Electronic Design Automation Software Market Size, Share & Trends Analysis Report By End Use (Microprocessors & Controllers, Memory Management Units), By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global Electronic Design Automation software market size was valued at USD 8.06 billion in 2018 and is expected to register a CAGR of 8.9% from 2019 to 2025. The ability of this software to eliminate manual errors and to reduce the time and cost associated with designing electric circuits is expected to be a major factor spurring the growth. Other factors expected to positively impact the market include incorporation of machine learning concepts to reduce the designing costs by allowing the tools to suggest solutions for common designing issues.

Advancements in the consumer electronics industry and growing popularity of FinFET architecture for designing the modern processors are also anticipated to drive the market growth. New age consumer electronics are getting compact and energy-efficient. However, advanced electronic design and automation solutions capable of eliminating the design gaps are required to design the chips required for these consumer electronics. As a result, the demand for EDA software is expected to witness steady rise.

High demand for compact electronic components required for smart wearable devices, automotive gadgets, and healthcare equipment is forcing IC manufacturers to reduce the size of the ICs. This trend towards miniaturization of ICs is subsequently prompting IC manufacturers to adopt EDA software to design compact products, eliminate the errors associated with IC designing process, and accelerating the manufacturing process. However, growing preference for open source EDA tools, particularly among small-sized enterprises, is expected to hamper the demand for licensed tools, thereby restraining the market growth.

The proliferation of Personal Computers (PCs), smartphones, networking devices, and gaming consoles has resulted in large-scale adoption of the high-speed System on Chip (SoC) architecture, which is expected to fuel the growth of the Electronic Design Automation (EDA) software market. The use of cloud-based infrastructure, which provides high computing power to the EDA tools also bodes well for the growth.

End Use Insights

Based on end use, the market has been segmented into microprocessors and controllers, memory management units, and others. The microprocessor and controller segment held over 60.0% of the total market share in terms of revenue in 2018. The segment is expected to witness significant growth over the forecast period owing to the extensive use of microprocessors and controllers in television sets, media players, laptops, printers, and other consumer electronics.

Growing use of microprocessors and controllers in smartcard applications, automated controls, sensing applications, and other smart devices coupled with the changing dynamics of processors in terms of size and processing power is also expected to propel the segment growth during the forecast period.

Regional Insights

North America accounted for a market share of over 40% in 2018. It is expected to register at a healthy CAGR over the forecast period in line with the continued deployment of automated, connected, and smart vehicles and the continued rollout of the infrastructure required to establish connectivity with these vehicles.

Asia Pacific generated almost 30% of the total revenue in 2018, attributed to growing population and the subsequent growth in demand for consumer electronics and smart devices, particularly in emerging economies, such as India and China. Factors that are expected to have a positive impact on the regional market growth include the proliferation of smartphones and increasing number of fabless companies in the region. India and China are expected to register a CAGR of over 10.0% each over the forecast period.

Electronic Design Automation (EDA) Software Market Share Insights

The key market players are Cadence Design Systems, Inc.; Synopsis, Inc.; Mentor; Silvaco, Inc.; Vennsa Technologies; ANSYS, Inc.; and Altium LLC. Growing number of foundries is prompting these companies to coordinate with the foundries to make sure that their EDA solutions are compatible with the manufacturing processes adopted by the foundries. Moreover, these companies also emphasize on mergers and acquisitions and on expanding distribution network as part of their strategies to expand their product portfolio and strengthen their market position.

For instance, in March 2018, Silvaco Inc. announced acquisition of NanGate, Inc., an EDA software company, to expand its product portfolio and to accelerate the delivery of tools and methodologies. Similarly, in September 2016, Altium LLC announced the acquisition of Transfer BV, its reseller based in the Netherlands, to increase its reach in Northern Europe leveraging Transfer BV’s strong network.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For the purpose of this study, Grand View Research has segmented the global Electronic Design Automation (EDA) software market report based on end use, and regions:

• End Use Outlook (Revenue, USD Million, 2014 - 2025)

  • Microprocessors & Controllers

  • Memory Management Units

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa