Electronic Design Automation Eda Software Market Overview
As per MRFR analysis, the Electronic Design Automation Eda Software Market Size was estimated at 10.46 (USD Billion) in 2022. The Electronic Design Automation Eda Software Market Industry is expected to grow from 11.34(USD Billion) in 2023 to 23.5 (USD Billion) by 2032. The Electronic Design Automation Eda Software Market CAGR (growth rate) is expected to be around 8.44% during the forecast period (2024 – 2032).
Key Electronic Design Automation Eda Software Market Trends Highlighted
With the exceptional intricacy of electronic engineering works and the embracing of modern fabrication techniques, the electronic design automation industry is set on the increase. The faster the requirement for powerful but energy efficient systems the need for sophisticated EDA tools is vastly experienced if systems and processes are to be optimized efficiently.
There is wide acceptance of Cloud-based EDA platforms, the emergence of the system on a chip (SoC) and the roles of artificial intelligence and machine learning in the software’s functions as key performance conditions. EDA solutions are said to be cloud-based because they can be accessed remotely via the Internet, while Soc designs emphasize the need for sophisticated instruments. More so, AI and ML are now embedded in EDA software to assist in automating operations, increasing the accuracy of new designs, and even discovering new areas of design.
More recently, there has been a tendency among users to gravitate towards open-source EDA tools, the use of HDLs in high-level synthesis, and the increasing presence of physical verification tools within the design cycle. Cost and the level of usage are the fundamental factors that have increased the popularity of Open Source EDA tools, while HDLs have enhanced the way complex designs are done. In addition, the incorporation of physical verification tools assists in validating that the designs comply with manufacturing requirements and that they would function as desired.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electronic Design Automation Software Market Drivers
Design Complexity and Time-to-Market Pressures
The increasing complexity of electronic designs is a major driver of the Electronic Design Automation Eda Software Market Industry. As designs become more complex, the need for EDA software to automate the design process and reduce time-to-market becomes more critical. EDA software can help engineers create and verify designs more quickly and efficiently, which can lead to significant cost savings and competitive advantages. In addition to the increasing complexity of electronic designs, the pressure to reduce time-to-market is also driving the growth of the EDA software market.In today's competitive market, companies need to be able to bring new products to market quickly and efficiently in order to stay ahead of the competition. EDA software can help companies do this by automating the design process and reducing the time it takes to create and verify designs. The demand for EDA software is also being driven by the growing adoption of electronic systems in a wide range of industries. Electronic systems are now used in everything from consumer electronics to automotive to healthcare.As the adoption of electronic systems continues to grow, the demand for EDA software is expected to increase as well.
Rising Adoption of AI and ML in EDA Software
The adoption of artificial intelligence (AI) and machine learning (ML) in EDA software is another major driver of the Electronic Design Automation EDA Software Market Industry. AI and ML can be used to automate a variety of tasks in the design process, such as design creation, verification, and optimization. This can lead to significant improvements in design quality, productivity, and time-to-market. For example, AI and ML can be used to create automated design tools that can help engineers create designs more quickly and efficiently.These tools can learn from existing designs and identify patterns that can be used to create new designs. AI and ML can also be used to verify designs for errors and to optimize designs for performance and cost. This can help engineers identify and fix errors early in the design process, which can lead to significant cost savings and time savings.
Growing Demand for Cloud-Based EDA Software
The growing demand for cloud-based EDA software is also driving the growth of the Electronic Design Automation Eda Software Market Industry. Cloud-based EDA software offers a number of advantages over traditional on-premises EDA software, such as scalability, flexibility, and cost-effectiveness. Cloud-based EDA software can be accessed from anywhere with an internet connection, which makes it ideal for teams that are working remotely or that are spread across multiple locations.Cloud-based EDA software is also more scalable than traditional on-premises EDA software, which makes it easier to handle large and complex designs. Additionally, cloud-based EDA software is often more cost-effective than traditional on-premises EDA software, as it eliminates the need for upfront hardware and software investments.
