Market Trends of Global Electronic Design Automation Tools (EDA) Industry
This section covers the major market trends shaping the Electronic Design Automation Tools (EDA) Market according to our research experts:
IC Physical Design and Verification Segment to Grow Significantly
- IC physical design refers to the creation of geometric representations of ICs, using EDA tools. EDA is used to divide the chip into smaller blocks and then plan the specific space required for each block to ensure maximum performance. These blocks are then placed, using before and after clock synthesis.
- The recent technological advancements have been helping several chipset manufacturers to make use of ASIC technology, mainly for 5G. The advent of structured ASIC, having elements of both ASICs and field-programmable gate arrays (FPGA), like architecture, has led to the cost of production becoming cheaper compared to full-blown ASIC, which requires the addition of a modifiable on top of the base ASIC layer.
- Mixed-signal chips, or integrated circuits (ICs) featuring analog and digital circuitry, are a growing trend. Mixed-signal architectures are becoming progressively and more necessary for SoC and ASIC designers. This demand is influenced by industries including the internet of things, communications, the automobile industry, and industrial control. For instance, in July 2022, the mixed-signal verification software Symphony Pro had a significantly updated version from Siemens EDA (previously Mentor).
- Also, in July 2022, Siemens Digital Industries Software announced a variety of expanded early design verification (EDV) functions for electronic design automation (EDA) for its Calibre platform for integrated circuit (IC) physical verification. These new capabilities, which were developed to assist IC design teams and businesses in completing projects more quickly, can assist IC designers in "shifting left" their physical and circuit verification tasks by putting the identification, analysis, and resolution of challenging IC and system-on-chip (SoC) physical verification issues into earlier stages of the design and verification flow.
- Furthermore, in February 2022, Veriest Solutions, a prominent international provider of electronics design services, built a design center in the United Kingdom and announced the expansion of its offerings to include physical design services. Customers of the company, both current and new, will now have access to Design for Test (DFT) and Physical Design support due to the new specialist team in the United Kingdom. The inclusion of the new team will also allow electronic system firms to outsource whole ASIC design projects to Veriest, meeting the growing need for high-quality solutions for customized semiconductor designs.
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North America is Expected to Hold a Significant Market Share
- EDA tools often design circuit boards, processors, and other complex electronics. The adoption of EDA tools in industries such as consumer electronics, and automotive, is set to increase demand for the market in North America. Also, growing developments in the semiconductor industry and circuit manufacturing industry have raised the market's prominence in the region. Also, some of the significant vendors of EDA tools are headquartered in North America, such as Xilinx Inc., Ansys Inc., Keysight Technologies Inc., Cadence Design Systems Inc., and Synopsys Inc.
- Some North American suppliers have been investing in improving the company's product lines and broadening the firm reach to meet the demand for EDA tools in the region. For instance, in May 2022, Chipmaker Advanced Micro Devices Inc. announced that the company intends to move some of its electronic design automation workloads for chip design onto Google Cloud to expand the capabilities of the company's data centers. This will allow taking advantage of Google's most recent compute-optimized C2D virtual machine instances, which are powered by 3rd Gen AMD EPYC processors, as well as advanced networking, storage, and artificial intelligence capabilities.
- Some of the vendors have continued to see strong demand from their customers, who are looking forward to accelerating their digital transformation as engineering teams adapt to increasing competition and shrinking time to market windows. For instance, in July 2022, Intel Foundry Services (IFS) unveiled a brand-new Cloud Alliance program as a component of its Accelerator program. Cloud Alliance streamlines design efficiency for foundry clients with on-demand computing while securing design environments on the cloud. Ansys, Cadence, Siemens EDA, and Synopsys are a few of the founding members of the Cloud Alliance, along with other prominent companies in electrical design automation (EDA).
- In June 2021, Taiwan-based Semiconductor Manufacturing Co. Ltd (TSMC) started construction at a site in Arizona where it plans to spend USD 12 billion to build a computer chip factory, which will begin volume production of chips using the company's 5-nanometer production technology starting in 2024. The company also announced a USD 100 billion investment plan in April 2021 to increase capacity at its factories over the next three years.
- The United States is a significant country in the semiconductor industry's manufacturing, design, and research. The region's prominence drives the demand for exporting electronics equipment and growing end-user industries that are significant consumers of semiconductors, such as consumer electronics and the automotive industry. For instance, the US semiconductor company, the Semiconductor Industry Association (SIA), in February 2022, reported that revenues for the worldwide semiconductor industry reached USD 555.9 billion in 2021, the highest yearly total ever and a rise of 26.2% over the USD 440.4 billion total for 2020. In 2021, the semiconductor industry shipped a record 1.15 trillion units as chip companies increased output to meet the strong demand brought on by the worldwide chip shortage.
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