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IP market rockets ahead in design tool growth

IP market rockets ahead in design tool growth

Market news |
By Nick Flaherty

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The Electronic System Design (ESD) industry revenue increased 14.4% to $4,521.6 million in the first quarter of 2024 from the $3,951.1 million registered in the first quarter of 2023.

The Semiconductor Intellectual Property (IP) revenue increased 18.6% to $1,578.1 million, approaching the revenues of Computer-Aided Engineering, says the latest report from the ESD Alliance.

The ESD Alliance is a Technology Community in the SEMI trade organisation, and has published its latest Electronic Design Market Data (EDMD) report

Europe, Middle East, and Africa (EMEA) procured $579.0 million of electronic system design products and services in Q1 2024, a 9.2% increase. The four-quarter moving average for EMEA grew 14.6%.

“The electronic design automation (EDA) industry continued to report strong revenue growth in Q1 2024,” said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. “All product categories reported increases, with CAE, IC Physical, Semiconductor IP and Services posting double-digit upticks. Further, all geographic regions reported growth, with the Americas and Asia Pacific logging double-digit revenue gains.”

Boom for SiP design tools

The companies tracked in the EDMD report employed 61,653 people globally in Q1 2024, a 6.9% jump over the Q1 2023 headcount of 57,696 and up 2.6% compared to Q4 2023.

  • Computer-Aided Engineering (CAE) revenue increased 13% to $1,621.1 million. The four-quarter CAE moving average increased 18.9%.
  • IC Physical Design and Verification revenue grew 13.9% to $769.6 million. The four-quarter moving average for the category increased 17.5%.
  • Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue rose 2.8% to $378.9 million. The four-quarter moving average for PCB and MCM rose 13.2%.
  • Services revenue jumped 22.3% to $173.9 million. The four-quarter Services moving average rose 12.3%.

The Americas, the largest reporting region by revenue, procured $1,937.2 million of electronic system design products and services in Q1 2024, a 14.1% increase. The four-quarter moving average for the Americas rose 12.1%.

Japan’s procurement of electronic system design products and services grew 2.8% to $280.7 million. The four-quarter moving average for Japan increased 8.9%.

Asia Pacific (APAC) procured $1,724.7 million of electronic system design products and services in Q1 2024, a 19% increase. The four-quarter moving average for APAC grew 19.2%.

Electronic Design Market Data (EDMD) report

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