Electronic Design Automation Software Global Market Report 2024

Electronic Design Automation (EDA) comprises a suite of software tools crucial for computer-assisted design in the electronic systems domain. These tools find extensive application in the design processes of complex electronic devices such as circuit boards and processors.

Key categories within electronic design automation software include Computer-Aided Engineering (CAE), IC (Integrated Circuit) physical design and verification, Printed Circuit Board and Multi-Chip Module (PCB and MCM), and Semiconductor Intellectual Property (SIP). CAE software is a computer-based solution facilitating product enhancement and problem resolution in engineering. It enables the execution of physical property tests and simulations, eliminating the need for physical prototypes. Electronic design automation software plays a pivotal role in microprocessor and controller design, as well as in memory management units. Its applications span across various industries, including communication, consumer electronics, automotive, industrial, aerospace and defense, and medical.

The electronic design automation software market research report is one of a series of new reports that provides electronic design automation software market statistics, including electronic design automation software industry global market size, regional shares, competitors with an electronic design automation software market share, detailed electronic design automation software market segments, market trends and opportunities, and any further data you may need to thrive in the electronic design automation software industry. This electronic design automation software 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 electronic design automation software market size has grown strongly in recent years. It will grow from $30.43 billion in 2023 to $32.24 billion in 2024 at a compound annual growth rate (CAGR) of 5.9%. The expansion observed in the historical period can be attributed to several factors, including the heightened complexity of integrated circuits, growth in the Internet of Things (IoT) and consumer electronics market, increased demand in aerospace and defense applications, growth in automotive electronics, and a rise in printed circuit board (PCB) design and manufacturing activities. These factors collectively contributed to the overall growth observed during that timeframe.

The electronic design automation software market size is expected to see strong growth in the next few years. It will grow to $40.13 billion in 2028 at a compound annual growth rate (CAGR) of 5.6%. The anticipated growth in the forecast period can be attributed to several key factors, including the ongoing development of quantum computing, a growing emphasis on cybersecurity, advancements in 3D packaging and advanced interconnects, considerations related to international trade and geopolitical factors, and the impact of environmental regulations. Noteworthy trends expected in this period encompass the adoption of digital twin technology, a focus on design for reusability, the integration of real-time design analytics, the promotion of distributed and collaborative design approaches, and the implementation of design automation for IoT security. These trends are poised to significantly influence and contribute to the projected growth and evolution of the Electronic Design Automation (EDA) industry in the forecasted period.

The growth of the Internet of Things (IoT) in conjunction with the proliferation of connected devices is poised to drive the expansion of the electronic device automation software market. IoT implementation brings automation to various processes, resulting in reduced labor and operational costs, ultimately enhancing the efficiency of business operations. The primary goal of IoT is to establish an ecosystem that interconnects everything through embedded sensors, software, and other technologies. IoT devices collect data, transmitting it to cloud gateways for analysis to inform future improvements and developments. A report by IoT Analytics GmbH highlighted that in 2021, global IoT connections grew by 8%, reaching 12.2 billion active endpoints, and are expected to grow by 18% to 14.4 billion active connections in 2022. Consequently, the surge in IoT and connected devices is a driving force behind the growth of the Electronic Device Automation Software (EDAS) market.

The expanding semiconductor industry is anticipated to be a significant driver for the electronic device automation (EDA) software market. As a sector within the electronics industry, the semiconductor industry focuses on the research, development, design, manufacturing, and distribution of semiconductor devices, commonly known as chips or integrated circuits. EDA software plays a crucial role in accelerating semiconductor design and manufacturing processes, minimizing errors, improving the quality of semiconductor devices, and fostering innovation. According to the Semiconductor Industry Association, global semiconductor industry sales reached $43.2 billion in July 2023, representing a 2.3% increase compared to the previous month. This growth in the semiconductor industry is instrumental in propelling the expansion of the electronic device automation (EDA) software market.

Technological advancement emerges as a prominent trend in the electronic design automation software market, with major companies focusing on delivering technologically advanced solutions to fortify their market positions. These companies are integrating technologies such as FinFet, AI, VR, IoT, and SoC to present new growth opportunities for EDA tools. For instance, in April 2021, Defacto Technologies, a France-based chip design software company, introduced SoC Compiler v9 tools in their EDA software offering. This tool automates the process of building IP, front-end SoC creation and integration, and expedites the preparation of RTL design collaterals for logic synthesis, demonstrating the industry's commitment to staying at the forefront of technological advancements.

Major players in the electronic design automation (EDA) software market are actively focusing on introducing innovative solutions to streamline and accelerate chip design Design-for-Test (DFT) processes, aiming to secure a competitive advantage. Streamlining and accelerating chip design DFT processes involve employing DFT techniques to enhance the efficiency and speed of the chip design process. In October 2023, Siemens Digital Industries Software, a U.S.-based computer software company, launched Tessent RTL Pro, an Electronic Design Automation (EDA) software designed to assist Integrated Circuit (IC) design teams in optimizing and expediting critical Design-for-Test (DFT) procedures for their upcoming designs. Leveraging rapid synthesis and Automated Test Pattern Generation (ATPG), Siemens' Tessent software enables the identification and correction of outlier blocks, facilitating the analysis and insertion of a significant portion of DFT logic early in the design phase. Tessent RTL Pro automates the analysis and insertion of test points, wrapper cells, and x-bounding logic early in the design flow, leading to reduced design cycles and enhanced testability.

In May 2021, Ansys, a U.S.-based engineering simulation software company, made a strategic move by acquiring Phoenix Integration for an undisclosed amount. This acquisition positions Ansys to broaden its solution offering, enabling customers to seamlessly connect with various engineering tools in multi-tool workflows, particularly in the realm of model-based solid engineering. Phoenix Integration Inc., the acquired company, specializes in providing software that facilitates Model-Based Engineering (MBE) and Model-Based Systems Engineering (MBSE). This strategic acquisition enhances Ansys' capabilities in providing comprehensive solutions for model-based engineering workflows, reinforcing its position in the competitive landscape.

Major companies operating in the electronic design automation software market include Aldec Inc., Altium Llc, Ansys Inc., Cadence Design Systems Inc., Synopsys Inc., Siemens AG, Zuken Inc., Silvaco Inc., Keysight Technologies Inc., eInfochips Inc., Xilinx Inc., Vennsa Technologies Inc., Boldport Limited, ProteanTecs Ltd., Tempo Automation Holdings Inc., Solido Design Automation Inc., DeFacTo Technologies Pvt. Ltd., IC Manage, Ing.-Büro FRIEDRICH GmbH, JEDA Technologies Inc., Lauterbach GmbH, Shanghai Hejian Industrial Software Group Co. Ltd., Concurrent EDA LLC, edXact SA, Altair Engineering Inc., Lattice Semiconductor Corporation, Microchip Technology Inc., AWR Corporation, Averant Inc., Carbon Design Systems

North America was the largest region in the electronic design automation software market in 2023. The regions covered in the electronic design automation software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the electronic design automation software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.

The electronic design automation software market includes revenues earned by entities by developing, marketing, and distributing electronic design automation software used primarily for designing electronic components, such as printed circuit boards and integrated circuits. It allows planners to analyze, screen, and replay plans before performing any function. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.


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