufacturing”

Attribute	China
Market Value (2024E)	US$ 1.98 Billion
Growth Rate (2024 to 2034)	8.5% CAGR
Projected Value (2034F)	US$ 4.47 Billion

As opined in the updated study by Fact.MR, a market research and competitive intelligence provider, China is projected to account for 47.5% of the East Asian market share by 2034. The country's robust position in the regional market stems from the presence of key semiconductor industry players like Semiconductor Manufacturing International Corporation, and HiSilicon, among others. Additionally, supportive government policies, including subsidies, are bolstering market expansion.

For instance :

• The government of China, in August 2020, announced several rules and policies promoting the semiconductor sector.

What is Stimulating Demand for EDA Solutions in Japan?

“Market Benefiting from Huge Consumer Electronics Industry”

Attribute	Japan
Market Value (2024E)	US$ 1.17 Billion
Growth Rate (2024 to 2034)	9% CAGR
Projected Value (2034F)	US$ 2.77 Billion

Japan is analyzed to occupy a share of 29.4% of the East Asian market by 2034-end. The expansion of the consumer electronics ecosystem in the country is contributing to the rising demand for EDA solutions, thereby generating remunerative opportunities for market players.

Category-wise Insights

According to Fact.MR’s findings, there is growing demand for cloud-based EDA solutions due to their ability to deliver efficient results in high-speed operations. These solutions are also valued for accelerating development and innovations while lowering operational costs and reducing semiconductor chip production expenses.

Why are IC Physical Design and Verification Solutions in Such High Demand?

“Increasing Complexity in Semiconductor Manufacturing and Verification”

Attribute	IC Physical Design & Verification
Segment Value (2024E)	US$ 5.5 Billion
Growth Rate (2024 to 2034)	6.3% CAGR
Projected Value (2034F)	US$ 10.17 Billion

IC physical design & verification systems are analyzed to contribute a share of 27% to the global market by 2034. The growing complexities in semiconductor manufacturing and verification pose challenges for companies striving to deliver advanced IC designs efficiently. This trend drives a rising demand for electronic design automation solutions, crucial for delivering reliable outcomes and meeting project goals effectively.

Which Application Accounts for Substantial Revenue Streams?

“Lighting System and Home Appliance Account for High Usage of Microprocessors and Microcontrollers”

Attribute	Microprocessors & Microcontrollers
Segment Value (2024E)	US$ 9.97 Billion
Growth Rate (2024 to 2034)	7.2% CAGR
Projected Value (2034F)	US$ 19.97 Billion

Microprocessors and microcontrollers are forecasted to hold a share of 53% of global market revenue by 2034-end. Demand is driven by increasing needs for lighting systems, home appliances, and medical devices, reflecting their crucial role across diverse applications in both business and consumer sectors, including computers and various electronic devices. In addition, use of EDA software simplifies the design process for microprocessors and microcontrollers.

Competitive Landscape

Key players in the electronic design automation market are implementing advanced technological solutions to provide effective offerings to end users. Moreover, they are actively engaging in strategic collaborations, partnerships, new product launches, and other initiatives to enhance their market position.

For instance :

• Ansys, in February 2023, extended its partnership with Microsoft, intending to broaden the accessibility of simulation solutions. This partnership aims to integrate Ansys’s solutions with the cloud-computing platform of Microsoft Azure.
• Siemens, in January 2023, came up with Questa, which is an advanced verification IQ software, specially designed for addressing intricate challenges caused by the growing complexity of ICs (integrated circuits) in logic verification. The software ensures robust solutions for logical verification teams empowering them with effective navigation and conquering intricacies arising during design processing of modern integrated circuits.

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

Segmentation of EDA Market Research

• By Type :

  • Computer-aided Engineering
  • PCB & MCM
  • IC Physical Design & Verification
  • Services
  • Semiconductor IP

• By Deployment :

  • Cloud-based
  • On-premise

• By End-use Industry :

  • Automotive
  • Healthcare
  • Telecom & Data Centers
  • Aerospace & Defense
  • Industrial
  • Consumer Electronics Accelerometers
  • Others
    • Banking, Financial Services, & Insurance (BFSI)
    • Commercial Sector
    • Textile Industry

• By Application :

  • Microprocessors & Microcontrollers
  • Memory Management Units
  • Others

• By Region :

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