Semiconductor Silicon IP Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Semiconductor Silicon Intellectual Property (IP) Market Analysis

The Semiconductor Intellectual Property Market is expected to register a CAGR of 7.38% during the forecast period.

The Semiconductor Intellectual Property industry is experiencing unprecedented investment and expansion across global markets. According to SEMI's latest quarterly World Fab Forecast report, the semiconductor industry is set to invest more than USD 500 billion between 2021 and 2023 in establishing 84 large-scale chip manufacturing facilities worldwide. This massive investment surge reflects the industry's response to increasing demand across automotive and high-performance computing sectors. The global semiconductor materials market has shown remarkable strength, generating revenues of USD 72.69 billion in 2022, demonstrating the robust foundation of the industry's supply chain. Major industry players are making strategic moves to strengthen their positions, as evidenced by Applied Materials' establishment of a collaborative engineering center in Bangalore in 2023, focusing on developing and commercializing technologies for semiconductor manufacturing equipment.

The industry is witnessing a significant transformation in data center infrastructure and capabilities. According to CBRE Group, the power supply of data centers under construction in the United States reached 1.9 gigawatts in 2022, indicating substantial growth in computing infrastructure development. This expansion is driven by the increasing demands of artificial intelligence, machine learning, and advanced computing applications. The Semiconductor IP landscape is evolving to address these needs, with companies developing specialized solutions for high-performance computing and data center applications. This evolution is particularly evident in the development of advanced process nodes and the integration of artificial intelligence accelerators in semiconductor designs.

The market is experiencing a notable shift toward advanced packaging technologies and heterogeneous integration. Companies are increasingly focusing on developing innovative solutions that combine different types of Semiconductor IPs to create more efficient and powerful systems. This trend is supported by significant investments in research and development, as demonstrated by Intel's announcement of a EUR 33 billion investment in European chip development and manufacturing facilities in March 2023. The industry is also witnessing a growing emphasis on developing specialized IPs for specific applications, particularly in areas such as automotive electronics and industrial automation.

The Internet of Things (IoT) continues to be a major force shaping the Semiconductor IP Market. According to Ericsson, the number of short-range IoT devices reached 10.3 billion worldwide in 2022, highlighting the massive scale of IoT adoption. This proliferation of connected devices has led to increased demand for specialized Semiconductor IPs that can address specific requirements such as low power consumption, enhanced security, and improved connectivity. The industry is responding with innovative IP solutions that enable more efficient integration of multiple functions while maintaining optimal performance and power consumption levels. This trend is particularly evident in the development of new IP cores that combine processing capabilities with specialized functions for IoT applications.

Semiconductor Silicon Intellectual Property (IP) Market Trends

Growing Demand for Connected Devices

The proliferation of connected devices across consumer electronics, industrial applications, and communication systems is driving substantial demand for semiconductor IP. According to Ericsson, smartphone mobile network subscriptions worldwide are projected to grow from 6.42 billion in 2022 to 7.74 billion by 2028, highlighting the massive scale of connected device adoption. This expansion is further amplified by the emergence of 5G technology, with GSMA forecasting that 5G networks will cover approximately 34% of the global population by 2025, enabling more sophisticated and demanding applications that require advanced silicon IP solutions.

The Internet of Things (IoT) ecosystem represents another major growth catalyst, with Ericsson reporting that short-range IoT devices are expected to reach 25 billion by 2027. This trend is particularly evident in the wearables segment, where Cisco data shows connected wearable devices increased from 929 million in 2021 to 1,105 million in 2022. The growing complexity of these devices, which require error-free operation, higher data speeds, device miniaturization, and support for multiple wireless technologies while maintaining extended battery life, is creating sustained demand for sophisticated semiconductor intellectual property solutions that can address these challenging requirements.

Growing Demand for Modern SoC Designs

Modern System-on-Chip (SoC) designs are becoming increasingly critical as data centers, artificial intelligence applications, and edge computing solutions demand more control over peak performance while optimizing power consumption and scalability. The development of purpose-built SoC designs is being driven by the need for specialized processing functions, particularly in emerging applications such as autonomous driving systems, AI accelerators, and high-performance computing platforms. These applications require custom processing elements and application-specific instruction-set processors (ASIPs) to address complex processing requirements efficiently.

