Electronic Design Automation Market size to increase by USD 7.50 billion between 2022 to 2027, Market Segmentation by Product Type and Geography, Technavio

NEW YORK, April 18, 2024 /PRNewswire/ -- The global electronic design automation market size is estimated to grow by USD 7504.13 mn from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 9.76% during the forecast period. The Electronic Design Automation (EDA) market relies on the semiconductor and electronics industries for growth. Complex designs of ICs, SOCs, 3D NAND, MEMS, and FinFET increase design risks and dependency on EDA tools. Key industries like smartphones, laptops, AI, IoT, and avionics drive demand for EDA software and hardware in IC design processes. EDA vendors depend on technological transitions and high demand fluctuations in these markets.

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The Product Type segment emerges as the fastest-growing segment in the electronic design automation market

The Electronic Design Automation (EDA) market plays a pivotal role in the development of advanced electronic systems, from integrated circuits (ICs) in silicon sector to smartphones, laptops, and consumer electronics. EDA software enables electronics firms to design sophisticated circuits, including miniaturized chips and ICs, with high accuracy. This technology is essential for various industries, such as avionics systems, aerospace and military, healthcare, manufacturing, automotive, and the IoT and AI industries. EDA tools facilitate the IC design process, ensuring the elimination of bugs, defects, and design errors in semiconductor components, such as memory management units, microprocessors, and controllers. EDA software also supports cloud-based solutions and programmable chip platforms for streaming services, social media platforms, and fitness devices, including smartwatches and fitness trackers. In summary, EDA software is a crucial component in the creation of electronic systems, enabling the development of high-performance, sophisticated designs for consumer electronics, automotive, and industrial applications.

The Electronic Design Automation (EDA) market in the APAC region is experiencing significant growth, driven by the AI industry and the expanding silicon sector. With a strong semiconductor value chain in countries like China, Taiwan, and South Korea, the region hosts numerous electronics makers requiring EDA software tools for IC design processes. The increasing number of manufacturers, particularly in China and India, fuels market growth. Advanced electronic systems, including miniaturized chips and ICs, demand high accuracy in designing circuits and ICs. EDA software enables automated processes, reducing design errors and bugs. Electronics firms utilize EDA tools for hardware design, computer-aided design, and VLSI structures in various industries, such as aerospace and military, healthcare, manufacturing, automotive, and consumer electronics. EDA software plays a crucial role in designing complex systems, including printed circuit boards, memory management units, microprocessors, and controllers. The market's growth is further propelled by the increasing use of EDA tools in sensor technologies, sensing devices, and semiconductors. The AI industry's advancements and the growing demand for sophisticated designs in consumer electronics and automotive industries contribute to the market's ongoing expansion.

Commenting on the market trends, a Senior Analyst of Technavio, stated," Machine learning in Electronic Design Automation (EDA) enhances productivity and cost reduction, expanding the market for EDA tools. Key industries like connected gadgets, semiconductors, AI, automotive, VLSI, consumer electronics, and IoT benefit from faster, resource-efficient EDA solutions. Innovations in EDA tools for 5G communications, aerospace systems, and integrated circuits further boost demand."

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Analyst Review

The Electronic Design Automation (EDA) market plays a pivotal role in the development and production of various consumer electronics, including smartphones, laptops, smartwatches, fitness devices, and fitness trackers. EDA software is essential for designing miniaturized chips and ICs used in these devices, ensuring accuracy and efficiency in the manufacturing process. The semiconductor industry, including avionics systems and programmable chip platforms, also heavily relies on EDA tools for hardware design and computer-aided design. Furthermore, the integration of artificial intelligence, IoT industry, AI industry, and cloud-based solutions into consumer electronics necessitates advanced EDA technologies to meet the demands of these complex systems. Electronics firms continue to invest in EDA software to stay competitive and innovate in the rapidly evolving consumer electronics landscape.

Market Overview

The Electronic Design Automation (EDA) market plays a crucial role in the semiconductor industry by providing innovative solutions for designing and manufacturing electronic circuits and systems. ICs (Integrated Circuits), microprocessors, and SoCs (Systems on Chips) are key components that drive the growth of the EDA market. Smartphones, consumer electronics, automotive, and industrial applications are major sectors that fuel the demand for EDA tools. The market is segmented into various categories, including simulation, layout design, verification, and circuit design. The increasing complexity of electronic designs and the need for faster time-to-market are major challenges for EDA vendors. However, advancements in AI and machine learning technologies are providing new opportunities for automating design processes and improving productivity. The EDA market is expected to grow significantly in the coming years due to these factors.

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About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio