The semiconductor IP market is expected to grow from US$ 4,951.9 million in 2021 to US$ 9,670.4 million by 2028; it is estimated to grow at a CAGR of 10.0% from 2021 to 2028.
Semiconductor IPs (SIPs) are used for building large and complex ICs that are incorporated in modern electronic devices. An SIP is a reusable unit of logic, cell, or chip layout design and is also the intellectual property of one party. The upcoming electronic and semiconductor technologies are paving way for the automation of various operations in the manufacturing sector. Current trends that are buzzing in the manufacturing sector, such as robotics, machine learning, and artificial intelligence, have enabled machines to match or even outpace humans in various activities, including the cognitive activities involved at various levels of manufacturing. The evolution of Industry 4.0 is also supporting the semiconductor IP market progress. With the ongoing pace of IoT emergence and deployment globally, the semiconductor industry is expected to play a crucial role and thus benefit from such innovations across the technology value chain.
North America held the largest share of the semiconductor IP market in 2020. Increasing investments in machine learning, IoT, blockchain, and other advanced technologies to optimize operating costs in manufacturing industries drive the growth of the market in this region. Cadence Design Systems, Inc.; Synopsys, Inc.; and Ceva Inc. (all based in the US) are the prominent the semiconductor IP market players present in the region. Asia Pacific is the fastest-growing region across the globe owing to the rapid-paced adoption of digital equipment and devices, such as laptops, smartphones, tablets, PCs, and networking devices. Increasing investments in the telecommunications industry to roll out 5G networks, growing transformation to smart cities, and rising adoption of IoT platforms in various industries are the prominent factors augmenting the market growth in Asia Pacific countries. As per the Retailers Association of India (RAI), the sales of consumer electronics and appliances increased by 23.5% year-on-year in the third quarter of FY2021. The value of electronics hardware production in the country rose from US$ 72.38 billion in 2019 to US$ 89.38 billion in 2020. Thus, a surge in consumer electronics adoption, with increased spending by users, drives the growth of semiconductor IP market in Asia Pacific.
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Semiconductor IP Market: Strategic Insights
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Semiconductor IP Market: Strategic Insights
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Impact of COVID-19 Pandemic on Semiconductor IP Market
The COVID-19 outbreak had adverse effects on the world economy in 2020, and the crisis also hampered the semiconductors and IT sectors. The outbreak of SARS-CoV-2 led to a notable slowdown in the production activities. Containment measures such as lockdowns, business shutdowns, and trade restrictions disturbed the production and supply chain activities in the semiconductor IP market until the second half of 2020 and during the second large outbreak in 2021. However, in 2021, relaxations in lockdown restrictions and ease of taxation by various governments supported the resurgence of manufacturing businesses. Industrial activities also picked pace from the last quarter of 2020, and the semiconductor IP market players experienced steady growth in demand from end users. Further, the demand for semiconductor IPs is expected to rise in 2022 due to the revival of the automotive, telecommunications, and home appliances industries.
Market Insights
Complexities in Designs of Consumer Electronic Devices with Continuous Innovations Drive Semiconductor IP Market
The consumer electronics industry is evolving exponentially, and the pressure exerted from the demand side is compelling suppliers to provide differentiated products and be the first movers in the market. Tough competition between peers in the consumer electronics industry has resulted in price wars leading to decreasing profitability for the manufacturers. As a result of these factors, manufacturers strive continuously for innovating their offerings. The flourishing trend of miniaturization in the consumer electronics industry has created the need for contraction of package components down to the design-rule level of early technologies. Integrated circuit (IC) packages must deliver higher lead counts, reduced lead pitch, minimum footprint area, and significant volume reduction. As a result, this has led semiconductor manufacturers to develop small outline package (SOP) in various industry applications. Power SOP packages, when combined with a heat spreading thermal mass, make the resulting dimensions an ideal choice for office automation, industrial controls, networking, and consumer applications that generate internal heat and are exposed to stressful temperature conditions. In such a complex scenario, the presence of semiconductor IP eases out pressures on the IC industry and ensures the ready availability of complex electronic designs.
Type Insights
Based on type, the semiconductor IP market is segmented into processor SIP, interface SIP, physical SIP, analog SIP, and others. The processor SIP segment accounted for the largest market share in 2020 and is expected to register the highest CAGR during the forecast period. It is most widely used in large applications in the manufacturing of mobile phones, laptops, tablets, wearable devices, networking devices, embedded intelligence, and many more consumer electronic devices. Majority of the modern system-on-chips (SoCs) available today consist of separate blocks of electronic circuit designs that can be highly complex in nature when put together for designing. The use of semiconductor IPs accelerates and simplifies the process of designing of a large and complex chips; it also makes this process cost-effective. Thus, growing adoption of electronics devices in various industries is expected to drive the market for processor SIP .
Source Insights
Based on source, the semiconductor IP market is segmented into licensing and royalty. The growth of the market for the licensing segment is attributed to the preference for licensing owing to its cost-efficient and time-based licensing model. Businesses in the semiconductor IP market have evolved to become one-stop solution providers that offer a wide range of IP cores and platforms that includes graphics, video, cloud software, connectivity and others. Therefore, customers dealing with multiple sources for SIP-based products are loaded with different fees involved in those models. IPs, when developed in house, incur an engineering cost whereas, while IPs licensed from other companies incurs engineering as well as the royalty cost to consumers.
Semiconductor IP Market Regional Insights
Semiconductor IP Market Regional Insights
The regional trends and factors influencing the Semiconductor IP Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Semiconductor IP Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
- Get the Regional Specific Data for Semiconductor IP Market
Semiconductor IP Market Market Report Scope
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 4.95 Billion |
| Market Size by 2028 | US$ 9.67 Billion |
| Global CAGR (2021 - 2028) | 10.0% |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2028 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
Market Players Density: Understanding Its Impact on Business Dynamics
The Semiconductor IP Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Semiconductor IP Market are:
- Arm Holdings Plc
- Faraday Technology Corporation
- Ceva, Inc.
- eMemory Technology Inc
- Imagination Technologies Group Plc
Disclaimer: The companies listed above are not ranked in any particular order.
- Get the Semiconductor IP Market top key players overview
Industry Vertical Insights
Based on industry vertical, the semiconductor IP market is segmented into automotive, electronics, telecom, industrial, medical, and others. The electronics segment is anticipated to grow with the elevating adoption of electronic devices in various industries and increasing trend of using smartphones, tablets, PC’s, and wearable devices. Electronic components are an integral part of almost all industrial devices. The highly complex designs of ICs are incorporated for enabling smoother operations, further enhancing productivity and efficiency. The semiconductor-based devices find their major applications in the consumer electronics, automotive, and telecom industries. In the telecom sector, various IPs support the introduction of innovative technologies to provide exceptional levels of coverage, performance, and reliability.
A few players operating in the semiconductor IP market are Arm Holdings Plc; Faraday Technology Corporation; Ceva, Inc.; eMemory Technology Inc.; Imagination Technologies Group Plc; Lattice Semiconductor Corporation; Rambus Inc.; Intel Corporation; Xilinx, Inc.; Cadence Design Systems, Inc.; Synopsys; and Verisilicon Holdings Co. Ltd. The key companies adopt strategies such as the research and developments, and mergers and acquisitions to expand customer base and gain significant share in the global semiconductor IP market, which also allows them to maintain their brand name globally.
On the basis of by type, the semiconductor IP market is segmented into processor SIP, interface SIP, physical SIP, analog SIP, and others. Based on source, the semiconductor IP market is segmented into licensing and royalty. Based on industry vertical, the semiconductor IP market is segmented into telecom, automotive, industrial, electronics, medical, and others.
