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IoT Surge Propels Electronic Design Automation Market Growth Driving Market Acceleration in the Electronic Design Automation (EDA) Tools Industry, 2025

07-28-2025 02:34 PM CET | IT, New Media & Software

Press release from: The Business Research Company

Electronic Design Automation (EDA) Tools

Electronic Design Automation (EDA) Tools

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How Large Will the Electronic Design Automation (EDA) Tools Market Size By 2025?
The market size for electronic design automation (EDA) tools has seen robust growth in the past few years. It's expected to expand from $16.67 billion in 2024 to $18.26 billion in 2025, representing a compound annual growth rate (CAGR) of 9.5%. The increase during the historical period can be linked to factors such as the complexity of integrated circuits, the need for speedier time-to-market, improvements in semiconductor technology, the worldwide spread of design teams, and the emergence of functional verification challenges.

How Big Is the Electronic Design Automation (EDA) Tools Market Size Expected to Grow by 2029?
The market for electronic design automation (EDA) tools is forecasted to experience significant growth in the forthcoming years, expanding to $26.32 billion by 2029, with a compound annual growth rate (CAGR) of 9.6%. This growth in the predicted timeframe can be related to the incorporation of artificial intelligence (AI) and machine learning, swift growth in IoT and edge computing, the growing demands for flexible design methods, an increase in design complexity across various sectors, and the need for flexible design strategies. Major anticipated developments within this period include progress in analog or mixed-signal (AMS) design, heightened support for open-source EDA tools, the inclusion of hardware security characteristics, technological innovation, and fresh product creation.

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Which Key Market Drivers Powering Electronic Design Automation (EDA) Tools Market Expansion and Growth?
The expansion of the electronic design automation (EDA) tools market is slated to be driven by the increasing incorporation of the Internet of Things (IoT). IoT refers to a system where physical objects, devices, and systems equipped with sensors, software, and network connectivity can amass and trade data with other devices. The rapid inclusion of IoT across various sectors is due to its transformational potential. Within the realm of electronic design automation (EDA) tools, IoT facilitates the integration of sensor and IoT solutions in the processes ranging from IC (integrated circuit) design, verification, to manufacturing and testing, enhancing the productivity and performance of the developed electronic systems. A report by Ericsson, a telecommunications firm based in Sweden, in September 2022 indicates that the global IoT connections amounted to 13.2 billion in 2022 and are projected to jump by 18% to 34.7 billion connections by 2028. Consequently, the escalating adoption of IoT is fueling the development of the electronic design automation (EDA) tools market.

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Which Fast-Growing Trends Are Poised to Disrupt the Electronic Design Automation (EDA) Tools Market?
Prominent firms in the electronic design automation (EDA) tools market, like Synopsys, Inc., are leveraging innovative technologies such as Synopsys.ai to create a cutting-edge presence. The platform makes use of cloud technology to enhance efficiency and scalability in design automation processes. It encourages resource allocation as needed and platform abstraction, thereby promoting a cooperative development environment, which in turn boosts adaptability and productivity. Synopsys, Inc., a renowned software development and electronic design automation entity based in the United States, introduced Synopsys.ai, a collection of AI-empowered solutions designed for designing, verification, testing, and manufacturing advanced digital and analog chips, in March 2022. This fully stacked, AI-led EDA suite is created to speed up chip design workflows by helping firms build more AI-optimized and data analytics competencies across every stage of IC (Integrated Circuit) chip production.

What Are the Emerging Segments 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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Who Are the Global Leaders in the Electronic Design Automation (EDA) Tools Market?
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

Which are the Top Profitable Regional Markets for the Electronic Design Automation (EDA) Tools Industry?
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.

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