Global Market for Semiconductor IP is Anticipated to grow at a Significant Pace i.e., USD 9.8 Billion during the Forecast Period 2023-2030

Published Date: Nov, 2021

The global semiconductor IP market is expected to witness a CAGR of 5.4% during the forecast period. The mounting demand for connected devices and modern SOC design along with modification and continuously growing chip design cost and outlay will accelerate the growth of the semiconductor IP market. Furthermore, the surge in demand for electronics in the healthcare sector and the growing demand for teleconference instruments during the COVID-19 pandemic will propel the growth of the semiconductor IP market. Additionally, the mounting demand for consumer electronics in emerging countries like China, India, etc., has created promising opportunities in the semiconductor IP market. Nevertheless, owing to rapid technological development and increasing demand for high-speed broadband connectivity will accelerate the growth of the semiconductor IP market.  

The semiconductor IP (Intellectual Property) market refers to the industry involved in the design, development, licensing, and sale of reusable intellectual property cores and building blocks for semiconductor devices. Semiconductor IP includes pre-designed functional blocks, such as processors, memory controllers, interfaces, analog components, and specialized IP cores for various applications.

Semiconductor IP plays a crucial role in the semiconductor industry by providing ready-to-use building blocks that help semiconductor companies reduce development time, costs, and risks associated with designing complex integrated circuits (ICs). Instead of designing these blocks from scratch, semiconductor companies can license or purchase IP cores and integrate them into their chip designs, accelerating time-to-market.

The semiconductor IP market has been growing rapidly due to several factors:

Increasing Complexity of Semiconductor Designs: The complexity of semiconductor designs continues to grow as technology nodes shrink and chip functionality expands. Semiconductor IP enables companies to focus on their core competencies and leverage pre-designed IP blocks to address complex design challenges effectively.

Cost and Time-to-Market Benefits: Developing semiconductor designs from scratch requires significant time, resources, and expertise. By using semiconductor IP, companies can reduce development costs and shorten product development cycles, gaining a competitive advantage.

Demand for Specialized IP Cores: Many applications, such as automotive, artificial intelligence (AI), Internet of Things (IoT), and 5G, require specialized IP cores tailored to their specific requirements. Semiconductor IP providers offer a wide range of specialized IP cores, enabling companies to meet the demands of emerging markets.

Focus on Design Reuse: The semiconductor industry has been increasingly emphasizing design reuse as a way to enhance productivity and efficiency. Semiconductor IP provides a reusable design framework that can be incorporated into multiple projects, maximizing design investments.

Growing Outsourcing Trend: Semiconductor companies are increasingly outsourcing non-core design tasks to focus on their differentiation and market strategies. Outsourcing IP cores allows companies to leverage the expertise of specialized IP providers and concentrate on their core competencies.

Advancements in Process Technologies: Advancements in semiconductor process technologies, such as advanced nodes (e.g., 7nm, 5nm), FinFET, and 3D integration, have increased the demand for IP cores optimized for these technologies. IP providers continually update their offerings to support the latest process nodes and technology trends.

Arm Limited launched Physical and POP IP Platform on Samsung Foundry 5nm Technology. Furthermore, Arm and Samsung Foundry engaged in developing Arm solutions compatible with Samsung's advanced production methods to fulfill the market's increasing demands.

The COVID-19 outbreak has reduced the demand for automobile vehicles, home appliances, and consumer electronics owing to a halt in production facilities, disruption in the supply chain, lack of workforce, resulting in a fall in demand for semiconductor IP. However, there was a short-term rise in the penetration of data centers and an increased demand for consumer electronics such as laptops and desktops, having a positive effect on the semiconductor IP market.

Browse 63 market data Tables and 40 Figures spread through 275 Pages and in-depth TOC on " Semiconductor IP Market by Design IP (Processor IP, Interface IP, Memory IP, and Other Design IP), by IP Core (Soft Core and Hard Core), by IP Source (Royalty and Licensing), by End-User (Consumer Electronics, Telecom & Data Centers, Automotive, Commercial, Industrial, Aerospace & Defense, and Others), and Region - Global Forecast to 2030"

By design IP, the processor IPs dominates the semiconductor IP market.

