The global Electronic Design Automation (EDA) software market is set to exceed US$ 11.2 billion for the 2023 year, according to an industry analysis by Fact.MR.
This represents a steady CAGR of 8.6% up until 2033, with valuations projected to reach US$ 25.6 billion. The report links this increase to a surge in the adoption of Internet of Things (IoT) devices and consequent robust demand for IoT solutions across a variety of sectors.
Global IoT connections grew 8% in 2021, totalling 12.2 billion active end users. As a result, businesses across the board now have the opportunity to capitalise on increased market potential. IoT devices had initially been niche markets, but smartphones, wearables, smart TVs, and smart home systems are now mainstream products. Each product utilises integrated circuits (ICs), thus fuelling the EDA software market. Additionally, advancements in processing power and the miniaturisation of smart connected devices signify the dawn of a new era for electronic design automation software firms.
Design EDA software will likely remain the most popular type of software in the global market, predicted to account for a valuation of US$ 4.3 billion in 2023. Web-based EDA software, valued at US$ 7.3 billion in the same year, is expected to command a strong 65.4% market share. Geographically, North America will likely grow at an 8.5% CAGR over the forecast period, with the U.S. accounting for 23.7% of the global market. Europe is due to generate a valuation of US$ 3 billion in 2023, while China will possibly reach a valuation of US$ 1.5 billion, projecting an 8.1% growth rate through 2033.
In such a competitive market, notable global suppliers of EDA software include Aldec, Inc., Altair Engineering Inc, Altium Limited, ANSYS, Inc, Cadence Design Systems, Inc., ELECTRO-SYSTEM CO.LTD, EMA Design Automation, Inc, Faraday & Future Inc, Intel Corporation, Intercept Technology, Keysight Technologies, Microsemi, Pulsic Limited, Siemens, Silvaco, Inc., Synopsis, Inc., Tabula, Taiwan Semiconductor Manufacturing Company Limited, WestDev 2022, and Zuken. Manufacturers are continually innovating software, answering modern challenges seen in electronic system production with the rise of VLSI systems.
Intel Corporation announced in February 2022 a significant partnership with top EDA software companies, Siemens EDA, Ansys, Cadence, and Synopsis. This alliance formed part of Intel's 'IFS Acceleration' programme, aiming to build an ecosystem supporting its new foundry service business. This partnership will enable software providers to fine-tune chip design software for Intel's newest process and packaging technologies.
Software providers are also looking at offering customisation to cater to the specific needs of an array of end-users. One such example is Synopsys, a leading American EDA company. In March 2022, they introduced their cloud-optimised EDA deployment model, offering chip and system design flexibility at new levels. Meanwhile, in August 2022, Siemens expanded its early design verification solutions for Calibre platform, aiming to allow users to quickly deliver high-quality silicon products.
Taken from the recently published report by Fact.MR, these insights present an unbiased analysis of the global electronic design automation software market, providing both historical data and forecast statistics. The findings highlight the software's accelerated growth, robust CAGR, and shifting market trends as it meets the rising technological demands of the IoT industry.