Asia Pacific EDA Market to Reach $12.69 Billion by 2027

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The Asia Pacific electronic design automation market accounted for $4.28 billion in 2018 and is expected to grow at a CAGR of 13.0% over the forecast period 2019-2027, to account for $12.69 billion in 2027.

The increase in R&D spending in the semiconductor industry and evolving consumer expectation and burgeoning demand of consumer electronics are the key drivers boosting the electronic design automation market growth. Moreover, the emergence of miniaturization of electronic devices is expected to propel the electronic design automation market growth in the forecast period. Smart homes, TVs, smartphones, Internet of Things, connected cars, artificial intelligence are that every aspect of human life that the consumer electronics industry has pervaded.

The demand for consumer electronics across the globe has been largely driven by the desire of the consumers' for bigger, newer, and enhanced capabilities. This, in turn, has encouraged the sector to constantly explore innovations and technologies which not only encapsulate the imagination of the people but are also affordable and relevant in terms of catering to their daily needs. In such cases the EDA software providers the electronic component manufacturers and technologists to design a suitable prototype of the devices. Therefore, evolving consumer expectation and burgeoning demand of consumer electronics are expected to drive the electronic design automation market in the coming years.

The electronic design automation market is fragmented in nature due to the presence of several industries, and the competitive dynamics in the market is anticipated to change during the coming years. In addition to this, various initiatives are undertaken by the governmental bodies to accelerate the electronic design automation market further.

For instance, Irregular taxation policies on businesses lead to stagnation. In the Asia Pacific, China levies heavy taxes on any business outside its country, which makes it difficult for any other country to invest in China. Also, it affects the various industry in Asian regions such as electronics, manufacturing, and others. This may have an impact on the growth of the electronic design automation market in the region.

Based on the Type segment, the CAE segment of the electronic design automation market is expected to boost its dominance during the forecast period with the maximum market share. Computer-aided engineering (CAE) deploys computer software for simulating performance and for improving product designs. It aids in the resolution of various engineering issues in a diverse range of industries. This includes simulating, validating, and optimizing various products, processes, and tools for manufacturing. CAE comprises three phases of preprocessing, solving, and post-processing. In the preprocessing stage, the engineers prototype the system representation and the physical properties of the design.

Also, the environment in the form of constraints or applied loads is prototyped. Further, the model is resolved with the help of a suitable mathematical formulation. In the phase of post-processing, the results are then presented for review to the engineer. The growth in demand for CAE is primarily attributed to the deepening penetration of IoT and connected technology. Also, technical advancements, particularly in the automotive sector, is also expected to boost the demand for CAE in the industry.