PUBLISHER: The Business Research Company | PRODUCT CODE: 1686153
PUBLISHER: The Business Research Company | PRODUCT CODE: 1686153
Electronic design automation (EDA) refers to a category of software tools that assist in the design, verification, and testing of electronic systems, including integrated circuits and printed circuit boards. It is essential for identifying potential issues before the designs enter production and includes design reusability features that simplify the design process.
The main types of electronic design automation (EDA) are computer aided engineering (CAE), semiconductor intellectual property (SIP), integrated circuit (IC) physical design and verification, and printed circuit board (PCB) and multi-chip module (MCM). Computer-aided engineering (CAE) is a software technology that helps engineers design, analyze, and optimize products and processes. They are deployed based on cloud-based and on-premise modes for microprocessors and microcontrollers, memory management units, and other applications by automotive industry, healthcare industry, aerospace and defense industry, telecom and data center industry, consumer electronics industry, industrial sector, and other end-users.
The main types of electronic design automation (EDA) are computer aided engineering (CAE), semiconductor intellectual property (SIP), integrated circuit (IC) physical design and verification, and printed circuit board (PCB) and multi-chip module (MCM). Computer-aided engineering (CAE) is a software technology that helps engineers design, analyze, and optimize products and processes. They are deployed based on cloud-based and on-premise modes for microprocessors and microcontrollers, memory management units, and other applications by automotive industry, healthcare industry, aerospace and defense industry, telecom and data center industry, consumer electronics industry, industrial sector, and other end-users.
The electronic design automation (EDA) market size has grown rapidly in recent years. It will grow from $15.12 billion in 2024 to $16.65 billion in 2025 at a compound annual growth rate (CAGR) of 10.1%. The growth in the historic period can be attributed to growing demand for EDA tools in the automotive, rising adoption of finfet architecture, rising penetration of IoT, VR, and AI, growing demand for smaller and portable electronic devices, growing demand for machine learning for EDA.
The electronic design automation (EDA) market size is expected to see strong growth in the next few years. It will grow to $22.73 billion in 2029 at a compound annual growth rate (CAGR) of 8.1%. The growth in the forecast period can be attributed to the increasing demand for complex integrated circuits (ICS), growing miniaturization in various industries, the growing awareness among consumers for fitness, growth of internet of things (IoT) and connected devices, increasing usage of field-programmable gate arrays (FGGAS) in data centers. Major trends in the forecast period include technological advancements, 5G technology implementation, usage of IoT devices, usage of soc technology, machine learning capabilities with AI.
The rising demand for complex integrated circuits (ICs) is expected to drive the growth of the electronic design automation (EDA) market moving forward. Complex ICs are compact electronic chips containing interconnected components, such as resistors, transistors, and capacitors, integrated on a single piece of semiconductor material like silicon. EDA tools assist engineers in managing the complexities of designing advanced ICs, ensuring that functionality, performance, and manufacturability align with required specifications. These tools can compile, analyze, and simulate hardware description language (HDL) designs to verify accuracy and compliance with design requirements. For instance, in October 2024, the Semiconductor Industry Association (SIA), a US-based trade association, reported global semiconductor sales of $53.1 billion in August 2024, a 20.6% increase from the $44.0 billion recorded in August 2023 and a 3.5% rise from $51.3 billion in July 2024. Thus, the growing demand for complex ICs is fueling the expansion of the EDA market.
Major companies operating in the electronic design automation (EDA) market are developing innovative products such as Tessent RTL Pro to gain a competitive edge in the market. Tessent RTL Pro is a software solution designed to help integrated circuit (IC) design teams streamline and accelerate a broad array of critical design-for-test (DFT) tasks for their next-generation designs. For instance, in October 2023, Siemens AG, a Germany-based automation company that designs, develops, and manufactures products, launched the Tessent RTL Pro advanced software solution. This innovative software automates the analysis and insertion of test points, wrapper cells, and x-bounding logic earlier in the design flow, enabling engineers to identify and address testability issues at the earliest stages of design. Tessent RTL Pro works with Siemens' Tessent DFT tools to deliver industry-first functionality, allowing customers to reduce design turn-around-time and improve time-to-market.
In November 2023, Siemens AG, a Germany-based technology company that designs, develops, and manufactures products, acquired Insight EDA Inc. for an undisclosed amount. The acquisition is expected to enhance Siemens' calibre PERC product line, enabling design engineers to more easily add design-specific reliability verification. This acquisition reflects the ongoing developments and strategic moves within the electronic design automation (EDA) market. Insight EDA Inc. is a US-based software company that delivers circuit reliability solutions to integrated circuit (IC) design teams.
Major companies operating in the electronic design automation (EDA) market are Siemens AG, Oracle Corporation, SAP SE, Advanced Micro Devices Inc., Dassault Systemes, Keysight Technologies Inc., Synopsys Inc., Autodesk Inc., Cadence Design Systems Inc., Werner Enterprises, Xilinx Inc., Ansys Inc., National Instruments Corp., MathWorks Inc., eInfochips Private Limited, Mentor Graphics Corporation, Altium Limited, BluJay Solutions Ltd., Zuken Inc., Silvaco Inc., Aldec Inc., Agnisys Inc., Labcenter Electronics Ltd., Intercept Technology Inc., Sigasi NV, Altair Engineering Inc., Boldport Limited, Dolphin Design, EasyEDA, EnSilica plc, Eremex Ltd.
North America was the largest region in the electronic design automation (EDA) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the electronic design automation (EDA) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the electronic design automation (EDA) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The electronic design automation (EDA) market consists of revenues earned by entities by providing services such as design consulting, electronic design automation (EDA) tool training, customization services, verification and validation services, and design review services. The market value includes the value of related goods sold by the service provider or included within the service offering. The electronic design automation (EDA) market also includes sales of physical computing infrastructure, such as high-performance servers, workstations, and specialized hardware accelerators. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Electronic Design Automation (EDA) Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on electronic design automation (eda) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for electronic design automation (eda) ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The electronic design automation (eda) market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.