Electronic Design Automation (EDA) Global Market Report 2024

The electronic design automation (EDA) market size has grown rapidly in recent years. It will grow from $14.2 billion in 2023 to $15.68 billion in 2024 at a compound annual growth rate (CAGR) of 10.4%. The growth observed during the historic period can be attributed to several factors, including the increasing demand for electronic design automation (EDA) tools within the automotive sector, the rising adoption of finFET architecture, increased penetration of Internet of Things (IoT), virtual reality (VR), and artificial intelligence (AI) technologies, growing demand for smaller and portable electronic devices, and the increasing utilization of machine learning techniques in EDA processes.

The electronic design automation (EDA) market size is expected to see strong growth in the next few years. It will grow to $22.07 billion in 2028 at a compound annual growth rate (CAGR) of 8.9%. The projected growth in the forecast period is expected to be driven by several factors, including the rising demand for complex integrated circuits (ICs), ongoing miniaturization trends across various industries, increased consumer awareness regarding fitness-related technologies, the proliferation of Internet of Things (IoT) and connected devices, and the expanding utilization of field-programmable gate arrays (FPGAs) in data centers. Significant trends anticipated during this period include technological advancements, the widespread implementation of 5G technology, increased adoption of IoT devices, utilization of system-on-chip (SoC) technology, and the integration of machine learning capabilities with artificial intelligence (AI) within the electronic design automation (EDA) landscape.

The burgeoning demand for intricate integrated circuits (ICs) is anticipated to drive the expansion of the electronic design automation (EDA) market in the coming years. These sophisticated ICs, composed of interconnected components such as resistors, transistors, and capacitors, intricately crafted on a single semiconductor substrate, such as silicon, necessitate advanced electronic design tools. EDA solutions play a pivotal role in assisting engineers in efficiently navigating the complexities associated with developing cutting-edge integrated circuits, ensuring adherence to specified functionality, performance, and manufacturability requirements. These tools facilitate the compilation, analysis, and simulation of Hardware Description Language (HDL) descriptions, validating design accuracy and compliance with predetermined specifications. Notably, in February 2022, the Semiconductor Industry Association (SIA), a US-based trade association and advocacy group, reported that global semiconductor sales surged to $555.9 billion in 2021, reflecting a substantial 25.1% increase from 2020. Consequently, the escalating demand for complex integrated circuits (ICs) serves as a primary driver fueling the growth trajectory of the electronic design automation market.

Leading players within the electronic design automation (EDA) market are actively pursuing innovative product development endeavors, exemplified by the introduction of Tessent RTL Pro, aimed at gaining a competitive edge. Tessent RTL Pro represents a cutting-edge software solution meticulously crafted to empower integrated circuit (IC) design teams in streamlining and expediting a diverse range of critical design-for-test (DFT) operations for their forthcoming designs. Notably, in October 2023, Siemens AG, a renowned Germany-based automation firm renowned for its design, development, and manufacturing prowess, unveiled the Tessent RTL Pro advanced software suite. This groundbreaking solution automates the analysis and integration of test points, wrapper cells, and x-bounding logic at the early stages of the design flow, enabling engineers to proactively identify and rectify potential testability challenges. Seamlessly integrated with Siemens' Tessent DFT tools, Tessent RTL Pro introduces industry-first functionalities, enabling customers to slash design turnaround times and enhance time-to-market metrics significantly.

In November 2023, Siemens AG, a renowned German technology conglomerate specializing in the design, development, and manufacturing of various products, completed the acquisition of Insight EDA Inc. for an undisclosed sum. This acquisition is poised to bolster Siemens' calibre PERC product line, empowering design engineers with enhanced capabilities for incorporating design-specific reliability verification. The transaction underscores Siemens' commitment to advancing within the electronic design automation (EDA) market, reflecting ongoing strategic developments in this sector. Insight EDA Inc., headquartered in the United States, is a software company recognized for providing circuit reliability solutions to integrated circuit (IC) design teams.

Major companies operating in the electronic design automation (EDA) market report are Siemens AG, Oracle Corporation, SAP SE, Advanced Micro Devices Inc., Dassault Systemes, Keysight Technologies Inc., Synopsys Inc., Autodesk Inc., Cadence Design Systems Inc., Werner Enterprises, Xilinx Inc., Ansys Inc., National Instruments Corp., MathWorks Inc., eInfochips Private Limited, Mentor Graphics Corporation, Altium Limited, BluJay Solutions Ltd., Zuken Inc., Silvaco Inc., Aldec Inc., Agnisys Inc., Labcenter Electronics Ltd., Intercept Technology Inc., Sigasi NV, Altair Engineering Inc., Boldport Limited, Dolphin Design, EasyEDA, EnSilica plc, Eremex Ltd.

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

Electronic design automation (EDA) comprises software tools dedicated to aiding the design, verification, and testing of electronic systems, including integrated circuits and printed circuit boards. It plays a crucial role in identifying potential issues prior to production and offers features for design reusability, streamlining the design process.

The primary types of electronic design automation (EDA) include computer-aided engineering (CAE), semiconductor intellectual property (SIP), integrated circuit (IC) physical design and verification, as well as printed circuit board (PCB) and multi-chip module (MCM) tools. Computer-aided engineering (CAE) software facilitates the design, analysis, and optimization of products and processes. These tools are deployed in both cloud-based and on-premise environments, catering to various applications across industries such as automotive, healthcare, aerospace and defense, telecommunications, data centers, consumer electronics, industrial sectors, and others.

The electronic design automation market research report is one of a series of new reports that provides electronic design automation market statistics, including electronic design automation industry global market size, regional shares, competitors with an electronic design automation market share, detailed electronic design automation market segments, market trends and opportunities, and any further data you may need to thrive in the electronic design automation industry. This electronic design automation 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 (EDA) market consists of revenues earned by entities by providing services such as design consulting, electronic design automation (EDA) tool training, customization services, verification and validation services, and design review 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) market also includes sales of physical computing infrastructure, such as high-performance servers, workstations, and specialized hardware accelerators. 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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