Arm grows market share in bouyant IP market
Arm grew its leading share of the fast-growing chip design intellectual property market in 2022, according to according to Eric Esteve from IPnest.
The marker researcher reckons the design IP market was worth $6.67 billion in 2022, up 20.2 percent compared with 2021. This annual growth came after similar figures of 19.4 percent in 2021 and 16.7 percent in 2020.
Arm has been losing out gradually over several years to the likes of Synopsys and Cadence but in 2020 was able to reverse the trend (see ARM grows IP market share in boom year) and held its ground in 2022.
Global semiconductor design IP by top ten company revenues 2022 and 2022 (millions of dollars). Source: IPnest April 2023.
Arm, Synopsys, Imagination and Alphawave grew by more than the market, respectively 24.5, 22.1, 23.1 and 94.7 percent. Rambus and Alphawave benefited from IP vendor acquisitions; PLDA, AnalogX and Hardent for Rambus, OpenFive for Alphawave,
IPnest’s ‘Design IP Report’ published in April 2023, ranks IP vendors across such categories as CPU, DSP, GPU & ISP, wired interface, SRAM memory compiler, flash memory compiler, library and I/O, analog & mixed-signal, wireless interface, infrastructure and misc. digital) and by whether it is one-off licensing fees or royalty payments.
Over the six years from 2017 to 2022 processor IP has diminished in importance to the market while the wired interface and other digital sectors have grown. Processor IP was 57.6 percent of the market in 2017 and was down to 49.5 percent of the market in 2022. Wired interface IP has grown from 18.0 percent share in 2017 to 24.9 percent in 2022.
Top five design IP companies ranked by licensing revenue 2022 . Source: IPnest April 2023.
The growth shown in 2022 by Synopsys, Alphawave and Rambus confirmed the continued importance of the wired interface IP category. This category grew 26.8 percent year-on-year and aligns with investments in datacenters, networking and AI. However, the good performance of Arm and Imagination indicates a slight rebound of the smartphone industry and the emergence of the automotive sector as a growth engine for design IP, said IPnest.
In terms of royalties Arm continues to dominate with 63.8 percent market, far ahead of Synopsys, Imagination, Cadence and SST, each on 5 percent or less market share.
Top five design IP companies ranked by royalties revenue 2022 . Source: IPnest April 2023.
For more information contact: eric.esteve@ip-nest.com
News articles:
ARM returns to losing IP market share
ARM grows IP market share in boom year
Synopsys above ARM in IP licensing revenue in 2019
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