Semiconductor Intellectual Property Market Report 2025

This Semiconductor Intellectual Property report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The semiconductor intellectual property market size has grown rapidly in recent years. It will grow from $7.25 billion in 2024 to $8.02 billion in 2025 at a compound annual growth rate (CAGR) of 10.7%. The growth in the historic period can be attributed to increased complexity of semiconductor designs, demand for faster time-to-market in semiconductor development, growth in consumer electronics and mobile devices, rise in outsourcing of semiconductor design activities, need for cost-effective design solutions.

The semiconductor intellectual property market size is expected to see rapid growth in the next few years. It will grow to $12.37 billion in 2029 at a compound annual growth rate (CAGR) of 11.4%. The growth in the forecast period can be attributed to continued growth in the automotive semiconductor, increased demand for custom semiconductor solutions, integration of semiconductor in edge computing devices, increasing demand for advanced system-on-chip (soc) designs, decreasing design and manufacturing costs. Major trends in the forecast period include expansion of artificial intelligence and machine learning applications, adoption of 5g technology and IoT devices, collaboration and partnerships between IP providers and semiconductor companies, growing focus on I solutions for quantum computing and neuromorphic chips, rise in the use of RISC-v architecture for open-source IP.

The increasing adoption of connected devices is anticipated to boost the growth of the semiconductor IP market during the forecast period. Connected devices refer to physical objects that can communicate with one another and other systems via the internet, commonly associated with the Internet of Things (IoT). These devices connect with others through the internet or various methods such as Wi-Fi, NFC, Bluetooth, and mobile networks. IoT devices are created using electronics like semiconductors, microprocessors, and other chips. For example, in January 2024, IOTech, a UK-based provider of Internet of Things (IoT) solutions and services, projected that the number of smart devices installed globally would rise from 51.11 billion in 2023 to 62.12 billion in 2024, indicating a significant upward trend in the adoption of smart technology. This increasing utilization of connected or IoT devices is expected to drive the semiconductor IP market forward.

The increasing adoption of 5G networks is a significant factor contributing to the semiconductor IP market's growth. 5G networks, representing the fifth generation of wireless cellular technology, offer improved upload and download speeds, more reliable connections, and enhanced capacity. The rollout of 5G networks necessitates specialized IP blocks for wireless connectivity and communication. According to data from Ericsson, a Sweden-based internet broadband company, global 5G population coverage reached around 35 percent at the end of 2022 and is projected to increase to approximately 85 percent by 2028. Therefore, the burgeoning adoption of 5G networks is expected to propel the semiconductor IP market forward.

New technology launches are emerging as a significant trend gaining traction in the semiconductor IP market. Major players in the market are concentrating on technological innovations to maintain a competitive edge over their rivals in the industry. For example, in June 2024, Clarivate, a US-based provider of data and analytics, introduced the IP Collaboration Hub, a specialized platform aimed at enhancing collaboration among stakeholders in the semiconductor sector. This platform facilitates the sharing of semiconductor intellectual property (IP) and allows organizations to manage their IP assets more efficiently. The hub offers tools and resources to streamline processes related to licensing, development, and innovation, ultimately aiming to strengthen partnerships and enhance efficiency within the semiconductor ecosystem. This collaborative approach assists companies in navigating the complexities of IP management while promoting a more innovative environment.

Major companies in the semiconductor IP market are strategically pursuing partnerships and collaborations to enhance their semiconductor IP designs and offerings. Strategic partnerships involve leveraging each other's strengths and resources to achieve mutual benefits. An example is the partnership between Intel, a US-based semiconductor chip developer, and Synopsys, a US-based semiconductor IP developer, announced in August 2023. The collaboration aims to integrate Synopsys' IP design technology with off-the-shelf components to enhance semiconductor IP for future manufacturers.

In September 2022, Alphawave IP Group plc, a UK-based provider of wired connectivity solutions, acquired OpenFive for an undisclosed amount. This acquisition adds semiconductor intellectual property (IP) and custom silicon solution capabilities to Alphawave IP Group plc’s existing portfolio. OpenFive, a US-based developer of semiconductor IP, brings additional expertise to further strengthen Alphawave's offerings in the market.

Major companies operating in the semiconductor intellectual property market include Arm Holdings plc, Synopsys Inc., Cadence Design Systems Inc., Ceva Inc., Imagination Technologies Group plc, eMemory Technology Incorporated, Rambus Inc., Mentor Graphics Corp., Faraday Technology Corp., Lattice Semiconductor Corp., Achronix Semiconductor Corp., Dolphin Integration SA, Open-Silicon Inc., Sonics Inc., Fujitsu Ltd., MediaTek Inc., VeriSilicon Holdings Co. Ltd., Wave computing Inc., Silvaco Inc., Intel Corp., eMemory Technology Inc., Kilopass Technology Inc., M31 Technology Corporation, Open Five Inc., TransPacket AS, Andes Technology Corporation, Arasan Chip Systems Inc., LTIMindtree Limited.

Asia-Pacific was the largest region in the semiconductor intellectual property (IP) market in 2024. North America was the second-largest market in the global semiconductor intellectual property market share. The regions covered in the semiconductor intellectual property market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the semiconductor intellectual property market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Semiconductor IP, or Intellectual Property, refers to a design element that is a reusable unit of logic or functionality, or a layout of a design created with the intention of licensing it to multiple vendors for use as a building block in various chip designs. A license fee is typically charged for its usage, or a royalty is applied for every device manufactured using that specific piece of IP. Semiconductor IP plays a crucial role in providing integrated circuit layout designs that constitute the intellectual property of its creator or the party that owns it.

The main types of design IP in semiconductor intellectual property include processor IP, interface IP, memory IP, and others. Processor IP grants intellectual property rights for the design of processors, often produced in the form of soft IP and analog blocks. Different IP cores include softcore, hardcore, and involve various revenue sources such as royalties and licensing. Semiconductor IP is implemented across various sectors, including consumer electronics, telecom, automotive, healthcare, and others.

The semiconductor intellectual property (IP) market research report is one of a series of new reports that provides semiconductor intellectual property (IP) market statistics, including semiconductor intellectual property (IP) industry global market size, regional shares, competitors with a semiconductor intellectual property (IP) market share, detailed semiconductor intellectual property (IP) market segments, market trends and opportunities, and any further data you may need to thrive in the semiconductor intellectual property (IP) industry. This semiconductor intellectual property (IP) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The semiconductor IP market includes revenues earned by entities by providing services such as hard IP, soft IP, and verification IP. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.