Semiconductor Intellectual Property Market: Established Players Try to Acquire IP Companies to Grow Shares, Says TMR

ALBANY, New York, September 11, 2017 /PRNewswire/ --

Some of the main players in the global semiconductor intellectual property market are Altera (acquired by Intel Corporation), Arm Limited, Cadence Design Systems, Inc., Ceva Inc., Cast In., eSilicon Corporation, Kilopass Technology Inc., Imagination Technologies Limited, Mentor, Perceptia Devices Inc., Open-Silicon, Inc., Rambus Inc., Silabtech Private Limited, Synopsys Inc., and Videantis GmbH.

The global semiconductor intellectual property market is choc-a-bloc with small and large vendors at present. Realizing the healthy growth potential in the market, many new players are foraying into it. These relatively new players are likely to focus on more discrete phases of IC design IP that would enable them to gain a solid foothold. Established keen players, on the other hand, are on the lookout to acquire other IP companies to increase their market share.

A report by Transparency Market Research forecasts the global market for semiconductor intellectual property to become worth US$9.1 bn by 2025 by registering a 10.7% CAGR in the forecast period extending from 2017 to 2025.

Depending upon type, the global semiconductor intellectual property market can be split into hard IP and soft IP. Among the two, the segment of soft IP led the market with a share of 51.7% in 2016. This is mainly because of the uptake of soft IP core, namely netlist and synthesizable cores, in various applications which helps to enhance the quality of hardware.

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Geographically, the key segments of the global market for semiconductor intellectual property are North America, South America, Asia Pacific, Europe, and the Middle East and Africa. Asia-Pacific, among them, accounted for maximum market share of 32.4% in 2016. This is primarily because of the exploding consumer electronics market in India, China, and Japan, which have upped demand of processor IP such as CPU processor IP, and different microprocessors IP as well as physical IP. 

Need to Lower Manufacturing Costs of Semiconductor Components Boosts Demand 

"Rising demand for reduced manufacturing and design costs of semiconductor components present in end-products has resulted in the growth of the semiconductor intellectual property market," explains the lead analyst of TMR report. Further, surging popularity of modern system on chips (SOC) designs are serving to drive the market too. Yet another factor proving beneficial to the market is the growing demand for semiconductor intellectual property to churn out innovative consumer electronics products.

Posing a challenge to the global semiconductor intellectual property market is the detection of infringement of patented technologies. This has forced many organizations to change their long-term licensing contracts to medium-term and short-term ones.

Healthcare Sector at Forefront of Driving Market 

Currently, the healthcare segment is majorly fuelling demand for semiconductor intellectual property services due to the demand for manufacturing of advanced devices consisting of multicore technologies for medical processes. This has led to the adoption of semiconductor intellectual property services in this segment.

A noticeable trend in the global market for semiconductor intellectual property market is the demand for less expensive and more reliable end-products with superior features. This has led to many new entrants in the market trying to cater to such requirements of customers.           

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This review is based on the findings of a TMR report, titled, "Semiconductor Intellectual Property Market (Type - Digital IP, Physical IP, and Processor IP; Architecture Design - Hard IP and Soft IP; Application - Healthcare, Telecommunications, Consumer Electronics, and Automotive) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2017 - 2025."

The global semiconductor intellectual property market is segmented as below:

Global Semiconductor Intellectual Property Market, by Architecture Design 

• Digital IP
• Physical IP
• Processor IP

Global Semiconductor Intellectual Property Market, by Type 

• Hard IP
• Soft IP

Global Semiconductor Intellectual Property Market, by Application 

• Healthcare
• Telecommunications
• Automotive
• Consumer Electronics
• Others

Global Semiconductor Intellectual Property Market, by Geography 

• North America
• Europe
• Asia Pacific (APAC)
• Middle East and Africa (MEA)
• South America

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SOURCE Transparency Market Research