Electronic Design Automation Market Report: Trends, Forecast and Competitive Analysis to 2031

Electronic Design Automation Trends and Forecast

The future of the global electronic design automation market looks promising with opportunities in the consumer electronics industry, automotive, and healthcare markets. The global electronic design automation market is expected to reach an estimated $18.9 billion by 2031 with a CAGR of 8.1% from 2025 to 2031. The major drivers for this market are the growing demand for electric automobiles, increasing vehicle digitization, and the growing need in the aerospace and military industry for EDA solutions.

Lucintel forecasts that within the deployment mode category, on-premises will remain the larger segment over the forecast period due to the growing need to manage their operational processes to improve their efficiency and productivity, and aid in giving businesses more control over critical information and procedures.

In terms of regions, APAC is expected to witness the highest growth over the forecast period due to an increase in the number of businesses engaged in electronic manufacturing, growth of the cloud computing industry, rising use of smartphones, and the rising appeal of smart wearables.

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Emerging Trends in the Electronic Design Automation Market

The electronic design automation industry is undergoing a major change due to the increasing demand for faster, smarter, and more efficient design integration than ever before. The prevailing market scenario is transforming, characterized by five broad trends that are extending the limits of electronic design and automation.

• AI-Enabled Design Automation: AI is achieving process optimization through the deployment of EDA technology throughout the entire design process, which decreases design time while allowing predictive insights, all of which considerably increase the precision and efficiency of the design processes.
• Cloud EDA: Cloud migration is resulting in the provision of resources that can be applied virtually, thereby making performance-oriented tools for EDA accessible even to smaller entities, as well as supporting joiners from any part of the globe.
• EDA for 5G and IoT Technologies: The growth of 5G and IoT technologies has necessitated the creation of advanced EDA tools that can handle the design of very complex and efficient circuits operating at low power, which is critical for these technologies.
• Open Source Tools for EDA: Open source EDA tools provide opportunities to access more designs and implement them within short durations. Hence, more developers are poised to create more designs rather than opt for commercial packages.
• Automotive Electronics: The shift toward electric and autonomous vehicle development requires transforming EDA tools for the development of highly reliable and safe automotive electronics with real-time computation capabilities, focusing more on the dynamics of automotive systems.

These trends are creating a paradigm shift in the electronic design automation market by fostering innovation, increasing productivity, and allowing the creation of cutting-edge electronic systems with the promise of further technological advancements in the future.

Recent Developments in the Electronic Design Automation Market

The electronic design automation (EDA) market is gradually experiencing progress, with new trends attesting to the industry's shift toward accommodating changes, optimizing operations, and adopting new technologies. Such improvements are enhancing existing features in development while also opening doors for more advances in electronic design.

• AI-Powered EDA Tools: The inclusion of AI functionalities within EDA tools is enhancing the design process, leading to quicker and better circuit designs and improved forecasting.
• Expansion of Cloud-based Platforms: More and more EDA firms are making cloud-based technologies available, enabling resource scaling as well as global development.
• Specialization in 5G and the Internet of Things: As the development of 5G and the Internet of Things requires low-power and high-speed designs, products such as EDA tools have also increased.
• Growth of Open-Source Initiatives: The open-source movement in EDA is proving to be successful, with the development of accessible generic tools that can be modified and added to as motivation and collaboration increase.
• Focus on Automotive Electronics: There is also an adaptation of EDA tools to the automotive industry, which focuses on generating electric and self-driving vehicles and developing VLSI circuitry-based component designs for such vehicles.

Such phenomena are shaping the requirements of the electronic design automation market and expediting its advancement toward more efficient and innovative design approaches while instilling fresh procedures for future growth in the industry.

Strategic Growth Opportunities in the Electronic Design Automation Market

The electronic design automation market is rapidly increasing its market share as a result of technological advances, higher electronic design complexity, and the growing use of electronic devices across different sectors. The position of the market is changing, and new areas of strategic growth are developing for EDA vendors to tap into.

• Automotive Electronics: The increasing electrification and automation of vehicles heighten the need for more advanced electronic systems. One critical tool in developing and testing these systems is EDA software.
• Internet of Things (IoT): The rise of IoT devices is driving a huge demand for EDA tools. These systems are critical in creating low-power, highly energy-efficient connected devices.
• Artificial Intelligence (AI): EDA tools enable the design and optimization of hardware and software components essential for AI applications. The present increase in demand for AI chips and accelerators extends opportunities for EDA vendors.
• 5G Communication: The launch of 5G networks is fueling the need for fast and robust communication systems. Towers and circuitry for 5G communication networks are highly sophisticated and require EDA tools for their design.
• Consumer Electronics: The consumer electronics market offers a wide range of products, with its demand for interface features constantly evolving. New products are released yearly, and the utilization of EDA tools in their design and fabrication is essential.

These strategic growth opportunities strongly influence the electronic design automation market. EDA vendors are investing significant resources in innovations aimed at creating new tools and solutions for these applications. The market is expected to continue growing at a moderate pace, with new technology and the increasing demand for electronic equipment driving its expansion.

