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 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.
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.
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 the 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.
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 the 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 Attribute |
Details |
Market size value in 2020 |
USD 9,401.3 million |
Revenue forecast in 2025 |
USD 14,544.1million |
Growth Rate |
CAGR of 8.9% from 2019 to 2025 |
Base year for estimation |
2018 |
Historical data |
2014 - 2017 |
Forecast period |
2019 - 2025 |
Quantitative units |
Revenue in USD million and CAGR from 2019 to 2025 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
End-use and region. |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; France; China; India; Brazil; Mexico; and Japan. |
Key companies profiled |
Cadence Design Systems, Inc.; Synopsis, Inc.; Mentor; Silvaco, Inc.; Vennsa Technologies; ANSYS, Inc.; and Altium LLC. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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
The U.S.
Canada
Europe
The U.K.
Germany
France
Asia Pacific
China
India
Japan
Latin America
Brazil
Mexico
Middle East & Africa
b. The global EDA software market size was estimated at USD 8,696.9 million in 2019 and is expected to reach USD 9,401.3 million in 2020.
b. The global EDA software market is expected to grow at a compound annual growth rate of 8.9% from 2019 to 2025 to reach USD 14,544.1 million by 2025.
b. Microprocessors & controllers dominated the EDA software market with a share of 69.6% in 2019. This is attributable to the extensive use of microprocessors and controllers in television sets, media players, laptops, printers, and other consumer electronics.
b. Some key players operating in the EDA software market include Cadence Design Systems, Inc.; Synopsis, Inc.; Mentor; Silvaco, Inc.; Vennsa Technologies; ANSYS, Inc.; and Altium LLC.
b. Key factors that are driving the EDA software market growth include the incorporation of machine learning concepts in manufacturing processes in a bid to reduce designing costs by allowing the tools to suggest solutions for common designing issues.
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