Electronic Design Automation (EDA) Global Market Insights 2025, Analysis and Forecast to 2030, by Market Participants, Regions, Technology, Product Type

Electronic Design Automation (EDA) Market Overview

The Electronic Design Automation (EDA) market is a critical segment of the semiconductor industry, enabling the design and verification of complex integrated circuits (ICs) and electronic systems. As of 2025, the global EDA market is valued at approximately $12.5 billion, with a projected compound annual growth rate (CAGR) of 8.5%-9.5% from 2025 to 2030. This growth is driven by advancements in semiconductor technology, increasing demand for ICs in consumer electronics, automotive, and industrial applications, and the rise of artificial intelligence (AI) and machine learning (ML) in chip design.

Market Size and Share Analysis

The EDA market is segmented by product type, process, application, end-use, and region. In 2025, the market is dominated by IC design software, which holds a market share of 45%-50%. Verification products and manufacturing software account for 30%-35% and 15%-20%, respectively. The market is highly competitive, with key players such as Synopsys, Cadence, and Siemens PLM collectively holding a market share of 60%-65%.

By Product Type

• IC Design Software: 45%-50% market share
• Verification Products: 30%-35% market share
• Manufacturing Software: 15%-20% market share

By Key Players

• Synopsys: 25%-30% market share
• Cadence: 20%-25% market share
• Siemens PLM: 10%-15% market share
• Zuken, Primarius Technologies, Empyrean Technology, Cellixsoft Corporation: Combined 10%-15% market share

Market Trends

The EDA market is witnessing several key trends:

• AI and ML Integration: AI-driven EDA tools are gaining traction, with an estimated growth rate of 12%-15% annually. These tools enhance design efficiency and reduce time-to-market.
• Cloud-Based EDA Solutions: The adoption of cloud-based EDA tools is growing at a CAGR of 10%-12%, driven by the need for scalable and cost-effective solutions.
• Automotive and IoT Applications: The automotive sector is expected to contribute 20%-25% of the EDA market revenue by 2025, fueled by the demand for advanced driver-assistance systems (ADAS) and electric vehicles (EVs).

Market Segmentation

By Process

• Analog Design: 20%-25% market share
• Digital Design: 50%-55% market share
• Mixed-Signal Design: 20%-25% market share

By Application

• Consumer Electronics: 30%-35% market share
• Automotive: 20%-25% market share
• Industrial: 15%-20% market share
• Aerospace & Defense: 10%-15% market share

By End-Use

• Semiconductor Companies: 60%-65% market share
• Foundries: 20%-25% market share
• Fabless Companies: 10%-15% market share

By Region

• North America: 35%-40% market share
• Asia-Pacific: 30%-35% market share
• Europe: 20%-25% market share
• Rest of the World: 5%-10% market share

Market News on Policy and Companies

Recent developments in the EDA market include:

• Policy Changes: Governments worldwide are investing in semiconductor manufacturing, with the U.S. CHIPS Act allocating $52 billion to boost domestic chip production. This is expected to drive demand for EDA tools.
• Company Mergers and Acquisitions: In 2025, Synopsys acquired Ansys for $35 billion, strengthening its position in the EDA market. Similarly, Cadence has invested $1.5 billion in R&D to develop next-generation EDA tools.
• Technological Innovations: Siemens PLM launched a new cloud-based EDA platform, while Zuken introduced AI-driven design tools, both expected to capture 5%-10% of the market by 2025.

Segment Forecasts (2025 - 2030)

The EDA market is expected to grow significantly over the next five years:

• Market Size: The global EDA market is projected to reach $18.5 billion by 2030, growing at a CAGR of 8.5%-9.5%.
• Regional Growth: Asia-Pacific is expected to witness the highest growth rate of 10%-12%, driven by increasing semiconductor production in China, South Korea, and Taiwan.
• Product Growth: IC design software will continue to dominate, with a projected growth rate of 9%-10%, while verification products and manufacturing software are expected to grow at 7%-8% and 6%-7%, respectively.

Conclusion

The Electronic Design Automation (EDA) market is poised for robust growth, driven by technological advancements, increasing demand for semiconductors, and supportive government policies. Key players such as Synopsys, Cadence, and Siemens PLM are leading the market, with significant investments in R&D and strategic acquisitions. As the industry evolves, the integration of AI, cloud-based solutions, and the expansion of automotive and IoT applications will shape the future of the EDA market.