Sales of Electronic Design Automation (EDA) Tools to Witness a Decline By the End of 2025

EDA or electronic design automation involves a diversified set of software algorithms that are required for designing of complex next generation electronics products or systems that includes printed circuit boards (PCBs) and integrated circuits (ICs) along with others present in the market. EDA enables engineers to design, analyze and then simulate the semiconductor chips encompassing algorithms and methodologies for designing of VLSI circuits. All the tools present in EDA work together in a specific design flow decided by chip designers for designing and analyzing entire semiconductor chips.

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Since modern semiconductor chip have billions of components these EDA tools have become essential component in designing. It also helps semiconductor manufacturing companies to reduce product development time of chips further increasing the accuracy of design. The global market for electronic design automation has been classified into product type, verification techniques, end use industries and geography. Based on the product type, this market has been segmented into PCB (Printed Circuit Board), IC (Integrated Circuit), multi-chip module and SoC (System on Chip) among others present in the market. Along with this, the market has been further segmented on the basis of verification techniques that includes clock domain crossing verification, formal verification, static timing analysis and physical verification. Various end use industries that are covered under the scope of this report includes aerospace & defense, healthcare, manufacturing and automotive among others.

The market for electronic design automation (EDA) tools market based on geography consists of North America, Europe, Asia Pacific, Latin America and Middle East and Africa.

The primary benefit related with application of EDA would be the modelling of the system performance along with estimating the power needs for the designing of specific chips. This further helps the ASIC (application specific integrated circuit) logic designers to handle high complexity of circuits with reduced manufacturing errors. Besides this, EDA also helps the layout designer place millions of transistors over the IC simultaneously checking physical and electrical design rules related to these transistors. Moreover, the EDA tools help the chip manufacturing companies to design more complex chips at a lower cost and within a shorter period of time. All these factors have a positive impact over the EDA tools market and is expected to boost further with growth in aerospace & defense sector.

But there are a few factors as well that also pose challenges and act as restraints for this market. One such factor being the growing complexity of VLSI structures and high non-recurring engineering costs associated with this design that pose challenges for the market growth. Moreover, the field of semiconductor technology is growing at a fast rate that may range from high-performance microprocessors, signal processors to broad array of portable devices that are low power bringing huge challenges in the designing process that is restricting the overall market implementation of EDA tools. It is expected that the growing demand for high quality complex circuits and chips will likely provide numerous growth opportunities for this market in the upcoming years.

Considering the geographical segmentation, it is North America followed by Europe that forms the key regions to boost the market demand for EDA tools. Rise in automation across different industries along with growth of aerospace sector has been a few major factors contributing to the overall growth of this market. Asia Pacific is another key region also monitoring one of the fastest growth globally for this market. China and India have been a few key countries contributing to the growth. This region being a manufacturing hub of the semiconductor companies and IC manufacturers have lead Asia Pacific to have such a huge influence on the overall growth of this market.

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Some of the key players that are operating in the global electronic design automation (EDA) tools market include Synopsys (U.S.), Cadence Design Systems (U.S.), Siemens PLM Software (U.S.), Aldec (U.S.), Keysight Technologies (U.S.) and Agnisys (U.S.) among others.

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