The evolution of SoC complexity is further evidenced by the integration of multiple specialized functions, including power management, hardware voice activity detection (VAD), Graphics Processing Units (GPU), and various connectivity protocols into single-chip solutions. For instance, in June 2022, Renesas Electronics Corporation introduced the SmartBond DA1470x Family, integrating power management, VAD, GPU, and Bluetooth connectivity in a single SoC, demonstrating the industry's push toward more integrated and sophisticated designs. This trend is particularly prominent in automotive applications, where modern SoCs must support advanced driver-assistance systems (ADAS), in-vehicle infotainment, and autonomous driving capabilities, requiring extensive integration of sensors, processors, and connectivity solutions.

The semiconductor IP industry is poised to benefit significantly from these advancements, as the demand for custom and integrated solutions continues to grow. The IP market size is expected to expand as more companies seek to leverage silicon IP to meet the demands of modern technology applications, further driving the growth of the SIP market.

Segment Analysis: Revenue Type

Royalty Segment in Semiconductor (Silicon) Intellectual Property Market

The royalty segment continues to dominate the semiconductor intellectual property market, commanding approximately 59% of the total SIP market share in 2024. This significant market position is attributed to the segment's business model, where providers and buyers share risks and rewards through ongoing royalty payments based on product success. The royalty revenue model has gained particular traction in licensing highly differentiated SIP products, often involving multiple stakeholders, including foundries for foundation semiconductor IP products and end-users for processor and specialty memory SIP. The segment's strength is further reinforced by the rapid technological changes in 5G smartphones, new processors, servers, and IoT applications, where manufacturers can produce various products and pay royalties only for those that achieve market success.

Services Segment in Semiconductor (Silicon) Intellectual Property Market

The services segment is projected to experience the highest growth rate of approximately 8% during the forecast period 2024-2029. This accelerated growth is driven by the increasing complexity of semiconductor designs and the growing demand for specialized design, testing, and consultation services. The segment's expansion is particularly notable in areas such as edge computing, 5G infrastructure, and advanced package test markets. Major industry players are actively expanding their service offerings through strategic partnerships and acquisitions, focusing on areas like automated solutions for semiconductor design verification and testing. The growth is further supported by the rising demand for customized solutions in emerging technologies like artificial intelligence and machine learning applications.

Remaining Segments in Revenue Type

The license segment represents a crucial component of the semiconductor IP market, offering semiconductor companies the flexibility to integrate specific processor architectures into their custom-designed system-on-chips. This segment encompasses various licensing models, including single-use licensing, multiple-use licensing, and subscription-based options, catering to different customer needs. The licensing model is particularly vital for complex chip development projects requiring multiple inputs and specialized features, especially in emerging applications like IoT devices, automotive systems, and advanced computing platforms. The segment's importance is underscored by its role in enabling faster time-to-market and reduced development costs for semiconductor companies.

Segment Analysis: By IP Type

Processor IP Segment in Semiconductor (Silicon) Intellectual Property Market

The Processor IP segment continues to dominate the semiconductor intellectual property market, commanding approximately 50% of the total market share in 2024. This significant market position is driven by the increasing complexity of modern computing requirements and the growing demand for specialized processors in various applications. The segment's strength is particularly evident in emerging technologies like artificial intelligence, machine learning, and edge computing applications. Major technology companies are actively investing in processor IP development, especially for applications in data centers, automotive systems, and consumer electronics. The rise in adoption of System-on-Chip (SoC) designs and the growing need for energy-efficient processing solutions have further solidified the segment's market leadership.

Wired and Wireless Interface IP Segment in Semiconductor (Silicon) Intellectual Property Market

The Wired and Wireless Interface IP segment is experiencing the highest growth trajectory in the market, with an expected growth rate of approximately 7% during the forecast period 2024-2029. This accelerated growth is primarily driven by the rapid expansion of 5G infrastructure, increasing demand for high-speed data transfer capabilities, and the proliferation of IoT devices. The segment is witnessing substantial innovation in areas such as high-speed SerDes technology, PCIe interfaces, and wireless connectivity solutions. The growing adoption of advanced networking technologies in data centers, automotive electronics, and consumer devices is further fueling the segment's growth. Additionally, the increasing focus on developing efficient and reliable communication interfaces for next-generation electronic devices is creating new opportunities for market expansion.

