Semiconductor Intellectual Property Market size was USD 5.8 billion in 2024 and is estimated to reach USD 16.5 billion by the end of 2037, expanding at a CAGR of 8.5% during the forecast period, i.e., 2025-2037. In 2025, the industry size of semiconductor intellectual property is assessed at USD 6.2 billion.
The continuous growth of the Internet of Things (IoT) technologies across end use industries such as healthcare, construction, and industrial automation drives high demand for compact and secure semiconductor chips, boosting the revenues of key players. The study by the Congressional Research Service estimates that global semiconductor sales doubled to USD 602.0 billion in 2022 compared to that of 2012 owing to digitalization and connectivity trends. Furthermore, the IoT connections worldwide are anticipated to increase from 15.9 billion in 2023 to 32.1 billion by 2030.
The automotive sector is witnessing a swift trend of electrification, autonomous driving technologies, and connected automobiles. These advanced systems are heavily dependent on specialized semiconductor solutions for power management, connectivity, and infotainment applications. For instance, in March 2024, the Semiconductor Industry Association (SIA) revealed that the automotive segment held around 17.0% of the global semiconductor market in 2023. The growth in the adoption of advanced automobiles is anticipated to augment the semiconductor intellectual property (SIP) providers’ market shares in the coming years. For instance, the global automotive IoT market was estimated at USD 251.9 billion in 2024 and is set to reach USD 371.6 billion by 2037.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
8.5% |
Base Year Market Size (2024) |
USD 5.8 billion |
Forecast Year Market Size (2037) |
USD 16.5 billion |
Regional Scope |
|
Design IP (Interface IP, Processor IP, Memory IP, Others (Verification IP, Graphics IP))
The processor IP is forecast to hold a dominating share of the global semiconductor intellectual property market throughout the projected period. The high demand for specialized and customized solutions across industries is creating strong incentivized opportunities for SIP companies to license existing IP rather than developing processors from scratch. Processors are vital central units of devices that control and manage their operations. The rapid digitalization and adoption of advanced technologies are set to augment the adoption of advanced processor IPs. The global spending on digital transformation reached USD 1.85 trillion in 2022 and the rising advancements in digital technologies are anticipated to uplift their adoption rates in the coming years rapidly. The World Bank report reveals that an estimated 64.9% of large enterprises adopted digital solutions in 2022.
Industry (Consumer Electronics, IT & Telecommunications, Automotive, Industrial, Aerospace & Defense, Others (Government))
In semiconductor intellectual property market, consumer electronics segment is set to dominate revenue share of over 32.9% by 2037. As semiconductors are the life of electronic products, the rise in the sales of consumer electronic products is set to directly augment the demand for semiconductor chips and wafers. To meet the evolving demands, companies continuously focus on advancing the capabilities of their semiconductor chips, which drives up the IP licensing needs. The global electronic and smart devices market is set to rise at a CAGR of 7.1% and reach USD 1776.1 billion by 2036. The report by the Observatory of Economic Complexity reveals that Germany, Spain, Belgium, the Netherlands, and Italy were some of the top consumer electronics export markets in 2023.
Our in-depth analysis of the global semiconductor intellectual property market includes the following segments:
Design IP |
|
Revenue Source |
|
Core Type |
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Industry |
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Asia Pacific Market Forecast
Asia Pacific semiconductor intellectual property market is expected to capture revenue share of over 54.8% by 2037. The rapidly expanding consumer electronics sector, swift digitalization of industries, growing adoption of autonomous vehicles, and advancements in semiconductor manufacturing are augmenting the overall semiconductor intellectual property market growth. Innovations in wireless communication technologies are further contributing to the SIP solution providers. India, China, Japan, and South Korea are the most opportunistic marketplaces for SIP solution producers.
China is the top producer of semiconductor technologies across the world owing to supportive government policies and schemes such as the Made in China 2025 initiative. The advancements in communication technologies are anticipated to directly uplift the profit shares of SIP producers. For instance, in September 2025, the Government of China revealed that over 4 million 5G base stations are installed across the country. China’s 5G base stations hold 42.0% of the global 5G standard essential patent declarations, with around 966 million 5G mobile subscribers.
In India, the rising demand for consumer electronics such as smartphones, tablets, computers, laptops, and electric vehicles is propelling the sales of semiconductor chips and wafers. The country’s supportive start-up ecosystem is creating a lucrative marketplace for companies eager to enter the semiconductor IP trade. The India Brand Equity Foundation (IBEF) report reveals that the country is estimated to surpass USD 300.0 billion in electronics manufacturing and exports of USD 120.0 billion by FY 25-26. The electronics system design & manufacturing (ESDM) market is significantly contributing to achieving the country's goal of generating USD 1 trillion from the digital economy by 2025.
North America Market Statistics
The North America semiconductor intellectual property market is poised to increase at the fastest CAGR during the forecast period. The high adoption of digital technologies, growing investments in semiconductor manufacturing, and increasing adoption of autonomous vehicles are collectively contributing to the market growth. Both the U.S. and Canada are high-earning marketplaces for SIP providers.
The U.S. is one of the global leaders in semiconductor manufacturing especially for advanced applications such as artificial intelligence (AI), machine learning (ML), 5G, and autonomous vehicles. This further drives up the need for innovative semiconductor intellectual property licensing as companies need to stay competitive in the crowded landscape. The Semiconductor Industry Association (SIA) estimates that the CHIPS and Science Act is driving high private investments in semiconductor manufacturing in the country. As of August 2024, over 90 new semiconductor manufacturing projects were announced in the U.S., and since the introduction of the CHIPS and Science Act around USD 450.0 billion announced investments were recorded in the 28 states.
Canada’s burgeoning tech ecosystem is driving high demand for advanced semiconductor designs. The strong presence of digital solution producers coupled with advancements in wireless communication systems is augmenting the need for innovative semiconductor IP licensing. In April 2024, the government revealed an investment of around USD 41.57 billion for innovative semiconductor manufacturing and economic growth. The government’s continuous investment to drive innovations in quantum and semiconductor technologies is set to propel the overall SIP market growth in the coming years.
The key players in the semiconductor intellectual property market are continuously investing in introducing advanced SIP solutions. The increasing demand for consumer electronics is the major contributor to the SIP producers’ revenue growth. The automotive chips, power management solutions, sensors, and communication models rising need in the automotive industry are further aiding the semiconductor intellectual property producers to earn more. Strategic partnerships & collaborations, mergers & acquisitions, and global expansion are some of the tactics employed by the market players to maximize their profit shares and customer base.
Some of the key players in semiconductor intellectual property market:
Author Credits: Abhishek Verma
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