Status : Published Published On : Nov, 2021 Report Code : VRSME9082 Industry : Semiconductor & Electronics Available Format : Page : 275

Global Semiconductor IP Market – Analysis and Forecast (2021-2027)

Industry Insight 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 Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

The global semiconductor IP market was USD 5.4 billion in 2020 and is anticipated to reach USD 8.1 billion by 2027, registering a CAGR of 5.4% during the forecast period 2021-2027. Semiconductor intellectual property (SIP) is used in interconnects, processors, peripherals, and memory drives. Development in multicore technology for the consumer electronics sector, rising demand for modern SOC designs, innovation in multicore technology, mitigation of continuously increasing chip design cost and expenditure, rising adoption of connected devices for daily use, rising demand for electronics in the healthcare industry during COVID-19 outbreak, and rising adoption of teleconference instruments amidst COVID-19 outbreak are the factors that propel the growth of semiconductor IP market

Semiconductor IP Market Highlights

The COVID-19 pandemic has negatively impacted the operations and businesses of many semiconductor companies. There was a reduced demand for consumer electronics and embedded devices owing to strict lockdown measures globally that have impacted the semiconductor IP market. In addition, there was a drop in demand and export shipments of automotive vehicles, resulting in having an adverse impact on automotive components, thereby providing a stagnant demand for the semiconductor IP market.

Market Segmentation

Insight by Design IP

Based on design IP, the global semiconductor IP market is divided into processor IP, interface IP, memory IP, and other design IP. Memory IP is anticipated to witness high CAGR during the forecast period 2021-2027 owing to the rapid rise in media streaming and social networking content which has led to the massive demand for storage locally and within data centers. Thus, enabling IC designers to use memory Ips for designing effective storage and processing devices. Furthermore, the prominence of various types of memory ICs like flash–memory, IC technology, and random–access memory, erasable programming memory, and programmable read-only memory, has been used in various applications owing to high-speed processing and low power consumption.

Insight by IP Core

Based on IP core, the global semiconductor IP market is bifurcated into soft core and hard core. Among the IP cores, the soft core segment is anticipated to register a high CAGR during the forecast period 2021-2027 as it is affordable. Additionally, the soft core IPs are easy to implement on specific architectures and are used in diverse industries.

Insight by IP Source

Based on IP sources, the global semiconductor IP market is divided into royalty and licensing.  The royalty segment is anticipated to be the largest market for semiconductor IP owing to rapid advancement in technologies where manufacturers can produce products according to their will and pay a royalty for those products only.

Insight by End User

Based on end-user, the semiconductor IP market is divided into consumer electronics, telecom & data centers, automotive, commercial, industrial, aerospace & defense, and others. Consumer electronics is anticipated to have a high CAGR during the forecast period owing to the development of multicore technology, everyday use of consumer electronic products like smartphones, tablets, etc., rising demand for modern system-on-chip (SoC) designs, and mitigating the increasing chip design cost and expenditure.

Industry Dynamics

Industry Trends

The innovative and emerging technologies like graphene transistors, self-organizing molecular machines, carbon nanotubes, and quantum computing will create opportunities for growth and are the trends prevalent in the semiconductor IP market globally.  

Growth Drivers

The rising adoption of connected devices for everyday use such as smartphones, wearables, connected vehicles, and smart home systems, resulted in the integration of power electronics and leads to the growth of the semiconductor IP market. Furthermore, the rising demand for modern system on chip (SoC) design, decrease in manufacturing and design cost, mounting demand for consumer electronics, will accelerate the growth of the semiconductor IP market.

Challenges

Challenges faced by the semiconductor IP market include shadow semiconductor supply chain that will result in IP thefts, counterfeits, and conflicts, the cost for designing and developing of semiconductor IP is costly and becoming complex, resulting in hampering the growth of the semiconductor IP market. Furthermore, problems with respect to Moore’s law and short-term impact on the consumer electronics industry owing to the COVID-19 pandemic are other factors that may impede the growth of the semiconductor IP market.

Opportunities

The installed DSP IP and programmable DSP IP segment and the mounting demand from the avionics, aerospace & defense sector will create opportunities for growth in the semiconductor IP market. Moreover, the automotive segment is anticipated to have a rapid growth owing to the wide adoption of IP cores, the introduction of automation, rising adoption in applications such as microprocessor units (MPUs), sensors, microcontroller units, interfaces, and memory in autonomous and premium cars will create promising opportunities for growth in the global semiconductor IP market.

Geographic Overview

Asia-Pacific is anticipated to be the largest growing region in the semiconductor IP market owing to massive investment, low labor cost, and mounting need for consumer electronics products in the region. Furthermore, the manufacturing of developed electronic devices with features such as swift processing speed, better storage capacity, wireless communication, and are RF-enabled will accelerate the growth of the semiconductor IP market in the region.

Competitive Insight

The strategies adopted by the semiconductor IP industry include product innovation, mergers & acquisitions to remain competitive in the industry. Moreover, the large-scale manufacturers are able to integrate backward and forward and the presence of key players are running their business in domestic and international territories, resulting in the growth of the semiconductor IP market.

Faraday Technology Corporation had announced its LPDDR4 and LPDDR4X combo PHY IP up to 4.2Gbps, which is currently available in Samsung’s 14nm LPC process. The highly compact design provides extra flexibility with two hardened configurations supporting both in-line rectangular and corner-edge placement.

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.

Some of the key players operating in the semiconductor IP market: 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.

Semiconductor IP Market Size and Market Analysis

Source: VynZ Research

Frequently Asked Questions

The global semiconductor IP market was USD 5.4 billion in 2020 and is anticipated to reach USD 8.1 billion by 2027, registering a CAGR of 5.4% during the forecast period 2021-2027.
Semiconductor intellectual property (SIP) is used in interconnects, processors, peripherals, and memory drives.
Segments covered under semiconductor IP market include Design IP, IP Core, IP Source, End-User, and Region.
The rising demand for modern system on chip (SoC) design, decrease in manufacturing and design cost, mounting demand for consumer electronics, will attribute to the growth of the semiconductor IP market.
Some of the key players operating in the semiconductor IP market: 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.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle
Semiconductor IP Market