USD 12.8 billion
Electronic Design Automation Market Size, Share, and Growth Analysis
Electronic Design Automation Market By Product (Computer-aided Engineering (CAE), IC Physical Design and Verification), By Deployment (Cloud, On-premise), By Application (Aerospace and Defense, Automotive), By End Use, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45E2305 |
Region:
Global |
Published Date: November, 2024
Pages:
176
|Tables:
0
|Figures:
0
Format -
Electronic Design Automation Market Insights
Electronic Design Automation Market size was valued at USD 12.8 billion in 2023 and is poised to grow from USD 14.09 billion in 2024 to USD 30.43 billion by 2032, growing at a CAGR of 10.1% during the forecast period (2025-2032).
The growing complexity in electronic systems and need for advanced technology across the sectors of consumer electronics, automobiles, telecommunication, and healthcare will continue to drive the electronic design automation industry, which recorded its significant expansion in recent years. Rapid progress in semiconductor technology, the increasing demand for high-performance and miniaturized devices, and a high usage of artificial intelligence (AI) and machine learning (ML) in circuit design are the key drivers of the EDA industry. EDA tools for next-generation devices are also being accessed through the growth of 5G networks and the Internet of Things (IoT). The market is, however, restricted by a number of factors, which include the expensive price of EDA software and the challenging learning curve relating to its sophisticated tools. Furthermore, firms are faced with challenges such as rapidity in technological innovation and the need for the regular update of software. Despite all these challenges the EDA industry has a lot of opportunities. Market expansion opportunities are expected to rise due to factors such as the focus on the automation perspective that needs effective design procedures and the increased use of cloud-based EDA solutions. Besides, the EDA vendors have some interesting development prospects in developing industries such as driverless cars and quantum computing.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
On-Premises
Fastest Growth
Cloud-Based
Growth Rate
10.1% CAGR
Global Electronic Design Automation Market ($ Bn)
Country Share for North America (%)
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Electronic Design Automation Market Segments Analysis
Global Electronic Design Automation Market is segmented by Product, Deployment, Application, End Use and region. Based on Product, the market is segmented into Computer-aided Engineering (CAE), IC Physical Design and Verification, Printed Circuit Board and Multi-chip Module (PCB and MCM), Semiconductor Intellectual Property (SIP) and Services. Based on Deployment, the market is segmented into Cloud and On-premise. Based on Application, the market is segmented into Aerospace and Defense, Automotive, Healthcare, Industrial, Consumer Electronics and Others. Based on End Use, the market is segmented into Microprocessors & Controllers, Memory Management Unit (MMU) and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Deployment Type
As per the electronic design automation market analysis, on-premises held the largest market share in 2023. On-premises deployment mode" refers to the traditional approach in which EDA software is set up and operated on a business's own servers and equipment located within their actual location. There are also specific advantages to employing this strategy, especially in the areas where confidentiality and protection is of high priority. One primary advantage of this strategy is its control over sensitive information. Organizations might adhere fully to security policies and retain all their design business information, including IP, in a local area network. This applies mainly to industries in which there is a need for retaining intellectual designs: semiconductor manufacturing, aircraft, and defense. On-premises deployment provides a more trustworthy and deterministic computing environment, also allowing for greater tool customization to fit specific corporate needs.
However, with the cloud-based deployment method, EDA tools and services are accessed online from the data centers of cloud service providers. Notable benefits here include scalability and flexibility, and one of the most prominent advantages is agility. With agility, businesses may scale their computer capabilities up or down according to the demands of their projects and only pay for what they use. It is able to save costs and ideal for industries whose work volumes are random. In addition, cloud-based EDA tools enhance collaboration as geographically dispersed design teams can collaborate on designs concurrently from anywhere across the globe. Team members can enjoy real-time access to the latest design data by making use of a centralized, up-to-date platform. They can subsequently improve productivity, reduce time-to-market, and accelerate design cycles.
