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EDA Market to Grow $8.7 Billion (2024-2028) with AI's Rising Impact on Trends
September 19, 2024 | PRNewswireEstimated reading time: 4 minutes
The global electronic design automation (EDA) market size is estimated to grow by USD 8693.6 mn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 10.26% during the forecast period. Growing significance of EDA in electronic design process is driving market growth, with a trend towards machine learning disrupting global EDA market. However, high dependency on semiconductors and electronics markets poses a challenge. Key market players include Advanced Micro Devices Inc., Agnisys Inc., Aldec Inc., ANSYS Inc., Autodesk Inc., Cadence Design Systems Inc., ElectroMagneticWorks Inc., Eremex Ltd., Intercept Technology Inc., Keysight Technologies Inc., Labcenter Electronics, Mirabilis Design Inc, National Instruments Corp., Siemens AG, Sigasi NV, Silvaco Inc., Synopsys Inc., Verific Design Automation Inc., WestDev Ltd., and Zuken Inc..
Market Driver
Machine learning is revolutionizing the global Electronic Design Automation (EDA) market by enabling EDA tools to recommend solutions to common design problems, reducing design costs, and increasing productivity. This cost reduction opens up opportunities for new chip designs and companies. Machine learning integration also provides statistical insights for designers, reducing production challenges and failures. New generations of EDA tools are being developed to work with machine learning, offering greater predictability and stability. The use of GPUs for running machine learning-enhanced EDA tools is an emerging trend, although its applicability to EDA problems is still uncertain. Machine learning is a cutting-edge development in the semiconductor industry, with potential applications in battery-operated consumer products, the automotive industry, and IoT devices. These factors are expected to fuel the growth of the global EDA market during the forecast period.
The Electronic Design Automation (EDA) market is experiencing significant growth due to the increasing demand for connected gadgets, sensor technologies, and sensing devices in various industries. Semiconductor companies are at the forefront of this trend, developing advanced ICs for AI industries, consumer electronics, automotive, and more. VLSI structures and microprocessors/controllers are essential components in the production of smartphones, laptops, smartwatches, printers, media players, and other consumer devices. Moreover, the emergence of 5G communications, hyper-scale computing, and the IoT industry is driving the need for EDA tools in silicon photonics, automated controls, and sensing applications. The aerospace industry also relies on EDA for designing avionics systems, while the AI industry requires programmable chip platforms and cloud-based solutions. EDA plays a crucial role in the development of smart devices, including fitness devices and trackers, and components for streaming services, social media platforms, and smartcard applications.
Market Challenges:
- The Electronic Design Automation (EDA) market's growth and IP product sales are closely linked to the semiconductor and electronics industries. Semiconductor manufacturers and their customers initiating new design projects significantly contribute to the EDA market's business and revenue. However, the increasing complexity of semiconductor designs, such as SOCs, 3D NAND, MEMS, and FinFET, introduces risks of designing gaps and delayed development cycles. Consequently, semiconductor manufacturers increasingly rely on EDA tools to mitigate these risks. Simultaneously, EDA vendors depend on the semiconductor industry's growth and technological transitions. However, the electronic device manufacturing sector's high demand volatility creates a supply-demand gap, negatively impacting the EDA market's growth. Additionally, the adoption rate of EDA across various end-user sectors is subject to these value chain fluctuations. EDA is an emerging key component in the semiconductor value chain, with cloud EDAs being a recent development in the market. Vendors of cloud EDAs invest substantially to improve their offerings for customers. However, these investments increase costs for vendors, which they depend on the growth of the electronic device manufacturing sector to recoup. Semiconductor companies' procurement of third-party IPs can adversely affect vendors' revenues. To mitigate this risk, some EDA vendors collaborate with significant foundries to ensure compatibility with buyers' manufacturing processes. However, the EDA market's high dependency on semiconductors and PCBs increases market demand fluctuations, potentially reducing profit margins. This dependency poses a challenge to the growth of the global EDA market during the forecast period.
- The Electronic Design Automation (EDA) market is experiencing significant growth due to the increasing demand for advanced electronic systems in various industries. IC design for integrated circuits (ICs) in consumer electronics like smartphones, laptops, smartwatches, and fitness devices is a major driver. EDA software plays a crucial role in designing miniaturized chips and ICs for these devices, ensuring accuracy and automated processes. The semiconductor sector, including silicon sector, AI industry, IoT industry, and avionics systems, also relies heavily on EDA tools for sophisticated designs. Electronics makers face challenges in managing memory, microprocessors, and controllers, which EDA software addresses through advanced AI and cloud-based solutions. Automotive, healthcare, and aerospace and military industries also benefit from EDA tools for manufacturing and defect reduction. However, the complexity of designing circuits for these industries presents challenges, including bugs, defects, and design errors. EDA software helps electronics firms overcome these hurdles, enabling them to create high-performance, automated processes for their hardware and computer-aided design needs.
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