Global EDA Tools Market to Reach $14.9 Billion by 2026


Reading time ( words)

Electronic Design Automation (EDA) is a sophisticated approach that allows design engineers to streamline and transform design flows associated with modern electronic systems. The growth of the global market is set to be driven by strong performance of the semiconductor industry and increasing adoption across diverse industry verticals. Intended to streamline design flows, EDA tools are finding increasing acceptance at the expense of manual approaches for designing of semiconductors and circuit boards. The market is poised to gain from increasing demand for these tools across different industries such as automotive, medical, communications, electronics, machinery and aerospace & defense. While the market received a major setback from the impact of COVID-19 on the semiconductor industry, it is anticipated to regain momentum due to consistent demand for chips and printed circuit boards along with strong focus of players on simulation of system-level designs. The market is slated to benefit from emergence of advanced chip architectures and AI applications. The increasing acceptance of FinFET architecture to develop and design sophisticated processors, adoption of emerging technologies like VR, AI and IoT, and rising popularity of SoC technology are anticipated to present new growth opportunities for EDA tools.

Amid the COVID-19 crisis, the global market for EDA Tools estimated at US$9.1 Billion in the year 2020, is projected to reach a revised size of US$14.9 Billion by 2026, growing at a CAGR of 8.7% over the analysis period. Semiconductor Intellectual Property (SIP), one of the segments analyzed in the report, is projected to grow at a 9.2% CAGR to reach US$6.4 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Computer-Aided Engineering (CAE) segment is readjusted to a revised 7.7% CAGR for the next 7-year period. This segment currently accounts for a 29.9% share of the global EDA Tools market. Semiconductor IP (SIP) refers to reusable design aspects including chip layout, and cell among other components used in manufacturing advanced Integrated Circuits (IC). The concept of computer-aided engineering (CAE) involves the use of computer software tools for performing analysis tasks, like computational fluid dynamics, finite element analysis, and multi-body dynamics.

The U.S. Market is Estimated at $1.8 Billion in 2021, While China is Forecast to Reach $2.8 Billion by 2026

The EDA Tools market in the U.S. is estimated at US$1.8 Billion in the year 2021. The country currently accounts for a 19.53% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$2.8 Billion in the year 2026 trailing a CAGR of 9.8% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.3% and 7.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.8% CAGR while Rest of European market (as defined in the study) will reach US$3.1 Billion by the end of the analysis period. North America is a dominant market on account of extensive adoption of electronic devices and the presence of key players in the region. The region has been witnessing consistent surge in semiconductor sales over the last few years. The trend along with continuous expansion of major end-use industries like automotive, communications and medical is expected to offer significant opportunities. The increasing demand for EDA tools in the Asia-Pacific region is credited to technological advances in sophisticated electronic devices and equipment.

IC Physical Design & Verification Segment to Reach $3.3 Billion by 2026

The IC Physical Design & Verification segment`s growth is credited to increasing sophistication of IC designs along with rising focus on precision and accuracy of semiconductor devices. IC design and verification EDA tools are finding increasing acceptance across various industries for automatically performing routing and placement of circuits on ICs and application-specific integrated circuits. In the global IC Physical Design & Verification segment, USA, Canada, Japan, China and Europe will drive the 9.5% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$1.3 Billion in the year 2020 will reach a projected size of US$2.4 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$774.6 Million by the year 2026.

Share




Suggested Items

I-Connect007 Editor’s Choice: Five Must-Reads for the Week

01/20/2023 | Andy Shaughnessy, Design007 Magazine
We’re in the middle of show season, and it certainly “shows.” Thank you very much. I’m here all week. Don’t forget to tip your wait staff. This week, we published a variety of articles, columns, and news items, and much of it centered on trade shows. Technical Editor Dan Feinberg brings us a report from CES 2023. IPC announced the winners of the Best Technical Paper awards for IPC APEX EXPO 2023. And we have an interview with Altium’s Rea Callender about the company’s educational efforts at APEX and around the globe.

Polar Instruments: Simulating PCB Potentialities

12/08/2022 | Nolan Johnson, I-Connect007
Nolan Johnson checks in with Polar’s Martyn Gaudion on the evolving needs of global PCB manufacturing markets in a post-pandemic world, where generating accurate PCB specification documentation is essential to successfully navigating today's rampant supply chain constraints. Polar has positioned itself to meet these needs through agile software product developments that allow OEMs and fabricators to simulate material interactions and end-product specifications, including in-demand features like a comprehensive "structure view" that allows users to visualize all the transmission lines on a given a PCB. Though keeping pace with the demands of a rapidly growing industry has been challenging, Polar's commitment to innovation has kept its software suite ahead of the curve.

I-Connect007 Editor’s Choice: Five Must-Reads for the Week

06/17/2022 | Andy Shaughnessy, Design007 Magazine
We’re still not officially into summer yet, but Atlanta is bringing the heat, baby! It’s hit 97 degrees a few times this week, and I now have a fan aimed right at my face. At least it’s nice and humid too. I’m glad I don’t wear make-up. And it’s been a hot week in the circuit board community. This week, Eltek reported a fire at a board shop in Israel, and Flex committed to building a 145,000-square-foor facility in Jalisco, Mexico to serve the electric and autonomous vehicle segment.



Copyright © 2023 I-Connect007 | IPC Publishing Group Inc. All rights reserved.