Electronic Design Automation Eda Software Market Segment Insights
Electronic Design Automation Eda Software Market Deployment Model Insights
The Electronic Design Automation (EDA) Software Market is segmented on the basis of Deployment Model into On-premises, Cloud-based, and Hybrid. The On-premises segment held the largest market share of 65% in 2023 and is expected to continue its dominance during the forecast period. This is due to the high upfront investment required for on-premises EDA software, which makes it a more suitable option for large enterprises with significant design requirements. The Cloud-based segment is expected to grow at the highest CAGR of 15% during the forecast period, owing to the increasing adoption of cloud computing for EDA workloads.Cloud-based EDA software offers several advantages, such as flexibility, scalability, and cost-effectiveness, making it an attractive option for small and medium-sized enterprises. The Hybrid segment is expected to account for a moderate market share during the forecast period. Hybrid EDA software combines the benefits of both on-premises and cloud-based deployment models, providing enterprises with a flexible and scalable solution that meets their specific requirements. Overall, the EDA Software Market is expected to witness significant growth in the coming years, driven by the increasing adoption of EDA software for chip design, verification, and manufacturing.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electronic Design Automation Eda Software Market Application Insights
The Electronic Design Automation (EDA) Software Market is segmented into several applications, including Integrated Circuit (IC) Design, Printed Circuit Board (PCB) Design, and Field Programmable Gate Array (FPGA) Design. Among these segments, IC Design holds the largest market share due to the increasing demand for complex and high-performance ICs in various electronic devices. The PCB Design segment is also witnessing significant growth, driven by the rising adoption of advanced PCBs in consumer electronics, automotive, and industrial applications.
Furthermore, the FPGA Design segment is expected to exhibit substantial growth over the forecast period, attributed to the increasing use of FPGAs in data centers, cloud computing, and artificial intelligence (AI) applications. The Electronic Design Automation Eda Software Market is projected to surpass USD 16.43 billion by 2026, exhibiting a CAGR of 9.2% during the forecast period 2023-2026.
Electronic Design Automation Eda Software Market Industry Vertical Insights
The Industry Vertical segment of the Electronic Design Automation (EDA) Software Market is expected to grow significantly in the coming years. The increasing adoption of EDA software in various industries, such as semiconductors, electronics, automotive, aerospace and defense, is driving the market growth. The semiconductor industry is expected to contribute significantly to the market growth, owing to the rising demand for advanced integrated circuits (ICs) in consumer electronics, automotive, and industrial applications. The electronics industry is also expected to drive market growth due to the increasing demand for electronic devices, such as smartphones, laptops, and tablets.
The automotive industry is another major contributor to the market growth, as EDA software is used for the design and development of automotive electronics. The aerospace and defense industry is also expected to contribute to the market growth due to the increasing demand for advanced electronic systems in military and aerospace applications.
Electronic Design Automation Software Market Process Node Insights
The Process Node segment is a key part of the Electronic Design Automation EDA Software Market. In 2023, the 7nm and Below segment is estimated to be worth USD 2.34 billion and is expected to grow at a CAGR of 10.2% to reach USD 4.23 billion by 2032. The 10nm segment is estimated to be worth USD 1.98 billion in 2023 and is expected to grow at a CAGR of 9.6% to reach USD 3.57 billion by 2032. The 14nm segment is estimated to be worth USD 1.63 billion in 2023 and is expected to grow at a CAGR of 8.6% to reach USD 2.89 billion by 2032. The 20nm and Above segment is estimated to be worth USD 1.29 billion in 2023 and is expected to grow at a CAGR of 7.5% to reach USD 2.28 billion by 2032.
The growth of the Process Node segment is driven by the increasing demand for advanced semiconductor devices. As semiconductor devices become more complex, they require more sophisticated EDA software to design and verify. The Process Node segment is also benefiting from the growth of the automotive and industrial markets. These markets are increasingly using semiconductor devices in their products, which is driving demand for EDA software that can support the design of these devices.
Electronic Design Automation Software Market Advanced Technologies Insights
Advanced technologies such as Machine Learning (ML), Artificial Intelligence (AI), and Cloud Computing are gaining traction in the Electronic Design Automation (EDA) software market, enabling significant advancements in chip design. ML and AI enhance EDA tools with capabilities like predictive analytics and optimization algorithms, leading to improved design efficiency, reduced turnaround time, and enhanced chip performance. Cloud Computing provides access to scalable and cost-effective computing resources, allowing EDA users to handle complex simulations and large datasets with ease.
Electronic Design Automation Software Market Regional Insights
The Electronic Design Automation EDA Software Market is segmented into North America, Europe, APAC, South America, and MEA. North America is the largest regional segment and is expected to continue to dominate the market throughout the forecast period. The growth in this region is attributed to the presence of a large number of semiconductor companies and the increasing adoption of EDA software in the automotive and aerospace industries. Europe is the second-largest regional segment and is expected to grow at a steady pace during the forecast period.
