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Leading Element Driving Change in the Electronic Design Automation Software Market in 2025: IOT And Connected Devices Fuel Growth Of Electronic Device Automation Software Market Driver
What market dynamics are playing a key role in accelerating the growth of the electronic design automation software market?The advancement of the internet of things (IoT) and interconnected devices is projected to accelerate the expansion of the electronic device automation software market. The adoption of IoT enables automation in operations, leading to a decrease in manual labor and operation costs, and an increase in business pace. The main goal of IoT is to establish a system that links everything together by employing embedded sensors, software, and other technologies. These IoT devices gather data and transmit it to the cloud platform for analysis, forming the basis for future enhancements and developments. For example, IoT Analytics GmbH, a German company specializing in IoT market insights and strategic business intelligence, published an article in May 2022 showing that the number of global IoT connections surged by 8% in 2021, accounting for 12.2 billion active endpoints. This is predicted to experience a further growth of 18% in 2022, resulting in 14.4 billion active connections. Consequently, the proliferation of the internet of things (IoT) and interconnected devices is fueling the growth of the EDAS market.
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How will the growth rate of the electronic design automation software market shape industry trends by 2034?
The market for electronic design automation software has seen considerable growth in the past few years. A rise from $34.75 billion in 2024 to $36.86 billion in 2025 is projected, with a compound annual growth rate (CAGR) of 6.1%. This growth can be linked to the escalating complexity of integrated circuits, advancements in the Internet of Things and the consumer electronics market, an increase in aerospace and defense applications, expansion in automotive electronics, and the surge in design and manufacturing of Printed Circuit Boards (PCBs).
In the forthcoming years, the size of the electronic design automation software market is projected to experience significant expansion. It's estimated to reach approximately $47.01 billion in 2029, with a compound annual growth rate (CAGR) of 6.3%. The growth during this prediction period can be associated with factors like the advancement of quantum computing, the growing focus on cybersecurity, enhanced 3D packaging and interconnects, global commerce and geopolitical aspects, as well as environmental regulations. Key trends that emerge in this forecast period are the use of digital twin technology, design intended for reusability, real-time design analytics, distributed and cooperative design, and design automation for IoT security.
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What trends are poised to drive the future success of the electronic design automation software market?
Leading firms involved in the electronic design automation software marketplace are going all out to provide cutting-edge solutions to bolster their market stance. The Electronic Design Automation (EDA) software refers to a unique set of applications utilized for designing, simulating, verifying, and manufacturing electronic systems such as integrated circuits (ICs) and printed circuit boards (PCBs). For example, in March 2024, India-based IT services and consulting firm, HCL, launched a fresh Electronic Design Automation (EDA). Such EDA tools streamline tasks like circuit design, layout, simulation, and verification, thereby enhancing productivity and shrinking errors. This groundbreaking solution is designed to expedite large EDA deployments, considerably cut down time-to-market, and boost product quality and reliability. By collaborating with NetApp's Design Anywhere framework, HCLTech intends to aid customers in refining their IT settings, handling infrastructure, and planning workloads, while providing diverse consumption models fine-tuned to specific requirements.
Which primary segments of the electronic design automation software market are driving growth and industry transformations?
The electronic design automation software market covered in this report is segmented -
1) 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)
2) By Application: Communication, Consumer Electronics, Automotive, Industrial, Aerospace And Defense, Medical
3) By End-Use: Microprocessors And Controllers, Memory Management Units
Subsegments:
1) By Computer-Aided Engineering (CAE): Simulation and Analysis Software, Structural Analysis Tools, Thermal and Fluid Dynamics Simulation
2) By IC Physical Design and Verification: Layout Design Tools, Design Rule Checking (DRC) Software, Layout Versus Schematic (LVS) Verification Tools
3) By Printed Circuit Board and Multi-Chip Module (PCB and MCM): PCB Design Software, PCB Manufacturing Software, Multi-Chip Module Design Tools
4) By Semiconductor Intellectual Property (SIP): Standard Cell Libraries, Analog and Mixed-Signal IP, Digital Signal Processing (DSP) Cores
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Which geographical regions are pioneering growth in the electronic design automation software market?
North America was the largest region in the electronic design automation software market in 2024. The regions covered in the electronic design automation software market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
Who are the influential players reshaping the electronic design automation software market 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
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What Is Covered In The Electronic Design Automation Software Global Market Report?
•Market Size Forecast: Examine the electronic design automation software market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the electronic design automation software market for a structured understanding.
•Key Players Overview: Analyze major players in the electronic design automation software market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the electronic design automation software market.
•Segment Contributions: Evaluate how different segments drive overall growth in the electronic design automation software market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the electronic design automation software market.
•Industry Challenges: Identify potential risks and obstacles affecting the electronic design automation software market.
•Competitive Landscape: Review strategic developments in the electronic design automation software market, including expansions, agreements, and new product launches.
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