Analysis By Application
From electric powertrains to ADASs, the automotive industry has rapidly embraced electronic technologies in vehicles. This demands sophisticated electrical designs. EDA tools are necessary because they make it possible to design automotive electronics such as microcontrollers, sensor interfaces, communication networks, and power management systems. Such resources help the manufacturers produce connected, safe, and efficient automobiles that meet stringent automobile safety standards, such as ISO 26262. As the industry moves towards electrified and driverless cars, the demand for sophisticated EDA solutions will increase. These solutions will ensure that performance, reliability, and adherence to the ever-increasingly complex requirements of law are attained by prodding the progress of next-generation technology.
Contrarily, based on the electronic design automation market forecast, the military & defense sector is expected to grow at the fastest rate. Advanced electronics are crucial to the military and defense industry for armament, communication, surveillance, and navigation. For the development of high-performance electronic systems for applications such as surveillance and communication, the EDA technologies are inevitable. They help in the development of robust and high-performance components under the umbrella of extremely strict security and reliability standards. EDA enables the design of specific microelectronics for encrypted communication devices, radar systems, and guided missile systems. EDA solutions are of immense importance in achieving technical superiority because the military sector emphasizes innovation and rapid development. The electronic design automation sector in the military and defense industry is therefore expected to grow with changing threats and a need for modernization.
Global Electronic Design Automation Market By Deployment Type
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Electronic Design Automation Market Regional Insights
Major EDA companies such as Synopsys, Cadence Design Systems, and Mentor Graphics reside in North America, which makes this region a significant center for the electronic design automation industry. US firms, especially Silicon Valley, continue to be the epicenter of innovation for semiconductor and electronics companies and lead in improving EDA technology. Significant expenditures in the region coupled with the high emphasis on research and development encourage the uptake of cutting-edge technologies, such as 5G, AI, and machine learning. These technical breakthroughs open ways toward more complex electronic systems while raising demand for sophisticated EDA solutions. The requirement for integrated solutions and high-performance designs is continually on the rise, making North America a pivotal factor in deciding the direction of the global EDA industry.
Asia-Pacific is the second largest region in the market as it benefits from the growth of countries such as China, Taiwan, and South Korea. It has front-runners in chip manufacturing that also house many large semiconductor manufacturing facilities. EDA tools have high demand in the region because of rapid economic growth, especially with growing technical improvement for semiconductor design, PCB fabrication, and electronic system development. China, whose major goal is to build local EDA resources to be less dependent on foreign vendors, is also a growing player. The significance of the region in the overall global EDA landscape continues to increase which is further supported by the buoyant demand for consumer electronics in the region and a massive electronics manufacturing ecosystem in place.
Global Electronic Design Automation Market By Geography
- Largest
- Fastest
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Electronic Design Automation Market Dynamics
Electronic Design Automation Market Drivers
Cost Effectiveness and Efficiency of EDA
- EDA assists chip manufacturing companies in developing and producing more complex semiconductors faster and cheaper. Each of these factors is favorably influencing the electronic design automation (EDA) market. Furthermore, the need for great accuracy and precision in semiconductor devices and the growing complexity of integrated circuit designs. Industries are rapidly embracing IC design and verification tools, which automatically position and route circuits on integrated circuits or application-specific integrated circuits, thereby propelling the global business.
IOT Growth and Linked Device Adoption
- The growing number of linked devices and Internet of Things (IoT) is driving the global market. On account of using these technologies, design time and cost decrease while the incidence of errors is reduced and the demand for solutions through the consumer electronics, automotive and aerospace and defense segments increases. Therefore, the global electronic design automation (EDA) market is expected to grow.
Electronic Design Automation Market Restraints
Expensive EDA Software
- One of the principal factors that have hindered the electronic design automation market is the high price that EDA tools and software carry. Such solutions are expensive; however, this depends on how advanced those features and functions are designed with a specific targeted sector in view. The cost might be too steep for SMEs, effectively keeping it out of their reach toward sophisticated design skills. For many companies, maintenance, training, and licensing costs add to the cost.
