What Is The Current and Historic Market Size Analysis Of The Electronic Design Automation EDA Tools Market?
The electronic design automation eda tools market has seen considerable growth due to a variety of factors.
• The market size of the electronic design automation (EDA) tools has witnessed robust growth over the past few years. It is projected to rise from $16.67 billion in 2024 to $18.26 billion in 2025, marking a compound annual growth rate (CAGR) of 9.5%.
This growth during the historic period can be credited to several factors such as the complexity of integrated circuits, demand for swift time-to-market, enhancements in semiconductor technology, worldwide expansion of design teams, and the emergence of functional verification challenges.
What are the Market Size and Expected Growth Rates for the Electronic Design Automation EDA Tools Market?
The electronic design automation eda tools market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for electronic design automation (EDA) tools is anticipated to witness significant expansion in the upcoming years, with projections estimating it to reach $26.32 billion by 2029, growing at a compound annual growth rate (CAGR) of 9.6%.
This projected growth during the forecast period is attributed to factors such as the incorporation of artificial intelligence (AI) and machine learning, the accelerating growth of IoT and edge computing, the rising demand for agile design methodologies, the broadening of design complexity across various sectors, and the call for flexible design approaches. The expectations for the forecast period also include major trends like progress in analog or mixed-signal (AMS) design, improved backing for open-source EDA tools, the integration of hardware security aspects, technological advancements, and innovation in new products.
Which Key Drivers Are Propelling The Electronic Design Automation EDA Tools Market's Growth?
The electronic design automation (EDA) tools market's expansion is anticipated to be fueled by the rising incorporation of the Internet of Things (IoT). IoT represents a network infrastructure of tangible items, devices, and systems equipped with sensors, software, and network connectivity, allowing them to amass and share information with other devices. The IoT adoption has seen exponential growth as it brings about significant changes across different sectors. These capabilities, including sensor and IoT solutions, can be incorporated into integrated circuit (IC) design, verification, manufacturing, and testing processes through EDA tools, ultimately improving the efficiency and performance of constructed electronic systems. For instance, as stated in a September 2022 report by Swedish telecommunications company Ericsson, global IoT connections reached 13.2 billion in 2022 and are projected to increase by 18% to 34.7 billion by 2028. Hence, the expanding integration of the Internet of Things (IoT) is pushing the growth of the electronic design automation (EDA) tools market.
What Are The Key Segments Within The Global Electronic Design Automation EDA Tools Market?
The electronic design automation (EDA) tools market covered in this report is segmented –
1) By Type: Computer-Aided Engineering (CAE), Integrated Circuit Physical Design And Verification, Printed Circuit Board And Multi-Chip Module (PCB And MCM), Semiconductor Intellectual Property (SIP), Services
2) By Deployment Modes: On-Premises, Cloud-Based
3) By End-Use: Aerospace And Defense, Automotive, Consumer Electronics, Industrial, Healthcare, Other End-Users
Subsegments:
1) By Computer-Aided Engineering (CAE): Simulation And Analysis Tools, Signal Integrity Analysis, Thermal Analysis Tools
2) By Integrated Circuit Physical Design And Verification: Place And Route Tools, Design Rule Checking (DRC) Tools, Layout Versus Schematic (LVS) Tools
3) By Printed Circuit Board And Multi-Chip Module (PCB And MCM): PCB Design Software, MCM Design Tools, Schematic Capture Tools
4) By Semiconductor Intellectual Property (SIP): Soft IP Cores, Hard IP Cores, Verification IP
5) By Services: Consulting Services, Training And Support Services, Custom Design Services
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What Trends Are Shaping The Electronic Design Automation EDA Tools Market?
In the electronic design automation (EDA) tools sector, leading businesses are investing in the creation of innovative technologies such as Synopsys.ai to stay ahead of the curve. The Synopsys.ai technology leverages cloud computing to enhance the efficiency and scalability of design automation processes. In addition, it enables the real-time allocation of resources and platform abstraction, promoting a collaborative, flexible, and productive workspace. For example, in March 2022, Synopsys Inc., a renowned software development and EDA firm based in the United States, introduced Synopsys.ai, a range of solutions driven by AI for the design, verification, testing, and manufacturing of advanced digital and analog chips. This comprehensive, AI-enabled EDA toolkit is designed to speed up chip design workflows by empowering companies to incorporate more AI-driven optimization and data analytics across all stages of IC (integrated circuit) chip development.
Who Are the Key Players In The Electronic Design Automation EDA Tools Market?
Major companies operating in the electronic design automation (EDA) tools market are:
• Siemens Aktiengesellschaft
• Intel Corporation
• Arrow company
• Agnisys Inc.
• Keysight Technologies Inc.
• Synopsys Inc.
• Cadence Design Systems Inc.
• Forte Design Systems
• Xilinx Inc.
• ANSYS Inc.
• Microsemi Corporation
• National Instruments Corporation
• JEDA Technologies Inc.
• Mentor Graphic Corporation
• Altair Engineering Inc.
• AWR Corporation
• Faraday&Future Inc.
• Zuken Inc.
• Magwel NV
• Altium Limited
• Silvaco Inc.
• Lauterbach GmbH
• Computer Simulation Technology AG
• EnSilica Limited
• Aldec Inc.
• EMA Design Automation Inc.
• ELECTRO-SYSTEM CO. LTD.
• MunEDA GmbH
• Intercept Technology Inc.
• Labcenter Electronics Ltd.
• Pulsic Limited
What Are The Regional Insights Into The Electronic Design Automation EDA Tools Market?
Asia-Pacific was the largest region in the electronic design automation (EDA) tools market in 2024. It is expected to be the fastest-growing region in the forecast period. The regions covered in the electronic design automation (EDA) tools market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
