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2020

Electronic Design Automation Software Market

Electronic Design Automation Software Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type and Application : Global Opportunity Analysis and Industry Forecast, 2020-2027

IC : Software and Services

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Author's: Vishwa Gaul | Onkar Sumant
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Electronic Design Automation Software Market Statistics - 2027

The global electronic design automation (EDA) software market size was valued at $10.20 billion in 2019, and is projected to reach $20.89 billion by 2027, growing at a CAGR of 9.6% from 2020 to 2027. EDA software facilitates designers’ needs at multiple levels of creation of designs for electronic systems, including integrated circuits (ICs), printed circuit boards (PCBs), and multi-chip modules (MCMs). The EDA software allows the designer to analyze, monitor, and simulate the designs before its practical implementation. The electronic design automation software market is closely related to the semiconductor industry. EDA software is mainly used in automotive, machinery, electronics, communications, aerospace & defense, medical, and other industries.

Increase in adoption of FinFET architecture for designing modern processors, rise in adoption of SoC technology, and surge in penetration of IoT, AI, and VR are the major factors that fuel the growth of the electronic design automation software market. However, availability of the open-source EDA software is expected to impede the EDA software market growth. On the contrary, rise in demand for smaller electronic devices and increase in demand for machine learning in EDA is expected to provide lucrative opportunities for the electronic design automation software market growth in the coming years.

Electronic-Design-Automation-(EDA)-Software-Market-2020-2027

On the basis of type, the integrated circuit (IC) physical design & verification segment is expected to exhibit substantial growth rate in the overall electronic design automation software market during the forecast period. This is attributed to the rise in complexity of IC designs and surge in demand for great accuracy and precision of semiconductor devices. In addition, the end-users are increasingly adopting IC design and verification EDA tools to automatically perform the placement and routing of circuits on an IC or application-specific integrated circuit (ASIC). 

According to application, the consumer electronics segment accounted for the highest electronic design automation software market size in the global market in 2019. This is attributed to continuous advancements in the consumer electronics such as smart phones, laptops, desktops, tablets, cameras and many more. The EDA software is also expected to meet the unfulfilled need for methods, models and tools that would permit quicker and more accurate design and verification of microelectronic systems and circuits which is driving the growth of this segment.

In 2019, North America accounted for the highest electronic design automation software market share, due to high spending on electronic devices in this region. In addition, large presence of key market vendors in North America also propels the market growth in this region. In addition, according to the World Semiconductor Trade Statistics, semiconductor sales in the Americas amounted to USD 7.49 billion in December 2019. Moreover, increase in demand from sectors, such as automotive, medical & communications, among other industry verticals in North America acts as the key driving factors of the North America electronic design automation software market. 

Impact of COVID-19 on Electronic Design Automation Software Market:

The emergence of COVID-19 is expected to have a considerable impact on the growth of the electronic design automation software market. The spending on the electronic design automation industry is expected to slow down compared to the spending planned before this pandemic, owing to multiple factors such as decline in semiconductor industry revenues in 2020, the slowdown in production and shortage of raw material supply. The COVID-19 outbreak, has led to factory shutdowns at many places. However, several semiconductor organizations have requested government authorities to specify the semiconductor sector works into essential category and permit the continuity of operations to fulfill customer demand and normalize the industry supply chain.

The report focuses on the growth prospects, restraints, and the global electronic design automation software market trends. Moreover, the study includes Porter’s five forces analysis of the industry to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the growth of the electronic design automation software market.

Electronic Design Automation Software Market
By Type
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IC Physical Design and Verification segment is projected as one of the most lucrative segments during the forecast period.

Segment review

The global electronic design automation software market is segmented into type, application, and region. By type, it is divided into Computer-aided Engineering (CAE), IC Physical Design and Verification, Printed Circuit Board and Multi-chip Module (PCB and MCM), Semiconductor Intellectual Property (SIP) and services. As per application, it is classified into communication, consumer electronics, automotive, industrial, Aerospace & defense, medical, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players operating in the global electronic design automation software market analysis include ANSYS, Inc., Altair, Altium LLC, Aldec, Inc., Autodesk, Cadence Design Systems, Inc., Keysight Technologies, Mentor (a Siemens Business), Silvaco Inc. and Synopsys. 

Electronic Design Automation Software Market
By Application
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Automotive segment is projected to be one of the highest growing segments during the forecast period.

