Global Electronic Design Automation (EDA) Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

The global Electronic Design Automation (EDA) market is witnessing significant growth driven by advancements in product offerings across several segments. The key products in this market include Computer Aided Engineering (CAE), IC Physical Design & Verification, Printed Circuit Board (PCB) and Multi-Chip Module (MCM), and Semiconductor Intellectual Property (IP). CAE is widely used in various industries to simulate and analyze electrical systems, while IC Physical Design & Verification ensures proper chip design and functionality. The growing demand for complex circuit boards and systems for devices like smartphones, computers, and automotive electronics has further propelled the demand for PCB and MCM solutions. Semiconductor IP continues to play a crucial role in enabling innovation in the semiconductor industry by providing reusable design blocks, essential for integrated circuit design.

In terms of deployment mode, the EDA market is categorized into on-premises and cloud-based solutions. On-premises solutions are still widely used by companies that prefer to have full control over their design processes, security, and infrastructure. However, the trend toward cloud-based solutions is gaining momentum as they offer scalable, flexible, and cost-effective solutions. Cloud-based EDA platforms allow organizations to access high-performance computing resources on-demand, reducing the need for heavy capital investments in infrastructure. This is especially beneficial for small and medium-sized enterprises (SMEs) and startups that seek efficient and affordable design tools.

The application of EDA tools spans various industries, including aerospace and defense, automotive, consumer electronics, industrial, medical, telecommunications, and others. Aerospace and defense sectors require advanced EDA tools to develop highly reliable and secure electronic systems used in aircraft, satellites, and defense equipment. In automotive applications, the integration of electronics for advanced driver-assistance systems (ADAS) and electric vehicles (EVs) is driving the demand for EDA solutions. The rapid growth in consumer electronics, including smartphones, wearables, and IoT devices, has also significantly contributed to the market growth, as these devices rely heavily on advanced electronic designs for optimal performance.

Geographically, the EDA market is seeing widespread adoption across regions such as North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. North America is the largest market for EDA tools, owing to the presence of major technology companies and semiconductor manufacturers, as well as strong research and development activities. The Asia Pacific region is expected to experience the highest growth rate due to the growing adoption of electronic design tools in countries like China, Japan, South Korea, and India, driven by the expanding semiconductor and consumer electronics industries. Europe and other regions are also contributing significantly to the market growth, as demand for EDA tools continues to rise across various industries, including automotive, medical, and telecommunications.

Global Electronic Design Automation (EDA) Segment Analysis

In this report, the Global Electronic Design Automation (EDA) Market has been segmented by Product, Deployment Mode, Application and Geography.

Global Electronic Design Automation (EDA) Market, Segmentation by Product

The Global Electronic Design Automation (EDA) Market has been segmented by Product into Computer Aided Engineering, IC Physical Design & Verification, Printed Circuit Board (PCB) and Multi-Chip Module (MCM), Semiconductor Intellectual Property and Services.

EDA tools are instrumental in facilitating the design, verification, and testing of complex integrated circuits (ICs), printed circuit boards (PCBs), and other electronic systems. Segmentation by product within this dynamic market provides insights into the diverse tools and technologies that cater to specific stages of the electronic design process.

One key segment within the EDA market is Computer-Aided Engineering (CAE) software, which includes tools for simulation, analysis, and optimization of electronic designs. CAE solutions enable engineers to model and evaluate the performance, reliability, and manufacturability of electronic systems before physical prototypes are produced. This segment encompasses a range of specialized tools for areas such as circuit simulation, thermal analysis, electromagnetic compatibility (EMC), and finite element analysis (FEA), catering to the unique needs of different industries and applications.

Another critical segment is IC Physical Design and Verification software, which focuses on the layout and validation of integrated circuits. These tools enable engineers to translate design specifications into physical layouts while ensuring adherence to performance, power, and manufacturability constraints. IC physical design tools encompass floor planning, placement, routing, and signoff verification, essential for achieving optimal chip performance and yield. Moreover, advanced verification methodologies, such as formal verification and emulation, play a crucial role in ensuring the correctness and robustness of IC designs.

Printed Circuit Board (PCB) and Multi-Chip Module (MCM) design software constitute another significant segment within the EDA market. These tools empower engineers to create and optimize the layout and routing of complex circuitry on PCBs and MCMs, considering factors such as signal integrity, power distribution, and thermal management. PCB and MCM design solutions encompass schematic capture, layout design, signal integrity analysis, and design for manufacturability (DFM), enabling the efficient realization of high-performance electronic systems across various industries.

Semiconductor Intellectual Property (IP) and services represent yet another vital segment, offering pre-designed functional blocks, subsystems, and design services to semiconductor companies and system integrators. Semiconductor IP cores, such as processors, memory controllers, and interface IP, accelerate the development of custom IC designs, reducing time-to-market and development costs. Additionally, IP-related services, including customization, integration, and verification support, further enhance the capabilities of semiconductor companies in meeting the evolving demands of diverse markets and applications.

Global Electronic Design Automation (EDA) Market, Segmentation by Deployment Mode

The Global Electronic Design Automation (EDA) Market has been segmented by Deployment Mode into On-premises, and Cloud-based.

The Global Electronic Design Automation (EDA) Market has witnessed significant growth due to advancements in technology and the increasing demand for complex electronic systems. The market is segmented by deployment mode, which includes On-premises and Cloud-based solutions. On-premises EDA solutions are typically deployed within an organization’s infrastructure, offering greater control and security over the design process. These solutions are preferred by companies that require high levels of customization, sensitive data handling, and compliance with specific regulatory standards. On-premises deployment also allows for robust integration with existing IT infrastructure, making it a suitable choice for large enterprises with dedicated IT resources.

On the other hand, Cloud-based EDA solutions are gaining popularity due to their flexibility and scalability. With cloud deployment, organizations can access EDA tools over the internet, eliminating the need for significant upfront investments in hardware and software. This mode of deployment offers the advantage of real-time collaboration among teams located in different geographic locations, making it ideal for companies with a distributed workforce. Additionally, cloud-based solutions are often more cost-effective, as they follow a pay-as-you-go model, allowing businesses to scale their resources according to project demands.

The shift toward Cloud-based EDA solutions is also driven by the increasing need for efficient data management and storage. Cloud platforms provide robust data security and disaster recovery features, ensuring that critical design data is safe and accessible at all times. Furthermore, the integration of artificial intelligence and machine learning into cloud-based EDA tools is enhancing the speed and accuracy of design processes. As the demand for smaller, faster, and more complex electronic devices continues to rise, both on-premises and cloud-based deployment modes are expected to play crucial roles in shaping the future of the EDA market.

Global Electronic Design Automation (EDA) Market, Segmentation by Application

The Global Electronic Design Automation (EDA) Market has been segmented by Application into Aerospace & Defense, Automotive, Consumer Electronics, Industrial, Medical, Telecommunications and Others.

One prominent application of EDA tools is in the Aerospace and Defense sector, where stringent performance, reliability, and safety standards necessitate the use of advanced design and verification methodologies. EDA software enables aerospace and defense engineers to develop complex electronic systems, such as avionics, radar systems, and unmanned aerial vehicles (UAVs), while ensuring compliance with regulatory requirements and rigorous testing standards. From system-level design and simulation to PCB layout and verification, EDA tools play a crucial role in accelerating the development and deployment of cutting-edge aerospace and defense technologies.

The Automotive industry represents another significant application area for EDA technology, driven by the growing complexity of vehicle electronics and the demand for advanced driver assistance systems (ADAS), infotainment, and vehicle electrification. EDA tools enable automotive engineers to design and optimize electronic control units (ECUs), sensor interfaces, and communication networks, enhancing vehicle performance, safety, and efficiency. From system-on-chip (SoC) design to automotive-grade PCB layout and simulation, EDA solutions support the development of next-generation automotive electronics that meet the evolving requirements of connected and autonomous vehicles.

Consumer Electronics is yet another key application segment for EDA technology, encompassing a wide range of products, including smartphones, tablets, wearables, and smart home devices. In the fast-paced consumer electronics market, EDA tools are essential for designing compact, power-efficient, and feature-rich electronic systems that meet consumer demands for performance, connectivity, and battery life. From IC design and verification to PCB layout and 3D modeling, EDA solutions enable consumer electronics manufacturers to deliver innovative products that drive market differentiation and customer satisfaction.

The Industrial sector also relies heavily on EDA technology to design and optimize electronic systems for a variety of applications, including industrial automation, robotics, and IoT devices. EDA tools facilitate the development of ruggedized, high-reliability electronics capable of withstanding harsh environments and operating conditions. From industrial-grade PCB design and thermal analysis to simulation of control algorithms and communication protocols, EDA solutions empower industrial engineers to create robust and efficient electronic systems that enhance productivity, efficiency, and safety in manufacturing and industrial processes.

Global Electronic Design Automation (EDA) Market, Segmentation by Geography

In this report, the Global Electronic Design Automation (EDA) Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Electronic Design Automation (EDA) Market Share (%), by Geographical Region, 2024

Asia-Pacific emerges as a dynamic and rapidly growing market for EDA technology, propelled by the region's robust manufacturing base, burgeoning consumer electronics market, and increasing investments in semiconductor manufacturing and design capabilities. Countries such as China, Japan, South Korea, and Taiwan are at the forefront of semiconductor innovation and production, driving significant demand for EDA tools and services. Moreover, the proliferation of IoT devices, 5G networks, and smart manufacturing initiatives in the region further accelerates the adoption of EDA technology across diverse industries.

The Rest of the World (RoW) encompasses regions such as Latin America, the Middle East, and Africa, which present unique opportunities and challenges for EDA vendors. While these regions may have smaller market sizes compared to North America, Europe, and Asia-Pacific, they offer untapped potential for growth, particularly in emerging markets with increasing investments in infrastructure, manufacturing, and technology adoption. EDA vendors looking to expand their global footprint may explore partnerships, distribution channels, and localized offerings to capitalize on opportunities in these regions.

Segmentation by geography underscores the global nature of the Electronic Design Automation market, with opportunities for growth and innovation spanning across North America, Europe, Asia-Pacific, and the Rest of the World. By understanding regional dynamics and market trends, EDA vendors can strategically position themselves to capture market share, foster partnerships, and drive technological advancements that shape the future of electronic design worldwide.

This report provides an in depth analysis of various factors that impact the dynamics of Global Electronic Design Automation (EDA) Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunities Analysis

Drivers:

• Moore's Law
• Semiconductor Industry
• Emerging Technologies

• Globalization - Globalization is a multifaceted phenomenon that has profoundly transformed the economic, social, and cultural landscapes of the world. At its core, globalization refers to the increasing interconnectedness and interdependence among nations, driven by advancements in technology, communication, trade, and investment. One of the defining features of globalization is the unprecedented flow of goods, services, capital, and information across national borders, facilitated by improvements in transportation and communication networks. This interconnectedness has led to the integration of national economies into a global economic system, where goods and services are produced, exchanged, and consumed on a global scale.

  Economic globalization has been a driving force behind the expansion of international trade and investment, leading to the emergence of global supply chains and the proliferation of multinational corporations (MNCs). Through trade liberalization and the removal of barriers to cross-border commerce, countries have been able to specialize in the production of goods and services in which they have a comparative advantage, leading to increased efficiency and productivity gains. Moreover, foreign direct investment (FDI) flows have surged as companies seek access to new markets, resources, and talent pools, driving economic growth and development in both developed and developing countries.

  Globalization has also facilitated the spread of technology and innovation, enabling the rapid dissemination of knowledge, ideas, and best practices across borders. Technological advancements in information and communication technologies (ICTs) have revolutionized communication, allowing individuals and businesses to connect and collaborate across continents in real time. This has fueled the rise of global networks and virtual communities, facilitating cross-cultural exchange and collaboration in areas such as research and development, education, and entrepreneurship.

  While globalization has brought about numerous benefits, including increased prosperity, innovation, and cultural exchange, it has also been accompanied by challenges and controversies. One of the primary concerns associated with globalization is its impact on income inequality, both within and between countries. While globalization has lifted millions of people out of poverty in emerging economies, it has also contributed to widening income disparities, particularly in developed countries where certain industries have faced competition from lower-cost producers abroad.

  Globalization has raised concerns about its environmental and social implications, including resource depletion, environmental degradation, and labor exploitation. The pursuit of economic growth and profit maximization in a globalized world has sometimes come at the expense of environmental sustainability and social equity. Addressing these challenges requires coordinated action at the global level, including policies to promote sustainable development, protect labor rights, and mitigate the adverse impacts of globalization on vulnerable populations.

Restraints:

• Design Complexity
• Shrinking Design Cycles
• Power Consumption

• Thermal Management - Thermal management is a critical aspect of electronic system design and engineering, focused on managing heat generated by electronic components to ensure optimal performance, reliability, and longevity. As electronic devices become increasingly compact and powerful, effective thermal management becomes essential to prevent overheating, component degradation, and system failures.

