Semiconductor Intellectual Property (IP) Market - By IP Type (Processor IP, Memory IP, Interface IP, Others), By IP Core (Soft IP, Hard IP), By IP Source (Licensing, Royalty), By End-User & Forecast, 2024 - 2032

Semiconductor Intellectual Property (IP) Market - By IP Type (Processor IP, Memory IP, Interface IP, Others), By IP Core (Soft IP, Hard IP), By IP Source (Licensing, Royalty), By End-User & Forecast, 2024 - 2032

Global Semiconductor Intellectual Property (IP) Market will grow at 8.5% CAGR during 2024-2032, driven by technological advancements and increasing demand for consumer electronics.

According to TT Electronics, by 2025, with supply constraints easing and accelerated growth, an estimated 27 billion IoT devices are expected to be connected, showcasing a significant expansion in the IoT ecosystem. With an ever-expanding array of smart devices entering the market, ranging from smartphones and tablets to wearable gadgets and smart home appliances, the demand for sophisticated semiconductor solutions is on the rise.

These smart devices require high-performance and energy-efficient semiconductor components to support their advanced functionalities, driving semiconductor companies to innovate and develop cutting-edge IP designs. Additionally, the increasing integration of connectivity features such as Wi-Fi, Bluetooth, and 5G further fuels the demand for semiconductor IP cores tailored for smart device applications, thereby inducing market growth.

The Semiconductor Intellectual Property (IP) industry is classified based on IP source, IP type, end-user, and region.

The royalty segment will grow substantially until 2032 as semiconductor companies embrace third-party IP designs to expedite product development cycles and enhance competitiveness. Particularly evident in the consumer electronics industry, there's a notable uptick in the adoption of pre-validated IP solutions to maintain market relevance. Moreover, the burgeoning presence of fabless semiconductor companies and the trend of outsourcing chip design activities are further amplifying the demand for licensed IP cores. Consequently, the segment will embrace fast growth, propelled by the surging need for licensed IP cores.

Processor IP segment will expand at a steady pace till 2032, as it serves as the heart of electronic devices, powering a wide range of applications, including smartphones, tablets, automotive systems, and industrial automation. With the growing complexity of computational tasks and the increasing demand for high-performance computing solutions, semiconductor companies are investing heavily in processor IP development. Moreover, the rising adoption of System-on-Chip (SoC) and System-in-Package (SiP) technologies is fueling the demand for customizable and scalable processor IP solutions, further driving segment growth.

North America Semiconductor IP industry will grow steadily by 2032, owing to the presence of leading semiconductor companies, robust technological infrastructure, and a strong focus on innovation. The region is witnessing significant investments in AI, IoT, and 5G technologies, driving the demand for advanced semiconductor IP solutions. Furthermore, strategic collaborations between semiconductor companies, research institutions, and government agencies are fostering innovation and accelerating the development of next-generation IP designs. With favorable regulatory policies and a conducive business environment, the region will maintain its leadership position in the semiconductor IP market in the coming years.