Increased demand for highly complex integrated circuits along with continuous scaling of semiconductor technology are some of the major factors responsible for the growth of Electronic Design Automation Software Market.
Covid-19 Impact & Market Status
The Covid-19 caused minor disruptions in Electronic Design Software Market due to shortage of hardware as supplies were restricted and also the logistical challenges that came with it. However, the pandemic has forced many industries to automate their processes so that they can minimise the human resource. Rising automation is expected to create demand for semiconductors and electronics providing new growth opportunities to the market over the coming years. The EDA software market will continue to prosper because of the continuous growth of PCBs and chips in system design companies, and an increase in system level design simulation. Additionally, AI applications and new chip architectures are further helping the growth of this market.
IC Physical Design and Verification as the Most Lucrative Segment
Based on type, the IC Physical Design and Verification segment contributed to the highest market share. It is the creation of geometric representations of ICs, with the help of EDA tools that is used to divide the chip into smaller blocks and then create the specific space required for each block to ensure maximum performance. The recent advancements in technology have been helping several chipset manufacturers to make use of ASIC technology, mainly for 5G which is why OEMs are increasing operation towards developing 5G chipsets.
Consumer Electronics to Remain Atop
By application type, the EDA software market was led by the Consumer Electronics segment in 2020, and is projected to maintain its dominance during the forecast period. This is because of the rise in the number of electronical equipment worldwide ranging from Television sets, mobile phones, laptops, computers etc. Additionally, the big companies are putting in lots of money to improve their product quality so as to compete in the market.
Microprocessors & Controllers to Ensure Highest Sales
Based on end-user, the market has been categorized into microprocessors and controllers, memory management units, and others. It held over 55% market share in terms of revenue in 2018. This segment is expected to witness immense growth during the forecast period because of excessive use of microprocessors and controllers in television sets, media players, laptops, printers, and other consumer electronics and technological advancements in consumer electronics will lead to much better opportunities in this segment.
North American Region to Render Ample Investment Avenues
North America is the largest contributor to the growth of global Electronic Design Automation Software Market. It held a market share of 44% in 2020 and is expected to retain its position throughout the forecast period. The key factors such as a huge need of chipsets, along with the early adoption of new technologies like Artificial Intelligence, Machine Learning and Internet of Things (IoT) are responsible for the growth.
The surge in IoT, VR and AI, combined with the adoption of FinFET architecture for designing modern processors are some other factors that help in pushing the market forward.
EDA tools are used to style and validate the semiconductor producing method to make sure it delivers the specified performance and density. EDA is used in manufacturing of chips based on circuits and due to the increased demand of the products worldwide, this market is growing at a rapid pace. Semiconductor chips are used in a range of electrical devices and EDA software helps in providing the critical technology needed for the management of complexity associated with the process. The global EDA software market was valued at 9.4 billion USD in 2020 ensuring an overall market size of 19.23 billion by 2028 with an annual growth rate of 9.36% through the forecast span.
Increased preference for small & compact devices is prompting electronics manufacturers to choose smaller-size circuits and miniaturized chips/ICs, which can be hard to design. Hence, electronics manufacturers are increasingly adopting EDA software to achieve precision in designing circuits and ICs, thereby driving the market
However, increased preference to use open-source EDA tools is expected to hamper the market of licensed products which in turn can be a speed breaker for the Electronic Design Automation Software Market, Other reasons for sluggishness can be complex integrated systems along with growing complexity of VLSI structures and high recurring engineering costs associated with design.
The major players of this market are Synopsis, Inc., Silvaco, Inc., ANSYS, Inc., Cadence Design Systems, Inc., Mentor, Vennsa Technologies and Altium LLC. Product launches, acquisitions, and R&D activities are key strategies adopted by players in the EDA Software market. By applying technology, the R&D teams of the companies must try to mitigate the risks associated with high non-recurring costs of the manufacturing process so that the complex process can be carried out efficiently.
Latest Innovations in the Global Electronic Design Automation Software Market: A Snapshot
- Ansys partners with AWS as the preferred and recommended cloud service provider (CSP) for Ansys Gateway powered by AWS. Ansys Gateway powered by AWS will help in smooth access and deployment of Ansys products on AWS — enabling customers to accelerate innovation while reducing costs
- Norgren’s extensive portfolio of VR Series valve manifold solutions has expanded with an addition of connectivity options for industrial users. Norgren’s valve offering paves the way for a complete connected pneumatic solution as well as a one-stop-shop for valve manifolds with the help of new communication protocols.
Electronic Design Automation Software Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 19.23 billion|
|Growth Rate||CAGR of 9.36% during 2021-2028|
|Segment Covered||Type, By Application, End User, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Synopsis, Inc., Silvaco, Inc., ANSYS, Inc., Cadence Design Systems, Inc., Mentor, Vennsa Technologies and Altium LLC. Product launches, acquisitions, and R&D activities|
Key Segments of the Electronic Design Automation Software Market
EDA Software Market on the basis of Type Overview, 2018-2028 (USD Million)
- Computer-aided Engineering (CAE)
- IC Physical Design and Verification
- Printed Circuit Board and Multi-chip Module (PCB and MCM)
- Semiconductor Intellectual Property (SIP) and Services
Application Overview, 2018-2028 (USD Million)
- Consumer Electronics
- Automotive, Industrial
- Aerospace & defence
End User Overview, 2018-2028 (USD Million)
- Microprocessors & Controllers
- Memory Management Units
Regional Overview, 2018-2028 (USD Million)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa