Electronic Design Automation (EDA) Market Thrives On Demand For Complex Integrated Circuits Driver: A Major Catalyst in the Evolution of the Electronic Design Automation (EDA) Market in 2025

What market dynamics are playing a key role in accelerating the growth of the electronic design automation (eda) market?
The growth of the electronic design automation (EDA) market is set to be fuelled by the rising demand for intricate integrated circuits (ICs). These compact electronic chips, which consist of interconnected elements like resistors, transistors, and capacitors built on a single semiconductor material like silicon, have heightened the need for EDA tools. These implements aid engineers in managing the difficulties of creating sophisticated integrated circuits and guarantee that functionality, performance, and manufacturability align with the targeted specifications. They can assemble, scrutinize, and imitate these HDL descriptions to validate the preciseness of the design, ensuring it conforms to the necessary specifications. For instance, in August 2024, the Semiconductor Industry Association (SIA), a US-based trade association and lobbying group, reported that international semiconductor sales amounted to $53.1 billion. This translates to a 20.6% surge since the $44.0 billion observed in August 2023 and a 3.5% increment from the $51.3 billion in July 2024. Consequently, the escalating demand for intricate integrated circuits (ICs) is propelling the expansion of the electronic design automation market.

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How will the growth rate of the electronic design automation (eda) market shape industry trends by 2034?
The size of the electronic design automation (EDA) market has been expanding considerably in past years. Predictions indicate an escalation from $15.12 billion in 2024 to approximately $16.65 billion in 2025, with a compound annual growth rate (CAGR) of 10.1%. The surge during the historic period can be credited to factors such as the growing need for EDA tools in the automotive sector, increased acceptance of finfet architecture, the expanding reach of Internet of Things (IoT), Virtual Reality (VR), and Artificial Intelligence (AI), the increased demand for compact and portable electronic devices, and an enhancing demand for machine learning within the EDA spheres.

The market size of electronic design automation (EDA) is projected to witness robust growth in the coming years, reaching $22.73 billion by 2029, with a CAGR of 8.1%. This growth over the forecast period can be credited to the surge in demand for intricate integrated circuits (ICS), the expansion of miniaturization across various sectors, heightened consumer awareness about fitness, the proliferation of internet of things (IoT) and interconnected devices, and the escalating use of field-programmable gate arrays (FGGAS) in data centers. Upcoming trends envisaged for the forecast period include technological progress, the adoption of 5G technology, the increased use of IoT devices and SOC technology, coupled with the fusion of machine learning capabilities with AI.

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What are the emerging trends shaping the future of the electronic design automation (eda) market?
Leading firms in the electronic design automation (EDA) market are focusing on creating cutting-edge products like Tessent RTL Pro to attain a stronger market foothold. Tessent RTL Pro is an innovative software solution engineered to assist integrated circuit (IC) design teams to simplify and quicken a wide range of pivotal design-for-test (DFT) tasks for their future projects. For example, Siemens AG, a German firm specializing in automation and known for its product designs, development, and manufacturing, introduced the advanced Tessent RTL Pro software solution in October 2023. This revolutionary software initiates the examination and insertion of test points, wrapper cells, and x-bounding logic early in the design process, facilitating engineers to pinpoint and resolve testability concerns at the very beginning of design. Interoperable with Siemens' Tessent DFT tools, Tessent RTL Pro offers first-of-its-kind functionality, helping clients to diminish design duration and bolster time-to-market.

Which primary segments of the electronic design automation (eda) market are driving growth and industry transformations?
The electronic design automation (EDA) market covered in this report is segmented -

1) By Type: Computer Aided Engineering (CAE), Semiconductor Intellectual Property (SIP), Integrated Circuit (IC) Physical Design And Verification, Printed Circuit Board (PCB) And Multi-Chip Module (MCM)
2) By Deployment Mode: Cloud-Based, On-Premises
3) By Application: Microprocessors And Microcontrollers, Memory Management Units, Other Applications
4) By End User: Automotive Industry, Healthcare Industry, Aerospace And Defense Industry, Telecom And Data Centre Industry, Consumer Electronics Industry, Industrial Sector, Other End-Users

Subsegments:
1) By Computer Aided Engineering (CAE): Simulation Software, Analysis Tools, Testing And Validation Tools
2) By Semiconductor Intellectual Property (SIP): Soft IP, Hard IP, Mixed-Signal IP
3) By Integrated Circuit (IC) Physical Design And Verification: Layout Design Tools, Place And Route Tools, Design Rule Checking (DRC) Tools, Layout Versus Schematic (LVS) Tools
4) By Printed Circuit Board (PCB) And Multi-Chip Module (MCM): PCB Design Tools, MCM Design Tools, Design For Manufacturing (DFM) Tools, Schematic Capture Tools

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Which geographical regions are pioneering growth in the electronic design automation (eda) market?
North America was the largest region in the electronic design automation (EDA) market in 2024. 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.

Who are the influential players reshaping the electronic design automation (eda) market landscape?
Major companies operating in the electronic design automation (EDA) market 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.

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

• Market Size Forecast: Examine the electronic design automation (eda) market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the electronic design automation (eda) market for a structured understanding.
• Key Players Overview: Analyze major players in the electronic design automation (eda) market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the electronic design automation (eda) market.
• Segment Contributions: Evaluate how different segments drive overall growth in the electronic design automation (eda) market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the electronic design automation (eda) market.
• Industry Challenges: Identify potential risks and obstacles affecting the electronic design automation (eda) market.
• Competitive Landscape: Review strategic developments in the electronic design automation (eda) market, including expansions, agreements, and new product launches.

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