Market Snapshot
Key Players
Silvaco Inc.
Synopsis Inc.
Intel
Samsung
Global Statistics Representing Electronic Design Automation (EDA) Software Market Scenario
The Electronic Design Automation (EDA) software is a tool used to design complex electronic systems such as Integrated Circuits (ICs) and microprocessors. It can also be termed as Electronic Computer-Aided Design (ECAD). EDA tools are highly beneficial, as compared to the earlier methods, wherein designers had to manually draw the circuit on paper or a geometric software. Key companies such as Tektronix, Hewlett-Packard, and Intel have started implementing EDA tools into designing electronics since the introduction of EDA. The EDA software flow structure can be divided into digital design and analog design. In the digital design, a circuit is explained using a hardware description language, whereas, in analog design, the circuit is explained with physical design. Both of these designs further combine in a manufacturing facility to make an electronic chip. EDA tools are also advantageous as they greatly reduce the time taken in designing complex ICs, correcting errors caused during manufacturing, reducing costs, and simplifying ICs. Thus, owing to the increasing usage of the EDA software in the semiconductors and electronics industry, the market is expected to significantly grow over the years.
Manufacturing of Precision Products Requires EDA Software Adoption
The optimization of electronic chip designing by EDA software tools has been in use since the 1980s with the introduction of VLSI and VHDL. In the next few years, hardware description language Verilog was developed. Later on, simulators were developed to support these languages. With the rapid growth of digitalization and the emergence of new market players, EDA software has witnessed an uprise in the past few years. Companies such as IBM, Synopsis, TSMC, Fujitsu, and Cadence, among others, are dominating the EDA software market. EDA software has a lot of opportunities to offer in the manufacturing of integrated chips; however, they are costly, and not all companies can afford them. The EDA domain is also difficult to learn, and there is a lack of experts. However, more and more emerging companies are now striving to make the best use of the available resources, in order to understand EDA software and implement it across all industries in the upcoming years. Players such as Siemens, and NVIDIA Corporation, among others, are highly implementing updated EDA software in the design and manufacture of semiconductors, placing the market in its growth phase.
Rising Demand for Smart Products is Driving the Market Growth
Rising demand for proliferating automotive gadgets, smart devices, increasing trends to manufacture small mechanical, optical, and electronic materials and devices are significantly driving the Electronic Design Automation Software market. Increasing awareness about the benefits and the highly competitive environment are compelling manufacturers to adopt the EDA software as it analyses and designs semiconductor chips and processors, eliminates errors, and aids the manufacturing process. Open source Electronic Design Automation tools are preferred by SMEs due to the lack of expertise and knowledge of EDA software, which is a hindrance to the growth of the global Electronic Design Automation software market. However, government initiatives to design smart devices in compliance with the smart city, smart grids, and smart vehicles concepts, coupled with the emergence of semiconductor industries, especially in the developing economies, is expected to propel market growth. Furthermore, the increasing adoption of software to design medical devices, consumer electronics, and other smart devices, along with the introduction of cost-effective System on Chip (SoC) technology, will lead to an upsurge in the growth of the market. The rising population, increase in disposable income, and rapid urbanization will drive consumers to buy more smartphones and other smart devices, which is contributed by the end-user segment.
Microprocessors and Controller Manufacturers Significantly Contribute to Market Growth
The primary consumers of the Electronic Design automation software market are Microprocessors and Controllers manufacturers, Memory Management Units, and others. The microprocessor and controller manufacturer segment holds a major share in the global market. The segment is expected to propel during the forecast period as microprocessors and controllers are widely used in TV sets, laptops, printers, and players, among others. Due to the rising inclination towards compact devices, electronics manufacturers opt for smaller-sized, chips, and processors, which are complex in nature. Therefore, this has required electronics manufacturers to adopt EDA software to design circuits with precision and accuracy. The consumer electronics segment is rapidly advancing with the FinFET (fin field-effect transistor) architecture taking over in the designing of modern processors. Therefore designers and automated solution providers are under pressure to design new-age consumer electronics with reduced errors. Manufacturing of smart wearable devices, automotive gadgets, and healthcare equipment compels IC manufacturers to deploy EDA software tools to carefully analyze client requirements before designing. Moreover, cloud-based infrastructure provides great computing power to the EDA software deployment.
Investments in Research and Development Propel EDA Software Market Growth in North America
North America accounts for the largest market share of EDA software in the global market. The continuous rollout of infrastructure and deployment of numerous smart projects, such as smart vehicles, smart homes, smart cities, and others, will lead to a rapid growth rate of the region over the next few years. Another major factor that is anticipated to contribute to the rising North America EDA software market is the significant presence of key manufacturers such as Intel, Silicon Systems, and many others. The government and key players in the U.S., Canada, and Mexico are significantly investing in research and development to develop next-generation core processors with enhanced productivity. Designing such complex circuits with accuracy and precision will propel the demand for cutting edge Electronic Design Automation software in the coming years.
Presence of Leading Manufacturers in Asia-Pacific Drives EDA Software Market
Asia-Pacific is expected to register a promising growth rate in the Electronic Design Automation software market during the forecast period. This is attributed to the increasing population, rise in disposable income, and rapid urbanization, which lead to an increase in demand for smartphones and other devices. Economies such as China, Japan, and South Korea are the developers and adopters of the technology, smart tools, and software to design complex chipboards. Mainland China, Japan, South Korea, and Taiwan are countries where some of the world's most important semiconductor players are located. According to a Deloitte report on semiconductors, China accounts for more than half of the overall market value, with world-leading Original Design Manufacturers (ODMs), such as Foxconn and Quanta, and foundries, such as Taiwan Semiconductor Manufacturing Company. Japan is the leading supplier of semiconductor materials, and South Korea leads in the High Bandwidth Memory (HBM) and Dynamic Random-Access Memory (DRAM) markets. These factors will lead to wide-scale implementation across industries, which will propel APAC’s EDA software market growth.
Europe Emerges as a Self-Sufficient Microprocessor Market
European sales of sensors and microprocessor units have witnessed strong growth during the last few years. Public-private partnerships, and government initiatives, such as the EU Research Programme, Horizon Europe and ECSEL joint undertaking of Electronic Components and Systems for European Leadership, are continuously investing in order to revive Europe’s semiconductor industry. Owing to the funds provided by the EU officials in electronic component research, European manufacturers today have risen to hold strong positions in individual niche markets. Recently, the impact of the US-China trade war has highlighted Europe as a self-sufficient microprocessor designer, manufacturer, and consumer.
Rapidly Advancing Digital Hubs in South America, Middle East and Africa to Propel EDA Market Growth
South America, the Middle East, and Africa is also expected to demonstrate significant growth in the EDA software market in the upcoming years due to the increasing adoption of advanced technologies and the adoption of cloud-based solutions by leading manufacturers in the region. Countries such as Brazil, Argentina, Saudi Arabia, and others are rapidly advancing digital hubs that are partnering with global manufacturers to provide the latest core processors and integrated circuits in their electronic products. The rise of smartphone and smart device penetration in the region will further fuel the demand for EDA software in the region.
Recent Developments
- Silvaco Inc., an Electronic Design Automation and technology company, announced the acquisition of NanGate, Inc., an EDA software company, to expand its product offerings and accelerate the enhanced delivery of tools and methodologies, in March 2018
- Altium LLC, a PCB software and tools designer, acquired Transfer BV, a long-time reseller of Altium, based in the Netherlands, in September 2016, to increase its reach in Northern Europe
- ECSEL, one of the largest public-private partnerships in the European Union, has allocated a budget of 5537.2 million USD from 2014–2024, to develop Europe’s semiconductor industry
Key Suppliers
- Cadence Design Systems, Inc.,
- Synopsis, Inc.
- Mentor
- Silvaco, Inc.
- Vennsa Technologies
- ANSYS, Inc.
- Altium LLC.
- Autodesk Inc.
- Boldport Limited
- Xilinx Inc.
Key Manufacturers
- NVIDIA Corporation
- Silvaco, Inc.
- Synopsis, Inc.
- Intel
- Samsung
- Micron Technology
- Qualcomm
- Broadcom
- SK Hynix
- Taiwan Semiconductor
Electronic Design Automation (EDA) Software Market Segmentation
By Enterprise Size
- SME
- Large Enterprise
By Application
- Automotive
- Aerospace & Defense
- Consumer Electronics
- Healthcare
- Others
By Region
- North America
- Europe
- Asia Pacific
- South America
- Middle East and Africa
