Electronic Design Automation Software Market

Electronic Design Automation Software Market Outlook (2023-2033)

The global electronic design automation software market is set to surpass a valuation of US$ 11.2 billion in 2023 and further expand at a CAGR of 8.6% to reach US$ 25.6 billion by the end of 2033. Revenue generation from electronic design automation software accounted for 77% of the global electronic automation market in 2022.

As per this new research by Fact.MR, from 2018 to 2022, the market value of electronic design automation software increased at 5.1% CAGR, with the U.S., China, and Germany commanding high shares in the global market.

As designs are growing increasingly complex, EDA software is becoming crucial for developers engaged in the manufacturing of Printed Circuit Boards (PCBs) and other circuit boards. EDA software helps developers in designing, modeling, simulating, testing, and analyzing circuit designs to catch potential issues before they can enter production.

Fact.MR estimates that the growth of the global electronic design automation software market will be 2.3X during the assessment period. EDA software developers are experiencing steady financial growth and are backing the profitability of larger semiconductor and electronic system industries, as more system companies shift to designing their own chips and electronic products.

The EDA software market is closely associated with the semiconductor manufacturing industry, embedded software industry, and progressively the photonics and micromechanical industries that are rapidly adopting miniaturization and integrations into electronic systems. EDA software is used in various end-use verticals such as aerospace, consumer, automotive, medical, and other industries that have specific needs.

EDA vendors and users are observing increased ecosystem collaboration with component developers (such as RFIC), subsystem developers (such as radars), and system developers (such as autonomous drive systems) to address integration difficulties and improve performance, which will aid market growth.

Growing adoption of connected devices and Internet adoption will improve the sales of electronic design automation software. Rising adoption of FinFET architecture for producing advanced modern processors would also contribute to the growth of the market. Increasing IC system complexity, more commanding performance, and cost requirement tradeoffs, along with shorter development lifecycles will improve the long-term growth of the market.

Report Attributes	Details
Market Size (2022A)	US$ 10.2 Billion
Estimated Market Value (2023E)	US$ 11.2 Billion
Forecasted Market Value (2033F)	US$ 25.6 Billion
Global Market Growth Rate (2023-2033)	8.6% CAGR
North America Market Share (2023)	~ 27.2%
North America Market Value (US$ Mn), 2023	US$ 3.1 Billion
Europe Market Share (%), 2023	~26.7%
Europe Market Value (US$ Mn), 2023	US$ 3 Billion
China Market Share (%), 2023	~14.2%
China Market Value (US$ Mn), 2023	US$ 1.5 Billion
Top 3 Countries’ Market Share (%)	~42.2%
Key Companies Profiled	Aldec, Inc. Altair Engineering Inc Altium Limited ANSYS, Inc 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 Taiwan Semiconductor Manufacturing Company Limited WestDev 2022 Zuken

Why is Demand for Electronic Design Automation Software Rising Rapidly?

“Rising Chip Usage in Countless Products to Accelerate Market Growth”

The usaage of chips in all types of products is becoming ubiquitous. Currently, chip demand outstrips supply, and leading EDA software provider Keysight’s chip design and manufacturing company confirms that the demand is 30% more than supply. All chips need to use EDA software for design and manufacturing.

There will be persistent demand for EDA software to meet new design functionalities and validation efforts. Design engineers need better software and consulting services from EDA companies. For EDA software developers, whose growth and success depend in part on design starts and wins, the increased use of chips in customer markets is a highly positive trend.

“Developments in System on Chip (SoC) to Benefit Market Players”

A system on a chip (SoC) is an integrated circuit or an IC that takes a single platform and integrates a completely electronic or computer system into it. SoCs are being used more frequently in a variety of electrical products such as laptops and desktop computers. As per the latest announcements of technology-driven platform products, the demand for SoC test platforms will rise rapidly in the future.

Advancements in SoC also aid in the growth of the semiconductor IP market. Development of innovative EDA software will be necessary due to the increasing complexity of programmable components. While SoCs and CPU models have been the same for some time, new EDA design software will be required to overcome limitations such as slower simulation speeds, less validation support, synthesis difficulties, and constrained architectural modelling capabilities, opening up ample opportunities for market players.

What Concerns Do Electronic Design Automation Software Providers Have?

