Electronic Design Automation Software Market Size, Share & Trends Analysis Report By End-use (Microprocessors & Controllers, Memory Management Units), By Region And Segment Forecasts, 2022 - 2030

Report Overview

The global electronic design automation software market size was valued at USD 10.20 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 9.1% from 2022 to 2030. The market was impacted marginally due to the pandemic as the hardware supply was hampered due to logistic activities coming to a halt. EDA helps reduce cost as well as time concerning electric circuit designs. The software also helps eliminate manual errors subsequently favoring the market growth. Tech integration to the existing solutions such as machine learning to reduce design costs is also creating avenues for future growth.

The electronic design automation (EDA) software market growth is directly proportional to the demand for the semiconductor & electronics sector. Any new design undertaking by semiconductor manufacturers is expected to create opportunities for EDA vendors over the forecast period. However, in recent times the pandemic has impacted the EDA business considerably. This was primarily due to the pandemic instigated lockdown at the start of 2020 that resulted in the halt of manufacturing activities. This shuttering of factories delayed semiconductor design and production activities subsequently impacting the electronic design software market growth over the short term. Post pandemic an increased emphasis on automation of manufacturing processes is anticipated to create avenues for EDA software vendors.

Machine Learning (ML) and Artificial Intelligence (AI) are making in-roads in almost every sector out there including healthcare, electronics, automotive, and aerospace & defense. To improve the product offerings across the aforementioned industries, companies are integrating AI and ML into their products. These increasing implementations of the given technologies call for advanced electronic components and chips, thereby creating avenues for EDA providers. The integration of AI while developing software allows testers to deviate from manual testing with automated procession testing.

Growing demand for advanced electronic components particularly in the consumer electronics market has witnessed a massive uptick over the last few years. This ongoing demand for smart consumer electronic devices is expected to encourage IC providers to focus on circuit designs with the help of advanced EDA software. As such the industry has witnessed growing collaboration among electronic OEMs and IC manufacturers. This is expected to create avenues for growth over the forecast period.

End-Use Insights

The demand for EDA software in the designing of microprocessors & controllers garnered the highest revenue share in 2021. Of the total USD 1.5 billion industry, EDA revenue from the said segment accounted for over 60%. The high market share is attributed to a healthy demand for home appliances, lighting systems, and medical devices, among others. Continuous improvements in consumer electronics due to applications of new features to the products almost every quarter keeps the semiconductor industry on its toes. Therefore, microcontroller design upgrades form the core of the product development process, creating favorable avenues for EDA providers in this segment. 

In addition to microprocessors & controllers, EDA also finds applications in memory management units, among others. The MMU segment is estimated to grow at a CAGR exceeding 6% from 2022 to 2030. MMU is essentially a hardware component that plays a vital role in device memory management. Therefore, increased demand for processing speed requirements is creating a favorable scenario for segment growth.

Regional Insights

North American EDA software market led the growth, with regional revenue surpassing 40% of the total market in 2021. Early technology adoption including 5G, machine learning, and artificial intelligence, among others has been a major force contributing to the regional demand. Further, the region boasts of a robust wireless infrastructure along with government support, which is expected to favor growth over the forecast period.

Asia Pacific is expected to witness robust growth over the next few years, projected to witness a CAGR of 8% during the forecast period. This strong growth is attributed to a rise in the number of electronic manufacturing companies. Additionally, increased demand for consumer devices along with the expansion of facilities to meet this demand will further boost regional growth over the forecast period.

Key Companies & Market Share Insights

Mergers & acquisitions have been a go-to strategy for most vendors in a bid to maintain a competitive position. Recent evidence of this was when Synopsis Inc. in the year 2020, acquired Qualtera to expand its product offerings specific to the semiconductor industry. In addition to M&As, innovation, and R&D on new features to the existing solutions have been a focus area for most companies to strengthen their foothold. For instance, Cadence Design Systems, Inc. announced the addition of an extensive parallelism algorithm to its existing Cadence Voltus IC power integrity solution. The Cadence Voltus IC power integrity solution helps in ensuring a high chip performance. As such, the addition of an extensive parallelism algorithm to the Cadence Voltus IC power integrity solution would allow automotive chip manufacturers to overcome the time-to-market challenges. Some prominent players in the global electronic design automation software market include:

• Cadence Design Systems, Inc.

• Synopsys, Inc.

• Mentor, a Siemens Business

• Silvaco, Inc.

• Vennsa Technologies

• ANSYS, Inc.

• Altium LLC

Electronic Design Automation Software Market Report Scope

Segments Covered in the Report

The report forecasts revenue growth at the global, regional, and at country level and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global electronic design automation software market report based on end-use and region:

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Microprocessors & Controllers

  • Memory Management Unit (MMU)

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa