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North America EDA Market to Reach $9.70 Billion in 2027
September 16, 2019 | Business WireEstimated reading time: 1 minute
The North America electronic design automation market accounted for $4.10 billion in 2018 and is expected to grow at a CAGR of 10.2% over the forecast period 2019-2027, to account for $9.70 billion in 2027.
The significant growth of the semiconductor industry is anticipated to boost the electronic design automation market growth. Moreover, the increased focus on miniaturization of electronic devices is expected to boost the electronic design automation market growth in the forecast period. The SIA (Semiconductor Industry Association) in October 2018, while representing the US leadership in semiconductor research, design and manufacturing had charted an increase of 12.7% from 2017 and marked the total revenue of $41.8 billion.
Furthermore, the WSTS also forecasted a trajectory of 15.9% in 2018 and 2.6% in 2019. This growth in the semiconductor industry has raised the confidence of the market players in terms of revenue growth. The companies operating in the semiconductor landscape are not only anticipating a substantial rise in the revenue but are also respectively increasing their R&D spending. The year-on-year increase in R&D spending has imposed a noteworthy thrust to the electronic design automation market during the recent past and is projected to continue to drive the market in the coming years.
As the semiconductor industry continues to be in strong up-cycle, the leaders in the market are expected to adopt a future-oriented approach. The approach may further consider unconventional end-market such as artificial intelligence, autonomous vehicle, and IoT. Additionally, the memory companies are also likely to witness a rise in sales owing to bolstering demand for data centers smartphones and autonomous vehicle technologies.
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, the US government has taken various initiatives for supporting the manufacturing sector in the country.
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