Electronic Design Automation (EDA) Tools Market Outlook 2025-2034: Key Trends, Growth Drivers, and Market Share

"How Big Is the Electronic Design Automation (EDA) Tools Market Expected to Be, and What Will Its Growth Rate Be?
The electronic design automation (EDA) tools market has seen significant growth in recent years. It is projected to expand from $16.67 billion in 2024 to $18.26 billion in 2025, with a compound annual growth rate (CAGR) of 9.5%. This growth can be attributed to factors such as increasing complexity in integrated circuits, demand for faster time-to-market, advancements in semiconductor technology, the globalization of design teams, and the rise of functional verification challenges.

The electronic design automation (EDA) tools market is expected to reach $26.32 billion by 2029 at a CAGR of 9.6%, fueled by AI/ML integration, IoT and edge computing growth, and demand for agile design. Trends include advancements in AMS design, open-source EDA support, and new product innovations.

What Are the Primary Growth Drivers for the Electronic Design Automation (EDA) Tools Market?
The growing adoption of the Internet of Things (IoT) is set to fuel the growth of the electronic design automation (EDA) tools market. IoT involves a network of interconnected physical devices with sensors, software, and connectivity, enabling data sharing across devices. The rapid adoption of IoT across industries is transforming how electronic design automation tools are used by integrating IoT solutions into IC design, verification, manufacturing, and testing. This ultimately enhances the efficiency and performance of the electronic systems being developed. For example, in September 2022, Ericsson reported that global IoT connections reached 13.2 billion in 2022 and are expected to grow by 18%, reaching 34.7 billion by 2028. Consequently, the increasing adoption of IoT is driving the growth of the EDA tools market.

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Who Are the Dominant Companies Influencing Electronic Design Automation (EDA) Tools Market Trends?
Major companies operating in the electronic design automation (EDA) tools market are Siemens Aktiengesellschaft, 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

What Are the Different Segmentations in the Electronic Design Automation (EDA) Tools Market?
The electronic design automation (EDA) tools market covered in this report is segmented -

1) By Type: Computer-Aided Engineering (CAE), Integrated Circuit Physical Design And Verification, Printed Circuit Board And Multi-Chip Module (PCB And MCM), Semiconductor Intellectual Property (SIP), Services
2) By Deployment Modes: On-Premises, Cloud-Based
3) By End-Use: Aerospace And Defense, Automotive, Consumer Electronics, Industrial, Healthcare, Other End-Users

Subsegments:
1) By Computer-Aided Engineering (CAE): Simulation And Analysis Tools, Signal Integrity Analysis, Thermal Analysis Tools
2) By Integrated Circuit Physical Design And Verification: Place And Route Tools, Design Rule Checking (DRC) Tools, Layout Versus Schematic (LVS) Tools
3) By Printed Circuit Board And Multi-Chip Module (PCB And MCM): PCB Design Software, MCM Design Tools, Schematic Capture Tools
4) By Semiconductor Intellectual Property (SIP): Soft IP Cores, Hard IP Cores, Verification IP
5) By Services: Consulting Services, Training And Support Services, Custom Design Services

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Which Region Is at the Forefront of the Electronic Design Automation (EDA) Tools Market?
Asia-Pacific was the largest region in the electronic design automation (EDA) tools market in 2024. 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.

What Is Covered In The Electronic Design Automation (EDA) Tools Global Market Report?

- Market Size Analysis: Analyze the Electronic Design Automation (EDA) Tools Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Electronic Design Automation (EDA) Tools Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Electronic Design Automation (EDA) Tools Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Electronic Design Automation (EDA) Tools Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.

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