Electronic Design Automation Software Market – Growth of Market Size, Market Dynamics, Trends, Segments and Forecast Period (2024-2030)

Electronic Design Automation Software Market Overview

The expanding demand for electronic devices, the complexity of semiconductor chips, and the rising use of advanced EDA tools are all factors contributing to the growth of the EDA software industry. In the upcoming years, it is also anticipated that the rising popularity of cloud-based EDA solutions will accelerate market expansion. Demand for electronic devices is rising quickly across all industries, including consumer electronics, the automobile industry, and the healthcare sector. As a result, the market for EDA software is expanding. EDA tools are necessary for creating sophisticated electronic devices. Increasing complexity of semiconductor chips: With billions of transistors on a single chip, semiconductor chips are becoming more and more complicated. Without EDA tools, this makes designing and verifying semiconductor chips challenging and time-consuming. Advanced EDA tools are becoming more widely used because they provide a variety of features and capabilities that assist engineers in designing and developing complicated electrical devices more quickly and correctly.

 

 

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Electronic Design Automation Software Market Dynamics: Drivers, Opportunities, Challenges and Restraints

Demand for complicated integrated circuits (ICs) is rising as more transistors and functionalities are crammed into a single chip, making ICs more complex. To assist designers in creating and verifying these chips, this complexity is increasing demand for EDA software. Growing need for high-tech consumer electronics: The market for EDA software is expanding as a result of rising consumer demand for high-tech devices like smartphones, tablets, and wearables. EDA software is crucial for designing and validating the intricate ICs that power the functionality of these devices. Cloud-based EDA services are becoming more widely used because they have a variety of benefits over conventional on-premises EDA software, including cheaper prices, scalability, and simpler access. The demand for EDA software is increasing as a result of this development.

 

Government R&D spending: The semiconductor sector is seeing significant government spending on research and development. This is encouraging the creation of fresh and cutting-edge EDA software solutions. Emerging market expansion the semiconductor industry is seeing an increase in the importance of emerging markets like China and India. The need for EDA software is rising quickly in these areas.

 

Electronic Design Automation Software Market Opportunities

The rising need for sophisticated electronic components like those utilised in 5G, machine learning, and artificial intelligence (AI) gadgets. The expanding usage of cutting-edge EDA tools, such as those that automate design chores and enhance the performance and dependability of electronic devices using ML and AI. The expanding demand for EDA software coming from developing nations like China and India. Growth in emerging markets: As these nations invest in their semiconductor and electronics sectors, it is anticipated that the demand for EDA software in emerging markets would increase significantly over the next few years. By stepping up their sales and marketing initiatives in these markets, EDA software providers can take advantage of this opportunity.

 

By creating new tools and features that satisfy the requirements of chip designers and electronics engineers, EDA software businesses can also profit from the rising usage of advanced EDA tools. For instance, there is a rising need for EDA tools that can assist designers in creating complicated semiconductors that are safe and energy-efficient. EDA software providers can set themselves apart by incorporating AI and ML into their products. Automation of design processes, increased simulation accuracy, and improved performance of electrical devices are all possible using AI and ML.

 

Electronic Design Automation Software Market Challenges

EDA software can be quite expensive, yet being necessary for creating complicated electronic devices. This may make it difficult for small and medium-sized firms to enter the market.  To stay up with the most recent developments, the EDA software industry is continually changing. Businesses may find it challenging to stay current on the newest software and features as a result. EDA software is frequently quite complicated and challenging to use. Businesses may need to spend money on employee training as a result of this. The market is lacking in qualified EDA engineers. Because of this, it could be challenging for organisations to find the talent they require for product design. The emergence of machine learning (ML) and artificial intelligence (AI): ML and AI are being utilised to create new EDA tools that can automate processes and increase design effectiveness.

 

These tools can be intricate and challenging to use, though. The rising need for personalised chips New EDA tools that can assist in the design of these chips are required as a result of the rising demand for custom chips. Nevertheless, creating these tools can be costly and time-consuming. As electronic systems grow more intricate, designing them becomes more challenging. EDA software must be more robust and feature-rich as a result. Companies might spend money on training to teach their staff members how to utilise EDA software efficiently. This can assist companies in lowering expenses and increasing design efficiency. Companies can work together with EDA vendors to have access to the newest features and software. EDA companies can also offer assistance and instruction to firms so they can make the most of their software.

 

Electronic Design Automation Software Market Restraints

Engineering professionals can create and test electronic systems with the aid of electronic design automation (EDA) software. Printed circuit boards (PCBs), electronic systems, and integrated circuits (ICs) are all designed using EDA software. The EDA software industry is anticipated to expand steadily over the ensuing years, but a variety of obstacles could impede expansion. The market for EDA software is significantly constrained by the growing complexity of electronic systems. The EDA software required to develop and validate electronic devices is becoming more complicated and expensive. Due to their limited financial means, small and medium-sized organisations may find it challenging to compete with larger firms who can afford to buy the newest EDA software solutions. The lack of qualified EDA engineers is another obstacle to the market for EDA software. EDA software is complicated and needs to be used by people with certain expertise. EDA engineers are in short supply, which can make it challenging for businesses to get the talent they require to develop their electronic devices.

