Electronic Design Automation Software Market Size, Share & Trends Analysis Report By End-use (Microprocessors & Controllers, Memory Management Units), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global electronic design automation software market size was valued at USD 11.10 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 9.1% from 2023 to 2030. Electronic Design Automation (EDA) includes hardware, software, and services with the objective of assisting in the planning, implementing, validating, and manufacturing of semiconductor chips or devices. The 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.

Machine Learning (ML) and Artificial Intelligence (AI) are making inroads into almost every sector out there, including healthcare, electronics, automotive, and aerospace & defense. To improve 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.

The growing demand for advanced electronic components, particularly in the consumer electronics market, has witnessed a massive uptick over the last few years. The 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 electronic design automation software market growth over the forecast period.

However, the EDA market has some factors that negatively impact market growth. The lack of skilled labor and moderate adoption of electronic automation is expected to restrain the growth of the market. Furthermore, undetermined technological advancements and economic conditions are predicted to impede market growth. Additionally, the increasing complexity of Very Large-Scale Integration (VLSI) such as microcontroller and microprocessor and Non-Recurring Engineering (NRE) costs, which are affiliated with this design, are anticipated to restrain the growth of the market over the forecast period.

Moreover, the electronic design automation software market was impacted marginally due to COVID-19, as hardware supply was hampered due to logistic activities coming to a halt. EDA helps reduce cost as well as time with regard to electric circuit designs. The software also helps eliminate manual errors, subsequently favoring market growth. Tech integration into existing solutions such as machine learning to reduce design costs is also creating avenues for future growth.

However, in recent times, the pandemic has impacted the EDA business. 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 the automation of manufacturing processes is anticipated to create avenues for EDA software market vendors.

End-use Insights

The demand for EDA software in the designing of microprocessors & controllers garnered the highest revenue share in 2022. The microprocessors & controllers segment accounted for over 60% of the market share in 2022. 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 products almost every quarter keep 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, electronic design automation also finds applications in memory management units, among others. A Memory Management Unit (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. The MMU segment is estimated to expand at a CAGR exceeding 8.0% from 2023 to 2030.

Regional Insights

The North American electronic design automation software market led the growth, with regional revenue surpassing 40% of the total market share in 2022. Early technology adoption, including 5G, machine learning, and artificial intelligence, among others has been a major force contributing to the regional demand. Additionally, the increasing usage of several industries such as consumer electronics and automotive, among others, helps in the regional market growth. Furthermore, the region boasts of a robust wireless infrastructure along with strong government support, which is expected to favor growth over the forecast period.

Asia Pacific, although not the largest market yet for EDA software, is expected to witness robust growth over the next few years. The regional CAGR is expected to surpass 9.6% from 2023 to 2030. This strong growth is attributed to a rise in the number of electronics manufacturing companies. Additionally, the 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. For instance, in 2020, Synopsis Inc. 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, in July 2022, Cadence Design Systems, Inc. launched a custom power integrity solution named Cadence Voltus-XFi. This solution is the IR drop solution and custom electromigration, which provides improved ease of use with minimum tuning and allows the development of efficient, low-power ICs. Utilizing this new solution integrated into the Cadence Quantus, Spectre, and Virtuoso platforms, customers can experience over a 3X productivity improvement against existing solutions. The Voltus-XFi solution enables customers to efficiently extract, analyze, simulate, and fix IC designs. 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

• Zuken

• Keysight Technologies

• eInfochips

Electronic Design Automation Software Market Report Scope

Global Electronic Design Automation Software Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry 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

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Rest of Europe

  • Asia Pacific

    • India

    • China

    • Japan

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa (MEA)