Electronic Design Automation Market Share and Size, Trends and Forecast To 2020

Electronic Design Automation Market Analysis, Share and Size,
Emerging Trends, Overview and Outlook, Growth And Segment
Forecasts To 2020
Technavio Announces the Publication of its Research Report – Global Electronic Design Automation
(EDA) Market 2016-2020
Technavio recognizes the following companies as the key players in the global electronic design
automation (EDA) market: Synopsys, Cadence Design Systems, and Mentor Graphics.
Other Prominent Vendors in the market are: Agnisys, Aldec, Ansoft, ATopTech, JEDA Technologies,
Sigrity, Tanner EDA, Xilinx, and Zuken.
Browse full report with TOC@ https://marketreportscenter.com/reports/374129/global-electronicdesign-automation-market-2016-2020
Commenting on the report, an analyst from Technavio’ s team said: “Rise in number of fabless
semiconductor companies will be a key trend for market growth. Semiconductor companies are
migrating to the fabless business structure. This is a strategic decision taken by vendors as they want to
focus more on the designing and development of their solutions rather than on the maintenance of the
foundries. These companies are outsourcing their fabrication- and other manufacturing-related activities
to foundries that are specialized in the manufacturing, testing, and assembling of semiconductor ICs.
The resultant ratio of foundries and fabless companies stands at 1:11 in the global semiconductor
market. The rise in the number of fabless semiconductor companies will increase the need for EDA
software tools in the market, as these fabless companies are just concerned with the design aspect of
semiconductor devices.”
According to the report, high research and development investments will be a key driver for market
growth. R&D forms an integral part of the semiconductor industry. The semiconductor industry
recorded its highest R&D spending of $56.4 billion in 2015. This, however, is not in lieu of the industry
standard for R&D spending since 2010, which grew at an average of 13% on a yearly basis. The industry
spending toward R&D was up by only 0.5% from 2014, which is the lowest the industry has witnessed
since the downturn of 2009. The spending was also below the CAGR of 4% between 2005 and 2015.
Intel, one of the leading chip vendors in the market, accounted for 22% of total semiconductor spending
in 2015. This was the highest among leading players such as Qualcomm, Samsung Electronics, and Avago
Technologies and foundries such as Taiwan Semiconductor Manufacturing Corporation (TSMC). An
important aspect to note is that the top five R&D spenders were unchanged from 2014.
Further, the report states that uncertain economic conditions will be a challenge for the market. The
semiconductor market is highly dependent on expenditure by vendors. This high expenditure is mostly
funded by financial institutions and from retained earnings of companies. The global economy is
plagued with uneven market prospects currently. The exit of Britain from the European Union has
resulted in the decline of global markets sharply. In addition, the Chinese economy is facing a downturn,
which has resulted in the dwindling of the Chinese yuan against the dollar, making the outlook
unpredictable. This is expected to affect the market largely as China is a hub of semiconductor
manufacturing. The slowdown of the global economy will tighten credit facilities for market vendors,
thereby reducing their profit margins. This may force them to cut their R&D expenses, including those
on emerging technologies. As a result, the market for EDA software tools is likely to suffer a serious
challenge in the form of uncertain economic conditions.
The study was conducted using an objective combination of primary and secondary information
including inputs from key participants in the industry. The report contains a comprehensive market and
vendor landscape in addition to a SWOT analysis of the key vendors.
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About EDA
EDA comprises software tools used in the designing of electronic systems and components such as ICs
and PCBs. The tools allow electrical (hardware) and computer (software) engineers to design, analyze,
and simulate electronic components and systems. They are also used to derive methodologies and
algorithms that aid in the designing of ultra-large-scale integration (ULSI) circuits. Segments such as CAE,
semiconductor IP, IC physical design and verification, PCB and MCM, and services add up to drive the
growth of the global EDA market.
Technavio’ s analysts forecast the global electronic design automation (EDA) market to grow at a CAGR
of 8.52% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global electronic design
automation (EDA) market for 2016-2020. The report also presents the major vendors that develop EDA
software tools in regions such as the Americas; Europe, Middle East, and Africa (EMEA); and APAC.
The market is divided into the following segments based on geography:
Americas
APAC
EMEA
Technavio's report, Global Electronic Design Automation (EDA) Market 2016-2020, has been prepared
based on an in-depth market analysis with inputs from industry experts. The report covers the market
landscape and its growth prospects over the coming years. The report also includes a discussion of the
key vendors operating in this market.
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Connect for more details:
Sam Collins
Market Reports Center
1-646-883-3044 (US)
[email protected]

According to the report, high research and development investments will be a key driver for market growth. R&D forms an integral part of the semiconductor industry.