LONDON – The global electronic design automation market is expected to grow at a CAGR of 11% to $11 billion from 2018 to 2022, says Technavio.

The EDA market is expected to be highly concentrated by the end of 2022. Vendors in this market space are competing based on factors such as technology, research and developmental activities, labor, and brand, says the research firm. Moreover, players in the EDA market are also focusing on differentiating their products based on innovation, regulatory compliance, and quality.

The EDA market is witnessing considerable growth in the on-premise deployment model because on-premise software provides data execution across many business units, functions, or product lines, says Technavio. The on-premise segment will account for the maximum share of the EDA market throughout the next few years.

"The latest trend gaining momentum in the market is shift from perpetual to subscription licensing model,” according to a spokesperson from Technavio. “One of the major factors limiting the growth of the EDA market is high capital investments. The provision of EDA tools based on the subscription license model allows end-users to create a mix of desired EDA tools. End-users are eligible to receive upgrades and maintenance facilities for a specific time period. The subscription period ranges from a few months to a period of two to three years.”

One of the major drivers is rising adoption of SoC technology. A large number of manufacturers are integrating their devices such as smartphones, automotive body electronics, telemetry devices, wireless communication equipment, and electrocardiogram (ECG) with SoC technology. The emergence of system-in-package (SiP) technology has enabled mixed-signal SoC manufacturers to provide the single chip with more functionalities at a moderate price. The need for semiconductor devices is increasing in terms of capacity and speed. This, in turn, will propel the popularity of SoC technology. This creates a need for EDA software because it ensures chip designs are in line with requirements, as well as precision required in the design, says the firm.