Electronic Design Automation Trends and Forecast
The future of the global electronic design automation market looks promising with opportunities in the consumer electronics industry, automotive, and healthcare markets. The global electronic design automation market is expected to reach an estimated $17.4 billion by 2030 with a CAGR of 8.1% from 2024 to 2030. The major drivers for this market are growing demand for electric automobiles, increasing vehicle digitization, and growing need in the aerospace and military industry for EDA solutions.
• Lucintel forecasts that, within the deployment mode category, on-premises will remain the larger segment over the forecast period due to growing need to manage their operational processes to improve their efficiency and productivity, and aids in giving businesses more control over critical information and procedures.
• In terms of regions, APAC is expected to witness fastest growth over the forecast period due to increase in the number of businesses engaged in electronic manufacturing, growth of the cloud computing industry, rising use of smartphones, and the rising appeal of smart wearables.
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Emerging Trends in the Electronic Design Automation Market
The EDA industry is undergoing major changes due to the increasing demand for faster, smarter, and more efficient design integration than ever before. The current market scenario is evolving, with five broad trends pushing the limits of electronic design and automation.
• AI-Enabled Design Automation: AI is optimizing processes by deploying EDA technology throughout the entire design process. This reduces design time, provides predictive insights, and significantly increases the precision and efficiency of design processes.
• Cloud EDA: Cloud migration is providing resources that can be applied virtually, making high-performance EDA tools accessible even to smaller entities and supporting users from any part of the world.
• EDA for 5G and IoT Technologies: The growth of 5G and IoT technologies has created a demand for advanced EDA tools capable of designing complex, energy-efficient circuits that operate at very low power, which is critical for these technologies.
• Open Source Tools for EDA: Open-source EDA tools offer opportunities for rapid design implementation, allowing developers to create more designs without relying on commercial packages.
• Automotive Electronics: The shift toward electric and autonomous vehicle development requires transforming EDA tools to support the creation of highly reliable and safe automotive electronics with real-time computational capabilities, focusing more on the dynamics of automotive systems.
These trends are creating a paradigm shift in the EDA market, fostering innovation, increasing productivity, and enabling the creation of cutting-edge electronic systems with a promise for more technological advancements in the future.
Recent Developments in the Electronic Design Automation Market
The Electronic Design Automation (EDA) market is gradually advancing, with new trends signaling the industryÄX%$%Xs shift toward optimizing operations and adopting new technologies. These improvements are not only enhancing existing features but also opening doors for future advancements in electronic design.
• AI-Powered EDA Tools: The integration of AI functionalities within EDA tools is enhancing the design process, enabling the development of faster and better circuit designs, as well as improving forecasting capabilities.
• Expansion of Cloud-Based Platforms: More EDA firms are offering cloud-based technologies, enabling the scaling of resources and supporting global development.
• Specialization in 5G and Internet of Things: The development of 5G and IoT technologies requires low-power, high-speed designs, leading to an increase in the demand for EDA tools designed specifically for these applications.
• Growth of Open-Source Initiatives: The open-source movement in EDA has proven successful, with the development of accessible generic tools that can be modified and enhanced through collaboration and motivation.
• Focus on Automotive Electronics: EDA tools are being adapted for the automotive industry, focusing on the design of electric and autonomous vehicles and the development of VLSI circuitry for such vehicles.
These trends are shaping the future of the EDA market, driving it toward more advanced, efficient, and innovative design approaches while promoting new methodologies for future growth in the industry.
Strategic Growth Opportunities for Electronic Design Automation Market
The electronic design automation (EDA) market is rapidly increasing its market share due to technological advances, greater electronic design complexity, and the growing use of electronic devices across various sectors. The market position is evolving, and new areas of strategic growth are developing for EDA vendors to explore.
• Automotive Electronics: The growing use of electrification and automation in vehicles is increasing the need for more advanced electronic systems. One critical tool in the process of developing and testing these systems is EDA software.
• Internet of Things (IoT): The rise of IoT devices is creating a huge market demand for EDA tools. These tools are essential for the creation of low-power, energy-efficient connected devices.
• Artificial Intelligence (AI): EDA tools enable the design and optimization of hardware and software required for AI applications. The current increase in demand for AI chips and accelerators is expanding opportunities for EDA vendors.
• 5G Communication: The launch of 5G networks is fueling the need for fast and reliable communication systems. Towers and circuitry for 5G communication networks are highly complex and require EDA tools for their design.
• Consumer Electronics: The consumer electronics market presents a wide range of products, and its demand for innovative interface features is ever-growing. In the design and fabrication of these products, the use of EDA tools is crucial and cannot be overlooked.
These strategic growth opportunities are strongly influencing the electronic design automation market. EDA vendors are investing significant resources in innovations aimed at creating new tools and solutions for these applications. The marketÄX%$%Xs development is expected to continue at a moderate pace, with new technologies and the increasing demand for electronic equipment driving growth.
Electronic Design Automation Market Driver and Challenges
Over the past few years, the electronic design automation (EDA) market has been influenced by developments in technology, the economy, and regulatory policies. These factors are general to the market; they are not only obstacles but also drivers of growth for the market.
The factors responsible for driving the electronic design automation market include:
•Technological Advancements: With continuous innovation in semiconductor technologies such as Moore’s Law and 3D ICs, there is a growing need for more complex EDA tools to design and test increasingly sophisticated chips.
