According to the Market Statsville Group (MSG), the global EDA software market size is expected to grow from USD 11.1 million in 2022 to USD 28.4 million by 2033, at a CAGR of 8.9% from 2023 to 2033. The market was impacted heavily due to the pandemic as the hardware supply has hampered due to logistic activities that was closed due to the lockdown in all around the world. EDA software helps to reduce cost as well as time concerning in electric circuit designs. The software also helps to eliminate manual errors, and this will boost the market for the forecasting period. Tech integration to the existing solutions such as machine learning and artificial intelligence will reduce the design costs, and this will create avenues for future growth.
Electronic Design Automation (EDA) Software is a type of software algorithm that allows for the design of complex electronic systems such as printed circuit boards (PCBs), integrated circuits (ICs), and others. The EDA software enables the designer to analyze, monitor, and simulate designs before they are implemented in practical. All the tools in EDA work together to design and analyze entire semiconductor chips during a specific design flow determined by chip designers. Since modern semiconductor chips contain billions of components, EDA tools have become an essential component in design. It also assists semiconductor manufacturing companies in reducing chip development time while increasing design accuracy. The EDA market players are providing desirable services in addition to their software packages, such as fault tracking, training, maintenance services, and troubleshooting, giving licensed software to distinct advantage over free or open-source software tools.
The spread of the novel coronavirus, i.e., COVID-19, has severely squeezed the China EDA software markets. The EDA Software markets are incredibly uncertain in these times, with countries worldwide suffering from this pandemic's destabilizing effects. A few companies are impervious to the economic obstacles generated by the health crisis, and there are genuine fears about the global economy's annihilation.
The EDA software market is seemingly witnessing a recent downfall in COVID-19 in China. This is due to the reduction in the adoption of EDA software, in order to contain the spread of the COVID-19. Amidst the pandemic, the decline in investment has been projected on the electronic design automation industry as compared to the spending plan before this pandemic, due to a decline in semiconductor industry revenues in 2020, coupled with the slowdown in the manufacturing process and shortage of raw material supply. The COVID-19 outbreak has led to disruption in the supply chain which results in factory shutdowns at many places.
A system-on-a-chip (SOC) is an integrated circuit that consists of a processing engine, memory and logic on a single chip. Advancements in System on Chip (SoC) will propel the semiconductor IP market growth that results in innovative design methodologies in less time and develop tools for the new architecture. Various market players are focusing on introducing innovative design methodologies for an increase in demand for modelling activities, which is a responsible driving factor for the electronic design automation software market growth. Despite continued trade concerns with the United States, China is stepping up to develop its local semiconductor industry to become more self-sufficient. Electronic Design Automation (EDA) software collects methodologies and technologies to create sophisticated next-generation semiconductor and electronics products. During the projected period, the market will rise due to various industries fuelled by innovation and development. China's semiconductor consumption accounted for almost 40% of the worldwide total in this way, and consumption is expanding in China due to advancements and innovations and market companies spending in research and development to offer service in other sectors, thus, augmenting the growth of the market.
The availability of open-source EDA software may hamper the growth of the market owing to the right to change, modify, or enhancing the coding part by any user or software developer. Generally, the source code is the code that computer programmers can manipulate or change how a piece of software, program, or application works.
The programmer may duplicate the software or Programmers who have access to the source code of a computer software can improve it by adding features or repairing areas that don't always perform properly. Moreover, the price and flexibility offered by open-source EDA software attract many companies. This may negatively impact the demand and sale of closed-source or proprietary-based EDA software manufacturers or developer companies. Thus, the availability of open-source EDA software restricts the demand of China EDA market over the forecast period. However, a rise in demand for smaller electronic devices will drive the growth of the market.
Over the last several years, the use of IoT, virtual reality (VR), and artificial intelligence (AI) technology are rising at a significant pace in every industry. Gradually, the electronic industry, automotive, pharma and biotech and other industries are employing more efficient, automated processes that integrate data-driven decisions and utilize predictive analytics tools. The emergence of an automated process to advanced functionality further integrates AI and machine learning technology. Employing this technology, introduce the speed advantage, a performance advantage, new features, new insights, astonishing and further introduces feasibility of every application sector.
The study categorizes the EDA software market based on type and application area at the regional and global levels.
Based on the application, the market is bifurcated into communication, consumer electronics, automotive, industrial, aerospace & defense, medical and others. The consumer electronics segment accounted for the highest in EDA software market size in all around the globe for the forecasting period. This is due to continuous advancements in consumer electronics such as smartphones, laptops, desktop computers, tablets, cameras, and others. EDA software is also expected to fill a gap in the market for methods, models, and tools that would allow for faster and more accurate design and verification of microelectronic systems and circuits which is driving the growth of this segment for the forecasting period.
Throughout the forecast period, the integrated circuit (IC) physical design & verification sector is predicted to develop at a significant rate in the total EDA software market. This is owing to increased IC design complexity as well as rising need for high accuracy and precision in semiconductor devices. Furthermore, end-users are increasingly utilizing IC design and verification EDA tools to automatically perform circuit placement and routing on an IC or application-specific integrated circuit (ASIC).
Based on the regions, the global EDA software market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. North America accounted for the highest market share in electronic design automation software market for the forecasting period. Due to high spending on electronics devices in this region. Furthermore, the large presence of key market vendors in North America propels market growth in this region. Moreover, increased demand from sectors such as automotive, medical, and communications, among others, in North America is one of the key driving factors of the North America electronic design automation software market.
The EDA software market is extremely cutthroat, and significant competitors in the sector are using strategies including product launches, joint venture, partnerships, collaboration, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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