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

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

Electronic Design Automation Market Growth & Trends

The global electronic design automation software market size is anticipated to reach USD 22.21 billion, expanding at 9.1% CAGR from 2023 to 2030, according to a new study by Grand View Research Inc. The industry witnessed a minor setback due to the pandemic due to shuttering of factories; over the forecast period, the market is projected to witness healthy growth. Miniaturization of chips and devices is anticipated to create opportunities for the EDA software market. The software helps lower manual errors in chip and Integrated Circuit (IC) design, thereby favoring growth.

The design of modern sophisticated processors to meet the ever-growing demand for consumer electronics has led to the rising popularity of FinFet architecture. This trend is anticipated to augment market growth over the coming years. As devices become more compact, the demand for miniature electronic components will gain traction over the next few years, creating opportunities for solutions that offer error-free chip & IC design capabilities. The need to eliminate design flaws while ensuring faster time to market is expected to create healthy demand for EDA software solutions in the forecast period.

EDA vendors often add an extra layer of authentication to their products as these tools are easily subject to copyright infringements, patents, and trademarks. This also helps vendors price their products higher under the authenticity tag. However, due to this, the penetration of EDA solutions among small and medium-sized companies has not reached its full potential, and vendors can explore the space to ensure consistent revenue streams for the long term. There exist several open-source EDA tools that could pose a threat to well-established vendors in this space.

Globally the EDA software market is led by three companies, including Mentor Graphics, Cadence Design Systems, Inc; and Synopsys, Inc. Complexity in electronic designs is increasing primarily due to AI, industrial, automotive, consumer electronics, and other high-impact markets. As a result, semiconductor companies are often left grappling with a design challenge. Therefore, the demand for EDA tools becomes even more crucial.

For instance, in August 2020, Synopsys, Inc. released a virtual prototyping solution for integrated electric vehicles. This new virtual prototyping solution leverages the company’s other technologies such as TestWeaver, SaberRD, Virtualizer, and Silver, thereby improving the specific needs of developing an electric vehicle. The new solution is anticipated to strengthen the company’s position in the electric vehicle market space.

Electronic Design Automation Software Market Report Highlights

• EDA tools are pivotal to chip design, which is the heart of any electronic device. Globally, every industry is transforming itself through digitization, and ICs are at the heart of enabling this digitalization
• As such, the worldwide demand for EDA tools is anticipated to witness robust demand over the forecast period. The industry globally is projected to expand at a CAGR of 9.1% over the forecast period
• 5G proliferation will also be a key factor driving the demand because 5G chipsets require a robust verification methodology to meet the challenges associated with conducting numerous tests to eliminate any design errors
• North America has been at the forefront of new technology adoption and hence the region captured the highest market share in 2022. The regional market size is projected to surpass USD 10.0 billion by 2030
• Asia Pacific accounted for more than 30% share of the overall market in 2022, aided by a surge in demand for electronic devices, together with the prevalence of key electronic component manufacturers in Greater China
• Inorganic growth strategies will help beat the competition while achieving a larger market share. Further to this, trademarks and patents are key to staying relevant in this industry and hence would be the area of focus for several vendors