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Electronic Design Automation Software Market

ID: MRFR/ICT/39094-HCR
100 Pages
Aarti Dhapte
October 2025

Electronic Design Automation Software Market Size, Share and Trends Analysis Report By Deployment Model (On-premises, Cloud-based, Hybrid), By Application (Integrated Circuit (IC) Design, Printed Circuit Board (PCB) Design, Field Programmable Gate Array (FPGA) Design), By Industry Vertical (Semiconductors, Electronics, Automotive, Aerospace and Defense), By Process Node (7nm and Below, 10nm, 14nm, 20nm and Above), By Advanced Technologies (Machine Learning (ML), Artificial Intelligence (AI), Cloud Computing) and By Regional (North America, E... read more

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Electronic Design Automation Software Market Summary

As per MRFR analysis, the Electronic Design Automation Software Market Size was estimated at 12.3 USD Billion in 2024. The Electronic Design Automation Software industry is projected to grow from 13.33 USD Billion in 2025 to 29.98 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 8.44 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Electronic Design Automation Software Market is experiencing robust growth driven by technological advancements and increasing demand across various sectors.

  • Cloud-based solutions are gaining traction, enabling greater accessibility and collaboration in design processes.
  • The integration of AI and machine learning is transforming design efficiency and accuracy, particularly in the Integrated Circuit Design segment.
  • Miniaturization of electronic components is propelling innovation in consumer electronics, which remains the largest market segment.
  • Rising demand for advanced electronics and increased investment in R&D are key drivers fueling market expansion, especially in North America and the rapidly growing automotive segment in Asia-Pacific.

Market Size & Forecast

2024 Market Size 12.3 (USD Billion)
2035 Market Size 29.98 (USD Billion)
CAGR (2025 - 2035) 8.44%

Major Players

Synopsys (US), Cadence Design Systems (US), Mentor Graphics (US), Altium (AU), ANSYS (US), Keysight Technologies (US), Siemens EDA (US), Zuken (JP), Aldec (US)

Electronic Design Automation Software Market Trends

The Electronic Design Automation Software Market is currently experiencing a transformative phase, driven by the increasing complexity of electronic systems and the growing demand for innovative designs. As industries such as automotive, telecommunications, and consumer electronics evolve, the need for sophisticated design tools becomes paramount. This market appears to be characterized by a surge in the adoption of cloud-based solutions, which facilitate collaboration and enhance accessibility for design teams. Furthermore, the integration of artificial intelligence and machine learning technologies into EDA tools is likely to streamline workflows and improve design efficiency, suggesting a shift towards more intelligent design processes. In addition, the Electronic Design Automation Software Market seems to be influenced by the rising trend of miniaturization in electronic components. As devices become smaller and more powerful, the tools used for their design must adapt accordingly. This trend indicates a potential increase in demand for specialized software that can handle intricate designs and complex simulations. Overall, the market is poised for growth, with advancements in technology and changing industry requirements shaping its future landscape.

Cloud-Based Solutions

The shift towards cloud-based Electronic Design Automation Software is becoming increasingly prevalent. This trend allows for enhanced collaboration among design teams, enabling real-time updates and access to tools from various locations. As organizations seek to improve efficiency and reduce costs, cloud solutions appear to offer a flexible alternative to traditional software.

Integration of AI and Machine Learning

The incorporation of artificial intelligence and machine learning into Electronic Design Automation Software is gaining traction. These technologies may enhance design processes by automating repetitive tasks and providing intelligent insights. This trend suggests a move towards more efficient and innovative design methodologies, potentially revolutionizing how electronic systems are developed.

Miniaturization of Electronic Components

The ongoing trend of miniaturization in electronic components is influencing the Electronic Design Automation Software Market. As devices become smaller and more complex, there is a growing need for specialized software capable of managing intricate designs. This trend indicates a potential shift in market demand towards tools that can effectively address the challenges posed by compact electronic systems.