  One key challenge in thermal management is the efficient removal of heat generated by electronic components, such as processors, graphics cards, and power amplifiers. This is typically achieved through the use of thermal interface materials, heat sinks, heat pipes, and fans or other cooling mechanisms. These components work together to dissipate heat away from critical components and transfer it to the surrounding environment, maintaining operating temperatures within acceptable limits.

  Another aspect of thermal management involves thermal modeling and simulation, where engineers use software tools to predict and analyze heat distribution within electronic systems. By simulating thermal behavior under various operating conditions, engineers can identify potential hotspots, optimize component placement, and design effective cooling solutions. Thermal modeling also helps in predicting the long-term reliability of electronic systems by assessing the impact of thermal stress on component lifespan.

  In addition to hardware-based solutions, thermal management also encompasses intelligent system-level strategies, such as dynamic thermal management and thermal-aware scheduling. These techniques involve dynamically adjusting system parameters, such as clock speeds and power consumption, based on real-time temperature measurements and workload demands. By dynamically adapting system behavior to thermal conditions, these strategies help optimize performance while minimizing energy consumption and heat generation.

  Thermal management is particularly crucial in high-performance computing environments, such as data centers, where densely packed servers generate significant amounts of heat. In these environments, efficient cooling systems, such as liquid cooling and cold aisle containment, are employed to maintain optimal operating temperatures and maximize energy efficiency.

Opportunities:

• Emerging Technologies Adoption
• AI Integration
• IoT Expansion

• 5G Wireless Communications - 5G wireless communication represents the latest generation of mobile network technology, promising significant advancements in speed, capacity, latency, and connectivity compared to its predecessors. As the successor to 4G LTE, 5G is designed to meet the growing demand for high-speed, reliable wireless connectivity across a wide range of devices and applications, including smartphones, IoT devices, autonomous vehicles, and industrial automation.

  One of the key features of 5G is its vastly increased data transmission speeds, capable of reaching multi-gigabit per second (Gbps) rates. This high-speed connectivity enables seamless streaming of high-definition video, ultra-low latency gaming, and real-time collaboration applications, enhancing user experiences and enabling new use cases that require high bandwidth.

  Another important aspect of 5G is its significantly reduced latency, or the time it takes for data to travel between devices and the network. With latency reductions to as low as one millisecond (ms), 5G enables near-instantaneous communication between devices, opening up opportunities for applications such as remote surgery, autonomous vehicles, and industrial automation, where split-second responsiveness is crucial.

  5G also boasts improved network capacity and efficiency, thanks to technologies such as massive multiple-input, multiple-output (MIMO), beamforming, and network slicing. These techniques allow 5G networks to support a much larger number of connected devices simultaneously, without sacrificing performance or reliability. This is particularly important in dense urban environments and crowded venues where network congestion can be a significant issue.

  5G introduces network slicing, which allows operators to partition their network infrastructure into virtualized, isolated slices optimized for specific use cases or applications. This enables customized network configurations tailored to the requirements of diverse industries, such as healthcare, manufacturing, and smart cities, unlocking new opportunities for innovation and efficiency.

  5G is expected to power a wide range of transformative applications and services across industries, including enhanced mobile broadband (eMBB), massive machine-type communications (mMTC), and ultra-reliable low-latency communications (URLLC). From smart homes and cities to augmented reality (AR) and virtual reality (VR) experiences, 5G has the potential to revolutionize how we live, work, and interact with the world around us.

Key players in Global Electronic Design Automation (EDA) Market include:

• Agnisys, Inc.
• Aldec, Inc.
• Altera
• Altium
• Ansys
• Austemper Design Systems Inc.
• AutoTRAX
• Cadence Design Systems
• CadSoft Computer
• Dolphin Integration
• EasyEDA
• EasyLogix - Schindler & Schill GmbH
• EMWorks
• Eremex
• Ferrochip
• Ing.-Bro FRIEDRICH
• Intercept Technology Inc
• Invionics
• JEDA Technologies
• Keysight Technologies
• Labcenter Electronics Ltd
• Lauterbach GmbH
• Mentor Graphics
• NanGate
• National Instruments
• POLYTEDA LLC
• Pulsonix
• Sigasi
• Silvaco International, Inc.
• Solido Design Automation, Inc.
• Synopsys, Inc.
• Teklatech A/S
• Ucamco
• Upverter, Inc.
• VisualSim Architect
• Xilinx
• Zuken

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis