EDA Tools Market: Emergence of Advanced Technologies and Global Industry Analysis
Previously K-Maps technique was employed to design flow of electronic circuits. However, with electronics and technological advancements in various industries, more composite electronic circuits were essential. Such complicated designing was difficult with the help of traditional methodologies. Therefore, to solve the composite designing issue of electronic circuits, EDA tools were designed.
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The electronic design automation tools market is primarily driven by the increasing complication of semiconductor device designs. Complications are arising in the design of various smaller circuits due to the changing technologies. Due to the smaller size of circuits, precision is the most important factor to be considered which is achieved only when the electronic design automation tools are used while designing and manufacturing of smaller circuits. Adoption of FinFET architecture is also an important factor boosting the demand for electronic design automation tools in the market across the world.
This technology helps deliver superior levels of scalability required to ensure that the present progress with enhanced level of integration within integrated circuits is maintained. Moreover, increasing demand for system on chip (SoC) technology is also propelling the demand for EDA tools in the market across the world. The lowering cost per function of ICs is a primary reason behind the rising demand for system on chips.
Significant developments in the field of ICs in recent years have permitted important design changes in microprocessors and microcontrollers, making it possible to embed diverse patterns within a single chip. Additionally, the advent of Internet of Things is also a factor driving the market globally. Demand for internet of things is expected to rise since the cost of connected devices has decreased. This, in turn, is likely to drive the expansion of the EDA tools market.
Continuous updating of electronic design automation tools is a factor that is estimated to hinder the expansion of the EDA tools market across the globe during the forecast period.
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In terms of products, the global electronic design automation tools market has been segmented into CAE (Computer Aided Engineering), Semiconductor IP, IC physical design and verification, PCB (printed circuit board), and MCM (multi-chip module). In terms of application, the electronic design automation tools market has been segmented into automotive, aerospace and defense, networking and communication, medical, and others. In terms of geography, the market can be segmented into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa.
The market is consolidated due to the presence of numerous small and large EDA companies; however, it is controlled by three key companies who account for approximately 80% of the market globally. The necessity of less capital propels the number of new players entering the market who emphasize more on the distinct phases of IC design.
Rising competition and absence of product differentiation causes lower profit margins for most companies. The market is likely to be greatly fragmented and to improve their share over the market, companies need to acquire and develop cost-competitive and innovative EDA tools and software and also focus on enhancing their marketing exertions.
Key companies operating in the global EDA tools market include Cadence Design Systems (U.S.), Mentor Graphics (U.S.), Synopsys (U.S.), Ansoft (U.S.), Forte Design Systems (U.S.), Magma Design Automation (U.S.), and Zuken (Japan) among others.
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