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Electronic Design Automation Software Market Reach USD 20.89 Billion by 2027 at 9.6% CAGR Globally

WILMINGTON, DE, UNITED STATES, August 25, 2025 /EINPresswire.com/ -- Allied Market Research published a new report, titled, "Electronic Design Automation Software Market Reach USD 20.89 Billion by 2027 at 9.6% CAGR Globally." The report offers an extensive analysis of key growth strategies, drivers, opportunities, key segments, Porter’s Five Forces analysis, and competitive landscape. This study is a helpful source of information for market players, investors, VPs, stakeholders, and new entrants to gain a thorough understanding of the industry and determine steps to be taken to gain competitive advantage.

The global electronic design automation (EDA) software market size was valued at USD 10.20 billion in 2019, and is projected to reach USD 20.89 billion by 2027, growing at a CAGR of 9.6% from 2020 to 2027.

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Driving Factors

Increase in adoption of FinFET architecture for designing modern processors, rise in adoption of SoC technology, and surge in penetration of IoT, AI, and VR are the major factors that fuel the growth of the electronic design automation software market. However, availability of the open-source EDA software is expected to impede the EDA software market growth. On the contrary, rise in demand for smaller electronic devices and increase in demand for machine learning in EDA is expected to provide lucrative opportunities for the electronic design automation software market growth in the coming years.

Market Segmentation

The global electronic design automation software market is segmented into type, application, and region. By type, it is divided 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. As per application, it is classified into communication, consumer electronics, automotive, industrial, Aerospace & defense, medical, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Key Players

The global electronic design automation software market analysis includes some of the key market players such as ANSYS, Inc., Altair, Altium LLC, Aldec, Inc., Autodesk, Cadence Design Systems, Inc., Keysight Technologies, Mentor (a Siemens Business), Silvaco Inc. and Synopsys.

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Based on geography, the market across North America, garnered the major share in 2019, holding nearly two-fifths of the global electronic design automation software market. North America has the highest rate of adoption of advanced technologies such as AI, cloud, and others. Thus, adoption of machine learning integrated Electronic Design Automation (EDA) Software by the electronics manufacturers is boosting the growth of this market. At the same time, the Asia-Pacific region would also showcase the fastest CAGR of 11.6% during the forecast period. This is due to the ever growing smartphone penetration, increasing popularity of smart wearable devices, growing electronic manufacturing companies in countries such as China, India, and Japan.

Based on type, the Semiconductor Intellectual Property (SIP) segment contributed to nearly one-third of the global electronic design automation software market share in 2019, and is expected to lead the trail by the end of 2027. The need of EDA software to offer pre-verified and customizable IP subsystems, architecture design expertise, hardening, signal/power integrity analysis, and IP prototyping kits drive the growth of the segment. On the other hand, the IC Physical Design and Verification segment would also register the fastest CAGR of 12.7% throughout the forecast period, owing to factors such as need for custom IC layout editing, support for the physical implementation of custom digital, analog and mixed-signal designs for device, cell, block , and full chip levels.

Based on application, the consumer electronics segment accounted for more than one-fifths of the global electronic design automation software market revenue in 2019, and is anticipated to dominate by 2027. EDA tools are increasingly used by consumer electronics manufacturers owing to the compact designs of new electronic items. This factor drives the growth of the market in this segment. On the other hand, the automotive segment would exhibit the fastest CAGR of 11.3% from 2020 to 2027. The fact that automotive field is offering great growth prospects to the Computer Aided Engineering (CAE) and semiconductor IP industries further drives the market growth.

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COVID-19 Scenario

● The outbreak of the pandemic led to decline in investments and funding in the electronic design automation industry. In addition, factors such as decrease in semiconductor industry revenues, the slowdown in production, and shortage of raw material supply have further impacted the industry.

● Nevertheless, the government bodies in all across the world are now implementing unlock procedures to aid the market players in terms of economy. With this drift on board, the industry is anticipated to recover soon.

Thanks for reading this article, you can also get an individual chapter-wise section or region-wise report versions like North America, Europe, or Asia.

If you have any special requirements, please let us know and we will offer you the report as per your requirements.

Lastly, this report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

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About Us:

Allied Market Research (AMR) is a market research and business-consulting firm of Allied Analytics LLP, based in Portland, Oregon. AMR offers market research reports, business solutions, consulting services, and insights on markets across 11 industry verticals. Adopting extensive research methodologies, AMR is instrumental in helping its clients to make strategic business decisions and achieve sustainable growth in their market domains. We are equipped with skilled analysts and experts and have a wide experience of working with many Fortune 500 companies and small & medium enterprises.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies. This helps us dig out market data that helps us generate accurate research data tables and confirm utmost accuracy in our market forecasting. Every data company in the domain is concerned. Our secondary data procurement methodology includes deep presented in the reports published by us is extracted through primary interviews with top officials from leading online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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