Electronic Design Automation (EDA) Market Size

Electronic Design Automation Market Size

Electronic Design Automation Market was valued at USD 12.9 billion in 2022 and is estimated to register a CAGR of over 10% between 2023 and 2032. The proliferation of cloud services is significantly propelling the global market statistics. Cloud-based EDA tools offer scalability, collaboration, and cost efficiency, enabling engineers to access powerful software and resources remotely. For instance, in March 2022, Synopsys introduced a cloud-based Software-as-a-Service (SaaS) solution, revolutionizing chip development with scalable accessibility. These platforms offer scalable and flexible resources including virtual machines, storage, and networking to host EDA applications & data. EDA tools are deployed as SaaS solutions, allowing users to access them over the internet. This eliminates the need for on-premises installations and provides greater flexibility in terms of licensing and resource allocation.

EDA tools enable engineers to create virtual prototypes of electronic circuits and systems, simulating their behavior under various conditions. Functional simulation ensures the logical correctness of the design, timing analysis assesses signal propagation times, power analysis measures energy consumption, and thermal analysis evaluates heat dissipation. These simulations help engineers identify issues, optimize designs, and validate performance, ensuring the reliability and functionality of electronic products before physical prototypes are built.

A key challenge in the market is the availability of counterfeit products and electronic devices. The availability of low-cost forged products is posing a hurdle for the computer-aided engineering market growth. Online retailing has also contributed to the rising number of counterfeit products. The EDA market is in its nascent stage in many developing and underdeveloped countries, resulting in the absence of structured regulations mandating the development and implementation of EDA tools. There are no specific laws concerning IP infringement in several underdeveloped countries. This also restricts EDA solution providers from expanding their regional presence in developing economies.