Cloud Electronic Design Automation Market size was over USD 7.36 billion in 2024 and is poised to exceed USD 24.52 billion by the end of 2037, growing at over 9.7% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of cloud electronic design automation is estimated at USD 7.93 billion.
The market has a lot of opportunities as the Internet of Things (IoT) grows. Important players can collaborate closely with up-and-coming IoT development firms. As a result, these partnerships will support the market expansion. By 2023, there will be about 15.14 billion IoT devices.
In addition, Artificial Intelligence (AI) and Machine Learning (ML) influence almost every industry, including electronics, healthcare, automotive, aerospace, and defense. Businesses are increasing the range of products they offer in the previously listed categories by integrating AI and ML into their products. EDA providers can benefit from these implementations of the offered technologies, which call for the usage of sophisticated electronic parts and processors. Software developers can shift from manual to automated process testing with the aid of artificial intelligence. During the projected time, these variables would support the expansion of the electronic design automation software industry.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
9.7% |
Base Year Market Size (2024) |
USD 7.36 billion |
Forecast Year Market Size (2037) |
USD 24.52 billion |
Regional Scope |
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Type (Computer Aided Engineering, Semiconductor Intellectual Property, IC Physical Design & Verification, Printed Circuit Board & Multi-Chip Module)
The computer aided engineering segment is anticipated to hold 35% share of the global cloud electronic design automation market by 2037. The growing need for integrated software solutions to get rid of multiple prototype products and product recall concerns, the sharp shift from on-premise computing to cloud-based computing, and the increased outsourcing of manufacturing processes to emerging economies are all contributing factors to the segment's growth. Purchases of gear, software licensing, installation, and support costs are reduced by cloud computing. In the upcoming years, it is anticipated that this will improve the utilization of CAE software even further. Moreover, companies are setting up a private cloud with improved computing and storage capacities utilizing the Hyper-Converged Infrastructure (HCI) platform. Throughout the projection period, these elements would support the segment's expansion even more. By 2025, 200 ZB of data will be kept in the cloud. The cloud stores 60% of all corporate data worldwide.
Vertical (Automotive, Consumer Electronics, Aerospace & Defense, Industrial, Healthcare, Telecommunication)
The consumer electronics segment in the cloud electronic design automation (EDA) market is attributed to hold the largest revenue share of about 30% during the forecast period. Electronics makers would be encouraged to use EDA due to the increasing need for smart gadgets. To improve the quality of their smart products, consumer electronics OEMs are teaming up with top System-on-Chip (SoC) and IC producers, such as Qualcomm Technologies, Inc., Texas Instruments Incorporated, NXP Semiconductors, and Intel Corporation. For example, to speed up 3D-IC design, Cadence Design Systems and Samsung Foundry, a South Korean supplier of foundry technologies, increased their collaboration in October 2022. The extended relationship with Samsung Foundry's 3D-IC technique will make the Cadence Integrity 3D-IC platform available. Customers may maximize the performance, power, and area of each die by using the Cadence platform.
Our in-depth analysis of the global cloud electronic design automation market includes the following segments:
Type |
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Vertical |
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North American Market Forecast
Cloud electronic design automation market in the North America is expected to hold the largest revenue share of about 30% during the forecast period. The early adoption of cutting-edge technology, such as 5G, machine learning, and artificial intelligence, among others, and the rise of several industries, including consumer electronics and automotive, are responsible for the region's success. This has been a significant factor in the demand in the area. For instance, U.S.-based EDA solution supplier Cadence Design Systems, Inc. stated in June 2022 that it will expand its partnership with U.S.-based technological solution provider Arm Limited. Using Arm Total Compute Solutions 2022 (TCS22) and Cadence digital and verification technologies, the businesses will collaborate to accelerate the development of mobile device silicon. For 5nm and 7nm nodes, Cadence will provide its RTL-to-GDS digital flow Rapid Adoption Kits in an effort to assist clients in achieving optimum power and enhancing productivity. North America is anticipated to have growth throughout the projection period because to its strong wireless infrastructure and government assistance.
APAC Market Statistics
The cloud EDA market in the Asia Pacific region is projected to hold the second-largest revenue share of about 27% during the projected period. Novel deploy mentalities have been necessary due to the growing complexity of SoC designs. Cloud technologies help address these issues since they are scalable. The ability to access cloud-based solutions from anywhere in the company is their primary advantage. As a result, to build complex electrical systems, semiconductor businesses are depending more and more on cloud-based technologies. Over the projection period, these variables would support the region's growth even more.
Author Credits: Abhishek Verma
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