Semiconductor Intellectual Property Market Size & Share, by Design IP (Interface IP, Processor IP, Memory IP); Revenue Source; Core Type; Industry - Global Supply & Demand Analysis, Growth Forecasts, Statistical Report 2025-2037

  • Report ID: 4206
  • Published Date: Dec 27, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2025-2037

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.


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Semiconductor Intellectual Property Market: Growth Drivers and Challenges

Growth Drivers

  • Rollout of 5G networks: The swiftly expanding demand for wireless communication technologies including 5G networks are creating high growth prospects for semiconductor intellectual property market players. 5G networks are based on specialized, high-performance chip designs for network infrastructure edge devices including smartphones and 5G base stations. Increasing at a significant CAGR of 24.4%, the global 5G base station market is anticipated to reach 731.04 billion by 2037. The European Union has around 346,000 5G base stations installed across the region followed by the U.S. approx. 100,000. Furthermore, as per the analysis by the 5G Americas, the global 5G connections are set to increase from 1.9 billion in 2023 to 6.8 billion by 2029. The 5G penetration in North America holds around 36.0% of the population and is foreseen to reach 601 million by 2027.
  • Increasing demand for AI & ML devices: The surging demand for artificial intelligence (AI) and machine learning (ML) applications and devices is set to uplift the revenues of semiconductor IP producers. The AI workloads, deep learning, and machine visions are optimized by custom IP cores and are dependent on advanced memory chips to store data. For instance, in January 2024, the IBM Corporation revealed that as per the study around 42% of enterprise-scale companies worldwide have adopted AI applications to carry out their business operations. Organizations in China, India, and the UAE are prime adopters of AI applications with 85.0%, 74.0%, and 72.0% of deployment rates, respectively. Furthermore, in September 2024, the World Economic Forum revealed that over a third of European businesses have deployed AI in their organizations and the number is set to increase in the coming years.

Challenges

  • Complex licensing models: The complexity issue associated with the licensing models especially for bunded IP solutions can act as a barrier for some companies. Also, disputes over licensing terms, royalty payments, and intellectual property (IP) ownership often hamper professional relationships between semiconductor IP providers. Thus, complex licensing models are expected to hinder the overall semiconductor intellectual property market growth to some extent in the foreseeable years.
  • IP theft and security concerns: The IP theft concern and the rapid emergence of counterfeit products are some major factors affecting the semiconductor intellectual property market growth. SIP companies need to invest heavily in securing their designs from unauthorized use and also from the development of similar copies, which increases their overall operational costs. Also, security vulnerabilities in semiconductor IP often led to catastrophic consequences for end users, especially in sensitive sectors such as automotive, government, and healthcare, hampering the sales and goodwill of key players.

Semiconductor Intellectual Property Market: Key Insights

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

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

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Semiconductor Intellectual Property Segmentation

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

  • Interface IP
  • Processor IP
  • Memory IP
  • Others (Verification IP, Graphics IP)

Revenue Source

  • License
  • Royalty

Core Type

  • Soft Core
  • Hard Core

Industry

  • Consumer Electronics
  • IT & Telecommunications
  • Automotive
  • Industrial
  • Aerospace & Defense
  • Others (Government)

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Semiconductor Intellectual Property Industry - Regional Scope

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.

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Companies Dominating the Semiconductor Intellectual Property Market

    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:

    • Arm Holdings Ltd
    • Synopsys Inc.
    • Cadence Design Systems, Inc.
    • Imagination Technologies Ltd
    • Ceva Inc.
    • Lattice Semiconductor Corporation
    • Rambus Inc.
    • eMemory Technology, Inc.
    • Silicon Storage Technology, Inc.
    • VeriSilicon Microelectronics Co., Ltd.
    • Faraday Technology Corporation  

In the News

  • In July 2023, Cadence Design Systems, Inc. and Rambus Inc. entered into a strategic agreement for Cadence to acquire the Rambus SerDes and memory interface PHY IP business. This move brings Cadence’s proven and experienced PHY engineering teams in the United States, India, and Canada, leading to expansion of its talent base.
  • In May 2022, Faraday Technology Corporation announced the introduction of its new security subsystem named Soteria. This solution is composed of boot ROM, security hardware engines, an embedded processor, and customized modules.

Author Credits:  Abhishek Verma


  • Report ID: 4206
  • Published Date: Dec 27, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The global semiconductor intellectual property market will be valued at USD 6.2 billion in 2025.

Expanding at a CAGR of 8.5%, the global market is expected to increase from USD 5.8 billion in 2024 to USD 16.5 billion by 2037.

Some leading companies are Arm Holdings Ltd, Synopsys Inc., Cadence Design Systems, Inc., Imagination Technologies Ltd, and Ceva Inc.

The consumer electronics segment is estimated to capture a high 32.9% of the market share through 2037.

Asia Pacific is expected to hold 54.8% of the global market share through 2037.
Semiconductor IP Market Report Scope
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