PUBLISHER: The Business Research Company | PRODUCT CODE: 1973435
PUBLISHER: The Business Research Company | PRODUCT CODE: 1973435
Electronic Design Automation (EDA) tools are software tools used in the design and development of electronic systems, including integrated circuits (ICs) and printed circuit boards (PCBs). EDA tools together form a design flow that is used by chip designers for the purpose of designing and evaluating whole semiconductor chips.
The main types of electronic design automation (EDA) tools are computer-aided engineering (CAE), integrated circuit physical design and verification, printed circuit board and multi-chip module (PCB and MCM), semiconductor intellectual property (SIP), and services. Computer-aided engineering (CAE) refers to the use of computer software to simulate the performance of products to improve their quality and efficiency. It can be deployed in several modes, including on-premises and cloud-based, and it is used by several end-users, including aerospace and defense, automotive, consumer electronics, industrial, healthcare, and others.
Tariffs have influenced the Electronic Design Automation (EDA) Tools market by increasing costs for importing specialized design software, simulation tools, and IP cores, affecting regions like China and Taiwan that are major semiconductor and EDA hubs. This has led to higher operational costs for automotive, aerospace, and consumer electronics industries that rely on EDA tools. However, tariffs have also spurred local development of EDA solutions and promoted adoption of cloud-based and AI-integrated platforms, creating opportunities for more cost-efficient design workflows globally.
The electronic design automation (eda) tools market research report is one of a series of new reports from The Business Research Company that provides electronic design automation (eda) tools market statistics, including electronic design automation (eda) tools industry global market size, regional shares, competitors with a electronic design automation (eda) tools market share, detailed electronic design automation (eda) tools market segments, market trends and opportunities, and any further data you may need to thrive in the electronic design automation (eda) tools industry. This electronic design automation (eda) tools market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The electronic design automation (eda) tools market size has grown strongly in recent years. It will grow from $18.11 billion in 2025 to $19.81 billion in 2026 at a compound annual growth rate (CAGR) of 9.4%. The growth in the historic period can be attributed to rising adoption of pcb and ic design software, increasing complexity of semiconductor devices, early integration of design automation in automotive and consumer electronics, demand for faster design cycles, need for accurate verification and simulation.
The electronic design automation (eda) tools market size is expected to see strong growth in the next few years. It will grow to $28.39 billion in 2030 at a compound annual growth rate (CAGR) of 9.4%. The growth in the forecast period can be attributed to growth in cloud-based eda adoption, integration of AI and machine learning in eda tools, increasing semiconductor design complexity, expansion in aerospace and automotive electronics, rising demand for multi-chip module and pcb optimization. Major trends in the forecast period include cloud-based eda solutions, ai-driven design verification, high-performance pcb and mcm design tools, integration of semiconductor ip cores, advanced simulation and thermal analysis.
The growing adoption of the Internet of Things (IoT) is expected to drive the growth of the electronic design automation (EDA) tools market in the coming years. The Internet of Things refers to a network of physical objects embedded with sensors, software, and connectivity, enabling them to collect, exchange, and act on data across various environments. The rise in IoT adoption is fueled by advancements in wireless technology, edge computing, and enterprise digitization, which are expanding IoT implementation across consumer, industrial, and infrastructure sectors. EDA tools support this growth by facilitating the design, verification, and testing of increasingly complex and interconnected electronic systems, including integrated circuits and system-on-chips. For example, in February 2023, BuildOps Inc., a U.S.-based software-as-a-service (SaaS) company, reported that the number of IoT-connected devices increased by 28% from 2022 to 2023 and was projected to reach 16 billion by the end of 2023. Therefore, the growing adoption of IoT is contributing to the expansion of the electronic design automation (EDA) tools market.
Major companies in the electronic design automation (EDA) tools market are focusing on developing innovative solutions such as artificial intelligence (AI)-driven full-stack EDA suites to meet the growing demand for faster, more efficient, and automated semiconductor design workflows that reduce time-to-market and enhance chip performance. AI-driven EDA tools use artificial intelligence (AI) and machine learning algorithms to streamline complex chip design processes, automate verification, and predict design outcomes, providing a major improvement over traditional EDA tools that depend heavily on manual setup and iterative simulations. For example, in May 2023, Synopsys Inc., a U.S.-based semiconductor design software company, introduced SynopsysAI, the industry's first full-stack AI-driven EDA suite for chip manufacturers. SynopsysAI applies AI across the entire chip design workflow-including logic design, physical design, verification, and testing-allowing designers to accelerate decision-making, optimize power, performance, and area (PPA), and reduce the number of design iterations. Key features include AI-based predictive analysis, automated design recommendations, and adaptive learning models that improve continuously as they process design data, making the suite suitable for developing advanced semiconductors used in applications such as AI accelerators, mobile processors, and high-performance computing chips.
In November 2023, Siemens Digital Industries, a US-based software company, acquired Insight EDA Inc. for an undisclosed amount. Through this acquisition, Siemens will expand its Calibre integrated circuit reliability verification offering, aiming to enable design engineers to more easily add design-specific reliability verification and analysis to integrated circuit (IC) design. This acquisition is expected to accelerate Siemens' circuit reliability verification roadmap and bring Insight EDA's solutions to the global semiconductor ecosystem. Insight EDA Inc. is a US-based electronic design automation (EDA) tool provider that offers calculation, error detection, domain leakage prediction, analytical solutions, and technical services.
Major companies operating in the electronic design automation (eda) tools market are Siemens AG; Intel Corporation; Arrow company; Agnisys Inc.; Keysight Technologies Inc.; Synopsys Inc.; Cadence Design Systems Inc.; Forte Design Systems; Xilinx Inc.; ANSYS Inc.; Microsemi Corporation; National Instruments Corporation; JEDA Technologies Inc.; Mentor Graphic Corporation; Altair Engineering Inc.; AWR Corporation; Faraday&Future Inc.; Zuken Inc.; Magwel NV; Altium Limited; Silvaco Inc.; Lauterbach GmbH; Computer Simulation Technology AG; EnSilica Limited; Aldec Inc.; EMA Design Automation Inc.; ELECTRO-SYSTEM CO. LTD.; MunEDA GmbH; Intercept Technology Inc.; Labcenter Electronics Ltd.; Pulsic Limited
Asia-Pacific was the largest region in the electronic design automation (EDA) tools market in 2025. It is expected to be the fastest-growing region in the forecast period. The regions covered in the electronic design automation (eda) tools market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the electronic design automation (eda) tools market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The electronic design automation (EDA) tools market consists of revenues earned by entities by providing services such as consulting services, integration services, customization services, maintenance and support services, and verification and testing services. The market value includes the value of related goods sold by the service provider or included within the service offering. The electronic design automation (EDA) tools market also includes sales of cadence design systems, high-frequency structure simulators, design-for-test (DFT) tools, physical verification tools, and simulation and modeling tools. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Electronic Design Automation (EDA) Tools Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses electronic design automation (eda) tools market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for electronic design automation (eda) tools ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The electronic design automation (eda) tools market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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