Semiconductor Silicon IP Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Semiconductor Silicon Intellectual Property (IP) Market Analysis

The semiconductor (silicon) intellectual property market was valued at USD 6.26 billion in the previous year and is expected to register a CAGR of 7.38% during the forecast period to become USD 9.6 billion by the next five years.

• The semiconductor IP (SIP) market is witnessing rapid growth, with growing semiconductor sales. The market studied is entirely dependent on the semiconductor industry. The semiconductor business has experienced significant growth in the last two decades. The SIP business practices include elements similar to those in traditional semiconductor or application-specific integrated circuits (ASIC), electronic design automation (EDA), and design services markets. However, unlike the well-established business models in the ASIC and EDA industries, SIP business models tend to be more complex, as several parties in the supply chain are involved with successfully deploying commercial SIP in an IC design.
• Although business practices and SIP business models have become somewhat uniform, the industry still needs to achieve standardization due to the wide variety of SIP product types, customer needs, and frequent changes in EDA tools and process technologies. Rising design costs and increasing market pressures are forcing companies to seek the services of semiconductor IP manufacturers. The various applications of this market include automobiles, smart devices (mobiles and tablets), computers, and peripherals. The significant growth driver of the market studied includes the emerging global adoption of consumer devices and the demand for advanced SOC designs and connected devices. Emerging technologies such as embedded and programmable DSP-IP are expected to further boost the market.
• According to SEMI's latest quarterly World Fab Forecast report, the worldwide semiconductor industry will invest more than USD 500 billion between 2021 and 2023 in building 84 large-scale chip manufacturing facilities, including automotive and high-performance computing ( HPC), fueling the spending increases. The source also states that the global semiconductor materials market generated revenues of USD 72.69 billion in 2022, of which USD 20.13 billion was made in Taiwan. A further USD 12.97 billion was generated in China, a 7 percent increase from 2021.
• The complexity of system-on-chip (SoC) designs is outpacing systems engineering capabilities. Increasing design complexity has given rise to growing data size and, thus, making semiconductor development more challenging than before. This is expected to restrain the growth of the market.
• The COVID-19 pandemic impacted the entire semiconductor manufacturing market on both the demand and supply sides. Additionally, global lockdowns and semiconductor factory closures have exacerbated supply shortages. The impact was also reflected in the studied market. However, many of these effects may be short-term in nature. Measures by governments around the world to support the automotive and semiconductor sectors could stimulate industry growth.

Semiconductor Silicon Intellectual Property (IP) Market Trends

Consumer Electronics to be the Largest End-user Vertical

Semiconductor Silicon Intellectual Property (IP) Industry Segmentation

A semiconductor intellectual property (IP) core is a reclaimable logic, functional unit, cell, or layout design typically licensed to multiple vendors as building blocks in different chip designs. In today’s IC design era, more and more system functionality is integrated into single chips (system-on-chip/SOC designs). These pre-designed IP cores/blocks are becoming increasingly important in these SOC designs. This is because most of the SOC designs have a standard microprocessor and a lot of system functionality, which are standardized and hence can be re-used across several designs if designed once.

The semiconductor (silicon) intellectual property market is segmented by revenue type (license, royalty, and services), IP type (processor IP, wired & wireless interface IP, and other IP types), end-user vertical (consumer electronics, computers & peripherals, automobile, industrial, and other end-user verticals), and geography (North America (United States, Canada), Europe (United Kingdom, Germany, France, Rest of Europe), Asia Pacific (China, Taiwan, Japan, South Korea, India) Rest of Asia Pacific), and Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.