Electronic design automation (EDA): Key market research findings
- Complexity of semiconductor designs spurs market growth
- Semiconductor IP accounts for a majority of the market’s revenue
- Key vendors – Cadence Design Systems, Mentor Graphics, and Synopsys
Technavio’s market research analysts predict the global market for EDA to grow at a CAGR of around 9% between 2016 and 2020. The growth of the market is spurred by the increasing complexity of semiconductor designs. Electronic device manufacturers are increasing the number of features and functionalities in their devices to differentiate their offerings from others. The rising demand for miniaturized electronic devices has resulted in a high level of integration on a single chip. With the growing complexity of semiconductor device designs, manufactures are increasingly adopting EDA to develop advanced semiconductor devices. During 2015, the global EDA market was dominated by the Americas with a market share of around 43%. The presence of some leading vendors coupled with macroeconomic factors such as stable economy, favorable government policies, and growing demand and acceptance for consumer electronics in the US will fuel the growth of the EDA market in the Americas over the next four years.
The new market research report from Technavio presents a breakdown and analysis of the EDA segments based on the product.
“Semiconductor device manufacturers are shifting their attention from logic, analog, and discrete devices to memory devices such as 3D NAND and DRAM. The high growth potential of semiconductor memory devices compared with other semiconductor devices is the major driving force behind this shift. Factors such as high vibration resistance and minimal chances of corruption and data loss are triggering the adoption of flash memory for data storage by smartphone and notebook OEMs,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
The semiconductor IP segment dominated the global EDA market in 2015 by accounting for almost 38% of the overall market revenue. Semiconductor IP refers to the reusable designs or blocks that can be licensed or used by the owners themselves or can be sold to others. The segment includes SIP-related software and tools, embedded software, macro cells and cores, and SIP verification. The constantly increasing demand for high-performance and reliable semiconductors from the automotive, engineering, power, and healthcare sectors will drive the growth of this market segment during the forecast period.
The key vendors in the global EDA market include Cadence Design Systems, Mentor Graphics, and Synopsys. Despite the high market competition, there is a lack of product differentiation in the market, resulting in lower margins for most vendors. The US-based EDA vendors are continuously under threat as Japanese and South Korean EDA vendors are supplying these tools at relatively lower costs. Furthermore, the labor-intensive nature of the EDA industry increases the number of actual and potential competitors in the market. The remaining 20% of the market is made up of small vendors such as JEDA Technologies, Agnisys, Aldec, Tanner EDA, Sigrity, Ansoft, Zuken, ATopTech, and Forte.
A more detailed analysis is available in the Technavio report, Global EDA Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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