Electronic Design Automation (EDA) Market to Grow by USD 8.7 Billion (2024-2028) with AI’s Rising Impact on Trends

NEW YORK, Sept. 17, 2024 /PRNewswire/ — Report on how AI is redefining market landscape- The global electronic design automation (EDA) market size is estimated to grow by USD 8693.6 mn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  10.26%  during the forecast period. Growing significance of eda in electronic design process is driving market growth, with a trend towards machine learning disrupting global eda market. However, high dependency on semiconductors and electronics markets  poses a challenge. Key market players include Advanced Micro Devices Inc., Agnisys Inc., Aldec Inc., ANSYS Inc., Autodesk Inc., Cadence Design Systems Inc., ElectroMagneticWorks Inc., Eremex Ltd., Intercept Technology Inc., Keysight Technologies Inc., Labcenter Electronics, Mirabilis Design Inc, National Instruments Corp., Siemens AG, Sigasi NV, Silvaco Inc., Synopsys Inc., Verific Design Automation Inc., WestDev Ltd., and Zuken Inc..

Technavio has announced its latest market research report titled Global electronic design automation (EDA) market 2024-2028

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View the snapshot of this report

Market Driver

Machine learning is revolutionizing the global Electronic Design Automation (EDA) market by enabling EDA tools to recommend solutions to common design problems, reducing design costs, and increasing productivity. This cost reduction opens up opportunities for new chip designs and companies. Machine learning integration also provides statistical insights for designers, reducing production challenges and failures. New generations of EDA tools are being developed to work with machine learning, offering greater predictability and stability. The use of GPUs for running machine learning-enhanced EDA tools is an emerging trend, although its applicability to EDA problems is still uncertain. Machine learning is a cutting-edge development in the semiconductor industry, with potential applications in battery-operated consumer products, the automotive industry, and IoT devices. These factors are expected to fuel the growth of the global EDA market during the forecast period.

The Electronic Design Automation (EDA) market is experiencing significant growth due to the increasing demand for connected gadgets, sensor technologies, and sensing devices in various industries. Semiconductor companies are at the forefront of this trend, developing advanced ICs for AI industries, consumer electronics, automotive, and more. VLSI structures and microprocessors/controllers are essential components in the production of smartphones, laptops, smartwatches, printers, media players, and other consumer devices. Moreover, the emergence of 5G communications, hyper-scale computing, and the IoT industry is driving the need for EDA tools in silicon photonics, automated controls, and sensing applications. The aerospace industry also relies on EDA for designing avionics systems, while the AI industry requires programmable chip platforms and cloud-based solutions. EDA plays a crucial role in the development of smart devices, including fitness devices and trackers, and components for streaming services, social media platforms, and smartcard applications.

Request Sample of our comprehensive report now to stay ahead in the AI-driven market evolution!

 Market Challenges

•  The Electronic Design Automation (EDA) market’s growth and IP product sales are closely linked to the semiconductor and electronics industries. Semiconductor manufacturers and their customers initiating new design projects significantly contribute to the EDA market’s business and revenue. However, the increasing complexity of semiconductor designs, such as SOCs, 3D NAND, MEMS, and FinFET, introduces risks of designing gaps and delayed development cycles. Consequently, semiconductor manufacturers increasingly rely on EDA tools to mitigate these risks. Simultaneously, EDA vendors depend on the semiconductor industry’s growth and technological transitions. However, the electronic device manufacturing sector’s high demand volatility creates a supply-demand gap, negatively impacting the EDA market’s growth. Additionally, the adoption rate of EDA across various end-user sectors is subject to these value chain fluctuations. EDA is an emerging key component in the semiconductor value chain, with cloud EDAs being a recent development in the market. Vendors of cloud EDAs invest substantially to improve their offerings for customers. However, these investments increase costs for vendors, which they depend on the growth of the electronic device manufacturing sector to recoup. Semiconductor companies’ procurement of third-party IPs can adversely affect vendors’ revenues. To mitigate this risk, some EDA vendors collaborate with significant foundries to ensure compatibility with buyers’ manufacturing processes. However, the EDA market’s high dependency on semiconductors and PCBs increases market demand fluctuations, potentially reducing profit margins. This dependency poses a challenge to the growth of the global EDA market during the forecast period.

