London, 16 December 2015: Technavio, the independent tech-focused global research firm, has published a report on the global electronic design automation (EDA) in the automotive sector 21015-2019, which is expected to grow at a CAGR of 11.14% during the forecast period of 2014-2019.
The augmented use of infotainment systems such as navigation systems and vehicle audio systems in automobiles has increased the use of EDA in the automotive industry. EDA tools help semiconductor and electronic product manufacturing companies reduce product development time and increase design accuracy.
CAE is the largest segment in the global EDA market in the automotive industry, accounting for around 35% of the total market share. The CAE segment consists of the ESL, RTL simulation, hardware-assisted verification, analysis tool, synthesis, analog mixed-signal simulator, formal verification, design entry, and logic and formal verification sub-segments.
Global EDA market in automotive industry by product
Source: Technavio, 2015
“EDA vendors have started to provide software on a rental basis, which encourages the adoption of EDA software among SMEs because of the reduced TCO. Vendors are also offering cost containment commercial software packages that help reduce software license costs and enhance the efficiency of product development cycles,” says Faisal Ghaus, Vice President of Technavio.
Key Market Drivers
- Growing complexity in automotive industry
- Increase in demand for semiconductor chips
- Rapid Growth in ESL tools segment
Key Market Trends
- Increase in M&A
- Easy accessibility of online EDA tools
- Increased availability of EDA software on rental basis
Key Market Vendors
- Cadence Design Systems
- Mentor Graphics
To define the market circumstances in the next 3-4 years, Technavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.
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