Electronic Design Automation Software Market Outlook 2025-2034: Market Share, and Growth Analysis

The Electronic Design Automation Software Market is valued at USD 30 billion in 2025 and is projected to grow at a CAGR of 5.3% to reach USD 47.5 billion by 2034.

The global Electronic Design Automation (EDA) software market is experiencing rapid expansion, driven by the increasing complexity of semiconductor design, growing adoption of artificial intelligence (AI) in chip development, and the rise of advanced electronics in industries such as automotive, consumer electronics, and telecommunications. EDA software plays a crucial role in the design, simulation, verification, and testing of integrated circuits (ICs) and printed circuit boards (PCBs), enabling engineers to develop cutting-edge electronic devices. The demand for smaller, faster, and more energy-efficient chips is pushing semiconductor companies to invest in advanced design tools. Additionally, the growing trend of system-on-chip (SoC) architectures and 3D ICs is further fueling the need for sophisticated EDA solutions. With the expansion of 5G, Internet of Things (IoT), and electric vehicle (EV) technologies, the EDA software market is poised for significant growth as companies strive to innovate and optimize semiconductor designs.

The EDA software market is witnessing transformative advancements, particularly with the integration of AI and machine learning to enhance design automation and improve chip efficiency. AI-powered EDA tools are enabling predictive analytics, automating complex design processes, and optimizing semiconductor layouts for better performance and power efficiency. The growing adoption of cloud-based EDA solutions is also gaining momentum, allowing design teams to collaborate seamlessly and reduce infrastructure costs. Additionally, the increased demand for application-specific integrated circuits (ASICs) and custom-designed chips for AI, 5G, and autonomous vehicles is driving innovation in EDA software. Governments and regulatory bodies are also pushing for semiconductor self-sufficiency, leading to increased investments in domestic chip design capabilities and the adoption of advanced EDA tools. As semiconductor manufacturers push the boundaries of Moore’s Law, EDA software is becoming more critical in accelerating design cycles and improving fabrication efficiency.

The EDA software market is expected to witness continued evolution with advancements in quantum computing, AI-driven design automation, and edge computing applications. The integration of digital twins and real-time simulation capabilities will enable engineers to refine chip designs before production, reducing costs and improving yield rates. Open-source EDA solutions are also expected to gain traction, promoting innovation and collaboration among chip designers worldwide. Additionally, the growing shift toward heterogeneous computing architectures, combining CPUs, GPUs, and AI accelerators, will require advanced design tools capable of optimizing multi-chip systems. As chip miniaturization reaches its physical limits, new design methodologies such as chiplets and 3D stacking will drive demand for next-generation EDA software. With semiconductor demand surging across multiple industries, EDA software providers will continue to develop more intelligent, efficient, and scalable design solutions to keep pace with the evolving technological landscape.

Key Insights: Electronic Design Automation Software Market

• AI-Driven Design Automation: AI and machine learning are revolutionizing semiconductor design, enabling automated layout optimization, predictive analytics, and improved power efficiency in integrated circuits.
• Growth of Cloud-Based EDA Solutions: The shift toward cloud-based design tools is facilitating remote collaboration, reducing infrastructure costs, and increasing accessibility for semiconductor startups and enterprises.
• Rise of Custom Chip Design: The increasing demand for custom-designed chips for AI, 5G, and autonomous vehicles is driving the development of specialized EDA tools tailored for application-specific semiconductor designs.
• Expansion of Open-Source EDA Tools: Open-source EDA software is gaining traction, promoting cost-effective innovation and fostering collaboration across the semiconductor industry.
• Advanced 3D IC and Chiplet Architectures: The move toward multi-die integration and chiplet-based designs is creating new challenges and opportunities for EDA software to optimize performance, connectivity, and power consumption.

• Rising Complexity of Semiconductor Design: The demand for high-performance, energy-efficient chips is pushing semiconductor companies to invest in sophisticated EDA tools for advanced design and verification.
• Surging Demand for AI, 5G, and IoT Applications: The rapid expansion of AI workloads, 5G networks, and IoT devices is driving the need for efficient chip design and faster time-to-market solutions.
• Government Investments in Semiconductor Self-Sufficiency: National policies promoting semiconductor manufacturing independence are accelerating EDA software adoption in domestic chip design ecosystems.
• Shift Toward Multi-Chip and Heterogeneous Computing: The growing demand for heterogeneous computing architectures combining different processing units is necessitating advanced EDA solutions for system-level optimization.

• High Cost and Complexity of Advanced EDA Tools: The increasing sophistication of semiconductor designs requires expensive, high-performance EDA software, making it difficult for small and mid-sized chip developers to afford cutting-edge design solutions.

