Growing adoption by Semi players to boost EDA market
Stephen LawElectronics Engineering Software Semiconductors Engineering Supply Chain EDA
The global electronic design automation market is expected to grow at a CAGR of more than 5% during the forecast period of 2017-2021, according to a market study released by global tech research group Technavio.
“The semiconductor industry is one of the major contributors to the global EDA market,” says Ishmeet Kaur, lead analyst at Technavio for product lifecycle management research. “The persistent decrease in the size of semiconductor chips and the increased scale of integration has compelled semiconductor manufacturing companies to use the available EDA tools. EDA tools help reduce the overall product development time from two to three years to two to three weeks. The continuous growth in the semiconductor industry has triggered an increase in the demand for EDA tools.”
The market research analysis categorizes the global EDA market into five major product segments. They are:
* Semiconductor intellectual property (SIP)
* IC physical design and verification
* Printed circuit board (PCB) and multi-chip module (MCM)
Semiconductor Intellectual Property (SIP) is the largest segment of the global EDA market, with a market share of close to 34% in 2016. The rising demand for semiconductors in industries, such as automotive, engineering power, and healthcare, has propelled the growth of this segment. SIP includes sub-segments like SIP-related software and tools, embedded software, macro cells and cores, and SIP verification.
CAE was the second largest segment in the global EDA market, with a market share of close to 33% in 2016. This segment includes electronic security level (ESL), register-transfer level (RTL) simulation, hardware-assisted verification, analysis tool, synthesis, analog and mixed-signal simulator, formal verification, design entry, and logic and formal verification segments. ESL tools play a crucial role in this segment, and they are the fastest growing segment compared to other segments in CAE. The system-level approach of ESL tools enables users to design, verify, and simulate simultaneously at reduced costs and in less time.
IC Physical Design and Verification
The IC physical design and verification segment is the third largest segment of the global EDA market. Its sub-segments include physical verification, IC implementation, IC full custom layout, technology computer-aided design (TCAD), resolution enhancement technology (RET), and yield enhancement. The increasingly complex designs of ICs and semiconductor chips has propelled the growth of this segment.
“End-user industries are rapidly adopting IC design and verification tools to counter the complexities and difficulties that are associated with the designing of semiconductor chips,” says Ishmeet.
PCB and MCM
A PCB is a thin board made of fiberglass, composite epoxy, and a laminated material that connects the electrical and mechanical components in an electronic device. PCBs are used in products such as beepers, radar systems, and computer systems. An MCM integrates IC chips and semiconductors into a single unit. PCB and MCM is a crucial segment of the global EDA market.
The services segment is the lowest contributing segment of the global EDA market with a holding of around 5% in 2016. This segment is expected to grow at a CAGR of more than 8% percent during the forecast period. Services include maintenance of existing tools, updating of electronic design automation tools, and renewal of licenses and subscriptions.
The top vendors highlighted by Technavio’s ICT market research analysts in this report are:
* Cadence Design Systems
* Siemens PLM Software
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