Top impacting factors

Rise in adoption of FinFET architecture

FinFET is the most promising device technology for extending Moore’s law to 5 nm. It offers excellent solutions to the problems of sub-threshold leakage, poor short-channel electrostatic behavior, and high device parameters variability that plagued planar CMOS as it scaled down to 20 nm. FinFET is a significantly more complex device to model. Accurate FinFET parasitic extraction is more complicated. Designing in FinFET extends the design window. EDA software covering process development, spice design implementation and IP are useful for FinFET architecture. EDA solution helps in addressing new challenges such as double-patterning & 3D transistors, introduced by 20nm planar and 16/14nm and below FinFET manufacturing rules with 3D-IC integration. It also facilitates Early RTL design exploration and block feasibility analysis, physical guidance from synthesis to place and route, in-design physical verification with automatic detection and repair of complex design rules, tightly-coupled extraction and signoff capabilities with implementation tools, leakage recovery capabilities from signoff analysis and more. Thus, all these advantages of EDA software for FinFET architecture are expected to drive the electronic design automation software market.

Advancements in System on Chip (SoC)

A system-on-a-chip (SOC) design is an integrated circuit that contains a processing engine, memory and logic on a single chip. Advancements in System on Chip (SoC) is also propelling the semiconductor IP market growth. Growing complexities in programmable components is demanding innovative design methodologies. Product architects need to assess several design constraints in a less time and develop tools for the new architecture. While processor modelling and SoCs exist from a quite some time, novel design methodologies are being offered to overcome the limitations such as slower simulation speeds, less validation support, problems with synthesis, and limited architecture modelling capabilities. The common method used is increasing the level of abstraction for describing processor architecture. Several industries are demanding software tools such as Architecture-Description-Languages (ADL), rule-based approach, extensible architecture, and Model-Driven-Architecture (MDA). Market vendors are proposing innovative design methodologies owing to the increase in demand for modelling activities, which is opportunistic for the electronic design automation software market growth.

Electronic Design Automation Software Market
By Region
2027
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific would exhibit the highest CAGR of 11.6% during 2020-2027.

Key benefits for stakeholders

  • This study includes the analytical depiction of the electronic design automation software market forecast and trends to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunity of the electronic design automation software Industry.
  • The electronic design automation software market size is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the market.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the electronic design automation software market.

Electronic Design Automation Software Market Report Highlights

Aspects Details
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By Type
  • Computer-aided Engineering (CAE)
  • IC Physical Design and Verification
  • Printed Circuit Board and Multi-chip Module (PCB and MCM)
  • Semiconductor Intellectual Property (SIP)
  • Services
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By Application
  • Communication
  • Consumer Electronics
  • Automotive
  • Industrial
  • Aerospace & Defense
  • Medical
  • Others
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By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

KEYSIGHT TECHNOLOGIES., ALDEC INC, ALTIUM LLC., SILVACO INC., ALTAIR ENGINEERING INC., ANSYS INC., CADENCE DESIGN SYSTEMS, INC, MENTOR., AUTODESK INC., SYNOPSYS INC.

Analyst Review

EDA software facilitates designers’ needs at multiple levels of creation of designs for electronic systems, including integrated circuits (ICs), printed circuit boards (PCBs) and multi-chip modules (MCMs). The EDA software allows the designer to analyze, monitor and simulate the designs before its practical implementation.

Demand for better electronic design automation (EDA) software tools and more comprehensive product design-for-manufacturing (DfM) plays a major role in determining product life cycles, which continue to become shorter between OEM hardware product launches and in bringing new product introductions (NPI) to market.

North America is expected to dominate the market during the forecast period. Furthermore, increase in economic strength of developing nations, such as China, Japan, India, and others, is expected to provide lucrative opportunities for the market growth. Moreover, emerging countries in Asia-Pacific are projected to offer significant growth opportunities during the forecast period. The global players focus on product development and increase their geographical presence, owing to rise in competition among local vendors in terms of features, quality, and price. In addition, these players adopt various business strategies to enhance their product offerings and strengthen their foothold in the market.

Usually, the EDA budgets have been set so that they averaged one seventh of the R&D expense of semiconductor companies. The salespeople for the EDA industry work with their semiconductor customers to provide them with the software they need each year, even in times of semiconductor recessions, so that the average spending can stay within the budget. 

Proliferation of smart phone, smart wearable devices and increase in disposable income in Asia-Pacific further increase the demand for EDA software in these regions. Moreover, surge in cloud technology adoption, and increase in development of electronics manufacturing companies are expected to boost the growth of the EDA software market in the coming years. Moreover, post the outbreak of the COVID-19 pandemic in 2020., in order to enable the uninterrupted operations of semiconductor industry for their local companies and suppliers, the governments are making strategic initiatives. For instance, semiconductor design, manufacturing, and testing facilities across China were permitted to function continuously following certain worker safety protocols. 

Author Name(s) : Vishwa Gaul | Onkar Sumant

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Electronic Design Automation Software Market

Global Opportunity Analysis and Industry Forecast, 2020-2027