Semiconductor IP Market Size to Reach $14.6 Billion by 2032

The Semiconductor IP market share is expected to witness considerable growth in coming years, owing increase in the adoption of wireless technology-based devices, rise in demand for modern System-on-Chip (SoC) designs and growing adoption of Internet of Things (IoT) and Artificial Intelligence (AI) applications.

According to a new report published by Allied Market Research, titled, "Semiconductor IP Market By Design IP, IP Source, IP Core, and Application: Global Opportunity Analysis and Industry Forecast, 2023-2032", the semiconductor ip market size was valued at $6.6 billion in 2022, and is estimated to reach $14.6 billion by 2032, growing at a CAGR of 8.3% from 2023 to 2032.

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Semiconductor IP is the design specifications of the logic, cell, or ship layout of part or all a microprocessor. In a world where chips power so many of our everyday devices, these semiconductor designs are ubiquitous. Semiconductor IP can remain proprietary to the company that invented the design, or the inventing body might license their designs to other companies. The intellectual property (IP) of a semiconductor encompasses specifications, source code, or any essential information required for manufacturing that semiconductor. By securing appropriate patents and providing supporting evidence for these patents, the creator of a semiconductor can safeguard their design from patent infringement and transform their designs into a source of income.

The semiconductor IP market is witnessing rapid growth owing to an increase in semiconductor sales. The market studied is entirely dependent on the semiconductor industry. The semiconductor IP industry has experienced significant growth in the last two decades. Semiconductor IP business practices include elements such as those in traditional semiconductor or application-specific integrated circuits (ASIC), electronic design automation (EDA), and design services markets. However, unlike the well-established business models in the ASIC and EDA industries, semiconductor IP business models tend to be more complex, as several parties in the supply chain are involved with successfully deploying commercial semiconductor IP in an Integrated Circuit (ICs) design.

Although business practices and semiconductor IP business models have become uniform, the industry still needs to achieve standardization due to the wide variety of semiconductor IP product types, customer needs, and frequent changes in EDA tools and process technologies. Rise in design costs and increase in market pressures are forcing companies to seek the services of semiconductor IP manufacturers. The various applications of this market include automobiles, smart devices (mobiles and tablets), computers, and peripherals. The significant growth driver of the market studied includes the emerging global adoption of consumer devices and the demand for advanced System on Chip (SOCs) designs and connected devices. Emerging technologies such as embedded and programmable DSP-. IP are expected to further boost the market.

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However, the electronics industry faces issues related to IP thefts from various vendors. For instance, in July 2022, Tower Semiconductor (TS), an electronics component manufacturer, was accused of semiconductors IP thefts. IQE Ltd., a wafer manufacturer, has filed IP theft at the U.S. Central District Central Court of California. The Cardiff-based IQE further says it has "significant evidence" supporting its accusations. Such an increase in IP thefts and continuous technological changes in the consumer electronics industry hinder market growth. Furthermore, as semiconductor IP becomes increasingly valuable and complex, there is a growing concern about protecting intellectual property from unauthorized access, replication, or reverse engineering. The fear of IP infringement and security breaches can lead to reluctance among companies to share or license their valuable IP, hindering the growth and adoption of semiconductor IP solutions.

The semiconductor IP market size is segmented on the basis of design IP, IP source, IP core, application, and region. By design IP, the semiconductor IP market share is segmented into processor IP, Interface IP, and memory IP. By IP source, the semiconductor IP market growth is divided into licensing and royalty. By IP core, the market is bifurcated into soft IP and Hard IP. By application, the semiconductor IP market trends is categorized into consumer electronics, telecom, automotive, and others.

By region, it is semiconductor IP market analysis across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, Spain, Italy, and the rest of Europe), Asia-Pacific (China, India, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).

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KEY FINDINGS OF THE STUDY

The semiconductor IP market demand is expected to grow significantly in the coming years, driven by the growing adoption of Internet of Things (IoT) and Artificial Intelligence (AI) applications.
The market is expected to be driven by the demand for Semiconductor IP in the automotive segment.
The market is highly competitive, with several major players competing for market share. The competition is expected to intensify in the coming years as new players enter the market.
The Asia-Pacific region is expected to be a major market for the Semiconductor IP market owing to an increase in adoption of advanced technologies in the region.

Competitive analysis and profiles of the major Semiconductor IP market players, such as Frontgrade Gaisler, Faraday, Arm Limited., Synopsys, Inc., Arteris, CEVA Inc., Cadence Design Systems, Inc., ALPHAWAVE SEMI, VeriSilicon and Rambus Inc are provided in this report. Product launch and acquisition business strategies were adopted by the major market players in 2022.

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