Market Trends of China Electronic Design Automation (EDA) Tools Industry
This section covers the major market trends shaping the China Electronic Design Automation Tools Market according to our research experts:
Automotive Sector is Expected to Witness Significant Growth
- The increasing demand for EDA tools in the automotive sector can be attributed to multiple innovations, such as autonomous vehicle technology, regenerative braking, and the inclusion of a variety of sensors (like LiDAR and cameras).
- The Chinese government views its automotive industry, including the auto parts sector, as one of the pillar industries. The Central Government of the country expects that the country's automobile output will reach 30 million units by 2020 and 35 million units by 2025.
- However, the China Association of Automobile Manufacturers revised their predictions for 2020, forecasting a 10% drop in sales for the first half of the year and 5% for the full year, on account of the coronavirus outbreak.
- The popularity of electric vehicles is growing across the globe. China is the dominant adopter of electric vehicles across the world. The 13th Five Year Plan of China promotes the development of hybrid and electric vehicles for advancements in the transportation sector. China is an early adopter of new technology that supports electric vehicles.
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Consumer Electronics is Expected to Hold Significant Market Share
- The factor driving the demand for EDA tools in the consumer electronics sector is owing to the efforts made by electronic manufacturers to increase the battery life of the device. Consumer electronics manufacturers are increasing the battery capacity of their devices (including smartphones, wearables, smart home devices etc.), due to which the demand for low charging devices is driving the market growth in this industry.
- China is also considered as the highest revenue-generating market for the semiconductor industry, primarily due to the country's growth in consumer electronics manufacturing.
- Moreover, China is one of the largest mobile markets, which highlights the country’s digitization strategy. It is also aiming to be a part of the first phase of 5G commercialization, with operators currently considering whether to pursue a standalone or a non-standalone model for 5G.
- Additionally, on the display front, panel production and chipset design and production have been impacted by the coronavirus outbreak. For instance, China Star Optoelectronics Technology (CSTO) with plants in Wuhan, announced to reduce the production by half. On the chipset manufacturing point of view, Samsung pushed back its production date of 3nm chips to 2022.