Remaining Segments in IP Type Segmentation

The Other IP Types segment encompasses various specialized intellectual property solutions, including verification IP, analog IP, and mixed-signal IP cores. These components play a crucial role in enabling comprehensive semiconductor solutions for diverse applications. The segment's significance is particularly evident in areas such as power management, sensor interfaces, and signal processing applications. The increasing complexity of modern electronic systems has led to greater demand for specialized IP cores that can address specific functional requirements. The segment continues to evolve with new developments in areas such as security IP, memory controllers, and custom interface solutions, supporting the broader semiconductor ecosystem's growth and innovation.

Segment Analysis: By End-User Vertical

Consumer Electronics Segment in Semiconductor (Silicon) Intellectual Property Market

The Consumer Electronics segment continues to dominate the semiconductor (silicon) intellectual property market, commanding approximately 37% of the total market share in 2024. This significant market position is driven by the increasing integration of advanced semiconductor IP in smartphones, smartwatches, gaming consoles, and other consumer electronic devices. The segment's growth is particularly fueled by the rising demand for connected devices and the implementation of advanced technologies like 5G, AI, and IoT in consumer electronics. The expansion of smart home ecosystems, wearable technologies, and the continuous evolution of mobile devices has created a robust demand for sophisticated semiconductor IP solutions. Additionally, the increasing focus on power efficiency, miniaturization, and enhanced performance in consumer electronics has led to greater adoption of specialized IP cores and architectures designed specifically for these applications.

Automobile Segment in Semiconductor (Silicon) Intellectual Property Market

The Automobile segment is emerging as the fastest-growing segment in the semiconductor (silicon) IP market, with a projected growth rate of approximately 7% during 2024-2029. This remarkable growth is primarily driven by the increasing integration of advanced driver-assistance systems (ADAS), autonomous driving capabilities, and electric vehicle technologies. The automotive industry's rapid transition towards connected and autonomous vehicles has created an unprecedented demand for specialized semiconductor IP solutions. The segment's growth is further accelerated by the increasing complexity of in-vehicle infotainment systems, the adoption of advanced sensor technologies, and the growing emphasis on vehicle electrification. The integration of AI and machine learning capabilities in vehicles, combined with the need for high-performance computing solutions, continues to drive innovation in automotive-specific semiconductor IP designs.

Remaining Segments in End-User Vertical

The remaining segments in the market include Computers and Peripherals, Industrial, and Other End-user Verticals, each playing crucial roles in shaping the overall market landscape. The Computers and Peripherals segment continues to be driven by the growing demand for high-performance computing solutions, data centers, and cloud computing infrastructure. The Industrial segment is experiencing significant transformation with the adoption of Industry 4.0 technologies, industrial IoT, and smart manufacturing solutions. The Other End-user Verticals segment encompasses diverse applications across telecommunications, aerospace, defense, and healthcare sectors, contributing to the market's overall growth through specialized IP requirements for various applications. These segments collectively represent the diverse application landscape of semiconductor IP, each requiring unique solutions tailored to their specific needs and performance requirements.

Semiconductor (Silicon) Intellectual Property Market Geography Segment Analysis

Semiconductor (Silicon) Intellectual Property Market in North America

North America stands as a pivotal region in the global semiconductor IP market, driven by significant technological advancements and robust research and development activities. The United States and Canada form the core markets in this region, with both countries demonstrating strong capabilities in semiconductor IP development and implementation. The region's dominance is supported by the presence of major semiconductor IP vendors, advanced technological infrastructure, and substantial investments in emerging technologies like artificial intelligence, machine learning, and 5G communications.

Semiconductor (Silicon) Intellectual Property Market in the United States

The United States emerges as the dominant force in the North American semiconductor IP market, spearheading innovation and development across various applications. The country's semiconductor intellectual property ecosystem is characterized by robust research facilities, leading technology companies, and supportive government initiatives. The market's strength is evidenced by its approximately 50% share of the global semiconductor IP market in 2024. The country's leadership is further reinforced by the presence of major semiconductor IP companies and research institutions, particularly concentrated in technology hubs like Silicon Valley, which continue to drive innovation in areas such as artificial intelligence, data centers, and advanced computing applications.

