Electronic Design Automation Market Size, Share, and Growth Analysis, By Product (Computer-aided Engineering, IC Physical Design and Verification), By Deployment, By Application, By End Use, By Region - Industry Forecast 2025-2032

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 electronic design automation (EDA) industry is poised for significant growth, propelled by the increasing complexity of electronic systems and a heightened demand for advanced technology in consumer electronics, automotive, telecommunications, and healthcare. Key drivers include advancements in semiconductor technology, the rise of high-performance and miniaturized devices, and the integration of artificial intelligence (AI) and machine learning (ML) in circuit design. Additionally, the expansion of 5G networks and the Internet of Things (IoT) enhances access to EDA tools for next-generation devices. However, the industry faces challenges, such as high software costs and a steep learning curve. Nevertheless, opportunities abound, particularly in automation, cloud-based solutions, and emerging sectors like driverless cars and quantum computing, promising fruitful prospects for EDA vendors.

Top-down and bottom-up approaches were used to estimate and validate the size of the Electronic Design Automation market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

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.

Driver of the Electronic Design Automation Market

The Electronic Design Automation (EDA) market is being significantly driven by the increasing necessity for chip manufacturing companies to design and produce sophisticated semiconductors more efficiently and at lower costs. Factors such as the demand for heightened accuracy and precision in semiconductor devices, alongside the escalating complexity of integrated circuit architectures, are playing crucial roles in this growth. As industries progressively adopt integrated circuit design and verification tools that facilitate automated circuit positioning and routing on integrated or application-specific integrated circuits, the EDA market experiences a substantial momentum that propels its expansion on a global scale.

Restraints in the Electronic Design Automation Market

A significant factor restraining the electronic design automation (EDA) market is the high cost associated with EDA tools and software. While these solutions offer advanced features tailored to specific sectors, the financial burden can be substantial, particularly for small and medium-sized enterprises (SMEs) that may not have the budget for such expensive tools. As a result, these companies often find themselves unable to access the sophisticated design capabilities needed to remain competitive in the market. Additionally, ongoing expenses related to maintenance, training, and licensing further exacerbate the financial challenges, preventing many organizations from fully leveraging EDA technologies.

Market Trends of the Electronic Design Automation Market

The Electronic Design Automation (EDA) market is witnessing a significant trend driven by the increasing complexity of semiconductor designs, prompted by the demand for compact form factors, enhanced performance, and lower power consumption. As semiconductor companies innovate and push boundaries, they require advanced EDA solutions capable of managing intricate design processes efficiently. This heightened dependence on sophisticated EDA tools not only ensures the reliability and performance of semiconductor products but also accelerates design cycles, thereby propelling market growth. Overall, the evolving landscape of semiconductor technology continues to reshape the EDA sector, fostering a robust growth environment as companies adapt to these challenges.