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Electronic Design Automation (EDA) Market

Market Study on Electronic Design Automation (EDA): North America and East Asia Key Markets in This Space

Electronic Design Automation (EDA) Market Segmented By Solution such as Computer Aided Engineering (CAE), IC Physical Design & Verification, Multi-Chip Module (MCM) with Industry in Automotive, Consumer Electronics, Aerospace & Defense, Healthcare and Industrial

Electronic Design Automation (EDA) Market Outlook (2023 to 2033)

The global electronic design automation (EDA) market was valued at US$ 3.14 billion in 2022 and is expected to jump to US$ 8.05 billion by the end of 2033. Worldwide revenue from EDA solutions is estimated to increase rapidly at a CAGR of 8.9% from 2023 to 2033.

Electronic design automation refers to a collection of hardware, software, and services that assist in the manufacturing of semiconductor devices and chips. EDA helps manufacturers plan, design, implement, and verify their final products.

  • North America accounted for 31.6% share of the global market in 2022 and is projected to retain its leading position over the next 10 years.

EDA plays a crucial role in the manufacturing of semiconductor devices and chips because it allows users to create a virtual design of the end product and identify what they can do to create the best possible design and identify the challenges involved with the design before they physically manufacture the semiconductor device.

Attribute Details

EDA Market Size (2023)

US$ 3.42 Billion

Projected Market Value (2033)

US$ 8.05 Billion

Global Market Growth Rate (2023 to 2033)

8.9%

Consumer Electronics Market Share (2022)

21.3%

India Market Growth Rate (2023 to 2033)

9.9%

Design & Implementation Services Segment Growth Rate (2023 to 2033)

27.9% CAGR

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What’s Driving Rapid Growth of the Electronic Design Automation Market?

“Reduced Semiconductor Design Time and Efficient Product Delivery Offered by Electronic Design Automation Solutions”

EDA tools come equipped with a variety of features and technologies, including AI and ML, enabling users to expedite the creation of concepts and models for their electronic devices. By decreasing the design time for semiconductors, manufacturers can also minimize the time it takes to bring their products to the market. Furthermore, EDA aids in design verification, enabling manufacturers to efficiently deliver high-quality products in a shorter timeframe.

  • In July 2023, Ansys a large software company acquired Diakopto, a provider of EDA solutions. This acquisition is expected to help limit the critical issues caused by layout parasitics during semiconductor design.
  • In February 2023, Keysight expanded its EDA software portfolio by acquiring Cliosoft. According to Keysight, this acquisition is foreseen to allow the company to transform its design-test workflows and integrate its solutions.
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Country-wise Insights

Why Does the United States Hold a Dominant Share of the Global EDA Market?

“Favorable Government Policies Facilitating Chip Manufacturing, Research, and Design”

The United States accounted for 22.7% of the global market in the year 2022.

While semiconductor companies in the United States may not possess the same level of manufacturing strength as their counterparts in East Asian nations like China, Taiwan, and South Korea, the dominance of the United States in semiconductor R&D and design positions its EDA market share as a global leader, driving a significant surge in demand for EDA within the country.

Another factor that has helped the United States dominate the global market is government policies such as the United States Innovation and Competition Act (USICA) of June 2021, which helped boost chip manufacturing, research, and design.

  • According to a 2021 report by the Semiconductor Industry Association (SIA), the United States also had the largest number of semiconductor design professionals in the world.

What Allows China to Be a Leading Provider of Electronic Design Automation?

“Rapid Shift toward Specialized Semiconductor Production”

The electronic design automation market in China is projected to expand at a CAGR of 11% over the forecast period (2023 to 2033).

China has traditionally held a significant role in semiconductor manufacturing, but recent years have witnessed a transition from integrated device manufacturing (IDM) to specialized semiconductor production. This shift has fueled the emergence of fabless companies in China, focusing on semiconductor design.

Despite aspirations to bolster both manufacturing and design sectors, geopolitical tensions and trade limitations have hindered growth, prompting Chinese companies to explore markets in Africa and Central Asia with fewer obstacles.

What is the Demand Outlook for EDA Solutions in Germany?

“Market Benefitting from Increasing Investments in Semiconductor Design”

Projected as a key manufacturing center in the European Union, Germany is poised to spearhead the electronic design automation market in Western Europe, displaying rapid growth and establishing itself as a prominent player during the forecast period. Multiple factors contribute to the expansion of the market in Germany.