Electronic Design Automation Software Market Drivers

Increasing Demand for Advanced Electronics

The Global Electronic Design Automation Eda Software Market Industry experiences a surge in demand driven by the proliferation of advanced electronics across various sectors. As industries such as automotive, telecommunications, and consumer electronics increasingly rely on sophisticated designs, the need for EDA software becomes paramount. This trend is reflected in the projected market size, which is expected to reach 12.2 USD Billion in 2024. The continuous evolution of technologies, including 5G and IoT, necessitates advanced design capabilities, thereby propelling the growth of the EDA software market.

Market Segment Insights

By Application: Integrated Circuit Design (Largest) vs. Signal Integrity Analysis (Fastest-Growing)

The Electronic Design Automation Software Market is notably segmented by application, with Integrated Circuit Design taking the lead in market share, showcasing its paramount importance in the creation of high-performance electronic circuits. Following closely are Printed Circuit Board Design and System on Chip Design, which also command significant portions of the market, reflecting the demand for sophisticated circuit layouts and embedded systems. Signal Integrity Analysis, while not the largest, is swiftly gaining traction owing to its critical role in maintaining the performance and reliability of electronic systems.

Integrated Circuit Design (Dominant) vs. Signal Integrity Analysis (Emerging)

Integrated Circuit Design is recognized as the dominant force within the Electronic Design Automation Software Market. It encompasses a wide array of functionalities that assist engineers in designing, simulating, and manufacturing integrated circuits effectively. On the other hand, Signal Integrity Analysis is an emerging player in this sector, addressing the growing need for accurate performance predictions to prevent signal degradation in high-speed designs. This application is rapidly gaining importance as electronic devices become more complex, requiring thorough analysis to ensure optimal operation. Both segments play crucial roles in ensuring that electronic designs meet the increasing demands of technology.

By End Use: Consumer Electronics (Largest) vs. Automotive (Fastest-Growing)

In the Electronic Design Automation (EDA) Software Market, 'Consumer Electronics' holds the largest share, reflecting the ongoing demand for innovative devices and smart technologies. This segment encompasses a wide array of products including smartphones, IoT devices, and home appliances, all of which rely heavily on advanced design automation tools for efficiency and speed in development. Meanwhile, sectors like 'Telecommunications', 'Automotive', 'Aerospace', and 'Industrial Electronics' contribute notably but do not yet match the dominant position established by consumer electronics.

Telecommunications (Dominant) vs. Aerospace (Emerging)

The 'Telecommunications' sector remains dominant in the EDA software market, largely due to the increasing demand for enhanced connectivity and advanced network infrastructures. Companies in this space prioritize design efficiency and precision to cater to the rapid evolution of communication technologies. Conversely, the 'Aerospace' sector, while currently emerging, is seeing growth as governments and private enterprises invest in space exploration and aviation innovations. This segment, characterized by stringent regulatory requirements and high-quality standards, significantly benefits from advanced EDA tools that ensure safety and compliance, positioning it as a notable player in the evolving market.

By Deployment Model: Cloud-Based (Largest) vs. On-Premises (Fastest-Growing)

In the Electronic Design Automation Software Market, the distribution among deployment models reveals that Cloud-Based solutions hold a significant portion of market share, driven by their flexibility, accessibility, and cost-effectiveness. In contrast, On-Premises solutions are increasingly gaining traction, appealing to organizations that prioritize data security and have existing IT infrastructure investments. Hybrid models combine the best of both worlds, tailoring to a range of user preferences.

Cloud-Based (Dominant) vs. On-Premises (Emerging)

Cloud-Based Electronic Design Automation Software is characterized by its ability to provide remote access and real-time collaboration, making it a dominant force in the market. Its scalability allows companies to efficiently manage resources and adapt to changing project requirements. On-Premises solutions, on the other hand, are emerging as a strong choice for businesses with stringent regulatory compliance needs or that require control over their proprietary data. Hybrid models are also gaining popularity, facilitating a smooth transition between deployment types and leveraging the efficiency of both cloud and on-premises setups.

