Electronic Design Automation Market Expands Rapidly on Surge in Chip Innovation and AI-Driven Design Tools

The global Electronic Design Automation (EDA) Market continues its robust expansion, propelled by accelerating semiconductor innovation, growing adoption of advanced electronics across industries, and increasing design complexity requiring automated, high-precision tools. According to the latest industry analysis, the market was valued at USD 541 million in 2023 and is projected to grow to USD 811.1 million by 2030, registering a CAGR of 6.4% from 2024 to 2030.

EDA tools—integral to the design, verification, and simulation of semiconductors and electronic systems—are gaining traction as companies push the boundaries of chip performance, energy efficiency, and integration.

Market Segmentation

By Type

• Computer Aided Engineering (CAE)

• IC Physical Design & Verification

• Printed Circuit Board (PCB) and Multi-Chip Module (MCM)

• Semiconductor Intellectual Property (SIP)

CAE tools and SIP segments are expected to witness strong demand as design cycles shorten and companies adopt modular, reusable design architectures.

By Application

• Aerospace & Defense

• Automotive

• Consumer Electronics

• Industrial

• Medical

• Telecommunications

The automotive sector, fueled by advancements in EVs, ADAS, and autonomous systems, is becoming one of the fastest-growing application categories. Meanwhile, telecommunications maintains steady demand driven by 5G network expansion and next-generation connectivity requirements.

Key Growth Drivers

• Rising design complexity in advanced semiconductor nodes (5nm, 3nm, and beyond) requiring automated validation and verification tools.

• Growing adoption of AI/ML-enabled design platforms for accelerated simulation, floorplanning, and IP integration.

• Shift toward system-on-chip (SoC) and multi-chip packaging driving demand for integrated design workflows.

• Expanding electronics content in automotive and industrial systems, fueling the need for highly reliable, safety-compliant design methodologies.

• Increased adoption of SIP libraries to reduce development time and improve scalability.

Regional Insights

• North America remains the leading market due to its strong semiconductor ecosystem and concentration of top EDA vendors.

• Asia-Pacific is the fastest-growing region, supported by expanding fabrication facilities, government investment in chip self-sufficiency, and a booming consumer electronics sector.

• Europe continues to invest in chip design and automotive electronics, bolstered by EU-level semiconductor initiatives.

Industry Outlook

The next decade will see rapid innovation across AI chips, heterogeneous integration, and 3D IC design—areas heavily dependent on advanced EDA capabilities. As design workflows increasingly integrate cloud-based platforms, AI copilots, and digital twins, EDA solutions will become even more central to accelerating time-to-market and reducing development costs.