•Increasing Design Complexity: The need to design more complex electronic systems, such as multi-core processors and embedded systems, has necessitated the use of EDA tools that are robust enough to handle these challenges.
•Rising Demand for Electronic Products: The increasing use of electronic products across various sectors, including the automotive industry, consumer electronics, and medical devices, will drive greater demand for EDA tools for product development.
•Growing Focus on Energy Efficiency: There is a constant need to create EDA tools capable of managing power efficiency and thermal systems due to the rising demand for energy-hungry electronic systems that need to perform efficiently.
•Emergence of New Applications: The development of new design segments, including AI, IoT, and self-driving cars, is opening up new functions for EDA tools to address specific design needs.
Challenges in the electronic design automation market include:
•Rising Costs: The increasing demand for electronic designs and the advancement of electronic design automation (EDA) could lead to high development costs, creating stiff competition among smaller companies.
•Intellectual Property (IP) Protection: IP is crucial in the EDA space, and protecting intellectual property from theft is challenging, particularly when trying to prevent unauthorized access or infringement.
•Regulatory Compliance: Adhering to various compliance measures, such as safety, public health, and environmental regulations, can create additional challenges for EDA software developers and users.
The electronic design automation industry is witnessing remarkable growth due to advancements in technology, increasing design complexity, and a rising demand for electronic devices. However, the market also faces challenges, such as high costs, IP protection issues, and regulatory compliance. The future success of EDA providers will depend on their ability to navigate these drivers and challenges
List of Electronic Design Automation Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies electronic design automation companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the electronic design automation companies profiled in this report include-
• Cadence Design Systems
• Synopsys
• Siemens
• ANSYS
• Keysight
• Advance Micro Devices
• Einfochips
• Altium
• Zuken
• Silvaco
Electronic Design Automation by Segment
The study includes a forecast for the global electronic design automation by product category, deployment mode, end use, and region.
Electronic Design Automation Market by Product Category [Analysis by Value from 2018 to 2030]:
• CAE
• Semiconductor IP
• PCB & MCM
Electronic Design Automation Market by Deployment Mode [Analysis by Value from 2018 to 2030]:
• On-Premises
• Cloud-Based
Electronic Design Automation Market by End Use [Analysis by Value from 2018 to 2030]:
• Consumer Electronics Industry
• Automotive
• Healthcare
• Others
Electronic Design Automation Market by Region [Shipment Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Electronic Design Automation Market
Technological progress and rising demand for sophisticated integrated circuits have greatly influenced the growth of the Electronic Design Automation (EDA) market. Major players in various countries, such as the US, China, Germany, India, and Japan, have created their own space in the EDA market, highlighting the unique changes that characterize the evolution of global EDA.
• United States: Growth in AI-based EDA tools continues in the US, which also helps improve semiconductor design tools, boosting innovation and enhancing design productivity, especially in semiconductor design.
• China: China mainly focuses on developing its own EDA software, aiming to reduce dependence on other countries. This effort is supported by ample funding in AI, particularly for cloud-based design tools.
• Germany: Germany’s focus is on the automotive electronics segment, leveraging emerging and advanced EDA techniques to develop autonomous vehicle systems and improve the accuracy of automotive chip designs.
• India: EDA services outsourcing is on the rise in India, as the country has developed a highly skilled workforce that offers such services at lower costs to international semiconductor firms in need of design assistance.
• Japan: Japan is allocating resources and efforts to EDA for Internet of Things (IoT) and 5G applications, accelerating the development of technologies such as high-performance computing and communication
Features of the Global Electronic Design Automation Market
Market Size Estimates: Electronic design automation market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Electronic design automation market size by product category, deployment mode, end use, and region in terms of value ($B).
Regional Analysis: Electronic design automation market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different product category, deployment mode, end use, and regions for the electronic design automation market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the electronic design automation market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q.1 What is the electronic design automation market size?
Answer: The global electronic design automation market is expected to reach an estimated $17.4 billion by 2030.
Q.2 What is the growth forecast for electronic design automation market?
Answer: The global electronic design automation market is expected to grow with a CAGR of 8.1% from 2024 to 2030.
Q.3 What are the major drivers influencing the growth of the electronic design automation market?
Answer: The major drivers for this market are growing demand for electric automobiles, increasing vehicle digitization, and growing need in the aerospace and military industry for EDA solutions.
Q4. What are the major segments for electronic design automation market?
Answer: The future of the global electronic design automation market looks promising with opportunities in the consumer electronics industry, automotive, and healthcare markets.
Q5. Who are the key electronic design automation market companies?
Answer: Some of the key electronic design automation companies are as follows:
• Cadence Design Systems
• Synopsys
• Siemens
• ANSYS
• Keysight
• Advance Micro Devices
• Einfochips
• Altium
• Zuken
• Silvaco
Q6. Which electronic design automation market segment will be the largest in future?
Answer: Lucintel forecasts that on-premises will remain the larger segment over the forecast period due to growing need to manage their operational processes to improve their efficiency and productivity, and aids in giving businesses more control over critical information and procedures.
Q7. In electronic design automation market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness fastest growth over the forecast period due to increase in the number of businesses engaged in electronic manufacturing, growth of the cloud computing industry, rising use of smartphones, and the rising appeal of smart wearables.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the electronic design automation market by product category (CAE, semiconductor IP, and PCB & MCM), deployment mode (on-premises and cloud-based), end use (consumer electronics industry, automotive, healthcare, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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