By Software Type: Schematic Capture Software (Largest) vs. Simulation Software (Fastest-Growing)

The Electronic Design Automation Software Market exhibits a dynamic landscape where Schematic Capture Software holds the largest market share among the various software types. Its extensive capabilities in creating and managing electronic schematics make it indispensable for engineers and designers. In contrast, Simulation Software is rapidly gaining traction, driving innovation and efficiency in design processes. The demand for accurate and realistic simulations to validate designs before production is propelling its growth, allowing it to capture a significant and increasing portion of the market.

Schematic Capture (Dominant) vs. Simulation Software (Emerging)

Schematic Capture Software serves as the backbone of electronic design, enabling users to create precise circuit diagrams while ensuring adherence to industry standards. Its robust functionalities provide a streamlined approach, crucial for both small-scale and large-scale projects. On the other hand, Simulation Software is becoming an emerging leader, characterized by its ability to model and analyze the electrical behavior of circuits. This software enables engineers to mitigate design errors early in the development process, ultimately leading to safer and more functional final products. The synergy between these two software types illustrates a well-rounded approach in electronic design, where schematic capture lays the groundwork, and simulations verify and refine the design integrity.

By User Type: Professional Engineers (Largest) vs. Design Teams (Fastest-Growing)

The Electronic Design Automation (EDA) Software Market showcases a diverse user base, predominantly dominated by Professional Engineers. This group holds the largest market share, significantly impacting software sales and innovation. In contrast, Design Teams are emerging rapidly and are recognized as the fastest-growing segment, reflecting the increasing demand for collaborative design environments and advanced functionalities to enhance productivity. Meanwhile, Research Institutions and Educational Institutions represent niche segments, contributing valuable insights and talent development to the industry. As technology continues to evolve, the growth trends within these user segments are driven by the need for improved design efficiencies and the integration of artificial intelligence within EDA tools. Professional Engineers are upgrading their capabilities to stay competitive, while Design Teams are embracing cloud-based solutions for real-time collaboration. Research Institutions often push the envelope with innovative projects, generating a symbiotic relationship with software developers, while Educational Institutions focus on training the next generation of engineers, further shaping market dynamics.

Professional Engineers (Dominant) vs. Design Teams (Emerging)

Professional Engineers represent the dominant force within the Electronic Design Automation Software Market due to their extensive expertise and reliance on sophisticated tools for high-stakes projects. They are often involved in critical stages of product development and require advanced functionalities that can handle complex designs. On the other hand, Design Teams are emerging as a vital segment, characterized by their collaborative approach to projects, utilizing cutting-edge EDA software that supports teamwork and iterative design processes. This shift reflects a broader trend towards agile methodologies within engineering practices. While Professional Engineers ensure design integrity and compliance with industry standards, Design Teams focus on fostering innovation and creativity, enabling faster product cycles and responsiveness to market needs.

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Regional Insights

North America : Innovation and Leadership Hub

North America continues to lead the Electronic Design Automation (EDA) software market, holding a significant share of 6.15 billion in 2025. The region's growth is driven by rapid technological advancements, increasing demand for complex electronic systems, and supportive government initiatives promoting innovation. The presence of major tech companies and a robust infrastructure further catalyze market expansion, making it a focal point for EDA solutions. The competitive landscape in North America is characterized by key players such as Synopsys, Cadence Design Systems, and Mentor Graphics, which dominate the market. These companies are continuously innovating to meet the evolving needs of industries like automotive, telecommunications, and consumer electronics. The region's strong investment in R&D and a skilled workforce contribute to its position as a global leader in EDA software development.

Europe : Emerging Market with Growth Potential

Europe's Electronic Design Automation software market is projected to reach 3.7 billion by 2025, driven by increasing investments in technology and a growing emphasis on automation across various sectors. The region is witnessing a surge in demand for EDA tools, particularly in automotive and aerospace industries, as companies strive for efficiency and innovation. Regulatory frameworks supporting digital transformation further enhance market growth prospects. Leading countries in Europe, such as Germany, France, and the UK, are at the forefront of EDA software adoption. The competitive landscape features prominent players like Siemens EDA and Altium, which are leveraging advanced technologies to cater to diverse industry needs. The region's focus on sustainability and smart technologies is expected to propel further growth in the EDA market.

