Electronic Design Automation Market Size, Share, and Growth Analysis, By Product (Computer-aided Engineering, IC Physical Design and Verification), By Deployment, By Application, By End Use, By Region - Industry Forecast 2026-2033

Electronic Design Automation Market size was valued at USD 14.09 Billion in 2024 and is poised to grow from USD 15.52 Billion in 2025 to USD 33.5 Billion by 2033, growing at a CAGR of 10.1% during the forecast period (2026-2033).

The electronic design automation (EDA) industry is propelled by the increasing complexity of electronic systems and the demand for advanced technologies across various sectors, including consumer electronics, automotive, telecommunications, and healthcare. Significant advancements in semiconductor technology, coupled with the rising need for high-performance and miniaturized devices, are key drivers. The integration of artificial intelligence and machine learning in circuit design further enhances the appeal of EDA tools, especially with the expansion of 5G networks and the Internet of Things. However, challenges exist, such as the high cost of EDA software and a steep learning curve associated with advanced tools. Despite these hurdles, the market presents substantial opportunities through automation-focused design processes and the growing adoption of cloud-based EDA solutions, particularly in emerging fields like driverless vehicles and quantum computing.

Top-down and bottom-up approaches were used to estimate and validate the size of the Electronic Design Automation market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Electronic Design Automation Market Segments Analysis

Global Electronic Design Automation Market is segmented by Product, Deployment, Application, End Use and region. Based on Product, the market is segmented into Computer-aided Engineering (CAE), IC Physical Design and Verification, Printed Circuit Board and Multi-chip Module (PCB and MCM), Semiconductor Intellectual Property (SIP) and Services. Based on Deployment, the market is segmented into Cloud and On-premise. Based on Application, the market is segmented into Aerospace and Defense, Automotive, Healthcare, Industrial, Consumer Electronics and Others. Based on End Use, the market is segmented into Microprocessors & Controllers, Memory Management Unit (MMU) and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Electronic Design Automation Market

The Electronic Design Automation (EDA) market is significantly driven by its role in enabling chip manufacturing companies to design and produce increasingly sophisticated semiconductors with enhanced speed and cost-effectiveness. The demand for high levels of accuracy and precision in semiconductor devices, coupled with the escalating complexity of integrated circuit designs, fuels this market further. As various industries increasingly adopt integrated circuit design and verification tools, which streamline the positioning and routing of circuits on integrated circuits or application-specific integrated circuits, the global EDA market continues to gain momentum. This growing reliance on advanced EDA solutions is reshaping the landscape of semiconductor manufacturing.

Restraints in the Electronic Design Automation Market

A significant challenge facing the electronic design automation market stems from the high costs associated with EDA tools and software. These solutions can be prohibitively expensive, particularly when tailored with advanced features for specific industries. This pricing structure often poses a barrier for small and medium enterprises, preventing them from accessing essential sophisticated design capabilities. Additionally, the financial burden is compounded by ongoing expenses related to maintenance, training, and licensing, making it difficult for many companies to justify the investment. As a result, the affordability of EDA tools remains a crucial concern that limits market growth and accessibility.

Market Trends of the Electronic Design Automation Market

The Electronic Design Automation (EDA) market is experiencing a notable shift driven by the escalating complexity of semiconductor designs. This complexity arises from the need for smaller, energy-efficient, and high-performance products, pushing semiconductor companies to seek advanced EDA tools that can manage these intricate designs more effectively. As design cycles compress, the reliance on robust EDA solutions increases, enabling semiconductor firms to enhance product reliability and accelerate time-to-market. Consequently, the market is witnessing accelerated growth as companies invest in innovative EDA technologies to navigate the challenges of modern semiconductor development and meet rising consumer demands for advanced electronic devices.