PUBLISHER: The Business Research Company | PRODUCT CODE: 1686154
PUBLISHER: The Business Research Company | PRODUCT CODE: 1686154
Electronic Design Automation (EDA) tools are software tools used in the design and development of electronic systems, including integrated circuits (ICs) and printed circuit boards (PCBs). EDA tools together form a design flow that is used by chip designers for the purpose of designing and evaluating whole semiconductor chips.
The main types of electronic design automation (EDA) tools are computer-aided engineering (CAE), integrated circuit physical design and verification, printed circuit board and multi-chip module (PCB and MCM), semiconductor intellectual property (SIP), and services. Computer-aided engineering (CAE) refers to the use of computer software to simulate the performance of products to improve their quality and efficiency. It can be deployed in several modes, including on-premises and cloud-based, and it is used by several end-users, including aerospace and defense, automotive, consumer electronics, industrial, healthcare, and others.
The main types of electronic design automation (EDA) tools are computer-aided engineering (CAE), integrated circuit physical design and verification, printed circuit board and multi-chip module (PCB and MCM), semiconductor intellectual property (SIP), and services. Computer-aided engineering (CAE) refers to the use of computer software to simulate the performance of products to improve their quality and efficiency. It can be deployed in several modes, including on-premises and cloud-based, and it is used by several end-users, including aerospace and defense, automotive, consumer electronics, industrial, healthcare, and others.
The electronic design automation (EDA) tools market size has grown strongly in recent years. It will grow from $16.67 billion in 2024 to $18.26 billion in 2025 at a compound annual growth rate (CAGR) of 9.5%. The growth in the historic period can be attributed to integrated circuit complexity, demand for faster time-to-market, advancements in semiconductor technology, globalization of design teams, rise of functional verification challenges.
The electronic design automation (EDA) tools market size is expected to see strong growth in the next few years. It will grow to $26.32 billion in 2029 at a compound annual growth rate (CAGR) of 9.6%. The growth in the forecast period can be attributed to AI (artificial intelligence) and machine learning integration, rapid growth in IoT and edge computing, demand for agile design methodologies, expansion of design complexity across industries, and demand for agile design methodologies. Major trends in the forecast period include advancements in analog or mixed-signal (AMS) design, enhanced support for open-source EDA tools, integration of hardware security features, technological advancements, and new product innovation.
The adoption of the internet of things (IoT) is expected to propel the growth of the electronic design automation (EDA) tools market going forward. The internet of things (IoT) refers to a network of physical objects, devices, and systems that have sensors, software, and network connectivity built in to enable them to gather and exchange data with other devices. The adoption of IoT (Internet of Things) is rapidly increasing due to its transformative capabilities across various industries. IoT is helpful in electronic design automation (EDA) tools by making it possible to include sensor and Internet of Things solutions into the processes of IC (integrated circuit) design, verification, manufacturing, and testing, ultimately improving the effectiveness and performance of the electronic systems that are built. For instance, in September 2022, according to a report published by Ericsson, a Sweden-based telecommunications company, global IoT connections reached 13.2 billion connections in 2022 and are expected to increase by 18% to 34.7 billion connections by 2028. Therefore, the adoption of the internet of things (IoT) is driving the growth of the electronic design automation (EDA) tools market.
Major companies operating in the electronic design automation (EDA) tools market are developing advanced technologies such as Synopsys.ai to gain a competitive edge in the market. Synopsys.ai utilizes cloud computing to improve efficiency and scalability in design automation workflows. They enable on-demand resource provisioning and platform abstraction and foster collaborative development environments, enhancing flexibility and productivity. For instance, in March 2022, Synopsys, Inc., a US-based software development and electronic design automation company, launched Synopsys.ai, a suite of AI-powered solutions for designing, verifying, testing, and manufacturing advanced digital and analog chips. This full-stack, AI-driven EDA suite is designed to accelerate the chip design workflow by enabling companies to build more AI-driven optimization and data analytics capabilities across all stages of IC (integrated circuit) chip development.
In November 2023, Siemens Digital Industries, a US-based software company, acquired Insight EDA Inc. for an undisclosed amount. Through this acquisition, Siemens will expand its Calibre integrated circuit reliability verification offering, aiming to enable design engineers to more easily add design-specific reliability verification and analysis to integrated circuit (IC) design. This acquisition is expected to accelerate Siemens' circuit reliability verification roadmap and bring Insight EDA's solutions to the global semiconductor ecosystem. Insight EDA Inc. is a US-based electronic design automation (EDA) tool provider that offers calculation, error detection, domain leakage prediction, analytical solutions, and technical services.
Major companies operating in the electronic design automation (EDA) tools market are Siemens Aktiengesellschaft, Intel Corporation, Arrow company, Agnisys Inc., Keysight Technologies Inc., Synopsys Inc., Cadence Design Systems Inc., Forte Design Systems, Xilinx Inc., ANSYS Inc., Microsemi Corporation, National Instruments Corporation, JEDA Technologies Inc., Mentor Graphic Corporation, Altair Engineering Inc., AWR Corporation, Faraday&Future Inc., Zuken Inc., Magwel NV, Altium Limited, Silvaco Inc., Lauterbach GmbH, Computer Simulation Technology AG, EnSilica Limited, Aldec Inc., EMA Design Automation Inc., ELECTRO-SYSTEM CO. LTD., MunEDA GmbH, Intercept Technology Inc., Labcenter Electronics Ltd., Pulsic Limited
Asia-Pacific was the largest region in the electronic design automation (EDA) tools market in 2024. It is expected to be the fastest-growing region in the forecast period. The regions covered in the electronic design automation (EDA) tools 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) tools market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The electronic design automation (EDA) tools market consists of revenues earned by entities by providing services such as consulting services, integration services, customization services, maintenance and support services, and verification and testing 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) tools market also includes sales of cadence design systems, high-frequency structure simulators, design-for-test (DFT) tools, physical verification tools, and simulation and modeling tools. 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) Tools 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) tools 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) tools ? 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) tools 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.