EDA, electronic design automation, which is also referred as electronic-computer aided design. It is a software tool that designs electronic system like integrated circuits and printed circuit boards. The adoption of the technology has lead to the reduction in cost, efficient design time and less errors. This has made the industry to witness growing demand for these tools in automotive, consumer electronics and defense sector and further strengthening the growth of global EDA tools market.
Insight by Type
Based upon type, the EDA tools market is categorized into on-premise solutions and cloud based solutions. Among these two segments on-premise solutions is anticipated to witness faster growth during the forecast period. On-premise solutions are considered to be flexible, secure and reliable option that helps the enterprises in efficiently managing their money, time and resources into their core business strategies.
Insight by Product Type
On the basis of product type the global EDA tools market is categorized into printed circuit board (PCB) and multi-chip module (MCM), computer aided engineering (CAE), semiconductor intellectual property (SIP), IC physical design & verification and services. Semiconductor IP is anticipated to generate largest revenue by 2024 since it is considered to a reusable unit of functionality that is generated with licensing to multiple vendors for developing building blocks in various chip manufacturing. Furthermore, extensive growth of semiconductor IP segment is contributing towards the growth of EDA tools market globally.
Insight by Application
The EDA tools market on the basis of application is categorized into consumer electronics, aerospace & defense, medical, industrial, automotive, telecommunications and others. Among all these segments, telecommunications domain is anticipated to generate largest revenue throughout the estimated period various companies in this industry are extensively utilizing EDA tools to deliver efficient and effective communication system of superior quality. Furthermore, it has been observed that increasing adoption of mobile devices in developing and developed economies is thus promoting the use of EDA among various business enterprises, thereby bolstering the growth of EDA tools market globally.
Increasing adoption of cloud computing and the increasing penetration of internet of things are the key factors pertaining towards the growth of EDA tools market globally. Furthermore, the technology has reduced the cost and made and has minimized the number of errors to great extent. Furthermore, due to increasing adoption of cloud technology the designs have become easier to access and available anytime and effective deployment of data is another feature that makes it economical has enabled EDA tools market to grow globally.
The weak global economy is the only challenge that is faced by the EDA tools market throughout the forecast period. Weak economy adversely affects the growth of the industry that makes the major companies to cut costs on R&D and thus reduce their spending in electronic designs this is the major factor that is hampering the growth of EDA tools market worldwide.
Globally industry players are leveraging market growth through the development of innovative solutions in EDA tools market globally. The vendors for the EDA technology are providing various solutions to the users such as advanced technology for better accessibility and viewing experience thereby enabling users to administer quality cost efficiency in their business operations and further reach product across the globe.
Geographically, EDA tools market in North America is anticipated to generate largest revenue throughput the estimated period due to the presence of large number of aerospace, automotive and defense companies that are utilizing this technology in order to enhance flexibility, cost-efficiencies and smooth functioning of their organization. Furthermore, Asia-Pacific is anticipated to generate fastest growth during the forecast period due to increasing adoption of cloud services and the increasing adoption of EDA technology in the manufacturing domain of this region.
Key players in EDA tools market are launching new products and undergoing mergers and acquisitions in order to gain first mover advantage and be a differentiator in terms of product offering across the globe. For instance, it has been observed that in 2013 Synopsys acquired Magma Design automation and SpringSoft pvt. Ltd. in order to provide improcved designed tools to its customers. Some of the prominent players in the EDA tools market include Synopsys, Cadence Design Systems inc., Mentor Graphics, Zuken, EEsoF.