ARM returns to losing IP market share

ARM returns to losing IP market share

Market news |
By Peter Clarke

ARM, the leader in IP cores licensing, lost market share in a market that grew strongly in 2021, according to Eric Esteve from IPnest.

ARM has been losing out gradually over several years in this market, to the likes of Synopsys and Cadence. It reversed the trend in 2020 (see ARM grows IP market share in boom year) but lost out again in 2021 as the market grew 19.4 percent to be worth US$5.45 billion, according to IPnest.

Global semiconductor design IP by top ten company revenues 2020 and 2021 (millions of dollars). Source: IPnest May 2022.

The processor IP developer – perhaps distracted by the attempted and then cancelled sale to Nvidia Corp. – saw its market share drop to 40.4 percent from 41.0 percent while second-ranked Synopsys continued to broaden its licensing front and increased its market share to 19.7 percent.

The two fastest growing IP licensors in the top ten ranking prepared by Esteve were Serdes provider Alphawave and fourth-ranked Imagination.

Top five design IP vendor license market share ranking 2021. Source: IPnest May 2022.

Alphawave was founded in 2017 and IPnest reckons the compay doubled sales to US$89.9 million in 2021 compared to 2020. Imagination managed to increase its sales from $125 million in 2020 to $179.3 million in 2021, an increase of 43.4 percent and which helped it raise its market share to 3.3 percent.

Top five design IP vendor royalties market share ranking 2021. Source: IPnest May 2022.

Synopsys leads the market by annual licensing revenues as it has done for a couple of years. In 2021 it controlled 31.2 percent of the licensing revenues with ARM ranked second at 25.6 percent share. But when ranked by royalties ARM remains the dominant player with 60.8 percent and Synopsys second with 5.1 percent.

IPnest has also run a 5-year forecast for Design IP, to grow to an annual value of $11 billion in 2026 representing a compound annual growth rate over the period 2021 to 2026 of 15 percent.

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News articles:

ARM grows IP market share in boom year

Synopsys above ARM in IP licensing revenue in 2019

ARM, MIPS, Imagination lose IP market share

ARM loses IP market share to fast-growing followers

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