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Electronic Design Automation Software Market Revenue to Grow at a CAGR of 9.6% | Valuates Reports
Electronic Design Automation Software MarketThe global electronic design automation (EDA) software market size was valued at $10.20 billion in 2019, and is projected to reach $20.89 billion by 2027, growing at a CAGR of 9.6% from 2020 to 2027.
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Electronic Design Automation Software Market by Type (Computer-aided Engineering (CAE), IC Physical Design and Verification, Printed Circuit Board and Multi-chip Module (PCB and MCM), Semiconductor Intellectual Property (SIP) and Services), and Application (Communication, Consumer Electronics, Automotive, Industrial, Aerospace & Defense, Medical, and Others): Global Opportunity Analysis and Industry Forecast, 2020-2027
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Increase in adoption of FinFET architecture for designing modern processors, rise in adoption of SoC technology, and surge in penetration of IoT, AI, and VR are the major factors that fuel the growth of the electronic design automation software market. However, availability of the open-source EDA software is expected to impede the EDA software market growth. On the contrary, rise in demand for smaller electronic devices and increase in demand for machine learning in EDA is expected to provide lucrative opportunities for the electronic design automation software market growth in the coming years.
On the basis of type, the integrated circuit (IC) physical design & verification segment is expected to exhibit substantial growth rate in the overall electronic design automation software market during the forecast period. This is attributed to the rise in complexity of IC designs and surge in demand for great accuracy and precision of semiconductor devices. In addition, the end-users are increasingly adopting IC design and verification EDA tools to automatically perform the placement and routing of circuits on an IC or application-specific integrated circuit (ASIC).
According to application, the consumer electronics segment accounted for the highest electronic design automation software market size in the global market in 2019. This is attributed to continuous advancements in the consumer electronics such as smart phones, laptops, desktops, tablets, cameras and many more. The EDA software is also expected to meet the unfulfilled need for methods, models and tools that would permit quicker and more accurate design and verification of microelectronic systems and circuits which is driving the growth of this segment.
In 2019, North America accounted for the highest electronic design automation software market share, due to high spending on electronic devices in this region. In addition, large presence of key market vendors in North America also propels the market growth in this region. In addition, according to the World Semiconductor Trade Statistics, semiconductor sales in the Americas amounted to USD 7.49 billion in December 2019. Moreover, increase in demand from sectors, such as automotive, medical & communications, among other industry verticals in North America acts as the key driving factors of the North America electronic design automation software market.
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