Asia-Pacific : Rapidly Growing Technology Sector

The Asia-Pacific region is experiencing rapid growth in the Electronic Design Automation software market, projected to reach 2.8 billion by 2025. This growth is fueled by increasing investments in electronics manufacturing, a rising number of startups, and government initiatives aimed at boosting technological innovation. Countries like China and India are leading this transformation, with a strong focus on developing smart technologies and enhancing manufacturing capabilities. China, Japan, and South Korea are the key players in the Asia-Pacific EDA market, with companies like Zuken and Aldec making significant contributions. The competitive landscape is evolving, with local firms emerging alongside established global players. The region's emphasis on research and development, coupled with a growing demand for advanced electronic products, positions it as a critical player in the global EDA landscape.

Middle East and Africa : Emerging Market with Untapped Potential

The Middle East and Africa (MEA) region, while currently holding a smaller market size of 0.65 billion in the Electronic Design Automation software sector, presents significant growth opportunities. The region is witnessing an increase in technology adoption, driven by government initiatives aimed at diversifying economies and enhancing digital infrastructure. The demand for EDA solutions is expected to rise as industries such as telecommunications and automotive expand their operations. Countries like South Africa and the UAE are leading the charge in adopting EDA technologies, with a focus on improving local manufacturing capabilities. The competitive landscape is gradually evolving, with both local and international players entering the market. As the region continues to invest in technology and innovation, the EDA market is poised for substantial growth in the coming years.

Electronic Design Automation Software Market Regional Image

Key Players and Competitive Insights

The Electronic Design Automation Software Market is currently characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for efficient design processes. Key players such as Synopsys (US), Cadence Design Systems (US), and ANSYS (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Synopsys (US) emphasizes innovation through continuous investment in R&D, focusing on AI-driven design tools that streamline workflows. Cadence Design Systems (US) has pursued strategic partnerships to expand its ecosystem, enhancing its software capabilities and market reach. Meanwhile, ANSYS (US) is leveraging its simulation expertise to integrate advanced analytics into its offerings, thereby addressing the growing need for predictive design capabilities. Collectively, these strategies contribute to a competitive environment that is increasingly focused on technological differentiation and customer-centric solutions.

In terms of business tactics, companies are localizing their operations to better serve regional markets, optimizing supply chains to enhance efficiency, and investing in digital transformation initiatives. The market structure appears moderately fragmented, with a mix of established players and emerging startups. This fragmentation allows for diverse offerings, yet the influence of major companies remains substantial, as they set industry standards and drive innovation.

In November 2025, Synopsys (US) announced a significant acquisition of a leading AI startup, which is expected to bolster its capabilities in machine learning for electronic design. This strategic move not only enhances Synopsys's product portfolio but also positions the company to lead in the integration of AI technologies within EDA tools, potentially reshaping design methodologies across the industry.

In October 2025, Cadence Design Systems (US) launched a new cloud-based platform aimed at facilitating collaborative design processes among global teams. This initiative reflects a growing trend towards remote collaboration in engineering, allowing Cadence to capture a broader customer base and respond to the increasing demand for flexible design environments. The platform's introduction is likely to enhance user engagement and retention, further solidifying Cadence's market position.

In September 2025, ANSYS (US) unveiled a groundbreaking simulation tool that incorporates real-time data analytics, enabling engineers to make informed design decisions based on live data. This innovation is pivotal as it aligns with the industry's shift towards data-driven design processes, potentially giving ANSYS a competitive edge in attracting clients seeking advanced simulation capabilities.

As of December 2025, the competitive trends within the Electronic Design Automation Software Market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming more prevalent, as companies recognize the value of collaboration in enhancing their technological offerings. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technological advancement, and supply chain reliability. This shift underscores the importance of agility and responsiveness in meeting the evolving needs of customers in a rapidly changing market.

