Electronic Design Automation Software Market Trends 2025–2029: Forecasts for Key Growth Segments

November 14, 2025 by The Business Research Company

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What Is The Anticipated Size Of The Electronic Design Automation Software Market Over The Five-Year Period 2025–2029?

The realm of electronic design automation tools has witnessed substantial expansion lately, projected to climb from a valuation of $34.01 billion in 2024 to $35.82 billion the following year, reflecting a consistent compound annual growth rate (CAGR) of 5.3%. This upward trajectory throughout the past period stems from several key factors, including the escalating intricacy of integrated circuits, expansion within the Internet of Things and general consumer electronics sectors, increased application in aerospace and defense, burgeoning automotive electronics needs, and the rising activity in printed circuit board design and production.

The electronic design automation software sector is projected for significant expansion in the coming years, reaching a valuation of $45.51 billion by 2029, which represents a compound annual growth rate (CAGR) of 6.2% throughout the projection timeline; this upward trajectory is fueled by several factors, including advancements in quantum computing, heightened focus on cybersecurity measures, progress in 3D packaging and sophisticated interconnects, as well as influences from global trade dynamics, geopolitical considerations, and evolving environmental legislation, while key prevailing trends shaping this market involve the adoption of digital twin technology, a move towards design for reusability, implementation of real-time design analytics, the rise of distributed and collaborative design workflows, and increased design automation specifically for IoT security.

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What Are The Drivers Pushing New Developments In The Electronic Design Automation Software Market?

Market expansion for electronic device automation software is anticipated to be significantly boosted by the proliferation of the Internet of Things (IoT) alongside increasingly interconnected gadgets. Automation integrated through IoT streamlines operations, leading to lower labor expenditures and reduced overhead, thereby accelerating overall business velocity. The fundamental aim of IoT technology centers on establishing an interconnected environment where various elements communicate via integrated sensors, dedicated software, and related technological means. Data gathered by these IoT instruments is transmitted to cloud portals for subsequent analysis, facilitating ongoing refinement and innovation. To illustrate this trend, in May 2022, IoT Analytics GmbH, a firm based in Germany specializing in strategic business intelligence and market understanding for IoT, reported that global IoT links expanded by 8% in 2021, reaching 12.2 billion active connections, with projections indicating an even steeper 18% rise to 14.4 billion active endpoints in 2022. Consequently, the increasing prevalence of IoT and linked hardware serves as a primary catalyst for the advancement of the EDAS sector.

What Are The Emerging Segments Gaining Attention In The Electronic Design Automation Software Market?

The electronic design automation software market covered in this report is segmented –

1) 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)

2) By Application: Communication, Consumer Electronics, Automotive, Industrial, Aerospace And Defense, Medical

3) By End-Use: Microprocessors And Controllers, Memory Management Units

Subsegments:

1) By Computer-Aided Engineering (CAE): Simulation and Analysis Software, Structural Analysis Tools, Thermal and Fluid Dynamics Simulation

2) By IC Physical Design and Verification: Layout Design Tools, Design Rule Checking (DRC) Software, Layout Versus Schematic (LVS) Verification Tools

3) By Printed Circuit Board and Multi-Chip Module (PCB and MCM): PCB Design Software, PCB Manufacturing Software, Multi-Chip Module Design Tools

4) By Semiconductor Intellectual Property (SIP): Standard Cell Libraries, Analog and Mixed-Signal IP, Digital Signal Processing (DSP) Cores

What Are The Major Trends Driving The Growth Of The Electronic Design Automation Software Market?

Leading entities within the electronic design automation software sector are concentrating their efforts on delivering cutting-edge technological offerings to solidify their standing. This EDA software category encompasses a collection of dedicated instruments utilized in the creation, simulation, validation, and production of electronic hardware, encompassing integrated circuits and printed circuit boards. Specifically, in March of 2024, HCL, an IT services and advisory firm hailing from India, launched a novel Electronic Design Automation package aimed at expediting major EDA deployments, substantially cutting down on the duration required to bring products to market, and enhancing both the quality and dependability of those products. The automation of processes like schematic capture, physical layout, simulation runs, and verification, inherent in these EDA utilities, serves to boost operational efficiency and minimize mistakes. Furthermore, the integration achieved with NetApp’s Design Anywhere structure means that HCLTech is positioned to assist customers in refining their underlying IT infrastructures, overseeing necessary hardware, and coordinating operational tasks, all while presenting a spectrum of service consumption alternatives adapted to distinct requirements.

Which Leading Players Are Enhancing Their Electronic Design Automation Software Market Presence Worldwide?

Major companies operating in the electronic design automation software market include Aldec Inc., Altium Llc, Ansys Inc., Cadence Design Systems Inc., Synopsys Inc., Siemens AG, Zuken Inc., Silvaco Inc., Keysight Technologies Inc., eInfochips Inc., Xilinx Inc., Vennsa Technologies Inc., Boldport Limited, ProteanTecs Ltd., Tempo Automation Holdings Inc., Solido Design Automation Inc., DeFacTo Technologies Pvt. Ltd., IC Manage, Ing.-Büro FRIEDRICH GmbH, JEDA Technologies Inc., Lauterbach GmbH, Shanghai Hejian Industrial Software Group Co. Ltd., Concurrent EDA LLC, edXact SA, Altair Engineering Inc., Lattice Semiconductor Corporation, Microchip Technology Inc., AWR Corporation, Averant Inc., Carbon Design Systems

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Which Region Is Expected To Witness The Fastest Growth In The Electronic Design Automation Software Market?

North America was the largest region in the electronic design automation software market in 2024. The regions covered in the electronic design automation software market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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