Electronic Design Automation (EDA) Tools Global Market Report 2024

The electronic design automation (EDA) tools market size has grown strongly in recent years. It will grow from $15.18 billion in 2023 to $16.67 billion in 2024 at a compound annual growth rate (CAGR) of 9.9%. The growth observed during the historic period can be attributed to several factors, including the increasing complexity of integrated circuits, heightened demand for faster time-to-market, advancements in semiconductor technology, globalization of design teams, and the emergence of functional verification challenges.

The electronic design automation (EDA) tools market size is expected to see strong growth in the next few years. It will grow to $23.98 billion in 2028 at a compound annual growth rate (CAGR) of 9.5%. The projected growth in the forecast period is expected to be driven by several factors, including the integration of AI (artificial intelligence) and machine learning capabilities into electronic design automation (EDA) tools, rapid expansion of Internet of Things (IoT) and edge computing technologies, increased demand for agile design methodologies, growing complexity of designs across various industries, and the adoption of agile design methodologies. Significant trends anticipated during this period include advancements in analog or mixed-signal (AMS) design, improved support for open-source EDA tools, integration of hardware security features, ongoing technological advancements, and a focus on new product innovation within the EDA landscape.

The widespread adoption of the Internet of Things (IoT) is poised to drive the expansion of the electronic design automation (EDA) tools market in the foreseeable future. IoT encompasses a network of physical objects, devices, and systems embedded with sensors, software, and connectivity features, facilitating data gathering and exchange among devices. Its increasing adoption stems from its transformative potential across diverse industries. In the realm of electronic design automation (EDA) tools, IoT integration enables the incorporation of sensor and IoT solutions into various stages of IC (integrated circuit) design, verification, manufacturing, and testing processes, ultimately enhancing the efficiency and performance of electronic systems. Notably, a report by Ericsson in September 2022 revealed that global IoT connections surged to 13.2 billion connections in 2022 and are projected to grow by 18% to 34.7 billion connections by 2028, underscoring the significant role of IoT in propelling the electronic design automation (EDA) tools market forward.

Prominent players within the electronic design automation (EDA) tools market are actively pursuing cutting-edge technologies such as Synopsys.ai to gain a competitive edge. Synopsys.ai leverages cloud computing to enhance efficiency and scalability within design automation workflows. By facilitating on-demand resource provisioning and platform abstraction, and fostering collaborative development environments, Synopsys.ai drives flexibility and productivity improvements. For instance, in March 2022, Synopsys, Inc., a leading US-based software development and electronic design automation company, unveiled Synopsys.ai, a suite of AI-powered solutions tailored for designing, verifying, testing, and manufacturing advanced digital and analog chips. This comprehensive, AI-driven EDA suite is meticulously crafted to expedite the chip design workflow, empowering companies to embed AI-driven optimization and data analytics capabilities throughout every stage of IC (integrated circuit) chip development.

In November 2023, Siemens Digital Industries, a prominent US-based software company, finalized the acquisition of Insight EDA Inc. for an undisclosed sum. This strategic move is geared towards expanding Siemens' Calibre integrated circuit reliability verification offerings, with the goal of facilitating design engineers in seamlessly integrating design-specific reliability verification and analysis into integrated circuit (IC) design processes. The acquisition is anticipated to expedite Siemens' circuit reliability verification roadmap while extending Insight EDA's solutions to the global semiconductor ecosystem. Insight EDA Inc., also headquartered in the United States, is recognized for its provision of electronic design automation (EDA) tools, including calculation, error detection, domain leakage prediction, analytical solutions, and technical services.

Major companies operating in the electronic design automation (EDA) tools market report are Siemens AG, Intel Corporation, Arrow company, Agnisys Inc., Keysight Technologies Inc., Synopsys Inc., Cadence Design Systems Inc., Forte Design Systems, Xilinx Inc., ANSYS Inc., Microsemi Corporation, National Instruments Corporation, JEDA Technologies Inc., Mentor Graphic Corporation, Altair Engineering Inc., AWR Corporation, Faraday&Future Inc., Zuken Inc., Magwel NV, Altium Limited, Silvaco Inc., Lauterbach GmbH, Computer Simulation Technology AG, EnSilica Limited, Aldec Inc., EMA Design Automation Inc., ELECTRO-SYSTEM CO. LTD., MunEDA GmbH, Intercept Technology Inc., Labcenter Electronics Ltd., Pulsic Limited.

Asia-Pacific was the largest region in the electronic design automation (EDA) tools market in 2023. It is expected to be the fastest-growing region in the forecast period. The regions covered in the electronic design automation (EDA) tools market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electronic design automation (EDA) tools market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Electronic Design Automation (EDA) tools encompass software applications utilized in the design and creation of electronic systems, including integrated circuits (ICs) and printed circuit boards (PCBs). These tools collectively constitute a design flow employed by chip designers to develop and assess entire semiconductor chips.

The primary types of electronic design automation (EDA) tools include computer-aided engineering (CAE), integrated circuit physical design and verification, printed circuit board and multi-chip module (PCB and MCM) tools, semiconductor intellectual property (SIP), and related services. Computer-aided engineering (CAE) involves the utilization of computer software to simulate product performance, thereby enhancing quality and efficiency. These tools are deployed across various modes, including on-premises and cloud-based, catering to end-users spanning industries such as aerospace and defense, automotive, consumer electronics, industrial, healthcare, and others.

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

The electronic design automation (EDA) tools market consists of revenues earned by entities by providing services such as consulting services, integration services, customization services, maintenance and support services, and verification and testing services. The market value includes the value of related goods sold by the service provider or included within the service offering. The electronic design automation (EDA) tools market also includes sales of cadence design systems, high-frequency structure simulators, design-for-test (DFT) tools, physical verification tools, and simulation and modeling tools. 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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