Electronic Design Automation (EDA) Market Analysis

Electronic Design Automation Market Analysis

Based on the product, the market is divided into computer-aided engineering (CAE), IC physical design & verification, printed circuit board (PCB) & multi-chip module (MCM), semiconductor intellectual property (SIP), and services. In 2022, the semiconductor intellectual property (SIP) segment held a market share of around 37%. Customized SIP solutions offer advantages in terms of optimizing performance, reducing power consumption, and adhering to size & form factor constraints. This customization also provides a competitive edge by fulfilling specialized application needs while enabling companies to differentiate themselves in the market, enhance energy efficiency, and adapt to evolving technological trends. Custom SIP solutions can incorporate security features, intellectual property protection, and end-to-end compatibility, offering comprehensive & bespoke semiconductor solutions for a wide range of customers and applications.
 

Based on the application, the market is categorized into aerospace & defense, automotive, consumer electronics, industrial, medical, and telecommunications. The consumer electronics segment accounted for a market share of around 30% in 2022. The rising disposable income in developing economies has resulted in the growing adoption of smart devices such as smartphones, laptops, and tablets. Smartphone manufacturers are focused on integrating maximum features into phones while maintaining the compactness of the device. The trend of device miniaturization has also gained popularity. Consumers are using wearable fitness devices that can be connected to other fitness equipment and mobile applications. The demand for EDA tools that enable the development of high-performance compact PCBs is expected to increase. The growing trend of smart homes has also resulted in the rising adoption of soundbars, wireless home theater systems, and smart speakers, which require high-performance ICs for efficient functioning, further supporting the market growth.
 

Asia Pacific dominated the global electronic design automation market with a major share of over 40% in 2022. The demand for designing complex electronic systems in automobiles is fueling the Asia Pacific Electronic Design Automation (EDA) market growth. As automotive companies in the region focus on developing advanced features, such as autonomous driving, connectivity, and electric powertrains, there is a heightened need for sophisticated EDA tools. For instance, in October 2023, Maruti Suzuki announced plans to introduce ADAS technology in its vehicles. The company aims to launch the ADAS-equipped Grand Vitara in the first quarter of 2024. This move signifies the growing trend of integrating advanced driver assistance features in automobiles, thereby enhancing safety and the driving experience.