Key Companies in the Electronic Design Automation Software Market include

Industry Developments

  • Q2 2024: Siemens acquires Insight EDA to strengthen IC design verification portfolio Siemens Digital Industries Software announced the acquisition of Insight EDA, a provider of design verification tools, to enhance its electronic design automation (EDA) offerings for integrated circuit (IC) design.
  • Q2 2024: Cadence Launches AI-Driven Allegro X Design Platform for PCB Automation Cadence Design Systems introduced the Allegro X AI platform, a new PCB design tool that leverages artificial intelligence to automate and optimize complex board layouts, aiming to reduce design cycle times for electronics manufacturers.
  • Q3 2024: Synopsys appoints Sassine Ghazi as CEO, replacing Aart de Geus Synopsys, a leading EDA software provider, announced the appointment of Sassine Ghazi as its new Chief Executive Officer, succeeding co-founder Aart de Geus, as part of a planned leadership transition.
  • Q3 2024: Ansys and TSMC expand partnership to accelerate advanced chip design Ansys and Taiwan Semiconductor Manufacturing Company (TSMC) announced an expanded collaboration to deliver new EDA solutions for advanced process nodes, aiming to improve power, performance, and reliability in next-generation semiconductors.
  • Q3 2024: EDA startup Movellus raises $25M Series B to scale AI-powered chip design tools Movellus, a startup specializing in AI-driven EDA software, secured $25 million in Series B funding to accelerate product development and expand its engineering team, targeting faster and more efficient semiconductor design.
  • Q4 2024: Synopsys launches DSO.ai Gen 2, advancing autonomous chip design Synopsys unveiled the second generation of its DSO.ai platform, which uses artificial intelligence to automate and optimize the entire chip design process, promising significant reductions in time-to-market for semiconductor companies.
  • Q4 2024: Cadence opens new R&D center in Bangalore to support global EDA innovation Cadence Design Systems inaugurated a new research and development facility in Bangalore, India, aimed at expanding its global engineering capabilities and accelerating innovation in EDA software.
  • Q1 2025: Siemens and Arm announce strategic partnership for automotive EDA solutions Siemens Digital Industries Software and Arm announced a strategic partnership to co-develop EDA tools tailored for automotive semiconductor design, focusing on safety, reliability, and compliance with emerging industry standards.
  • Q1 2025: Altium receives regulatory approval for $9B acquisition by Renesas Australian EDA software company Altium received final regulatory approval for its $9 billion acquisition by Japanese semiconductor firm Renesas, marking a major consolidation in the EDA and semiconductor design sector.
  • Q2 2025: Keysight Technologies launches PathWave EDA Cloud, expanding SaaS offerings Keysight Technologies introduced PathWave EDA Cloud, a new cloud-based platform for electronic design automation, enabling engineers to access advanced simulation and verification tools via a subscription model.
  • Q2 2025: Synopsys wins multi-year EDA contract with Samsung for advanced node development Synopsys secured a multi-year contract with Samsung Electronics to provide EDA software and services for the development of advanced semiconductor nodes, supporting Samsung's next-generation chip manufacturing roadmap.
  • Q2 2025: EDA startup Celus raises $40M Series C to expand automated electronics design platform Celus, a German startup focused on automating electronics design, raised $40 million in Series C funding to scale its platform and accelerate international expansion, targeting faster and more cost-effective PCB development.

Future Outlook

Electronic Design Automation Software Market Future Outlook

The Electronic Design Automation Software Market is projected to grow at an 8.44% CAGR from 2024 to 2035, driven by advancements in AI, IoT, and increased demand for complex designs.

New opportunities lie in:

  • Development of AI-driven design tools for enhanced efficiency.
  • Expansion into emerging markets with localized solutions.
  • Integration of cloud-based platforms for collaborative design processes.