Based on design IP, the global semiconductor IP market is divided into processor IP, interface IP, memory IP, and other design IP. Processor IPs dominate the market owing to their adoption in diverse applications such as smart devices, cars, computers, etc. Moreover, processor IPs are used in consumer electronics and high-cost automotive verticals.

Global Semiconductor IP Market Segmentation Analysis

Segment

Categorization

Leading Category

Design IP

Processor IP, Interface IP, Memory IP, and Other Design IP

Processor IP (Largest)

Memory IP

(High CAGR)

IP Core

Soft Core and Hard Core

Soft Core (High CAGR)

IP Source

Royalty and Licensing

Royalty (Largest)

End-User

Consumer Electronics, Telecom & Data Centers, Automotive, Commercial, Industrial, Aerospace & Defense, and Others

Consumer Electronics (High CAGR)

Region

North America, Europe, Asia-Pacific, and Rest of the World

Asia-Pacific (Largest)

North America (Significant Share)

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“North America is anticipated to have a significant share in the semiconductor IP market during the forecast period 2023-2030.”

North America is anticipated to have a substantial share in the semiconductor IP market owing to the rising requirement for intelligent command and control in various industries in the region. The increasing prominence of the vendors, government support will propel the growth of the semiconductor IP market in the region.

Some of the major players in the global semiconductor IP market include Arm Limited, Synopsys, Inc., Cadence Design Systems, Inc., CEVA, Inc., Imagination Technologies Limited, VeriSilicon, eMemory Technology Inc., Rambus.com, FARADAY TECHNOLOGY, and DREAM CHIP TECHNOLOGIES.

Scope of the Report

 

Report Metric

Details

Market Size Available for the Years in the Study

2018–2030

Historical Period

2018–2022

Base Year

2022

Forecast Period

2022–2030

Segments Covered in the Study

Design IP, IP Core, IP Source, End-User, and Region

Geographies Covered in the Study

North America (U.S., Canada, Mexico), Europe (Germany, U.K., France, Italy, Spain, Russia), Asia-Pacific (China, Japan, India, South Korea), and Rest of the World (Brazil, Saudi Arabia, South Africa, U.A.E.)

Companies Covered in the Study

Arm Limited, Synopsys, Inc., Cadence Design Systems, Inc., CEVA, Inc., Imagination Technologies Limited, VeriSilicon, eMemory Technology Inc., Rambus.com, FARADAY TECHNOLOGY, and DREAM CHIP TECHNOLOGIES

Global Semiconductor IP Market Coverage

Design IP Insight and Forecast 2018-2030

  • Processor IP
  • Interface IP
  • Memory IP
  • Other Design IP

IP Core Insight and Forecast 2018-2030

  • Soft Core
  • Hard Core

IP Source Insight and Forecast 2018-2030

  • Royalty
  • Licensing

End-User Insight and Forecast 2018-2030

  • Consumer Electronics
  • Telecom & Data Centers
  • Automotive
  • Commercial
  • Industrial
  • Aerospace & Defense
  • Others

Geographical Segmentation

Semiconductor IP Market by Region

North America

  • By Design IP
  • By IP Core
  • By IP Source
  • By End-User
  • By Country – U.S., Canada, and Mexico

Europe

  • By Design IP
  • By IP Core
  • By IP Source
  • By End-User
  • By Country – Germany, U.K., France, Italy, Spain, Russia, and Rest of Europe

Asia-Pacific (APAC)

  • By Design IP
  • By IP Core
  • By IP Source
  • By End-User
  • By Country – China, Japan, India, South Korea, and Rest of Asia-Pacific

Rest of the World (RoW)

  • By Design IP
  • By IP Core
  • By IP Source
  • By End-User
  • By Country – Brazil, Saudi Arabia, South Africa, U.A.E., and Other Countries