What are the major factors driving the growth of the electronic design automation market?

In the year 2025, the industry size of electronic design automation is evaluated at USD 18.61 billion. Read More

Electronic Design Automation Tools Market Trends

Growth Drivers

Demand for miniature electronic devices

Smartphones, tablets and laptops are the foundations of modern digital world. The evolution of telephones to landlines and to modern day mobile handsets (smartphones) equipped with custom made SoCs with PC processing capabilities can be attributed to the increasing demand for miniature devices. This requires EDA tools able to tackle the problems of high complexity to support 5G, liquid cooling while maintaining accuracy and precision. Tablets and laptops are further being designed to support 5G and cloud computing capabilities. These technological innovations are expected to drive the market growth during the forecast period.

Increasing Demand for IoT Devices

The “Internet of Things” device sales are increasing enormously which is a major growth driving factor for the market. These devices are multipurpose as they can be used in a variety of applications. These IoT devices are deployed in industries to enhance the operational efficiency, which involves lot of customization and is application specific. EDA tools are vividly used to develop application-specific integrated circuits to fulfill industry needs.

Challenges

Lack of Skilled Professionals

Lack of skilled professionals for effectively deploying these resources along with high cost of training the individuals to understand these EDA tools are some factors estimated to hinder the growth of the market.

Electronic Design Automation Market: Key Insights

Miniaturization, the aspiration to fit a supercomputer inside the palm of a human is revolutionizing the ICs and semiconductor chip designs. The need for EDA tools has grown over the years to deal with increasing complexity of IC designs, accuracy, precision and the effectiveness of semiconductor devices. With the increasing requirements for application-specific ICs which are capable of supporting cloud-based computing and AI, the EDA tools market is anticipated to record a significant CAGR during the forecast period of 2020-2028. On the basis of product, the market is segmented into CAD, VLSIs, semi-conductors and others, out of which, the leading share is estimated to be held by semiconductors segment. This can be attributed to increasing production of semiconductor-based SoCs and ICs in the market. The market is further segmented by application into design, simulation, analysis and verification and manufacturing. Among these segments, the design and manufacturing segments are estimated to be the largest revenue generating segments owing to the technological advancements in semiconductors SoCs and ICs, which is further predicted to contribute towards the growth of the segment.

Base Year	2024
Forecast Year	2025-2037
CAGR	9.9%
Base Year Market Size (2024)	USD 17.17 billion
Forecast Year Market Size (2037)	USD 58.58 billion
Regional Scope	North America (U.S., and Canada) Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific) Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Latin America (Mexico, Argentina, Brazil, Rest of Latin America) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Why is the electronic design automation sector gaining traction in near future?

Electronic Design Automation Market size was over USD 17.17 billion in 2024 and is projected to reach USD 58.58 billion by 2037, growing at around 9.9% CAGR during the forecast period i.e., between 2025-2037.

Which region held the largest electronic design automation industry share?

North America industry is predicted to hold largest revenue share by 2037, propelled by technological progression and rising trend of “everything smart”, for instance, smart-homes and smart-cities in the region.

Who are the major electronic design automation players?

The major players in the market are Synopsys, Inc., Cadence Design Systems, Inc., Siemens Industry Software Inc., Keysight Technologies, Aldec, Inc., ANSYS, Inc., Xilinx, Taiwan Semiconductor Manufacturing, and others.

Electronic Design Automation Tools Market Trends