PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1794728
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1794728
Global Semiconductor IP Market to Reach US$9.8 Billion by 2030
The global market for Semiconductor IP estimated at US$7.4 Billion in the year 2024, is expected to reach US$9.8 Billion by 2030, growing at a CAGR of 4.8% over the analysis period 2024-2030. Verification IP, one of the segments analyzed in the report, is expected to record a 3.8% CAGR and reach US$3.8 Billion by the end of the analysis period. Growth in the Application-Specific Integrated Circuit segment is estimated at 4.1% CAGR over the analysis period.
The U.S. Market is Estimated at US$1.9 Billion While China is Forecast to Grow at 4.8% CAGR
The Semiconductor IP market in the U.S. is estimated at US$1.9 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$1.6 Billion by the year 2030 trailing a CAGR of 4.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 4.4% and 4.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.0% CAGR.
Global Semiconductor IP Market - Key Trends & Drivers Summarized
Why Has Semiconductor IP Become the Cornerstone of Chip Design Ecosystems?
Semiconductor intellectual property (IP) refers to reusable logic or design units that semiconductor companies integrate into system-on-chip (SoC) designs. These IP cores can be processor cores, memory blocks, interface protocols (e.g., USB, PCIe), or analog modules, developed either in-house or licensed from third-party IP vendors. With the growing complexity of SoCs and the rising cost of chip development-especially at nodes below 10nm-semiconductor IP has emerged as a strategic asset to accelerate time-to-market, reduce design risks, and cut down R&D expenditure.
The rapid pace of innovation in AI, automotive electronics, edge computing, and IoT is driving demand for highly customized, performance-optimized IP. Designers increasingly rely on pre-verified, production-proven IP blocks to assemble complex SoCs instead of building each module from scratch. The IP business model allows fabless companies and system integrators to focus on differentiation, such as AI engines or security features, while licensing commodity IP for standard functionality. IP portfolios from vendors like Arm, Synopsys, Cadence, and CEVA are fundamental in enabling the semiconductor industry's fabless-foundry collaboration model.
How Are Design Trends and Functional Requirements Shaping IP Portfolio Evolution?
As chips become more application-specific and multi-functional, IP providers are investing in domain-specific architectures, interface IP, and security-compliant building blocks. AI accelerators, high-performance DSPs, RISC-V cores, and neural processing units (NPUs) are in high demand for edge AI and machine learning SoCs. With 5G and automotive pushing high-speed data exchange, interface IP such as SerDes, USB4, PCIe Gen5/Gen6, and Ethernet are critical for meeting bandwidth and latency targets. Likewise, functional safety IP and ISO 26262-compliant modules are essential in automotive and industrial automation designs.
Security IP is becoming an integral part of every SoC, driven by the rise in connected devices and increasing cyber threats. Hardware root-of-trust modules, secure boot, encryption/decryption cores, and TPM (trusted platform module) integration are being demanded in sectors ranging from smartphones to defense electronics. Additionally, configurable and soft IP compatible with FPGAs and heterogeneous computing platforms are gaining traction. IP vendors are now bundling IP subsystems, design services, and verification tools to deliver full-stack design enablement. These trends indicate a shift toward platform-level offerings that simplify integration and improve design productivity across multi-domain semiconductor ecosystems.
Which End-Use Applications and Geographies Are Driving IP Licensing Activity?
Consumer electronics and mobile chipsets continue to be major consumers of semiconductor IP, especially processor cores, graphics IP, and memory subsystems. The smartphone SoC supply chain relies extensively on licensed IP for modem, connectivity, and multimedia functionality. The automotive industry is another high-growth segment, with demand for IP supporting autonomous driving, ADAS, infotainment, and vehicle-to-everything (V2X) communication. The deployment of AI accelerators, image processors, and in-vehicle networking stacks relies heavily on third-party IP due to the need for functional safety, security, and power efficiency.
Geographically, North America leads the IP market, with Silicon Valley being the epicenter of IP development and licensing activity. Europe has a strong presence in automotive and industrial IP segments, while Asia-Pacific is witnessing rapid growth due to the semiconductor design ecosystem expanding in China, South Korea, Taiwan, and India. The growing number of fabless startups and government-backed semiconductor self-sufficiency programs in these regions are driving demand for licensable IP to accelerate chip development. Licensing models are also adapting to SaaS-like formats, subscription-based licensing, and pay-per-use models to accommodate smaller design houses and prototyping environments.
What Factors Are Fueling the Expansion of the Semiconductor IP Market Globally?
The growth in the semiconductor IP market is driven by several factors, including increasing SoC design complexity, faster time-to-market requirements, and rising demand for application-specific chips across AI, 5G, and automotive sectors. The rising cost of chip tape-outs, especially at advanced nodes, is encouraging designers to adopt proven IP blocks rather than risk costly design iterations. As semiconductor content increases in connected cars, smart homes, industrial automation, and edge AI systems, IP vendors are witnessing expanding opportunities for domain-specific cores, interface protocols, and embedded security modules.
The open-source hardware movement, particularly the rise of RISC-V, is disrupting traditional licensing models and giving rise to new ecosystems and business models. Furthermore, the expansion of edge and embedded AI is driving demand for customizable IP that balances performance, power efficiency, and area optimization. IP reuse strategies are also enabling startups and medium-sized players to innovate without incurring prohibitive design overheads. As global semiconductor design activity intensifies and SoC heterogeneity increases, the role of high-quality, flexible, and silicon-proven IP will remain critical to enabling innovation, reducing time-to-volume, and securing competitive advantage across the electronics value chain.
SCOPE OF STUDY:
The report analyzes the Semiconductor IP market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Type (Verification IP, Application-Specific Integrated Circuit, Memory IP, Interface IP, Processor IP); Architecture Design (Hard IP Core Architecture Design, Soft IP Core Architecture Design); End-Use (Healthcare End-Use, Telecommunications End-Use, Automotive End-Use, Consumer Electronics End-Use, Other End-Uses)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.
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