Semiconductor (Silicon) Intellectual Property Market in Canada

Canada represents a rapidly evolving market within the North American semiconductor IP landscape, with a projected growth rate of approximately 5% during 2024-2029. The country's semiconductor IP sector is characterized by increasing investments in research and development, particularly in areas such as artificial intelligence and machine learning applications. Canada's market growth is supported by strong collaboration between academic institutions and industry players, creating an environment conducive to innovation and technological advancement. The country's focus on developing specialized semiconductor IP solutions for emerging technologies and its strategic initiatives to strengthen domestic semiconductor capabilities position it as a significant player in the North American market.

Semiconductor (Silicon) Intellectual Property Market in Europe

The European semiconductor IP market demonstrates a strong focus on innovation and technological advancement, with key contributions from the United Kingdom, Germany, France, and other European nations. The region's market is characterized by robust research and development activities, particularly in areas such as automotive electronics, industrial automation, and communications technology. European countries have shown significant commitment to strengthening their semiconductor capabilities through various initiatives and investments, fostering a competitive environment for semiconductor intellectual property development.

Semiconductor (Silicon) Intellectual Property Market in Germany

Germany stands as the largest semiconductor IP market in Europe, commanding approximately 12% of the regional market share in 2024. The country's strength lies in its advanced automotive sector, industrial automation capabilities, and strong research infrastructure. German semiconductor IP development is particularly focused on applications in automotive electronics, Industry 4.0, and industrial automation, supported by collaboration between research institutions and industry leaders. The country's robust manufacturing base and technological expertise continue to drive innovation in semiconductor IP development.

Semiconductor (Silicon) Intellectual Property Market in France

France emerges as the fastest-growing market in the European region, with a projected growth rate of approximately 6% during 2024-2029. The country's semiconductor IP sector is characterized by significant investments in research and development, particularly in areas such as artificial intelligence and telecommunications. France's market growth is driven by strong government support for technological innovation, the presence of leading research institutions, and an increasing focus on developing advanced semiconductor IP solutions. The country's strategic initiatives in semiconductor IP development and its growing ecosystem of technology companies position it as a key player in the European market.

Semiconductor (Silicon) Intellectual Property Market in Asia-Pacific

The Asia-Pacific region represents a dynamic and rapidly evolving market in the global semiconductor IP landscape, encompassing key markets such as China, Taiwan, Japan, South Korea, and India. The region's semiconductor IP ecosystem is characterized by strong manufacturing capabilities, increasing technological innovation, and growing domestic demand. The presence of major semiconductor foundries, particularly in Taiwan and South Korea, coupled with China's ambitious semiconductor development plans and India's emerging technology sector, creates a diverse and competitive semiconductor IP market environment.

Semiconductor (Silicon) Intellectual Property Market in China

China emerges as the largest semiconductor IP market in the Asia-Pacific region, driven by substantial investments in semiconductor technology and strong government support for domestic IP development. The country's semiconductor IP ecosystem is characterized by rapid technological advancement, particularly in areas such as 5G technology, artificial intelligence, and Internet of Things applications. China's market position is strengthened by its large domestic market, growing technological capabilities, and strategic focus on semiconductor independence.

Semiconductor (Silicon) Intellectual Property Market in India

India represents the fastest-growing market in the Asia-Pacific region, characterized by rapid expansion in semiconductor IP development and implementation. The country's growth is driven by increasing domestic demand, government initiatives supporting semiconductor development, and a strong focus on digital transformation. India's semiconductor IP sector benefits from its robust software expertise, growing electronics manufacturing ecosystem, and strategic partnerships with global technology leaders. The country's emergence as a key player in the semiconductor IP market is supported by initiatives to develop domestic semiconductor capabilities and attract international investments.

Semiconductor (Silicon) Intellectual Property Market in Rest of the World

The Rest of the World market, encompassing regions outside North America, Europe, and Asia-Pacific, demonstrates growing potential in the semiconductor IP sector. This market is characterized by increasing adoption of semiconductor technologies across various industries, particularly in emerging economies. The region shows particular strength in areas such as telecommunications infrastructure development and industrial automation applications. While the semiconductor IP market size remains smaller compared to other major regions, it presents significant opportunities for growth, particularly in countries focusing on digital transformation and technological advancement. The region's development is supported by increasing investments in semiconductor technologies and growing awareness of the importance of intellectual property in technological development.