Electronic Design Automation Market to grow 6% into 2024
Growing demand for electronic design automation (EDA) tools to design and manufacture electronic products and systems, such as deep learning, Internet of Things (IoT), virtual reality, augmented reality and autonomous vehicle systems, will positively impact EDA market growth, according to a research report by Global Market Insights Inc. The report says revenue is predicted to be valued at USD$14 billion by 2024.
Early adoption of the technology and rise in research and development (R&D) activities by companies in the U.S. has proven beneficial to the industrial sector in the country. The proliferation of technologies, such as smart grids, IoT, smart metering, augmented reality, and drone technology in the industrial sector, is encouraging companies to implement these tools.
Fundamental enabling technology of modern electronics
Semiconductors are being commonly used in the consumer electronic devices such as PCs, smartwatches, smartphones, and tablets, and other smart products and can communicate with other components through a burgeoning network connected by the IoT. These components are the fundamental enabling technology of modern electronics and require microcontrollers, sensors, and memory to connect to each other and perform their functions. The infrastructure to connect all these devices is correlated to the continued innovations in the semiconductor technology. Owing to the rise in the adoption of smartphones and tablets over the last few years, the industry has witnessed an increase in touchscreens, proximity sensors, accelerometers, and camera modules. Designing these devices necessitates electronic tools, generating a high demand for the electronic design automation market growth.
The Semiconductor Intellectual Property (SIP) market accounted for over 30% of the electronic design automation market share in 2016 and is anticipated to grow at a high CAGR from 2017 to 2024. Growing applications of the SIP are witnessed majorly in the consumer electronics industry owing to the rise in the adoption of mobile devices such as tablets and smartphones. The development of smart devices involves an extensive R&D that has increased the complexity of chip design, leading to a high adoption of a new IP block or cores as mobile manufacturers are majorly focusing on providing enhanced performance to end users with limited chip sizes.
Smart electronic systems that cater to smart homes and connected devices
The development of smart electronic systems that cater to smart homes and connected devices is the key driver of the electronic design automation market in North America. Several component manufacturers are adopting technologically-advanced methods to reduce the design and manufacturing time of the electronic components. Early adoption and high penetration of technology are helping the EDA market in the region grow. In addition, the rise in investments from the government entities has led to a rise in the healthcare expenditure to enhance the healthcare infrastructure. Growing focus on the patient safety, intensifying government legislation, and technological revolution have augmented the usage of electronic designing tools, boosting the electronic design automation market growth in the region.
Key players in the electronic design automation (EDA) market include Synopsys, Inc., Cadence Design Systems, Mentor Graphics, Zuken, Inc., CadSoft Computer, Solido Design Automation, National Instruments, Xilinx, Inc., JEDA Technologies, Pulsonix, Intercept Technology, Inc., Invionics, and Keysight Technologies, among others.
The EDA market is characterized by moderate to high entry barriers, making it difficult for new players to gain a foothold in the industry. The industry comprises many players with a few prominent brands. The demand for consumer electronics and electric vehicles is anticipated to drive the electronic design automation market growth.