Growing Adoption by the Semiconductor Industry to Boost the Global Electronic Design Automation Market Through 2021, Says Technavio

According to Technavio, the global electronic design automation market is expected to grow at a CAGR of more than 5% during the forecast period.

This research report titled ‘Global Electronic Design Automation (EDA) Market 2017-2021’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This report also includes an up to date analysis and forecasts for various market segments and all geographical regions.

According to Ishmeet Kaur, a lead analyst at Technavio for product lifecycle management research, “The semiconductor industry is one of the major contributors to the global EDA market. 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)
• Services

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.

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.

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