PUBLISHER: Bizwit Research & Consulting LLP | PRODUCT CODE: 1878741
PUBLISHER: Bizwit Research & Consulting LLP | PRODUCT CODE: 1878741
The Global Electronic Design Automation (EDA) Market is valued approximately at USD 14.79 billion in 2024 and is anticipated to grow at a CAGR of more than 9.50% over the forecast period 2025-2035. EDA refers to a suite of software tools and methodologies that engineers use to design, simulate, verify, and optimize electronic systems such as integrated circuits (ICs), printed circuit boards (PCBs), and semiconductor devices. The global demand for EDA solutions has been propelled by the rapid expansion of semiconductor manufacturing, the miniaturization of components, and the integration of complex system-on-chip (SoC) designs. As advanced technologies like AI, 5G, autonomous driving, and IoT proliferate, the complexity of electronic systems has surged, necessitating powerful design tools that can streamline development cycles and reduce costs. Moreover, as the semiconductor industry witnesses unprecedented scaling and customization requirements, EDA platforms have become the backbone of innovation-bridging design precision with computational efficiency.
The exponential rise in connected devices, coupled with the increasing sophistication of microelectronics, has dramatically accelerated the demand for EDA solutions across industries. The growing use of artificial intelligence and machine learning within chip design, coupled with the push toward higher transistor densities and smaller geometries, is redefining design methodologies. According to industry sources, semiconductor R&D spending has grown at an annualized rate of nearly 7% in the past decade, with a significant share allocated toward EDA and verification tools. These solutions enable engineers to conduct complex simulations, detect errors early, and optimize circuit performance prior to fabrication-resulting in substantial time and cost savings. However, challenges such as escalating design costs, the shortage of skilled semiconductor engineers, and intellectual property (IP) protection concerns may impede the pace of market expansion over the forecast period of 2025-2035.
North America
Europe
Asia Pacific
Latin America
Middle East & Africa
Computer-Aided Design (CAD) Segment is Expected to Dominate the Market
Among the various functional segments, Computer-Aided Design (CAD) is projected to dominate the EDA market over the forecast period. CAD tools play a crucial role in the conceptualization and detailed design of circuit layouts and electronic schematics. These solutions have evolved into intelligent, automation-driven platforms that significantly enhance design accuracy, time efficiency, and error detection. The growing complexity of integrated circuits and the drive toward miniaturization have amplified the importance of schematic capture and PCB layout tools, especially in consumer electronics and automotive electronics sectors. Moreover, the adoption of cloud-based CAD tools and collaborative design environments has further broadened accessibility and scalability, allowing design teams to work synchronously across global locations.
Simulation and Verification Lead in Revenue Contribution
Simulation and Verification tools currently hold the largest revenue share within the EDA market. As electronic components become more complex, the margin for design error has drastically diminished, making verification and testing a vital part of the design process. SPICE simulation and functional verification platforms allow engineers to replicate real-world operating conditions, ensuring that every component performs reliably before production. The growing use of advanced verification methodologies, such as formal verification and emulation, in high-performance computing and automotive safety applications, has intensified market growth. Additionally, the integration of AI and predictive analytics into simulation workflows has enhanced the precision of error detection and performance analysis, establishing simulation and verification as the economic powerhouse of the EDA industry.
The key regions considered for the Global Electronic Design Automation Market study include North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America dominated the market in 2024 with the largest market share, owing to the region's robust semiconductor ecosystem, strong presence of leading EDA vendors, and high concentration of R&D facilities in the U.S. and Canada. The region's early adoption of AI-driven design automation and its substantial investments in advanced chip manufacturing further solidify its leadership. Meanwhile, the Asia Pacific region is poised for the fastest growth during the forecast period. Countries such as China, South Korea, Japan, and Taiwan are aggressively expanding semiconductor fabrication capacity and investing heavily in EDA capabilities to enhance design autonomy. The rapid emergence of local fabless semiconductor companies and government-backed initiatives to strengthen domestic chip design infrastructure are expected to fuel regional market expansion.
The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players. The detailed segments and sub-segments of the market are explained below: