Global Electronic Design Automation (EDA) Tools Market Analysis 2025-2030: Growth Drivers, Challenges, And Opportunities

The Electronic Design Automation (EDA) Tools Market Report by The Business Research Company delivers a detailed market assessment, covering size projections from 2025 to 2034. This report explores crucial market trends, major drivers and market segmentation by [key segment categories].

How Big Is the Electronic Design Automation (EDA) Tools Market Size Expected to Be by 2034?
In recent years, the market size for electronic design automation (EDA) tools has seen robust growth. This market 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%. The historical growth of this market is credited to factors like the complexity of integrated circuits, need for quicker time-to-market, improvements in semiconductor technology, the global distribution of design teams, and the emergence of functional verification challenges.

In the upcoming years, the market size of electronic design automation (EDA) tools is projected to experience robust growth, reaching $26.32 billion in 2029 with a 9.6% compound annual growth rate (CAGR). This growth during the forecast period will be driven by factors such as the integration of artificial intelligence (AI) and machine learning, the fast-paced growth of IoT and edge computing, the requirement for flexible design methodologies, increasing design complexity in various sectors and the demand for nimble design methodologies. The forecast period will also see significant trends like advancements in analog or mixed-signal (AMS) design, improved support for open-source EDA tools, hardware security features integration, technological progress, and innovation in new products.

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What Are the Emerging Segments Within 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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What Long-Term Drivers Are Shaping Electronic Design Automation (EDA) Tools Market Trends?
The upsurge in the adoption of the Internet of Things (IoT) is projected to fuel the expansion of the electronic design automation (EDA) tools market in the foreseeable future. IoT describes a system of tangible items, gadgets, and infrastructure, all equipped with instruments, software, and internet connectivity enabling them to collect and exchange information with other gadgets. The rate of adoption of IoT is experiencing a sharp spike owing to its transformative capabilities across diverse sectors. IoT proves useful in the realm of electronic design automation (EDA) tools as it permits the incorporation of sensor and IoT solutions into the procedures of IC (integrated circuit) design, verification, production, and testing, thereby enhancing the efficiency and output of the fabricated electronic systems. For example, a study conducted by Ericsson, a telecommunications firm based in Sweden, in September 2022 highlighted that global IoT connections had touched 13.2 billion in 2022 and were forecasted to surge by 18% to 34.7 billion by 2028. As such, the escalating adoption of IoT is triggering the growth of the electronic design automation (EDA) tools market.

Who Are the Top Competitors in Key Electronic Design Automation (EDA) Tools Market Segments?
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 Electronic Design Automation (EDA) Tools Market Trends Are Gaining Traction Across Different Segments?
Key players in the electronic design automation (EDA) tools market, such as Synopsys.ai, are capturing a competitive advantage by innovating with advanced technologies. The use of cloud computing is being leveraged to augment efficiency and scalability within design automation processes by Synopsys.ai. They facilitate the availability of resources as required and abstracting the platform, promoting a cooperative development setting, thereby improving flexibility and productivity. In a notable development in March 2022, Synopsys, Inc., a firm based in the US that specializes in software development and electronic design automation, unveiled Synopsys.ai. This is a collection of solutions powered by AI developed for the design, validation, testing, and manufacture of advanced digital and analog chips. The AI-based EDA suite is aimed at speeding up the chipset design workflow, allowing businesses to enhance AI-driven optimization and data analytics across all phases of IC (integrated circuit) chip creation.

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Which Regions Are Becoming Hubs for Electronic Design Automation (EDA) Tools Market Innovation?
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.

Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Electronic Design Automation (EDA) Tools Market?
2. What is the CAGR expected in the Electronic Design Automation (EDA) Tools Market?
3. What Are the Key Innovations Transforming the Electronic Design Automation (EDA) Tools Industry?
4. Which Region Is Leading the Electronic Design Automation (EDA) Tools Market?

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