By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

Electronic Design Automation Software Market End Use Outlook

  • Consumer Electronics
  • Telecommunications
  • Automotive
  • Aerospace
  • Industrial Electronics

Electronic Design Automation Software Market User Type Outlook

  • Professional Engineers
  • Design Teams
  • Research Institutions
  • Educational Institutions

Electronic Design Automation Software Market Application Outlook

  • Integrated Circuit Design
  • Printed Circuit Board Design
  • System on Chip Design
  • Electronic Packaging
  • Signal Integrity Analysis

Electronic Design Automation Software Market Software Type Outlook

  • Schematic Capture Software
  • Layout Design Software
  • Simulation Software
  • Verification Software

Electronic Design Automation Software Market Deployment Model Outlook

  • On-Premises
  • Cloud-Based
  • Hybrid

Report Scope

MARKET SIZE 202412.3(USD Billion)
MARKET SIZE 202513.33(USD Billion)
MARKET SIZE 203529.98(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)8.44% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledSynopsys (US), Cadence Design Systems (US), Mentor Graphics (US), Altium (AU), ANSYS (US), Keysight Technologies (US), Siemens EDA (US), Zuken (JP), Aldec (US)
Segments CoveredApplication, End Use, Deployment Model, Software Type, User Type
Key Market OpportunitiesIntegration of artificial intelligence enhances design efficiency in the Electronic Design Automation Software Market.
Key Market DynamicsRising demand for advanced semiconductor designs drives innovation and competition in the Electronic Design Automation Software Market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

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FAQs

What is the projected market size of the Electronic Design Automation (EDA) Software Market in 2023?

The Electronic Design Automation (EDA) Software Market is expected to reach an overall valuation of 11.34 billion USD in 2023, showcasing a significant growth trajectory.

What is the anticipated CAGR of the EDA Software Market during the forecast period?

The market is projected to exhibit a steady compound annual growth rate (CAGR) of 8.44% throughout the forecast period, indicating a promising growth outlook.

Which region is anticipated to dominate the EDA Software Market?

The Asia-Pacific (APAC) region is expected to lead the EDA Software Market with a substantial market share, primarily driven by the increasing adoption of EDA tools in the region's electronics and semiconductor industries.

What are the primary applications of EDA software?

EDA software finds extensive applications in various stages of electronic system design, including integrated circuit (IC) design, printed circuit board (PCB) design, and field-programmable gate array (FPGA) design. These tools aid engineers in optimizing designs, reducing development time, and enhancing the efficiency of electronic product development.

Who are some of the key competitors in the EDA Software Market?

Prominent players in the EDA Software Market include Cadence Design Systems, Mentor Graphics (Siemens), Synopsys, Ansys, and Aldec. These companies offer a comprehensive suite of EDA solutions catering to the diverse needs of electronic design engineers.

What are the key trends shaping the EDA Software Market?

The market is influenced by several key trends, including the rising adoption of cloud-based EDA tools, the increasing demand for advanced packaging technologies, and the growing emphasis on design security. These trends are driving innovation and shaping the competitive landscape.

What is the impact of emerging technologies on the EDA Software Market?

Emerging technologies such as artificial intelligence (AI) and machine learning (ML) are reshaping the EDA software industry. These technologies enhance the capabilities of EDA tools, enabling more efficient and intelligent design processes. AI-driven algorithms can automate repetitive tasks, optimize designs, and improve the accuracy of simulations.

How has the COVID-19 pandemic impacted the EDA Software Market?

The COVID-19 pandemic had a moderate impact on the EDA software market. While some industries experienced disruptions, the demand for EDA tools remained steady as remote work arrangements necessitated the adoption of efficient design tools. The pandemic also accelerated the adoption of cloud-based EDA solutions, offering greater flexibility and accessibility.

What are the growth opportunities in the EDA Software Market?

The market presents several growth opportunities, including the expansion of the semiconductor industry, the growing demand for electronic devices, and the increasing adoption of EDA tools in emerging markets. Additionally, the development of new EDA tools and technologies, such as those based on AI and ML, is expected to drive further growth in the market.

What are the challenges faced by the EDA Software Market?

The market faces certain challenges, including the high cost of EDA tools, the complexity of electronic designs, and the rapid pace of technological advancements. Intense competition and the need for continuous innovation to keep up with evolving industry demands are other challenges that market participants must navigate.

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