•  The Electronic Design Automation (EDA) market is experiencing significant growth due to the increasing demand for advanced electronic systems in various industries. IC design for integrated circuits (ICs) in consumer electronics like smartphones, laptops, smartwatches, and fitness devices is a major driver. EDA software plays a crucial role in designing miniaturized chips and ICs for these devices, ensuring accuracy and automated processes. The semiconductor sector, including silicon sector, AI industry, IoT industry, and avionics systems, also relies heavily on EDA tools for sophisticated designs. Electronics makers face challenges in managing memory, microprocessors, and controllers, which EDA software addresses through advanced AI and cloud-based solutions. Automotive, healthcare, and aerospace and military industries also benefit from EDA tools for manufacturing and defect reduction. However, the complexity of designing circuits for these industries presents challenges, including bugs, defects, and design errors. EDA software helps electronics firms overcome these hurdles, enabling them to create high-performance, automated processes for their hardware and computer-aided design needs.

Discover how AI is revolutionizing market trends- Get your access now!

Segment Overview 

This electronic design automation (eda) market report extensively covers market segmentation by

1. Product Type

Deployment

• 2.1 On-premises

• 2.2 Cloud-based

Geography

1.1 Semiconductor IP-  The semiconductor IP segment holds the largest share in the global Electronic Design Automation (EDA) market due to the increasing complexity of semiconductor designs and manufacturing processes. The integration of advanced technologies is leading to an increase in the number of registered IPs in the semiconductor industry. During the forecast period, the demand for semiconductors is expected to grow in various industries such as automotive, power, healthcare, and engineering, leading to a higher significance of semiconductor IPs. The semiconductor IP market segment includes software and tools like embedded software, semiconductor IP verification, and macrocells and cores. The growing demand for miniaturized and all-in-one devices, such as smartwatches, advanced phones, tablets, and AI-enabled virtual assistant devices, requires intricate and dense semiconductors. This complexity results in the integration of a large number of transistors on a node size of 1X-4X on a wafer, leading to the development of complex chips like SoCs and three-dimensional ICs. For instance, Cadence Design Systems Inc. Launched a silicon-validated SP4T RF SOI switch reference flow in partnership with Tower Semiconductor, utilizing a single design environment for chips and packaging co-design and simulation. The increasing complexity of designs and the growing demand for semiconductors across various industries will drive the growth of the semiconductor IP segment in the global EDA market.

Download a Sample of our comprehensive report today to discover how AI-driven innovations are reshaping competitive dynamics

Research Analysis

The Electronic Design Automation (EDA) market plays a pivotal role in the development of various electronic devices and industries. Integrated circuits (ICs) are at the heart of this market, enabling the creation of miniaturized chips for consumer electronics such as smartphones, laptops, smartwatches, and fitness devices. EDA software is essential for designing these complex circuits, ensuring accuracy and efficiency. The IC industry, including semiconductor components, is a significant consumer of EDA tools. The proliferation of streaming services, social media platforms, and the IoT industry further fuels the demand for EDA solutions. Avionics systems, cloud-based solutions, artificial intelligence, and the AI industry are also benefiting from advanced EDA technologies. Electronics firms rely on EDA software for hardware design and computer-aided design, making it an indispensable part of the modern technology landscape.

Market Research Overview

The Electronic Design Automation (EDA) market plays a pivotal role in the development of advanced electronic systems by providing software solutions for designing and verifying integrated circuits (ICs) and printed circuit boards. EDA tools are essential for creating sophisticated designs for consumer electronics, such as smartphones, smartwatches, laptops, and streaming services, as well as for industries like avionics systems, automotive, and healthcare. EDA software enables electronics makers to create miniaturized chips and ICs with high accuracy, managing memory and microprocessors and controllers, and addressing bugs, defects, and design errors. The EDA market caters to various sectors, including the semiconductor industry, AI industry, IoT industry, and silicon sector, with applications in smart devices, sensor technologies, and automation. EDA tools support the design process for various applications, including VLSI structures, microprocessors and controllers, and memory management units. Additionally, EDA software is crucial for designing advanced electronic systems in industries like aerospace and military, manufacturing, and telecommunications, including 5G communications, hyper-scale computing, and silicon photonics.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product Type

• Deployment

• Geography

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

Global electronic design automation (EDA) market 2024-2028

Cision

View original content to download multimedia:https://www.prnewswire.com/news-releases/electronic-design-automation-eda-market-to-grow-by-usd-8-7-billion-2024-2028-with-ais-rising-impact-on-trends—technavio-report-302250801.html

SOURCE Technavio

Originally Appeared Here