According to our latest market study on "Semiconductor IP Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Type, Source, and Industry Vertical," the semiconductor IP is projected to reach US$ 9,670.4 million by 2028 from US$ 4,951.9 million in 2021; it is expected to grow at a CAGR of 10.0% during 2021-2028.
The emergence of electronic and semiconductor technologies has paved the way for automation in the global manufacturing sector. Over the past two decades, automation has transformed factory floor operations, manufacturing employment, and industry dynamics. Current trends such as robotics, machine learning, and artificial intelligence have enabled machines to perform cognitive activities involved at various manufacturing levels, potentially outpacing human capabilities. The automation of lean assembly lines has been shown to increase overall productivity by 10-20%. Furthermore, Industry 4.0, also known as the Industrial Internet of Things (IIoT), is expected to have a significant impact on the manufacturing sector in the coming years. The implementation of collaborative robots and automated guided vehicles (AGVs) under the Industry 4.0 umbrella is expected to further enhance the sector's productivity.
The semiconductor IP market was impacted by the COVID-19 pandemic in 2020, resulting in chip shortages and labor deficits, which have affected the market's business dynamics. However, it is anticipated that the market will experience a significant recovery in 2022 due to the growing demand from various industries. Companies have announced plans to invest in new fabrication facilities to meet this increasing demand. One such example is Intel, which in January 2022 announced plans to invest over US$20 billion in constructing two new semiconductor chip manufacturing facilities in Ohio, USA.
With a share of over 30%, Europe was the dominant region in the Semiconductor IP market in 2020, and it is expected to maintain its lead during the forecast period, accounting for over 35% of the market share by 2028. North America is the second-largest region contributing to the global Semiconductor IP market, while the Asia Pacific region comes in third.
The semiconductor IP market has seen the emergence of new business models aimed at meeting customers' increasing demands while ensuring sustainability and progress. Today, businesses in this market have evolved into comprehensive solution providers, offering a broad range of IP cores and platforms, including graphics, video, cloud software, connectivity, and other related services.
The Semiconductor IP market in the SAM region is expected to experience growth due to several factors, including increasing investment in developing network connectivity, a rise in demand for advanced home appliances, and a growing awareness of the need to mitigate manufacturing costs in plant operations. Additionally, the growing adoption of electric vehicles (EVs) is also expected to boost the market dynamics of the Semiconductor IP market. According to an article published by the Global Fleet MARKETPLACE in January 2022, sales of electric vehicles in the SAM region experienced an annual growth rate of more than 70% in 2021.
Key Findings of Study: Semiconductor IP Market Growth
The global semiconductor IP market is categorized into five major regions-North America, Europe, APAC, and RoW. Europe dominated the semiconductor IP industy in 2020 with a share of more than 35%; it would continue to dominate the market during the forecast period. The licensing segment led the semiconductor IP market, based on source, with a share of over 80% in 2020.
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