Electronic Design Automation Software Market Segmentation

By Type

• Computer-Aided Engineering (CAE)
• IC Physical Design and Verification
• Printed Circuit Board and Multi-chip Module (PCB and MCM)
• Semiconductor Intellectual Property (SIP)
  

  By Application

  • Communication
  • Consumer Electronics
  • Automotive
  • Industrial
  • Aerospace and Defense
  • Medical

  By End-Use

  • Microprocessors and Controllers
  • Memory Management Units

  Key Companies Analysed

  • Nel ASA
  • Asahi Kasei Corporation
  • Hydrogenics
  • Areva H2gen
  • Siemens AG
  • McPhy Energy S.A.
  • ITM Power PLC
  • Erredue SpA
  • Enapter
  • Next Hydrogen Solutions Inc.
  • Tianjin Continental Hydrogen Equipment Co. Ltd.
  • Toshiba Corporation
  • Air Liquide S.A
  • Plug Power Inc.
  • H-TEC SYSTEMS GmbH
  • Hysata Pty. Ltd.
  • Supercritical Solutions
  • SunGreenH2
  • Hydrogen Pro
  • Iberlyzer
  • Bloom Energy
  • Cummins Inc.
  • Green Hydrogen Systems A/S
  • Topsoe A/S
  • John Cockerill
  • LONGi Green Energy Technology Co. Ltd.
  • MAN Energy Solutions SE
  • Ohmium International Inc.
  • Sunfire GmbH
  • Sungrow Power Supply Co. Ltd.
  • thyssenkrupp nucera AG & Co KgaA
  • AMEA Power LLC
  • Air Products and Chemicals Inc.

  Electronic Design Automation Software Market Analytics

  The report employs rigorous tools, including Porter’s Five Forces, value chain mapping, and scenario-based modeling, to assess supply-demand dynamics. Cross-sector influences from parent, derived, and substitute markets are evaluated to identify risks and opportunities. Trade and pricing analytics provide an up-to-date view of international flows, including leading exporters, importers, and regional price trends.
  
  Macroeconomic indicators, policy frameworks such as carbon pricing and energy security strategies, and evolving consumer behavior are considered in forecasting scenarios. Recent deal flows, partnerships, and technology innovations are incorporated to assess their impact on future market performance.
  
  

  Electronic Design Automation Software Market Competitive Intelligence

  The competitive landscape is mapped through proprietary frameworks, profiling leading companies with details on business models, product portfolios, financial performance, and strategic initiatives. Key developments such as mergers & acquisitions, technology collaborations, investment inflows, and regional expansions are analyzed for their competitive impact. The report also identifies emerging players and innovative startups contributing to market disruption.
  
  Regional insights highlight the most promising investment destinations, regulatory landscapes, and evolving partnerships across energy and industrial corridors.
  
  

  Countries Covered

  • North America - Electronic Design Automation Software market data and outlook to 2034
    • United States
    • Canada
    • Mexico
    
    
  • Europe - Electronic Design Automation Software market data and outlook to 2034
    • Germany
    • United Kingdom
    • France
    • Italy
    • Spain
    • BeNeLux
    • Russia
    • Sweden
    
    
  • Asia-Pacific - Electronic Design Automation Software market data and outlook to 2034
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Indonesia
    • Malaysia
    • Vietnam
    
    
  • Middle East and Africa - Electronic Design Automation Software market data and outlook to 2034
    • Saudi Arabia
    • South Africa
    • Iran
    • UAE
    • Egypt
    
    
  • South and Central America - Electronic Design Automation Software market data and outlook to 2034
    • Brazil
    • Argentina
    • Chile
    • Peru

  Research Methodology

  This study combines primary inputs from industry experts across the Electronic Design Automation Software value chain with secondary data from associations, government publications, trade databases, and company disclosures. Proprietary modeling techniques, including data triangulation, statistical correlation, and scenario planning, are applied to deliver reliable market sizing and forecasting.
  
  

  Key Questions Addressed

  • What is the current and forecast market size of the Electronic Design Automation Software industry at global, regional, and country levels?
  • Which types, applications, and technologies present the highest growth potential?
  • How are supply chains adapting to geopolitical and economic shocks?
  • What role do policy frameworks, trade flows, and sustainability targets play in shaping demand?
  • Who are the leading players, and how are their strategies evolving in the face of global uncertainty?
  • Which regional “hotspots” and customer segments will outpace the market, and what go-to-market and partnership models best support entry and expansion?
  • Where are the most investable opportunities - across technology roadmaps, sustainability-linked innovation, and M&A - and what is the best segment to invest over the next 3-5 years?

  Your Key Takeaways from the Electronic Design Automation Software Market Report

  • Global Electronic Design Automation Software market size and growth projections (CAGR), 2024-2034
  • Impact of Russia-Ukraine, Israel-Palestine, and Hamas conflicts on Electronic Design Automation Software trade, costs, and supply chains
  • Electronic Design Automation Software market size, share, and outlook across 5 regions and 27 countries, 2023-2034
  • Electronic Design Automation Software market size, CAGR, and market share of key products, applications, and end-user verticals, 2023-2034
  • Short- and long-term Electronic Design Automation Software market trends, drivers, restraints, and opportunities
  • Porter’s Five Forces analysis, technological developments, and Electronic Design Automation Software supply chain analysis
  • Electronic Design Automation Software trade analysis, Electronic Design Automation Software market price analysis, and Electronic Design Automation Software supply/demand dynamics
  • Profiles of 5 leading companies - overview, key strategies, financials, and products
  • Latest Electronic Design Automation Software market news and developments

  Additional Support

  With the purchase of this report, you will receive:
  
  • An updated PDF report and an MS Excel data workbook containing all market tables and figures for easy analysis.
  • 7-day post-sale analyst support for clarifications and in-scope supplementary data, ensuring the deliverable aligns precisely with your requirements.
  • Complimentary report update to incorporate the latest available data and the impact of recent market developments.

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