IoT Surge Propels Electronic Design Automation Market Growth: Strategic Insights Driving Electronic Design Automation (EDA) Tools Market Momentum in 2025

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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 enjoyed pronounced growth recently. The market, valued at $16.67 billion in 2024, is projected to increase to $18.11 billion in 2025, representing a compound annual growth rate (CAGR) of 8.7%. Factors such as the complexity of integrated circuits, the need for speedy time-to-market turnover, developments in semiconductor technology, the global expansion of design teams, and the growing challenges with functional verification have all contributed to the historic growth.

How Big Is the Electronic Design Automation (EDA) Tools Market Size Expected to Grow by 2029?
The market size for electronic design automation (EDA) tools is projected to experience significant growth in the coming years, reaching $25.93 billion in 2029 with a compound annual growth rate (CAGR) of 9.4%. This predicted expansion during the forecast period is primarily due to factors such as the incorporation of artificial intelligence (AI) and machine learning, rapid advancement in IoT and edge computing, need for flexible design techniques, increased design complexity across various sectors, and the demand for agile design methods. Key trends anticipated during this forecast horizon include progress in analog or mixed-signal (AMS) design, increased support for open-source EDA tools, the implementation of hardware security attributes, technological evolution, and product innovations.

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Which Key Market Drivers Powering Electronic Design Automation (EDA) Tools Market Expansion and Growth?
The rise in the implementation of the Internet of Things (IoT) is predicted to spur the expansion of the electronic design automation (EDA) tools market. The IoT is typically a network that comprises tangible items, devices, and systems equipped with sensors, software, and networking capabilities that facilitate the collection and information exchange with other gadgets. The transformative power of IoT across diverse sectors is resulting in its accelerated uptake. In the context of electronic design automation (EDA) tools, IoT is valuable as it allows the integration of sensor and IoT solutions in the processes of IC (integrated circuit) design, verification, production, and testing, thereby enhancing the performance and efficiency of the resultant electronic systems. For example, a report by Ericsson, a Swedish telecom company, released in September 2022, indicated that the worldwide IoT connections hit 13.2 billion in the same year and are projected to surge by 18% to 34.7 billion by 2028. Hence, the escalating adoption of IoT is fuelling the electronic design automation (EDA) tools market's evolution.

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Which Fast-Growing Trends Are Poised to Disrupt the Electronic Design Automation (EDA) Tools Market?
Prominent entities in the field of electronic design automation (EDA) tools, such as Synopsys, Inc., are spearheading the integration of innovative technologies like Synopsys.ai to fortify their market standing. Leveraging the benefits of cloud computing, Synopsys.ai facilitates enhanced efficacy and scalability in the realm of design automation processes. It also provides support for on-the-spot resource distribution and platform abstraction, thus creating an aura of teamwork and mutual growth, augmenting flexibility and productivity. To add to it, in March 2022, Synopsys, a US-based firm specializing in software development and electronic design automation, introduced Synopsys.ai. This comprehensive suite of AI-empowered solutions targets the design, verification, testing, and fabrication of advanced digital and analog chips. The suite, rooted in AI, is structured to expedite the chip design workflow. This is achieved by empowering organizations to incorporate more AI-based optimization and data analytic skills throughout the entire spectrum of IC (integrated circuit) chip development.

What Are the Emerging Segments in the Electronic Design Automation (EDA) Tools Market?
The electronic design automation (eda) toolsmarket 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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