  • The European Union's Chips Act seeks to double the share of the semiconductor market by 2030, with a substantial investment of US$ 43 billion earmarked for this initiative.
  • As per the 2022 SIA report, Europe allocated 15% of its sales revenue to research and development (R&D), ranking second only to the United States. With Germany holding a significant position in European R&D and manufacturing, it is expected to experience an increase in demand for EDA solutions, driven by escalating investments and initiatives in semiconductor design throughout the forecasted timeframe.
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Category-wise Insights

Why Does EDA Software for PCB Design Account for a Dominant Market Share?

“Growing Emphasis on Outsourcing Manufacturing to Small- and Medium-sized Companies”

Sales of EDA software for PCB layout and design are estimated to progress at an impressive CAGR of 8.9% over the forecast period.

Countries are recognizing the strategic advantage in the semiconductor market through an emphasis on semiconductor and PCB chip design. Consequently, companies are retaining design functions, including electronic CAD, in-house, while shifting manufacturing responsibilities to small- and medium-sized external firms.

What Makes Consumer Electronics a Key Application Area for EDA?

“Constant Demand for Innovation and Rapid Adoption of Mobile Devices”

Due to the constant demand for innovation and new designs, the consumer electronics application segment held a market share of 21.3% in 2022.

Demand for consumer electronics is growing, and due to the multiple competitors in the domain, the rate at which technology innovation takes place is high, several consumer electronics such as laptops, personal computers, smart TVs, smartwatches, and smartphones are gaining popularity and are being adopted by the consumers at a rapid rate ore have already been widely adopted.

Innovation and development in the consumer electronic space are important for companies to survive. For example, the 5G network is yet to reach most people, but smartphones compatible with 5G have already been prematurely deployed into the EDA market.

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Competitive Landscape

Large companies are understanding the strategic importance of being market leaders in the field of semiconductor design, and this is encouraging major companies to adopt EDA solutions. Companies are trying to successfully integrate AI/ML solutions with EDA solutions to improve their productivity.

  • In July 2023, Siemens launched an IC design tool Calibre DesignEnhancer to enable faster tapeout while developing design manufacturing and circuit design reliability.
  • In May 2023, Cadence bought the EDA tool manufacturer Pulsic to enhance its AI capabilities.
  • In March 2023, Siemens added AI and big data management to its Questa Verification EDA tools. The solution aims to tackle the issue of increasing time spent by design teams in verifying circuits and semiconductors' designs.
  • In March 2023, Huawei collaborated with domestic partners in China to achieve a significant milestone by developing an EDA tool tailored for the production of 14-nanometer technology chips.

Recent developments related to key companies providing electronic design automation solutions have been tracked by analysts at Persistence Market Research, which will be accessible in the full report.

Electronic Design Automation Industry Report Scope

Attribute Details

Forecast Period

2023 to 2033

Historical Data Available for

2018 to 2022

Market Analysis

US$ Million for Value

Key Regions Covered

  • North America
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Western Europe
  • Eastern Europe
  • Central Asia
  • Russia & Belarus
  • Balkans & Baltics
  • Middle East and Africa (MEA)

Key Countries Covered

  • United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia & New Zealand
  • GCC Countries
  • Türkiye
  • Israel
  • Northern Africa
  • South Africa

Key Market Segments Covered

  • Solution
  • Application
  • Region

Key Companies Profiled

Pricing

Available upon Request

Key Segments of Electronic Design Automation Industry Research

By Solution:

  • Electronic Design Automation (EDA) Software (for PCB Design)
  • Services
    • Design and Implementation
    • Support and Maintenance
    • Consulting Services

By Application:

  • Communication
  • Consumer Electronics
  • Automotive
  • Industrial
  • Aerospace & Defense
  • Healthcare & Medical
  • Others

By Region:

  • North America
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Western Europe
  • Eastern Europe
  • Central Asia
  • Russia & Belarus
  • Balkans & Baltics
  • Middle East and Africa (MEA)

- Companies Covered in This Report -

  • Siemens
  • Cadence Design Systems.
  • Ansys
  • Synopsys
  • Zuken
  • Alden
  • Keysight Technologies
  • Altium
  • Xilinix

- Frequently Asked Questions -

In 2022, the global electronic design automation (EDA) market was valued at US$ 3.14 billion.

North America held a dominant market share of 31.6% in 2022.

Demand for EDA solutions is predicted to rise at 8.9% CAGR through 2033.

The market for EDA is forecasted to reach a size of US$ 8.05 billion by 2033 end.

Sales of EDA solutions in China are projected to rise at a high-value CAGR of 11% between 2023 and 2033.

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