Cloud Electronic Design Automation (EDA) Market Size & Share, by Type (Computer Aided Engineering, Semiconductor Intellectual Property, IC Physical Design & Verification, Printed Circuit Board & Multi-Chip Module); Vertical (Automotive, Consumer Electronics, Aerospace & Defense, Industrial, Healthcare, Telecommunication) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5532
  • Published Date: Jan 15, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Cloud Electronic Design Automation Market size is expected to cross USD 24 Billion by the end of 2036, growing at a CAGR of 10% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of cloud EDA was over USD 7 Billion. The market has a lot of opportunities as the Internet of Things (IoT) grows. Important players can collaborate closely with up-and-coming IoT development firms. As a result, these partnerships will support the market expansion. By 2023, there will be about 15.14 billion IoT devices.

In addition, Artificial Intelligence (AI) and Machine Learning (ML) influence almost every industry, including electronics, healthcare, automotive, aerospace, and defense. Businesses are increasing the range of products they offer in the previously listed categories by integrating AI and ML into their products. EDA providers can benefit from these implementations of the offered technologies, which call for the usage of sophisticated electronic parts and processors. Software developers can shift from manual to automated process testing with the aid of artificial intelligence. During the projected time, these variables would support the expansion of the electronic design automation software industry.


Cloud Electronic Design Automation Market
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Cloud Electronic Design Automation Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 10%

Base Year Market Size (2023)

~ USD 7 Billion

Forecast Year Market Size (2036)

~ USD 24 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Cloud Electronic Design Automation (EDA) Market: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Growing PCB Circuit Complexity is Fuelling Cloud EDA Market Growth- Several wires and components must be implemented when building a circuit, and an engineer must take a variety of factors into account when constructing, including input signals, the desired output, and error tolerance. When building a complex circuit, there are more parts and wires involved, which raises the possibility of errors. There is a fair bit of drafting required because the design is somewhat large. If the user has grasped the fundamentals at any time, there is no need to draw the remaining circuitry because the section ends with a completed schematic. On the other hand, an engineer can simulate the circuit design and gain insight into the challenges that arise in real-time when implementing the circuit using cloud electrical design automation software. A cloud-based electronic design automation tool with auto-placement, auto-routing, and auto-tuning capabilities can greatly minimize errors and simplify fabrication. Time is saved since possible mistakes are fixed before the prototype is built. The cloud electronic design automation (EDA) market is growing as a result of these features and advantages.
  • Government Initiatives for Boosting Electronic Industry- Governments from several nations, including Saudi Arabia, France, Canada, Australia, India, China, Brazil, and Canada, are promoting digitization in the electronics sector, which is driving the rise of electronic design automation software. For example, the Indian government stated in November 2022 that it will provide funds of approximately USD 122 million to support chip design start-ups throughout the nation. The purpose of this grant is to support Indian start-ups involved in semiconductor design. Through 2030, these government measures will have a favorable impact on the EDA software market.
  • Growing Demand for EDA in Automotive Industry- The cloud electronic design automation market is expanding rapidly due to the increasing need for electronic design automation (EDA) technologies in the automobile industry. With the increasing complexity of modern automobile electronics, EDA tools are essential for developing sensors, control systems, and integrated circuits (ICs). They give engineers working on automobiles the ability to create complex electronic parts that guarantee energy economy, safety, and communication. The need for EDA tools has increased dramatically in tandem with the popularity of electric and driverless vehicles, spurring innovation and improving the driving experience in general.

Challenges

  • The global market's growth is being impeded by the availability of open-source software and pirated copies on the Internet- Numerous features-rich electrical design automation programs are offered for free over the Internet. Furthermore, the widespread use of pirated software in nations like the USA, Russia, and China forces software providers to provide their products at a discount. This is a significant element that is anticipated to limit cloud electronic design automation (EDA) market expansion.
  • One market constraint is the disruption of the manufacturing industries' worldwide supply chain during the forecast period.
  • Inadequate research and development constitute a cloud EDA market constraint during the forecast period.


Cloud Electronic Design Automation (EDA) Segmentation

Type (Computer Aided Engineering, Semiconductor Intellectual Property, IC Physical Design & Verification, Printed Circuit Board & Multi-Chip Module)

The computer aided engineering segment is anticipated to hold 35% share of the global cloud electronic design automation market by 2036. The growing need for integrated software solutions to get rid of multiple prototype products and product recall concerns, the sharp shift from on-premise computing to cloud-based computing, and the increased outsourcing of manufacturing processes to emerging economies are all contributing factors to the segment's growth. Purchases of gear, software licensing, installation, and support costs are reduced by cloud computing. In the upcoming years, it is anticipated that this will improve the utilization of CAE software even further. Moreover, companies are setting up a private cloud with improved computing and storage capacities utilizing the Hyper-Converged Infrastructure (HCI) platform. Throughout the projection period, these elements would support the segment's expansion even more. By 2025, 200 ZB of data will be kept in the cloud. The cloud stores 60% of all corporate data worldwide.

