The global Electronic Design Automation (EDA) market is projected to grow at a compound annual growth rate (CAGR) of 7.8%, reaching a value of $28.6 billion in the U.S. by 2032.

Electronic Design Automation (EDA) encompasses a suite of software tools utilized by electronic design engineers for developing hardware components and integrated circuits. These tools streamline design tasks, enhancing efficiency and reducing costs. EDA tools manage the complexities of modern designs, offering features like simulation and analysis to detect and resolve issues early in the process. Additionally, they provide comprehensive verification to ensure that designs comply with specified standards.

The growth of the Electronic Design Automation (EDA) market is primarily driven by the increasing complexity of semiconductor designs, necessitating advanced tools to manage intricate circuits efficiently. The demand for smaller and more powerful electronic components has led to a surge in the adoption of EDA solutions, as they streamline the design process and enhance efficiency.

The continuous increase in the complexity of semiconductor designs poses a significant challenge, demanding more sophisticated tools and methodologies. As designs become more valuable, there is an increased risk of intellectual property theft and unauthorized access, raising security concerns within the EDA market.

Key Takeaways

The U.S. Electronic Design Automation (EDA) market is poised for significant growth, with projections estimating it will reach $9.3 billion by 2032, achieving a CAGR of 7.3%. This upward trend is driven by the increasing adoption of EDA tools across various industries, notably automotive and consumer electronics, where the demand for advanced, reliable, and cost-effective electronic design solutions is paramount. EDA tools facilitate the design and verification of complex hardware systems, ensuring that products meet stringent performance and safety standards. The integration of EDA tools in these sectors streamlines the development process, enabling faster time-to-market and reducing overall production costs, thereby fueling market expansion.

China's EDA market is also expected to experience robust growth, reaching an estimated value of $2.1 billion by the end of 2032, with a CAGR of 7.1%. This growth is largely attributed to the strong presence of major players in the semiconductor industry, such as HiSilicon and Semiconductor Manufacturing International Corporation (SMIC). The thriving semiconductor sector in China, supported by substantial investments and government initiatives, drives the demand for advanced EDA tools to design and manufacture cutting-edge integrated circuits and hardware components. Additionally, during the forecast period, the integrated circuit (IC) physical design and verification segment is expected to dominate the market, demonstrating a CAGR of 7.3% from 2022 to 2032. This segment's leadership underscores the critical role of verification processes in ensuring the functionality and reliability of complex electronic systems.

List of Key Companies Profiled in The Report

  • Cadence Design Systems
  • Siemens
  • Synopsys
  • Ansys
  • Keysight Technologies
  • Others

Notable Developments

Notable developments in the Electronic Design Automation market underscore the industry's commitment to pushing boundaries. Advancements in machine learning algorithms, the advent of cloud-based EDA solutions, and the integration of cybersecurity features are some of the noteworthy developments shaping the market. Additionally, the emphasis on open-source EDA tools reflects a shift towards more collaborative and accessible design solutions. These developments not only address current challenges but also pave the way for a more resilient and innovative EDA ecosystem.

Competitive Landscape:

In the dynamic realm of electronic design automation, market players are actively engaged in adopting advanced technological solutions to deliver optimal outcomes for their clientele. In response to the escalating competition within the market, industry vendors are strategically forging collaborations with global players. Recent developments within the industry shed light on the following key updates:

In July 2021, Zuken Inc. unveiled CR-8000 2021, an evolved iteration of CR-8000 with a primary focus on early design analysis and enhanced reuse functionality.

April 2021 witnessed ANSYS, Inc. entering into a strategic collaboration with Advanced Micro Devices, Inc. This partnership aims to empower engineering teams across industries in elevating their product design through the development of modeling run times. Notably, the 3rd Gen AMD EPYC 7003 Series processors have demonstrated a remarkable 2x increase in Ansys simulations' run time, showcasing the collaborative prowess of the two entities.