Global Electronic Design Automation Tools (EDA) Market Size

EDA Tools Market Analysis

The Global Electronic Design Automation Tools Market size is estimated at USD 17.72 billion in 2024, and is expected to reach USD 26.59 billion by 2029, growing at a CAGR of 8.46% during the forecast period (2024-2029).

The main factors propelling the market's expansion are the growing need for compact electronic devices and the expanding use of SoC technology across various industries, including automotive, IoT, and AI.

• The silicon sector has evolved in recent years because of electronic design automation (EDA) techniques. EDA is responsible for creating the design tools necessary for the IC design process at a cost that enables the ecosystem to run profitably.
• Some of the benefits of using EDA tools include reducing the amount of time needed to develop complicated ICs, cutting manufacturing costs, eliminating manufacturing defects, improving IC design and ease of use, etc.
• According to World Semiconductor Trade Statistics (WSTS), the semiconductor industry is expected to grow by 10.9% in 2021, which is a significant growth compared to the previous year's growth, approximately amounting to USD 488 billion. Owing to this, various semiconductor vendors are expected to increase their R&D budgets. For instance, in April 2021, Taiwan Semiconductor Manufacturing Corporation ( TSMC) announced to spend USD 100 billion over the next three years to expand its chip fabrication capacity and R&D.
• Chipmakers are increasingly leaning toward incorporating AI on edge computing, owing to the computational capabilities it brings to the table at the device level, increasing both efficiency and response time. For instance, Intel is focusing on 'edge computing' to enable AI incorporation into IoT devices to smartphones.
• EDA has become more popular due to its many benefits, including shorter design times and fewer errors. EDA tools have become more widely used in various industries, including the automotive and aerospace industries. However, one of EDA's shortcomings lies in its inability to obtain insights from previous designs.
• Since the inception of semiconductors, Moore's Law-the prediction that the number of transistors in an integrated circuit will increase two-fold every 18-24 months-has held true. However, in recent years, scientists have increasingly come to believe that fundamental physical limits may soon make it hard to economically place additional elements on the same small area, which could ultimately prove that Moore's Law is faulty.
• Since the COVID-19 breakout, the semiconductor industry has been severely impacted, significantly impacting its supply chain and production facilities. In February and March 2020, China and Taiwan's production ceased, affecting other OEM production worldwide. However, a significant portion of important vendors stocked up on electronics in anticipation of the Chinese New Year, which reduced the risk. Additionally, with the semiconductor industry's slowing growth, the initial pandemic epidemic saw a minor decline in demand for EDA tools; but, over the course of a year, the market experienced growth.