EDA, IP markets booming

EDA, IP markets booming

Market news |
By Peter Clarke

Electronic systems design revenue increased 17.5 percent year-on-year in 2Q22, according to the Electronic System Design Alliance. This was the steepest increase for a decade.

Electronic systems design revenue includes EDA software and intellectual property licensing and services and it is often the case that when component markets fall EDA markets boom.

The ESD market was worth $3.75 billion in 2Q22, up from $3.19 billion in 2Q21. The four quarter moving average which compares the most recent four quarters to the prior four was up 15.3 percent.

“The electronic design automation (EDA) industry in 2Q22 posted the highest year-over-year (YOY) increase in over a decade,” said Wally Rhines, executive sponsor of the SEMI electronic design market data report, in a statement. “Quarterly revenue reached a record $3,748.7 million. All product categories and geographic regions recorded growth in the quarter.”

Global headcount in the industry stood at 54,408 in 2Q22, up 8.9 percent compared with 2Q21.

By product category

By product category the services sector grew fastest at 23.2 percent to $130.7 million in 2Q22.

This was followed by the semiconductor intellectual property market, up 22.6 percent to $1.48 billion in 2Q22.

PCB and multichip module design revenue increased 22 percent to $347.1 million. IC physical design and verification increased 13 percent to $657 million. And CAE revenue increased 12.1 percent to $1.14 billion.

By geography

By geography Japan showed the lowest y-on-y growth at 6.1 percent to $252.3 million. This was followed by Europe, Middle-East Africa (EMEA) with a $472 million market up 13.7 percent.

Asia Pacific paid $1.38 billion for electronic system design products and services in 2Q22, a 17.9 percent increase. The largest region, the Americas, was also the fastest growing with a y-on-y increase of 20.2 percent to $1.64 billion.

This makes the Americas market six times the size of Japan’s, 3.5 times the size of EMEA’s but only 19 percent greater than that of Asia-Pacific.

The Electronic System Design Alliance (ESD Alliance) is a technology community within SEMI.

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