How Big Is the EDA Tool Market | Trends 2031

How big is the EDA tool market?

The market growth is driven by increasing complexity in semiconductor chip designs, rising demand for AI and IoT-integrated systems, and accelerated innovation in 5G and automotive electronics. The shift toward advanced nodes, growing foundry partnerships, and cloud-based EDA deployment are also driving expansion.

Key Growth Factors of the EDA Tool Market

• Growing demand for complex SoC and FPGA designs
• Expanding adoption of AI/ML, 5G, and automotive electronics
• Increased R&D investments by semiconductor manufacturers
• Rising preference for cloud-based EDA platforms
• Strategic alliances between fabless firms and foundries
• Emergence of low-power design tools for wearables and mobile devices

EDA Tool Market Trends

The EDA market is shifting toward cloud-native design tools, enabling collaborative chip development. AI-driven verification and simulation tools are reducing time-to-market. Open-source EDA tools are gaining interest among startups. Companies are leveraging EDA-as-a-service models to lower upfront costs. Advanced packaging and 3D-IC design capabilities are increasingly in demand for next-gen processors.

Emerging Developments in the EDA Tool Market

Machine learning algorithms are being integrated by EDA vendors to optimize designs more quickly. EDA companies are collaborating with cloud providers to offer scalable, secure design environments. Low-code EDA solutions for specialized applications are being developed by startups. To diversify their holdings, major players are purchasing IP and verification firms. In order to facilitate autonomous and aerospace applications, design tools are also integrating thermal and reliability modeling.

Major Companies in the EDA Tool Market

• Synopsys Inc.
• Cadence Design Systems
• Siemens EDA (formerly Mentor Graphics)
• Ansys Inc.
• Keysight Technologies
• Altium Limited
• Zuken Inc.

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