China Electronic Design Automation Software Market To Hit Value .76 Billion By 2025 |Grand View Research, Inc.

Posted by Mrudula Anil Karmarkar on September 26th, 2022

The China electronic design automation software market size is anticipated to reach USD 2.76 billion by 2030, recording a CAGR of 11.2%, according to a study conducted by Grand View Research, Inc. The EDA market in China experienced a minor setback due to the suspension of research and manufacturing activities during the pandemic. However, the market bounced back strongly, with the resumption of activities to its full potential by the end of 2020 and continued its growth over the next year. The market is expected to register stable growth over the forecast period owing to the increasing adoption of EDA tools to address the complexities and enhance chip designs to support advanced technologies.

Further, favorable government initiatives and increasing R&D investments from domestic players to drive product innovations are expected to drive market growth. The Chinese government is focused on investing in home-grown semiconductor development to provide competition to foreign companies, which is anticipated to contribute to the growth of the EDA market. The government is offering generous incentives to encourage firms and attract talents along the semiconductor supply chain in a bid to fast-track the domestic chip industry development. For instance, in January 2022, the Shanghai government announced that it would subsidize 30% (up to USD15 million) of investments made on microchip software projects, which include EDA software.

China has one of the largest automotive manufacturing industries, and innovations such as autonomous cars, regenerative braking, and ADAS, coupled with the rising demand for electric vehicles, are expected to contribute to market growth. China accounted for more than 50% of electric vehicle production and exported approximately 500,000 electric vehicles in 2021. The increasing popularity of electric vehicles and demand for advanced features is expected to drive the OEMs to collaborate with chip manufacturers and EDA vendors to develop specialized chipsets for supporting automotive hardware. This is expected to open up new avenues for adopting EDA tools, which bodes well for market growth.

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The presence of several semiconductors and automotive manufacturing industries in the country is one of the prime factors driving the market growth. The Chinese government has extended its support to encourage local manufacturers through initiatives like Made in China 2025, which is anticipated to drive local semiconductor manufacturing. Such factors are expected to increase the adoption of electronic design automation (EDA) software by the Chinese semiconductor manufacturers, which bodes well for market growth.

China Electronic Design Automation Software Market Report Highlights

• The microprocessors and controllers segment is expected to register the highest growth of more than 10% over the forecast period. The growing complexities in chip designs and the increasing need for automating the design process are expected to contribute to the segment growth
• The memory management unit segment is anticipated to exhibit steady growth over the forecast period, owing to the rising demand for high storage capacities and the latest operating system and application upgrades
• Several domestic vendors in China are focused on developing innovative EDA software to capitalize on the growing demand for sophisticated chip designs required for smart home appliances, IoT devices, and consumer electric products. As such, vendors are engaged in patenting technologies for staying relevant in the industry and gaining a competitive edge in the market

The COVID-19 outbreak two years ago led to the closure of several manufacturing plants in China, thereby impacting several players along the value chain. EDA is one of the essential components of the electronics value chain, which experienced a slight impact during the first two quarters of 2020. However, as the effect of the pandemic started diminishing, several industries resumed operations by the end of the second quarter. The EDA software market recovered strongly during the remaining two quarters and regained its pre-pandemic growth rate, which is expected to continue post-pandemic and over the forecast period.

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The China Electronic Design Automation (EDA) software market is consolidated with the presence of a few major companies accounting for a high market share. The major players are adopting inorganic growth strategies acquiring and merging with smaller players to leverage their technology for product innovation and gain a competitive edge. Several domestic players emerging in the market are expected to provide competition to foreign companies through vigorous R&D and new product launches.

For instance, in November 2021, XEPIC Corporation Limited introduced four digital verification EDA tools, namely FusionVerify Platform, HuaPro-P1, A High-Performance FPGA-based Prototyping System, GalaxSim-1.0, A High-performance Digital Simulator, and GalaxPSS, A Next-generation Intelligent Verification System. With this launch, the company aimed at integrating artificial intelligence and cloud-native technology to capitalize on the changing technology landscape. Some prominent players in the China electronic design automation software market include:

• ANSYS, Inc.
• Cadence Design Systems, Inc.
• Synopsys, Inc.
• Altium Limited
• Semitronix Corporation
• XEPIC Corporation Limited
• Primarius Technologies
• Xpeedic
• Zuken