According to the latest market research study released by Technavio, the global semiconductor IP market is expected to grow at a CAGR of almost 15% during the forecast period 2016-2020.
This market research report by Technavio provides an in-depth analysis of the market in terms of revenue and emerging market trends. The report also includes an up-to-date analysis and forecasts for various market segments and all geographical regions.
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Technavio research analysts categorize the global semiconductor IP market based on application:
Global semiconductor IP market share by application 2015
|
Mobile devices |
53.54% |
|
Consumer electronics |
24.81% |
|
Automotive |
8.21% |
|
Industrial automation |
6.16% |
|
Networking |
4.22% |
|
Healthcare |
3.06% |
Source: Technavio
The top three revenue contributing application segments are discussed below:
Mobile devices
In 2015, mobile devices contributed around 54% to the global semiconductor IP market. Technavio anticipates that the market for mobile devices will continue to rule the semiconductor IP market during the forecast period due to the rising adoption of smartphones and tablets. To cater to the emerging economies such as India, vendors of leading brands such as Apple and Samsung are focusing on product innovation at better prices. A lot of R&D with alterations in chips is required for the development of these innovative products. Despite having a limited space in chips, vendors desire to offer maximum performance in chips to consumers, which leads to chip complexity. Such growing complexities create the need for establishing new IP cores or blocks.
“Big players such as Samsung and Apple are facing stiff competition from the regional Chinese vendors such as Xiaomi and OnePlus. This fiercely competitive scenario can be best witnessed in the emerging markets such as India, where consumers expect best features and functionalities at affordable prices. For instance, premium mobile device seller, Apple had around 30% decline in sales in the Indian market, even after launching low-cost version of iPhone in the form of iPhone SE with reduced performance power. This depicts that the Indian market favors functionalities and features over premium products, creating more demand for third-party IP cores,” says Sunil Kumar Singh, lead analyst at Technavio for research on semiconductor equipment.
Despite stiff competition, there are several leading mobile device merchants who are doing well globally. The presence of numerous vendors has made the mobile sector one of the foremost contributing segment to the semiconductor IP market.
Consumer electronics
In 2015, the consumer electronics segment accounted for around 25% of the global semiconductor IP market and is expected to continue as the second largest contributor to the market during the forecast period. This segment includes electronic devices such as refrigerators, ACs, TVs, home theaters, and washing machines, as well as wearable devices such as smart watches and fitness gadgets. The consumer electronics manufacturers are focusing on the delivery of high-quality products, to meet the growing demand for smart, power saving, and efficient household equipment. The consumer electronic products are incorporated with improved and high-powered semiconductor devices that can deliver high performance with more functionalities and reduced power consumption at low costs. Moreover, the introduction of 3D and ultra-high-definition (UHD) TVs has increased the demand for high-performance ICs, calling for the need of third party IP cores, which will further propel growth in the semiconductor IP market.
Automotive
The automotive sector accounted for around 9% of the global semiconductor IP market in 2015. Technavio expects that the vehicle automation trend will lead to an increased adoption of ICs into automobiles leading to the need for third party IP cores, during the forecast period. The automation trend in vehicles are yet to be widened owing to the expensive mass production and the on-going testing process. This is best seen in cars designed by Google, that are mostly used for testing purposes. However, partial automation in automobiles may witness growth in the middle of the forecast period due to its benefits such as reduced congestion, fuel efficiency, vehicle-to-vehicle communication, and implementation of radical redesigns in automobiles to make them lighter.
Highly advanced and functional ICs with complex designs will be required to achieve complete automation in mobiles, leading to the requirement for third-party IP cores. For instance, large vendors such as Google are making huge investments on research activities in driverless cars segment, while Volkswagen’s first self-driving cars are expected to appear in the market by 2019, and Ford’s fully self-driving vehicles will be launched by 2021. Vendors are using new semiconductor chip designs to give superior performance to driverless cars, which are still in the developing stage. This will lead to the surge in the amount of new cores and blocks registered by the automotive vendors, resulting in the growth of the semiconductor IP market.
The top leading vendors operating in the global semiconductor IP market are:
- ARM
- Synopsys
- Imagination Technologies
- Cadence Design Systems
Other prominent vendors in the market are Lattice Semiconductor, Ceva, eMemory, VeriSilicon, Sonics, and Rambus.
A more detailed analysis is available in the Technavio report titled, ‘Global Semiconductor IP Market 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.
Other related reports:
- Global Semiconductor Clock Market 2016-2020
- Global Semiconductor Packaging Equipment Market 2016-2020
- Global Chip Handler Market 2016-2020
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