Steep Learning Curve and Complexity
- Complexity and high learning curve of using advanced EDA technologies are further deterrents to the EDA market. Proper working of such solutions often requires very specialized knowledge. This will act as a deterrent to wider adoption of such solutions, especially among new users or small-sized enterprises. The total accessibility of the market may be limited by the need for well-qualified personnel and intensive training to operate and optimize EDA software, which can also slow down the design process and raise operating costs.
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Electronic Design Automation Market Competitive Landscape
Market leaders are investing heavily in R&D to offer the newest EDA tools for the electronics and semiconductor sectors, which are in a constant state of evolution. Design automation and verification processes are being enhanced by these organizations through machine learning and artificial intelligence being integrated into their products. They are also diversifying their portfolios in order to fulfill the increasing demand for specialty EDA solutions in these industries, 5G, IoT, and automotive electronics. Major companies frequently engage in cooperation with semiconductor makers and international growth initiatives to stay at the forefront of the market.
Top Players in Electronic Design Automation Market
- Cadence Design Systems, Inc. (USA)
- Synopsys, Inc. (USA)
- Siemens EDA (USA/Germany)
- Keysight Technologies, Inc. (USA)
- Altium Limited (Australia)
- Zuken Inc. (Japan)
- Autodesk, Inc. (USA)
- Aldec, Inc. (USA)
- Mentor Graphics Corporation (now Siemens EDA) (USA)
- Silvaco, Inc. (USA)
- National Instruments Corporation (now NI) (USA)
- MathWorks Inc. (USA)
- Agnisys Inc. (USA)
- Labcenter Electronics Ltd. (UK)
- Xilinx Inc. (now AMD) (USA)
- Dassault Systemes (France)
- Oracle Corporation (USA)
- SAP SE (Germany)
- AMD (USA)
Recent Developments
- February 2023: Ansys is eager to broaden the scope of its partnership with Microsoft through the incorporation of its simulation products with Microsoft’s cloud computing service, Azure. The goal is to leverage the resources of the Azure platform to reach out to even more users of Ansys’ simulation solutions across industries.
- January 2023: Siemens AG introduced Questa; an advanced verification intelligence tool intended to address logic verification challenges due to rising complexity in integrated circuits (ICs). The developed software allows the logic verification teams to create a more sophisticated solution that enables them to resolve the problem of designing complex ICs with relative ease.
- July 2021: Zuken Inc. launched the CR-8000 2021. It is an upgraded CR-8000 with a primary emphasis on reusability function and front-end design analysis.
Electronic Design Automation Key Market Trends
- Higher Complexity of Semiconductor Designs: Semiconductor companies are now increasing design complexities due to demand for smaller form factors, reduced power consumption, and improved performance. Thereby, more and more complex designs necessitate highly sophisticated EDA solutions to effectively handle the complexity of these designs. The dependability of semiconductor company products is being ensured through shortening of the design cycles with the help of semiconductor EDA solutions leading to market growth.
- Expansion of Automotive Electronics Sector: With the rise of electric cars, and new autonomous driving technologies, the automotive electronics market is expanding continuously. They need complex electronic systems, which drive growth in the automotive electronics sector. Designs for sophisticated electrical systems and components required for electric and driverless vehicles are feasible only through EDA tools. The automotive electronics industry is one of the main drivers behind the EDA market.
Electronic Design Automation Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the electronic design automation market outlook is considered to change significantly owing to the ever-increasing complexity of electronic systems, advancement in semiconductor technology, and emergence of new sectors such as AI, autonomous driving, and electric cars. North America and Asia Pacific are on top due to substantial players and rapidly growing need for EDA solutions. However, challenges such as costly software and complex tools remain a challenge for small businesses. Despite these challenges, however, there are still plenty of growth opportunities for these end users and the rate of development of cloud-based solutions and the pace of innovation in design automation. If technological advancements continue to occur, EDA will remain an essential enabler of the creation of future electronic systems and products.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 12.8 billion |
| Market size value in 2032 | USD 30.43 billion |
| Growth Rate | 10.1% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Electronic Design Automation Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Electronic Design Automation Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Electronic Design Automation Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Electronic Design Automation Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Electronic Design Automation Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Electronic Design Automation Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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