Electronic Design Automation Market Driver and Challenges

Over the past few years, it has been observed that the electronic design automation market is influenced by developments in technology, the economy, and regulatory policies. These factors are common in the market; they are not only obstacles but also opportunities for growth.

The factors responsible for driving the electronic design automation market include:

• Technological Advancements: With the ongoing innovation in semiconductor technologies, such as Moore's Law and 3D ICs, there is a growing requirement for more complex EDA tools for the design and testing of intricate chips.
• Increasing Design Complexity: The need to design more complex electronic systems, such as multi-core processors and embedded systems, has necessitated the use of robust EDA tools to address these challenges.
• Rising Demand for Electronic Products: Due to the increasing use of electronic products in industries such as automotive, consumer electronics, and medical devices, the demand for EDA tools will grow to support product development.
• Growing Focus on Energy Efficiency: The rising demand for energy-efficient electronic systems requires EDA tools capable of supporting power-efficient and thermal management designs.
• Emergence of New Applications: The development of new design segments, including AI, IoT, and self-driving cars, creates new opportunities for EDA tools to meet specific design requirements.

Challenges in the electronic design automation market include:

• Rising Costs: The increasing demand for electronic designs, combined with advancements in EDA, could lead to higher development costs, intensifying competition among smaller companies.
• Intellectual Property (IP) Protection: In the EDA space, IP protection is critical, and preventing IP theft is a significant challenge.
• Regulatory Compliance: Adhering to various regulatory standards related to safety, public health, and environmental concerns can impose additional burdens on both EDA software developers and users.

The electronic design automation industry is experiencing remarkable growth due to technological advancements, increased design complexity, and rising demand for electronic devices. However, the market also faces challenges such as high costs, IP protection, and compliance issues. The future success of EDA providers will depend on their ability to navigate these drivers and challenges.

List of Electronic Design Automation Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies electronic design automation companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the electronic design automation companies profiled in this report include-

• Cadence Design Systems
• Synopsys
• Siemens
• ANSYS
• Keysight
• Advance Micro Devices
• Einfochips
• Altium
• Zuken
• Silvaco

Electronic Design Automation by Segment

The study includes a forecast for the global electronic design automation by product category, deployment mode, end use, and region.

Electronic Design Automation Market by Product Category [Analysis by Value from 2019 to 2031]:

• CAE
• Semiconductor IP
• PCB & MCM

Electronic Design Automation Market by Deployment Mode [Analysis by Value from 2019 to 2031]:

• On-Premises
• Cloud-Based

Electronic Design Automation Market by End Use [Analysis by Value from 2019 to 2031]:

• Consumer Electronics Industry
• Automotive
• Healthcare
• Others

Electronic Design Automation Market by Region [Shipment Analysis by Value from 2019 to 2031]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country Wise Outlook for the Electronic Design Automation Market

Technological progress and rising demand for sophisticated integrated circuits have greatly influenced the growth of the electronic design automation (EDA) market. Key nations such as the US, China, Germany, India, and Japan have created their own space in the EDA landscape, highlighting the unique changes that characterize the evolution of global EDA.

• United States: Growth in AI-based EDA tools continues in the US, which helps semiconductor design improve its tools to boost innovation and enhance design productivity, particularly in semiconductor design.
• China: China focuses on developing its own EDA technology, aiming to reduce dependence on other countries. This is supported by ample funding in AI, particularly in cloud-based design tools.
• Germany: Germany focuses on the automotive electronics segment, leveraging advanced EDA techniques to develop autonomous vehicle systems and improve the accuracy of automotive chip designs.
• India: EDA services outsourcing is on the rise in India, as the country has developed a highly skilled workforce that provides these services at lower costs to international semiconductor firms in need of design assistance.
• Japan: Japan allocates resources and efforts to EDA for Internet of Things (IoT) and 5G applications, accelerating the development and advancement of technologies such as high-performance computing and communication.

Features of the Global Electronic Design Automation Market

Market Size Estimates: Electronic design automation market size estimation in terms of value ($B).

Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.

Segmentation Analysis: Electronic design automation market size by product category, deployment mode, end use, and region in terms of value ($B).

Regional Analysis: Electronic design automation market breakdown by North America, Europe, Asia Pacific, and Rest of the World.

Growth Opportunities: Analysis of growth opportunities in different product category, deployment mode, end use, and regions for the electronic design automation market.

Strategic Analysis: This includes M&A, new product development, and competitive landscape of the electronic design automation market.

Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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This report answers following 11 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the electronic design automation market by product category (CAE, semiconductor IP, and PCB & MCM), deployment mode (on-premises and cloud-based), end use (consumer electronics industry, automotive, healthcare, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?

Q.2. Which segments will grow at a faster pace and why?

Q.3. Which region will grow at a faster pace and why?

Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?

Q.5. What are the business risks and competitive threats in this market?

Q.6. What are the emerging trends in this market and the reasons behind them?

Q.7. What are some of the changing demands of customers in the market?

Q.8. What are the new developments in the market? Which companies are leading these developments?

Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?

Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?

Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?

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