The global cloud EDA market was valued around $411 million in 2015 and is expected to surpass $573 million by 2020, says Technavio.
Technavio’s product lifecycle management portfolio has announced its latest market research report on cloud EDA for the forecast period, 2016-2020. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the global cloud EDA market during the forecast period. Some of the top vendors listed in this industry analysis include Cadence Design Systems, Mentor Graphics, and Synopsys.
In terms of geographical segmentation, the US will be the fastest-growing region in the global market, expected to reach revenues of around $313 million by 2020. The growing implementation of electronic features and components in cars, favourable government policies, and the development of miniaturized electronic products are some of the major factors driving growth in the cloud EDA market in the Americas.
“One of the major trends gaining traction in this market is theshift from perpetual to subscription licensing model. The provision of EDA tools based on the subscription license model has smoothened the purchasing process for users. The users are entitled to receive upgrades and maintenance facilities for a particular time period. It also provides large companies and small and medium-sized enterprises easy access to these tools because the TCO has reduced substantially,” says Amrita Choudhury , an industry expert at Technavio for research on product lifecycle management.
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The new industry research report from Technavio analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Growing demand for EDA in semiconductor industry
The major revenue generator of the global cloud EDA market is the semiconductor industry. The semiconductor industries are increasingly adopting EDA tools due to continuous decrease in the size of semiconductors and the increased scale of integration. The reduced size enables these industries to decrease the complexity and difficulties involved in the design of semiconductor chips. The use of EDA tools has substantially reduced the product development time from around 2-3 years to around two or three weeks. The automotive and industrial machinery industries are the major end-users of semiconductors. The growing demand of electronic components for automobiles owing to smart connectivity has also increased the demand for cloud EDA in the design phase of automobiles. In the electrical and electronics industry, there is a high demand for smartphone, laptop, and tablet manufacturers. With the increase in DTH services in rural parts of the developing countries such as Brazil and India, the adoption of set top boxes has increased leading to an increase in the demand for EDA. The industry underwent huge changes over the past 15 years especially in terms of the major players. Besides the presence of major players such as US, Japan, and South Korea, the industry also has the strong existence in countries like China and Vietnam. The presence of manufacturing units of most countries in China, has made the country electronics manufacturing hub of the world. This increase in the number of manufacturing units has propelled the demand for electronic goods resulting in an increased demand for EDA.
Increase in adoption of EDA to reduce design time
In the aerospace and defense industry, the effective adoption of EDA in the manufacture of the equipment has reduced the design time, cost, and errors. The adoption of EDA tools has proved to be very beneficial for the aerospace and defense industry. For example, Bell Helicopter adopted Mentor Graphics Capital product family to streamline the wiring design process and used Capital Suite, which is an advanced electrical system and wire harness design software suite. The adoption of advanced Capital Suite systems enabled the company to reduce the time taken in electrical system integration by eliminating prototypes. Such increase in the adoption of EDA, leading to reduction in design time is helping the companies to achieve market time, thereby positively aiding in the growth of the overall market.
Increase in M&A
The global cloud EDA market is witnessing a surge in M&A and strategic alliances. The moderate growth of the global cloud EDA market has propelled major players to increase their market shares. To increase the market shares, major players and emerging manufacturers are following the M&A strategy. The M&A strategy enables vendors improve their distribution channels and increase their market reach. It also helps companies to endure competitiveness and uphold their position in the market.
Some of the other prominent vendors identified in this report are Agilent, Agnisys, Aldec, Ansys, JEDA Technologies, MunEDA, Sigrity, and Zuken.
This research report includes an in-depth analysis, market shares, and sizes of the sub-segments and geography. It provides a comprehensive analysis of the key companies, including their market shares, business overview, key financials, etc. The market study also offers a detailed analysis of key drivers, challenges, and opportunities influencing this market.
A more detailed analysis is available in the Technavio report titled, ‘Global Cloud EDA Market 2016-2020‘. Technavio also customizes reports by other regions and specific segments upon request.
Other related reports:
- Global Electronic Design Automation Market 2016-2020
- Global EDA Market in the Aerospace and Defense Sector 2015-2019
- Global EDA Market in the Automotive Industry 2015-2019
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