“EDA Software Ban by U.S. to Affect Market Expansion”

On August 2022, the U.S. Commerce Department announced a multilateral export control on various EDA tools, including EDA software in China and around 150 other countries. Experts see this as a move to hamper Chinese companies pursuing AI applications and to prevent them from manufacturing chips with emerging technology known as gate all around.

Without U.S.-based EDA software, IC design in China will experience development difficulties from initial chip design to backend system design. This is expected to affect EDA software revenue from manufacturing hubs such as China where numerous semiconductor and automotive industries are present. China relies heavily on the U.S. for EDA software and is mainly dominated by foreign companies such as Synopsys Inc., Cadence, and Siemens, among others.

These factors are expected to challenge market growth in China as well as other countries where the U.S. has imposed a ban on EDA software.

Market share analysis of electronic design automation software based on type and region. Under the EDA software type segment, the design sub-segment will dominate with 38.6% market share in 2023.

Country wise Insights

Why is the U.S. an Opportunistic Market for Electronic Design Automation Software Providers?

According to Fact.MR's estimate, the U.S. market is anticipated to generate US$ 5.5 billion by 2033. The estimated CAGR for this market is 7.6% through 2033. Because of its extensive industrialization and urbanization, a developed nation such as the United States of America has attracted the substantial interest of manufacturers.

Rising use of EDA tools in industries such as consumer electronics and automotive will aid the expansion of this regional market. 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?

Rising demand for innovative and advanced technologies in consumer electronics, automobiles, and smart home appliances in China is expected to contribute to market growth. Also, due to the prevailing ban on EDA tools by the U.S., Chinese software providers are developing their own EDA software, which will open many opportunities in this domestic market.

The market in China is predicted to grow at a CAGR of 8.1% as a result of these factors. In addition, regional growth would benefit from the increasing number of manufacturers who are acquiring control of the market and offering such platforms at lower costs. By the end of the projected period, China is anticipated to account for a market value of US$ 3.4 billion.

Category wise Insights

Why is the Electrical & Electronics End-use Sector a Lucrative One?

Growth of the EDA software market is directly proportional to the rising demand for semiconductors and electronics. Any innovations in semiconductor-related products will create ample opportunities for EDA software vendors. Manufacture of electronics, ranging from computer chips and cell phones to controls for automobiles use EDA software.

EDA, also sometimes known as Electrical Computer Aided Design (ECAD), assists electrical engineers to create and modify layouts and diagrams, including 3D and 2D models. The electrical & electronics end-use sector is expected to reach a valuation of US$ 9.2 billion by the end of 2033.

Will Web-Based EDA Software Witness Accelerated Demand Growth?

Web-based EDA software is anticipated to improve performance in high-speed operational processes, lower the cost of manufacturing semiconductor chips, and speed up invention and development while lowering operational costs.

Semiconductor companies use web-based EDA to gain from the rapid and adaptable deployment of electronic design automation infrastructure. These elements will drive segmental growth throughout the projection period. Web-based EDA software is likely to hold a market valuation of US$ 7.3 billion in 2023 and is expected to surge ahead at a CAGR of 7.2% over the forecast period.

Competitive Landscape

Prominent suppliers of EDA software globally are Aldec, Inc., Altair Engineering Inc, Altium Limited, ANSYS, Inc, 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, Taiwan Semiconductor Manufacturing Company Limited, WestDev 2022, and Zuken.

These key manufacturers are constantly innovating software to meet modern-day challenges pertaining to the production of electronic systems due to the rise of VLSI systems.

• 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 has provided detailed information about the service offering of key vendors of EDA software positioned across regions, sales growth, deployment scale, and speculative technological expansion, in the recently published report.

Segmentation of EDA Software Industry Research

• By Type :

  • Simulation
  • Design
  • Verification

• By Operating System :

  • Windows
  • MAC
  • Linux
  • Unix

• By Source Code :

  • Open Source
  • Proprietary
    • Perpetual (One-time License)
    • Subscription

• By Deployment :

  • Standalone
  • Web-based

• By End Use :

  • Educational & Training
  • Professional
    • Aerospace & Defense
    • Automation and Robotics
    • Automotive
    • Discrete Manufacturing
    • Electrical and Electronics
    • Healthcare Devices
    • IT & Telecommunication
    • Semiconductor Industry
    • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA