Electronic Design Automation Software Market Analysis Report By End Use, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global electronic design automation (EDA) software market size was accounted for USD 8.06 billion in 2018 and expected to grow with a CAGR of 8.9% during the forecast period, 2019 to 2025. The growing number of IoT enables devices such as smartphones, tablets, and smartwatches which require PCBs are expected to drive the demand for EDA software. The software helps manufacturers in designing, analyzing, and simulating the semiconductor chips which enhances the accuracy, efficiency, and productivity of the design process. Moreover, it also eliminates human intervention, which in turn reduces the chance of errors while saving time and cost accompanying designing the electric circuits. Thus, expected to drive the demand for the market in the forthcoming years.

The primary advantage associated with the application of EDA software is to analyze the system performance and to calculate the power required for the designing of miniaturized chips/ICs. It also helps manufacturers in reducing the complexity of the circuits and minimizes fabrication errors. Additionally, the EDA software helps layout designers in mounting the millions of transistors, resistors, and capacitors in ICs and PCBs. while simultaneously checking the physical & electrical design rules associated with the electronic systems. The EDA software reduces the cost of chip manufacturing while offering more complex chips in a shorter time. These factors are expected to boost market growth over the forecast period.

The technological advancements in the consumer electronics, aerospace & defense, and medical devices sectors are expected to positively support the market growth in the upcoming years. Furthermore, the growing adoption of System on Chip (SoC) technology and the increasing popularity of the FinFET framework for designing modern processors are expected to upsurge the market growth in the upcoming years. The growing demand for compact and energy-efficient consumer electronics products & medical devices is anticipated to create huge growth opportunities for the market in the forthcoming years. However, the innovative electronic designs and automation solutions are capable of removing the design flaws, which are required while designing the chips of consumer electronic products. Thus, expected to reduce the demand for EDA software in the upcoming years.

The growing demand for smartphones, personal computers, gaming consoles, and networking devices has fuelled the demand for high-speed System on Chip (SoC) architecture, which in turn is projected to boost the EDA software market in the forthcoming years. Furthermore, the growing adoption of cloud-based infrastructure, which requires high computing power is projected to bolster market growth. The growing demand for compact electronic components, due to the increasing adoption of automotive gadgets, healthcare equipment, and smart wearable devices is anticipated to fuel the demand for EDA software during the forecast period, 2019 to 2025.

End-Use Insights

The end-user segment has been bifurcated into microprocessors & controllers, memory management units, and others. The microprocessor & controller segment has accounted for more than 60.0% of the market revenue share in 2018. The segment is projected to see substantial growth during the forecast period, owing to the high adoption of microprocessors & controllers in laptops, television sets, printers, media players, and various other consumer electronics.

The rising use of microprocessors & controllers in mobile smartcards, sensing devices, automated controls systems, and various other smart devices are expected to boost the segment growth in the forthcoming years. Furthermore, the changing dynamics of the processors in terms of size, quality, and processing power are projected to create huge opportunities for the electronic design automation software market in the upcoming years.

Regional Insights

The North American market held more than 40% of the market share, in 2018 and it is projected to see substantial growth during the forecast period, 2019 to 2025, owing to the growing adoption of automated, connected, and smart vehicles and high adoption of smart devices. Rising technological advancements, advanced infrastructure availability, and increasing developments in the aerospace & defense sector are projected to create huge opportunities for the market in the region.

The Asia Pacific market has accounted for more than 30% of the market revenue in 2018, owing to the rising population, growing adoption of consumer electronics such as smartphones, tablets, and smart devices especially in developing countries, such as India, China, and Indonesia. Furthermore, the growing number of semiconductors and IC manufacturers manufacturing companies and increasing infrastructure development in the region are projected to create huge growth opportunities for the market in the forthcoming years. India and China are dominating countries in the region and are projected to grow with more than 10.0% of CAGR during the forecast period, 2019 to 2025.

Impact of COVID-19

The COVID-19 pandemic has significantly impacted the electronic manufacturing industry, owing to the complete shutdown of manufacturing facilities, shortage of skilled laborers, supply chain disruptions, and declining consumer electronics amid the COVID-19 pandemic. However, the enterprise media segment has seen substantial growth during the pandemic, as government across the globe has imposed strict lockdown, which has compelled consumers to stay at home. Thereby, increased the demand for music & entertainment, social chatting platforms, and OTT services such as Netflix, Amazon Prime, etc. These services are increasing the adoption of smartphones, personal computers, tablets, network devices, and gaming consoles, which are in turn projected to fuel the demand for multi-chip modules and printed circuit boards. Thus, expected to create huge growth opportunities for the market.

Electronic Design Automation Software Market Share Insights

Key companies in the market are Synopsis, Inc.; Silvaco, Inc.; Cadence Design Systems, Inc.; Mentor ANSYS, Inc.; Altium LLC.; and others.  An increasing number of manufacturing facilities are prompting companies to synchronize with the manufactures, to make sure that the EDA software matches the manufacturing processes. Additionally, the companies are also adopting various competitive strategies such as product development, mergers & acquisitions, collaborations, and partnerships to gain a larger market share, expand the product portfolio and increase the geographical presence. For example, Silvaco Inc. has acquired NanGate, Inc., in March 2018, which is an EDA software company. This will help the company in expanding the product portfolio, improve the methodologies and delivery of tools. These types of strategies will help companies in gaining a competitive edge in the market.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Million Insights has segmented the global electronic design automation software market report based on end-use and regions:

• End-Use Outlook (Revenue, USD Million, 2014 - 2025)
    • Microprocessors & Controllers
    • Memory Management Units
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • The U.S.
        • Canada
    • Europe
        • The U.K.
        • Germany
        • France
    • The Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East and Africa