- Historical Analysis (2 Years), Base Year, Forecast (7 Years) with CAGR
- PEST and SWOT Analysis
- Market Size Value / Volume - Global, Regional, Country
- Industry and Competitive Landscape
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, Source, and Industry Vertical
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Canada, China, France, Germany, Japan, MEA, Mexico, SAM, South Korea, Taiwan, United Kingdom, United States
Frequently Asked Questions
Modular nature enabling integration flexibility which results to generate high demand from the manufacturing sector, design complexities of consumer electronic devices coupled with consistent innovations, and growing needs for facilitating lesser time-to-market for designing high functionality chips are some of the prominent factors responsible to the growth of semiconductor market over the forecast period.
In 2020, US held the largest market share in the global semiconductor IP market followed by Canada. In UK, the demand for electric vehicles (EVs) are increasing continuously owing to growing integration of electronics components in automotive industry which is further expected to boost the demand for semiconductor IP throughout the forecast period. For instance, Almost 22,000 pure electric vehicles were registered in November 2021, which is more than double the 10,345 registered in the same month last year 2020. The growing demand for connected devices and modern SOC design in the US are the key factors driving the market growth. Thus, growing demand for EV’s along with growing adoption of electronics devices are the key factors driving the demand for semiconductor IP market over the forecast period.
Based on industry vertical, automotive segment is the fastest growing segment. The growth of the segment is primarily attributed to increasing demands of the customers, manufacturers and suppliers in dire needs for integration electronics in the automotive industry such as radio & infotainment system, HVAC dashboard & display, automotive ECU, active wheel speed sensors, active wheel speed sensors, Automatic gearbox controllers, body controllers and among other applications. In addition, rise in sales of electric vehicles (EVs) and hybrid electric vehicles (HEVs) has bolster the demand for semiconductor IP by the manufacturers. Thus, automotive segment is expected to be the fastest growing segment in the global semiconductor IP market over the forecast period.
In 2020, the processor SIP segment accounted for the largest market share. The growth of the segment is primarily attributed to wide scope application in the manufacturing of mobile phones, laptops, tablets, wearable devices, networking devices, embedded intelligence and many more consumer electronic devices. Foundries also offer hardened processor IPs to companies referred as “silicon provenâ€, it implies that the processor IP is only for selected process technologies. Thus, the processor SIP segment tends to have the highest value share among all other SIPs available.
In 2020, North America accounted for the largest share of the global semiconductor IP market. The increasing investment in machine learning, IoT, blockchain and other advanced technologies to optimize the operating cost in manufacturing industries is expected to boost market growth in US and Canada throughout the forecast period. Europe holds second position in the competitive market owing to increasing investment in automotive industry particularly in electric vehicles and growing adoption of electronics devices in European countries which drives the market growth during the forecast period.
The major players operating in the global semiconductor IP market are Arm Limited; Cadence Design Systems, Inc.; CEVA Inc.; Imagination Technologies; and Synopsys, Inc. The global semiconductor IP market includes companies operating in a wide range of product portfolio. Each category has some well-established key players and owing to different markets in which they operate and compete it is not feasible to determine key five players in the overall semiconductor IP market. However, based on parameters such as overall revenue, brand image, current Semiconductor IP product portfolio, geographic reach, customer base, technology adoption & integration, new product/service/feature launches, partnerships, mergers & acquisitions, and other market-related activities, we have listed above five key players operating at a global level.
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The List of Companies - Semiconductor IP Market
- Arm Holdings Plc
- Faraday Technology Corporation
- Ceva, Inc.
- eMemory Technology Inc
- Imagination Technologies Group Plc
- Lattice Semiconductor Corporation
- Rambus Inc.
- Intel Corporation
- Xilinx, Inc.
- Cadence Design Systems, Inc.
- Synopsys
- Verisilicon Holdings Co. Ltd.
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