 

Another market constraint is the high price of EDA software. EDA software, especially for the more sophisticated tools, can be highly expensive. Small and medium-sized firms may find it difficult to afford the EDA software they want as a result. Continuous innovation is necessary for EDA software companies to stay up with the fast evolving semiconductor industry. For smaller businesses with fewer resources, this might be difficult. EDA software development and marketing are relatively expensive processes. Because of this, it is challenging for new businesses to enter the market. The lengthy sales cycle because businesses frequently need to thoroughly consider various solutions before making a purchase, EDA software sales cycles can be highly drawn out. This may make it challenging for new businesses to find success in the marketplace. The major players are acquiring smaller businesses as the EDA software market becomes more and more consolidated. Small businesses may find it more challenging to compete and develop as a result.

 

Electronic Design Automation Software Market Trends

The complexity of integrated circuits (ICs) is rising Consumer electronics, automobile electronics, and other electronic devices are in greater demand. The development of new technologies like machine learning (ML) and artificial intelligence (AI). Software that runs on the cloud has many benefits, including scalability, flexibility, and affordability. Consequently, an increasing number of businesses are switching to cloud-based EDA solutions. Many IC design processes, including as verification and optimisation, are being automated using AI and ML. This contributes to IC development taking less time and spending less money. As ICs get more complicated, 3D IC design is becoming more significant. To enable 3D IC design, EDA software suppliers are creating new tools and solutions. The electronics industry is expanding quickly in emerging markets like China and India.

 

The demand for EDA software in various markets is being driven by this. In addition to these changes, the worldwide semiconductor scarcity is also having an effect on the market for EDA software. Electronics companies are having a difficult time finding the chips they require due to the lack of semiconductors. As a result, businesses are striving to optimise their chip designs and lessen their dependency on particular suppliers, which is driving up demand for EDA software.

 

Electronic Design Automation Software Market Regional Analysis

North America: Thanks in large part to the existence of industry-leading semiconductor firms and technological behemoths, North America has been a prominent player in the EDA market. Major EDA companies and semiconductor production facilities are concentrated, in particular, in the United States. The development of IoT, automotive electronics, and 5G technologies is what is driving the demand for EDA tools in this region.

 

Europe: The EDA market in Europe is robust, with nations like Germany and the United Kingdom taking the lead. For the purpose of building sophisticated electronic systems, Europe's automotive and aerospace sectors heavily rely on EDA technologies. Furthermore, the concentration on renewable energy sources in the area has given EDA chances to build effective power electronics.

 

Asia-Pacific: The growing semiconductor and electronics manufacturing sectors in nations like China, Taiwan, and South Korea are to blame for the region's quick rise in the EDA market. The development of 5G networks and the manufacturing of consumer devices have increased the demand for EDA tools in this area.

 

South America: Although at a considerably slower rate than other regions, South America's EDA market has been expanding. Industries like automotive, telecommunications, and consumer electronics are driving the usage of EDA technologies. Mexico and Brazil are two of the major contributors to the expansion.

 

Middle East and Africa: Due to investments made in the development of infrastructure, telecommunications, and the aerospace industry, the Middle East and Africa have emerging EDA markets. Governments in the area are encouraging technical development, which is increasing the use of EDA tools.

 

Electronic Design Automation Software Market Segment Analysis

By Design Flow: Front-end design (FED): At the register transfer level (RTL), integrated circuits (ICs) are designed and verified using FED tools. RTL is a language for describing hardware that is used to explain how an IC works. FED tools assist engineers in producing and simulating RTL code as well as ensuring that the design satisfies all specifications. Back-end design (BED): BED instruments are used to produce the IC's manufacturing data. This information covers both the test programmes and the masks that are used to fabricate the integrated circuit (IC) on a wafer.

 

By Application: With over 40% of the market share, consumer electronics is the largest application sector for electrical design automation (EDA) software. This is a result of the rise in popularity of smart devices like smartphones, tablets, and wearable technology. With nearly 25% of the market share, communications is the second-largest application category for EDA software. This is brought on by the rising use of 5G and other cutting-edge communication technologies. The other two significant application areas for EDA software, accounting for around 15% of the market share each, are automotive and industrial. The advancement of driverless vehicles and other advanced driver assistance systems (ADAS) is what propels the automobile industry. The rising automation of manufacturing and other industrial operations is what drives the industrial industry.

 

Electronic Design Automation Software Market Competitive Landscape

Siemens EDA, Keysight Technologies, Synopsys, Zuken, Vennsa Technologies, and Aldec are some of the major companies’ active in the sector. They make use of a range of inorganic growth strategies, including collaborations, mergers and acquisitions, and new product launches, among others, to increase the scope of their product offering. For instance, Samsung Foundry, a South Korean producer of foundry technologies, and Cadence Design Systems announced their alliance in October 2022 with the goal of speeding up 3D-IC design. Through the expanded collaboration with Samsung Foundry's 3D-IC technique, the Cadence Integrity 3D-IC platform will be made available. Customers can enhance the performance, power, and area of each die using the Cadence platform.

 

Electronic Design Automation Software Market Scope
Market Size in 2023	USD 12.16 Bn.
Market Size in 2030	USD 22.38 Bn.
CAGR (2024-2030)	9.1 %
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By Design Flow Front-end Design Back-end Design
	By Application Consumer Electronics Communications Automotive Industrial
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Electronic Design Automation Software Market Key Players

1. Synopsys, Inc.
2. Silvaco Inc.
3. Mentor Graphics
4. Keysight Technologies
5. Cadence Design Systems, Inc.
6. Autodesk, Inc.
7. Aldec, Inc.
8. Altium LLC.
9. Altair Engineering Inc.
10. ANSYS, Inc.