The global electronic design automation (EDA) software market size was valued at USD 11.10 billion in 2022 and is projected to reach USD 22.21 billion by 2030, expanding at a CAGR of 9.1% from 2023 to 2030. The market growth is primarily driven by the increasing capability of EDA software to significantly reduce the time and cost associated with electronic circuit design while minimizing manual errors. These tools streamline complex design workflows and enhance precision, efficiency, and scalability across multiple applications. Additionally, the integration of advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) into EDA tools enables engineers to address increasingly intricate design challenges, automate error detection, and optimize performance ultimately reducing development cycles and improving product outcomes.

The rapid rise in demand for consumer electronics such as smartphones, smartwatches, wearables, and smart home devices is also contributing to the expansion of the EDA software market. Moreover, the ongoing technological evolution in the automotive sector especially the development of electric and autonomous vehicles has created a significant need for complex semiconductor and electronic systems, further driving demand for EDA software. As modern vehicles contain between 1,500 and 3,000 semiconductors, EDA tools play a vital role in designing, simulating, and verifying these integrated circuits efficiently.

Key Market Trends & Insights:

  • North America dominated the global EDA software market in 2022 with a revenue share of 44.72%, supported by the presence of leading semiconductor manufacturers and strong R&D capabilities. The Asia Pacific region is projected to grow at the fastest CAGR of 9.6% during the forecast period, driven by rapid industrialization, expanding semiconductor production, and rising electronics consumption in countries such as China, Japan, South Korea, and Taiwan.
  • Based on product type, the computer-aided engineering (CAE) segment held the largest share of over 30% in 2022, while the services segment is projected to grow at a robust CAGR of 10.6%.
  • By deployment mode, the on-premise segment accounted for more than 50% of the market share in 2022, primarily due to security and performance concerns, whereas the cloud-based deployment model is anticipated to register a CAGR of 10.8% during the forecast period, fueled by its scalability, cost-effectiveness, and ease of collaboration.
  • Based on application, the consumer electronics segment held the dominant share of over 40% in 2022, driven by high-volume semiconductor design requirements, while the healthcare segment is projected to expand at the fastest CAGR of 11.5%, reflecting the growing use of electronics in medical devices and wearables.
  • By end use, the microprocessors and controllers segment accounted for 70.50% of the market share in 2022, while the memory management unit segment is projected to grow steadily at 8.3%.

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Market Size & Forecast:

  • 2022 Market Size: USD 11.10 Billion
  • 2030 Projected Market Size: USD 22.21 Billion
  • CAGR (2023-2030): 9.1%
  • North America: Largest market in 2022
  • Asia Pacific: Fastest growing market

Key Companies & Market Share Insights:

Prominent players in the global EDA software market include Siemens EDA, Keysight Technologies, Synopsys, Zuken, Vennsa Technologies, and Aldec. These companies are focusing on strategic initiatives such as mergers, acquisitions, partnerships, and product innovations to strengthen their portfolios and market presence. For instance, in October 2022, Cadence Design Systems expanded its partnership with Samsung Foundry to accelerate 3D-IC design using the Cadence Integrity 3D-IC platform. This collaboration allows customers to optimize the performance, power efficiency, and area utilization of each die, underscoring the industry's growing shift toward advanced integrated design methodologies.

Overall, the global EDA software market is set to experience robust growth, driven by continuous innovation, rising semiconductor demand, and the integration of AI and ML in design processes, which collectively enhance the efficiency and intelligence of electronic product development across diverse industries.

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Conclusion:

In conclusion, the global electronic design automation (EDA) software market is poised for substantial growth, fueled by rapid technological advancements and the rising demand for complex semiconductor designs across industries. The increasing integration of AI and ML in EDA tools is transforming design workflows, enabling higher efficiency, precision, and faster product development cycles. Growing adoption of connected devices, smart electronics, and electric vehicles continues to expand the market’s application base, creating new opportunities for innovation. Additionally, the shift toward cloud-based solutions and 3D-IC design methodologies further enhances design flexibility and collaboration among engineers. With major industry players investing heavily in R&D, partnerships, and product diversification, the EDA software market is expected to remain a critical enabler of progress in the global electronics and semiconductor sectors through 2030.