Vertical (Automotive, Consumer Electronics, Aerospace & Defense, Industrial, Healthcare, Telecommunication)

The consumer electronics segment in the cloud electronic design automation (EDA) market is attributed to hold the largest revenue share of about 30% during the forecast period. Electronics makers would be encouraged to use EDA due to the increasing need for smart gadgets. To improve the quality of their smart products, consumer electronics OEMs are teaming up with top System-on-Chip (SoC) and IC producers, such as Qualcomm Technologies, Inc., Texas Instruments Incorporated, NXP Semiconductors, and Intel Corporation. For example, to speed up 3D-IC design, Cadence Design Systems and Samsung Foundry, a South Korean supplier of foundry technologies, increased their collaboration in October 2022. The extended relationship with Samsung Foundry's 3D-IC technique will make the Cadence Integrity 3D-IC platform available. Customers may maximize the performance, power, and area of each die by using the Cadence platform.

Our in-depth analysis of the global cloud electronic design automation market includes the following segments:

          Type

  • Computer Aided Engineering
  • Semiconductor Intellectual Property
  • IC Physical Design & Verification
  • Printed Circuit Board & Multi-Chip Module

          Vertical  

  • Automotive
  • Consumer Electronics
  • Aerospace & Defense
  • Industrial
  • Healthcare
  • Telecommunication

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Cloud Electronic Design Automation (EDA) Industry - Regional Synopsis

North American Market Forecast

Cloud electronic design automation market in the North America is expected to hold the largest revenue share of about 30% during the forecast period. The early adoption of cutting-edge technology, such as 5G, machine learning, and artificial intelligence, among others, and the rise of several industries, including consumer electronics and automotive, are responsible for the region's success. This has been a significant factor in the demand in the area. For instance, U.S.-based EDA solution supplier Cadence Design Systems, Inc. stated in June 2022 that it will expand its partnership with U.S.-based technological solution provider Arm Limited. Using Arm Total Compute Solutions 2022 (TCS22) and Cadence digital and verification technologies, the businesses will collaborate to accelerate the development of mobile device silicon. For 5nm and 7nm nodes, Cadence will provide its RTL-to-GDS digital flow Rapid Adoption Kits in an effort to assist clients in achieving optimum power and enhancing productivity. North America is anticipated to have growth throughout the projection period because to its strong wireless infrastructure and government assistance.

APAC Market Statistics

The cloud EDA market in the Asia Pacific region is projected to hold the second-largest revenue share of about 27% during the projected period. Novel deploy mentalities have been necessary due to the growing complexity of SoC designs. Cloud technologies help address these issues since they are scalable. The ability to access cloud-based solutions from anywhere in the company is their primary advantage. As a result, to build complex electrical systems, semiconductor businesses are depending more and more on cloud-based technologies. Over the projection period, these variables would support the region's growth even more.

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Cloud Electronic Design Automation Market Size
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Companies Dominating the Cloud Electronic Design Automation (EDA) Market

top-features-companies
    • Cadence Design Systems Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Keysight Technologies Inc
    • ANSYS Inc.
    • Synopsys Inc.
    • Xilinx Inc.
    • Siemens AG
    • Autodesk Inc
    • Dolphin Design
    • Agnisys Inc
    • Altium Limited

In-the-news

In The News

  • Cadence Design Systems announced low-power IP for the PCI Express 5.0 specification that targets hyper-scale computing, networking, and storage applications that are made on TSMC N5 process technology. In addition, PCIe 5.0 technology consists of a PHY, companion controller, and Verification IP (VIP) targeted at SoC designs for very high bandwidth to suit the applications.
  • Keysight Technologies Inc. acquired Quantum Benchmark, a leader in error diagnostics, error suppression, and performance validation software for quantum computing. Quantum Benchmark provides software solutions for improving and validating quantum computing hardware capabilities by identifying and overcoming the unique error challenges required for high-impact quantum computing

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5532
  • Published Date: Jan 15, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing advent of internet of things and government initiatives for boosting electronics industry are the major factors driving the growth of the cloud electronic design automation (EDA) market.

The market size of cloud electronic design automation (EDA) is anticipated to attain a CAGR of 10% over the forecast period, i.e., 2024-2036.

The major players in the market are Keysight Technologies Inc, ANSYS Inc., Synopsys Inc., Xilinx Inc., Siemens AG, Autodesk Inc, Dolphin Design, Agnisys Inc, Altium Limited, and others.

The computer aided engineering segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North America region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Cloud Electronic Design Automation Market Report Scope
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