Electronic Design Automation Software Market is Predicted to 9.3% CAGR till 2028

The global electronic design automation software market size was valued at USD 9.41 billion in 2020 and is expected to witness a compound annual growth rate (CAGR) of 9.3% from 2021 to 2028.

The global Electronic Design Automation Software Market size is anticipated to reach USD 19.04 billion by 2028, registering a CAGR of 9.3% over the forecast period, according to a new study by Grand View Research Inc. The COVID-19 pandemic resulted in a minor setback due to several manufacturing industries being shut down. However, the market has seen a resurgence in the second half of 2020 and is expected to have a steady growth in the coming years.

This growth is attributed to the increasing trend of miniaturization of chips and other systems, making the use of EDA software imperative to reduce manual errors in IC designing. The growing popularity Fin FET architecture for designing modern processors to meet the advanced technological requirements of the consumer electronics industry is anticipated to augment the market growth.

Modern-day consumer electronic devices are getting more powerful but miniaturized in size. Designing chips for such compact devices requires advanced electronic design and automation solutions capable of eliminating designing flaws. As a result, the demand for EDA software is anticipated to witness a steady rise over the forecast period. As EDA tools are subject to copyright, patents, and trademarks, key players often offer their authorized and authentic products at higher prices. This has led various medium- and small-scale enterprises to adopt open-source EDA software. The use of such open-source software is expected to pose a challenge to market growth. However, these open-source EDA tools are prone to cyber-attacks and are expected to lose trust in the long run.

Cadence Design Systems, Inc.; Synopsys, Inc.; and Mentor, a Siemens company, are the three key companies that held the majority of the revenue share in 2020. These companies are focused on providing novel products in an attempt to beat the competition by product differentiation. For instance, in August 2020, Synopsys, Inc. introduced a virtual prototyping solution for integrated Electric Vehicles (EVs). This new solution leverages the company’s other technologies, such as Virtualizer, SaberRD, TestWeaver, and Silver, thereby enhancing the specific needs in developing an EV. The introduction of this solution is expected to strengthen the company’s position in the EV market.

Related Press Release@ Electronic Design Automation Software Market Report

Electronic Design Automation Software Market Report Highlights

• Owing to increasing automation across several end-use industries, especially post COVID-19 pandemic, the microprocessors & controllers segment is projected to grow at a CAGR of more than 9% from 2021 to 2028
• Asia Pacific accounted for more than 34% of the overall revenue share in 2020 and is estimated to expand at the fastest CAGR from 2021 to 2028
• The regional market growth is attributed to the high demand for electronic devices coupled with the presence of several electronics manufacturers in countries, such as China and Taiwan
• Key players in the market are adopting inorganic growth strategies to offer solutions to varied end users and acquire a larger market share
• For instance, in September 2020, Silvaco, Inc. completed the acquisition of Coupling Wave Solutions S.A., a system-level interference analysis tools provider based in California, U.S.
• This acquisition helped Silvaco, Inc. extend its portfolio to the analysis of RF SOI (Silicon on insulator) substrates to assist in modeling and simulation of noise interference in circuits used for Internet-of-Things (IoT) and 5G applications