The growth in this region is attributed to the increasing adoption of EDA software in the consumer electronics and industrial automation industries. APAC is the third-largest regional segment and is expected to grow at a significant pace during the forecast period. The growth in this region is attributed to the increasing adoption of EDA software in the electronics and automotive industries. South America and MEA are the smallest regional segments and are expected to grow at a moderate pace during the forecast period. The growth in these regions is attributed to the increasing adoption of EDA software in the consumer electronics and industrial automation industries.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electronic Design Automation Eda Software Market Key Players And Competitive Insights
Major players in the Electronic Design Automation Eda Software Market industry are leveraging strategic collaborations, mergers, and acquisitions to expand their footprint and enhance their product offerings. Leading Electronic Design Automation Eda Software Market players are investing heavily in research and development to introduce innovative solutions that cater to the evolving needs of the market. The growing adoption of advanced technologies such as artificial intelligence (AI), machine learning (ML), and cloud computing is driving Electronic Design Automation Eda Software Market development. The competitive landscape is expected to intensify further as new entrants emerge and existing players strengthen their positions through strategic partnerships and acquisitions.Cadence Design Systems, Inc. is a leading provider of Electronic Design Automation Eda Software Market solutions. The company offers a comprehensive suite of tools and technologies for designing and verifying electronic systems. Cadence's products are used by a wide range of customers, including semiconductor companies, systems companies, and research institutions. The company has a strong presence with offices in over 30 countries.Synopsys, Inc. is another major player in the Electronic Design Automation Eda Software Market. The company offers a broad portfolio of products and services for designing and testing electronic systems. Synopsys' products are used by a wide range of customers, including semiconductor companies, systems companies, and research institutions. The company has a strong presence with offices in over 30 countries.
Key Companies in the Electronic Design Automation Eda Software Market Include:
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Altium
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Siemens EDA
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Lattice Semiconductor
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Cadence Design Systems
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Zuken
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Altera
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Synopsys
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Mentor Graphics
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Altair Engineering
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Xilinx
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Ansys
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Microsemi Corporation
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Intel Corporation
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OrCAD
Electronic Design Automation Eda Software Market Industry Developments
The Electronic Design Automation (EDA) software market is experiencing significant growth due to the increasing demand for electronic devices and the complexity of integrated circuit (IC) design. In 2023, the market was valued at USD 11.34 billion, and it is projected to reach USD 23.5 billion by 2032, exhibiting a CAGR of 8.44%. This growth is driven by the rising adoption of advanced technologies such as artificial intelligence (AI), machine learning (ML), and cloud computing in EDA tools. Additionally, the growing popularity of 5G technology and the Internet of Things (IoT) is fueling the demand for EDA software for designing complex electronic systems. Recent developments include the acquisition of Cadence Design Systems by Siemens and the launch of new EDA tools by Ansys and Mentor Graphics.
Electronic Design Automation Eda Software Market Segmentation Insights
Electronic Design Automation Eda Software Market Deployment Model Outlook
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On-premises
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Cloud-based
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Hybrid
Electronic Design Automation Eda Software Market Application Outlook
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Integrated Circuit (IC) Design
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Printed Circuit Board (PCB) Design
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Field Programmable Gate Array (FPGA) Design
Electronic Design Automation Eda Software Market Industry Vertical Outlook
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Semiconductors
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Electronics
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Automotive
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Aerospace and Defense
Electronic Design Automation Eda Software Market Process Node Outlook
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7nm and Below
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10nm
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14nm
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20nm and Above
Electronic Design Automation Eda Software Market Advanced Technologies Outlook
Electronic Design Automation Eda Software Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
10.46(USD Billion) |
| Market Size 2023 |
11.34(USD Billion) |
| Market Size 2032 |
23.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
8.44% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Altium, Siemens EDA, Lattice Semiconductor, Cadence Design Systems, Zuken, Altera, Synopsys, Mentor Graphics, Altair Engineering, Xilinx, Ansys, Microsemi Corporation, Intel Corporation, OrCAD. Â Â |
| Segments Covered |
Deployment Model, Application, Industry Vertical, Process Node, Advanced Technologies, Regional. Â |
| Key Market Opportunities |
Cloud-based EDAAIdriven EDALow power EDA3D IC designSecurity aware EDA |
| Key Market Dynamics |
Growing demand for advanced semiconductorsThe increasing complexity of electronic designsAdoption of cloud-based EDA toolsRise of machine learning and artificial intelligence in EDAGovernment initiatives to promote electronics manufacturing |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
