Electronic Design Automation Software Market Size, Share & Trends Analysis Report By End Use (Microprocessors & Controllers, MMU), By Region (APAC, North America), And Segment Forecasts, 2021 - 2028

Report Overview

The global electronic design automation software market size was valued at USD 9.41 billion in 2020 and is expected to witness a compound annual growth rate (CAGR) of 9.3% from 2021 to 2028. The COVID-19 pandemic led to minor disruptions to the overall market due to the limited hardware supply and logistical challenges in the initial months of the year. The ability of EDA software to reduce the time & cost and eliminate manual errors associated with electric circuit designing is expected to be a significant factor fueling the market growth. Other factors expected to positively influence the market include the incorporation of machine learning concepts to reduce the designing costs by allowing the tools to suggest solutions for common designing issues.

The growth of the market is dependent primarily on the semiconductor and electronics industries. Therefore, the commencement of new design projects by semiconductor manufacturers, systems companies, and their customers is expected to upkeep the EDA market over the coming years. The COVID-19 pandemic has increased the need for automation across several industries to continue working with the help of a minimum workforce. Thus, rising automation is expected to create demand for semiconductors and electronics providing new growth opportunities to the market over the coming years.

Artificial Intelligence (AI) and Machine Learning (ML) are gaining popularity in industries, such as automotive, healthcare, aerospace & defence, and manufacturing. In an attempt to enhance existing products, conventional consumer electronics, and other products are being integrated with AI and ML technologies. The increasing implementation of AI augments the need for more advanced electronic components, which, in turn, creates demand for EDA software. Numerous EDA software developers are integrating AI in the software development process as it enables testers to replace the traditional approach of manually testing the models with an automated precision-based continuous testing process.

The consumer electronics industry is also witnessing growing usage of advanced electronic components. The growing demand for smart devices would particularly encourage IC manufacturers to adopt EDA software. As such, consumer electronics OEMs are partnering with some of the leading System-on-Chip (SoC) and IC manufacturers, including Intel Corp., NXP Semiconductors, Texas Instruments, Inc., and Qualcomm Technologies, Inc. to enhance the quality of their respective smart products. For instance, in August 2018, Intel Corp. selected Synopsys, Inc. as its primary EDA software supplier.

End-use Insights

The microprocessors & controllers segment accounted for the largest revenue share of more than 69% in 2020. The segment will expand further at the fastest CAGR from 2021 to 2028. Microprocessors & controllers are an integral part of lighting systems, home appliances, and medical devices, among others. Technological advancements in consumer electronics devices and the growing penetration of smartphones are expected to have a positive impact on the segmental growth over the forecast period. Although the consumer electronics devices demand had a sudden decline due to the COVID-19 pandemic, it is expected to increase in the next seven years, thereby driving the segment growth.

Apart from microprocessors & controllers, the end uses also include Memory Management Unit (MMU) and others segments. The MMU segment is projected to grow at a substantial growth rate from 2021 to 2028. An MMU is a computer hardware component responsible for memory management by managing all memory and cache-related operations of a processor. Owing to the increased processing speed requirements, the MMU is also expected to evolve in the years to come, thereby supporting market growth.

Regional Insights

North America accounted for the highest revenue share of more than 44% in 2020 and is expected to retain the dominant position throughout the forecast period. The growth of the regional market is attributed to the early adoption of technologies, such as 5G and machine learning, along with the Internet of Things (IoT). In addition, the presence of a robust wireless infrastructure and government support for the development of IoT-based technologies are expected to drive the smart consumer electronics sector and subsequently provide an impetus to the EDA software market growth.

Asia Pacific is estimated to be the fastest-growing regional market from 2021 to 2028. The growing number of electronics manufacturing companies in the region, particularly in China, is expected to boost product adoption. In addition, the region is characterized by a high population, which translates to increased demand for consumer electronics and other devices equipped with ICs. Thus, the growing demand for electronic devices is also anticipated to be a significant factor driving regional growth in the near future.

Key Companies & Market Share Insights

Companies focus on acquisitions & mergers to maintain a strong position in the highly competitive environment. For instance, in June 2020, Synopsis, Inc. completed the acquisition of Qualtera, a provider of high-volume big data solutions and collaborative high performance for semiconductor testing and manufacturing. The acquisition helped Synopsis, Inc. expand its offerings in the semiconductor industry.

Companies are also focusing on introducing innovative and advanced features in their solutions. For instance, in July 2018, 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 global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global electronic design automation software market report on the basis of end use and region:

• End-use Outlook (Revenue, USD Million, 2017 - 2028)

  • Microprocessors & Controllers

  • Memory Management Unit (MMU)

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • The U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa