Electronic Design Automation Market Size, Trends and Growth Analysis by 2027

The electronic design automation (EDA) market is projected to reach US$10.31 billion in 2018, with an anticipated compound annual growth rate (CAGR) of 12.0% from 2019 to 2027, ultimately totaling US$28.27 billion by 2027. EDA software encompasses a variety of tools and applications, and the integration of these tools to meet customer specifications can often be a challenging task. The intricate demands of end-users for highly reliable and precise product positioning are effectively addressed through EDA solutions. The increasing complexities and financial challenges associated with implementing sophisticated designs are significant factors propelling the growth of the electronic design automation market.

A prominent trend expected to influence the electronic design automation market in the upcoming years is the rising demand for machine learning capabilities within EDA software. Over time, EDA software has evolved to meet the growing aspirations for enhanced performance, reduced power consumption, and shorter design cycle times. This evolution is also aimed at fulfilling the need for innovative methods, models, and tools that facilitate quicker and more accurate design and verification processes for microelectronic systems and circuits. Recently, a behavioral approach has been identified as a means to achieve these objectives. Consequently, the integration of machine learning into EDA tools is making a significant impact on the industry. This technology is expected to lower design costs by enabling tools to resolve common issues that would typically require extensive time for design teams to address manually. This not only reduces expenses but also opens avenues for innovative designs and an increased production of semiconductor chips from a wider range of companies.

The electronic design automation market is categorized by application into several sectors, including Aerospace & Defense, Consumer Electronics, Telecommunications, Automotive, Industrial, and Others. Key success factors such as precision, efficiency, and productivity are driving the demand for advanced automation tools in the fields of design, engineering, and manufacturing. Furthermore, the right software solutions empower companies to effectively tackle cost-related challenges and time-to-market issues through process optimization. As a result, various sectors, including consumer electronics, telecommunications, aerospace & defense, and industrial applications, are adopting electronic design automation based on their specific needs. The ongoing advancements in the consumer electronics and automotive sectors are expected to further boost the demand for electronic design automation throughout the forecast period.

The overall size of the electronic design automation market has been determined through a combination of primary and secondary research methods. The research process begins with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative insights related to the electronic design automation market. Additionally, primary interviews are conducted with industry participants and commentators to validate the data and analysis. Participants typically involved in this process include industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the EDA sector.