EDA market to rise substantially
Global electronic design automation market study by Global Market Insights Inc. covers analysis of the product, application and geographical trends
The electronic design automation (EDA) market share will rise substantially due to rapid development of smart devices targeting a slew of business applications along with increased production of more efficient semiconductor products, according to a recent market study by Global Market Insights Inc.
Growing demand for medical and surgical devices as well as consistent advancement of consumer electronics portfolio globally will strengthen the adoption of EDA tools over the projected timeframe, the study shows. Demand for automotive infotainment systems and mobile phones have transformed the manufacturing segment and brought about innovations in pcb design software to meet the changing requirements.
Computer aided engineering (CAE) has become one of the most important electronic design automation tools for enhanced analysis of objects as compared to earlier software solutions. Manufacturers prefer CAE for lowering simulation costs and time during the design process, while minimizing errors and improving the performance of components. With innovation and product development standing as the key parameter outlining competitive dynamics in the electronics sector, global electronic design automation (EDA) market will garner substantial momentum with the deployment of CAE services.
Expanding cloud and IoT space has driven technological progress in the semiconductor industry, encouraging companies to assemble multiple components on a single System-on-Chip, which entails highly complex designing of chips. The design complexity will only increase depending on evolving technology requirements.
5G technology is projected to transform connectivity and impact the pace of innovations
Global electronic design automation market is poised to register significant gains from telecommunication applications, as the availability of faster networks create more challenges for chipmakers. EDA software and service providers will look to offer suitable design, verification and testing products for SoC aimed at 5G-compatible smartphones and IoT devices. Keysight Technologies is one such company which is offering a toolset for helping SoC manufacturers streamline 5G device workflow and perform the verification of 5G protocols faster.
5G technology is projected to transform connectivity and impact the pace of innovations in consumer appliances and industrial manufacturing. IoT devices developed for use in various enterprise landscapes will offer considerable opportunities for EDA tool providers to leverage the massive demand for semiconductors and printed circuit boards, as new telecommunication devices are built for imminent 5G deployment, including smartphones. Approximately 732 million smartphones had been purchased in Asia Pacific in 2018, suggesting a vast market for 5G-ready chips in the near future.
Increased utilization of various medical devices aimed at improving patient care will generate remarkable demand for electronic design automation tools required to build critical electronic products. Semiconductor chips are now being designed to suit healthcare applications like patient monitoring, fitness devices and wearables, among many other devices. U.S. spending on medical devices and in-vitro diagnostics had crossed USD 173.1 billion in 2016 alone and was expected to grow further, in conjunction with the robust growth of healthcare spending in the region.
Unmatched rise in the adoption of smartphones and digitization
Asia Pacific electronic design automation (EDA) industry size is anticipated to experience a steady expansion over the forecast timeframe owing to widespread presence of electronics and automobile manufacturing companies, as well as a surge in the purchasing power of consumers. The region has witnessed an unmatched rise in the adoption of smartphones and digitization of business processes, fueling deployment of electronic design automation software to cater to a booming consumer electronics manufacturing sector.
Several manufacturers in APAC have undertaken efforts for expanding beyond existing territories and boost production capacities for all electronic devices they make. For example, Taiwanese group Foxconn had recently purchased land use rights in Vietnam and invested a huge amount in an Indian subsidiary. Pegatron, which assembles around 30% of Apple Inc.’s products, had also announced plans to increase capacity in India, Indonesia and Vietnam. Higher production of electronic products and components will certainly propel APAC electronic design automation market forecast in the coming years.
Proliferation of the manufacturing segment in U.S. has resulted from the development of modern production technologies and increased access to faster communication network over the past decade. The country is home to leading chipmakers like Qualcomm and numerous EDA software providers, which serve the consumer electronics, aerospace and automotive OEMs in the region. The U.S. consumer electronics sector is anticipated to reach USD 301 billion valuation in 2019, demonstrating the tremendous potential of EDA market from a higher demand for electronic products.