Report Overview

US Cloud EDA Market- Industry Trends & Forecast Report 2027

The U.S. cloud electronic design automation (EDA) market was worth USD 2.0 billion in 2020. The market is further projected to reach USD 2.7 billion by 2027, at a CAGR of 5.0% during the forecast period (2021-2027). The market is supported by the increasing demand for miniature electronic devices because of the growing 3D printing industry. Additionally, the integration of advanced technology such as machine learning, and the Internet of Things in industry 4.0 techniques is propelling the U.S. cloud EDA market growth. The increasing technological advancements in the cloud EDA market is creating lucrative opportunities in the U.S. cloud EDA market.

Source: BlueWeave Consulting

US Cloud EDA Market Overview

The U.S. cloud electronic design automation market comprises various open-source and commercial software tools that are generally used for designing complex electronic systems including integrated circuits (ICs) in the semiconductor industry. By employing PaaS (Platform-as-a-service), cloud EDA software solutions allow users to access it from anywhere, assisting enterprises in the development and design of complicated ICs. Cloud EDA also facilitates the development of ICs which are primarily used in various industries like healthcare, aerospace, and transportation. Additionally, cloud EDA helps organizations reduce  the total time taken to complete the simulation process, physical verification, fill requirements, and other procedures allowing them to deliver their designs to market faster.

US Cloud EDA Market Trend

Growth Drivers

Increasing demand for miniature electronic devices owing to rising 3D printing Industry

The overall size of printed circuit boards (PCBs) has been shrinking in tandem with the downsizing electronic components connected to them. Moreover, the rising developments in transistor density technologies have enabled more electronic components and devices to shrink in size. Additionally, it provides greater functionality to newer devices that require multiple boards in a single packaging or the simultaneous connection of multiple devices for the smooth functioning. With the help of cloud EDA, designers can leverage various tools for effective miniaturization, thereby reducing the developmental costs of the end-product and encouraging designers to come up with more innovative solutions to bind more components into a confined space.

Opportunities

US Cloud EDA Market Technological Advancements

The U.S. cloud EDA companies are increasingly leveraging analytics, machine learning, and other technological breakthroughs to serve as an opportunity for the cloud EDA industry. The ability to analyze the progress of a project, identify potential resource optimization opportunities, prevent IP theft, and predicting a tape-out schedule are some of the most pivotal factors for successful design projects today. The standard methods could only identify problems when they become obvious making it difficult for the companies to rectify those errors, resulting in increased expenditures. Every day, terabytes of design change and tool run data are generated by complex IC (Integrated Circuit) projects. Source code edits, synthesis, verification runs, timing, place, power, and route tasks generate terabytes of data that is leveraged by engineers in their day-to-day activities, however, there has not been much aggregation or detailed analysis of the aforementioned results.

US Cloud EDA Market Restraints

Vulnerability due to Open-Source Software

Open-Source software means that the design files and the code pertaining to the open-source hardware project are hosted for the general public. A hardware project comprises a schematic (diagram for an electric circuit) associated with code for a microcontroller, printed circuit board (PCB) layout, and 3D CAD files. As a result, a large number of people have access to all of these critical parts of open-source software projects, making them more exposed to threats and viruses. Despite the fact that many users leverage this access to report issues and provide suggestions for improvements to the software, many users leverage this access to exploit the software project’s vulnerabilities and generate errors and bugs that can infect the hardware with malware and viruses, resulting in identity theft. Additionally, the vulnerabilities in the parser (a software component) could allow the user to access files without any action. Because cloud EDA is still in its early stages of development, it poses some security problems due to its open-source capabilities and cyber security threats.

Impact of COVID-19 on US Cloud EDA Market

The pandemic has restricted activities for various businesses around the world. However, the system-level design market witnessed a rise amid the pandemic. As a result of the rising complexity of system specifications, the companies are now incorporating newer methods for identifying design errors at an early stage of development to ensure smooth functioning of the final product. This has driven the demand for system-level design simulation which has become a necessity in the U.S. cloud EDA market amid the pandemic. A system-level simulation allows the examination of system specifications against the requirements before proceeding with the hardware component implementations. Once incorporated in the cloud EDA, this can help the companies to properly examine the design of semiconductor chips used in their products and verify them before proceeding with the hardware. This can help to cut expenses and time spent on the development of new product designs. Furthermore, simulation aids in the reduction of effort associated with the testing segments that are done at various phases of the design process.

US Cloud EDA Market: By Type

The U.S. Cloud EDA market can be bifurcated into four types: CAE (Computer-aided engineering), SIP (semiconductor intellectual property), IC (Integrated Circuit) Physical Design and Verification, Printed Circuit Board (PCB), and Multi-Chip Module (MCM). The SIP (semiconductor intellectual property) Cloud EDA type holds the largest share in the market and it grew positively in the historical period. In the semiconductor and cloud EDA market, SIP refers to a design or verification unit pre-packed and available for licensing. Semiconductor IP (SIP) are generally interchangeable with the terms, IP cores or IP blocks. IP is critical for development of large and complex devices as it’s not possible for one company to produce all of the IP blocks necessary for these devices.

Source: BlueWeave Consulting

US Cloud EDA Market: By Application

Based on the application, the U.S. cloud EDA market is bifurcated into Military/Defense, Aerospace, Telecom, Automotive, Industrial, Consumer Electronics, and others. Among these, the consumer electronics segment held the largest share in the market in 2020. In contrast to this, the telecommunication segment is expected to register the highest growth rate in the forecast period, with a healthy CAGR. With the rising demand for internet around the world, the 5G network is expected to witness a boom in the upcoming years, thereby suggesting a higher growth rate for the telecommunication segment.

Competitive Landscape of US Cloud EDA Market

The U.S. Cloud EDA software market is highly competitive with the presence of top players in the market. The key players in the U.S. cloud EDA market are Agilent Technologies Inc., Agnisys Inc., Aldec, Inc., Altium Ltd., Ansys Inc., Cadence Design System, Inc., Infineon Technologies AG (Infineon Technologies Americas Corp.), Altair Engineering Inc., Keysight Technologies, Inc., Siemens EDA, Autodesk Inc., Synopsys Inc., Xilinx Inc., Zuken Inc., Silvaco, Inc., and other prominent players. Companies operating in the U.S. cloud EDA market are competing against each other on the basis of optimal security procedures for protecting intellectual property (IP) and outstanding cloud services for improving the scalability and accessibility of company subsidiaries across the country. Companies are also engaging in mergers and acquisitions to gain a competitive advantage in the cloud EDA market in the United States.

Recent Developments

• In April 2021, Altium Ltd. announced the launch of Nexar which is a cloud-based platform that has been designed for connecting the Altium 365 PCB design users’ community and their companies.

• In February 2021, Ansys, a US-based business that develops and produces multiphysics engineering simulation software for product design, testing, and operation, announced the debut of Moxie, which will enable engineering teams to cut development time, increase productivity, and accelerate innovation. Engineers will be able to execute and analyze SysML behavioral models in virtual environments using the new solution, ensuring that these designs represent systems that meet mission performance criteria.

Scope of the Report

Attribute	Details
Years Considered	Historical data – 2017-2020
	Base Year – 2020
	Forecast – 2021 – 2027
Facts Covered	Revenue in USD Billion
Product/Service Segmentation	By type and application
Key Players	Agilent Technologies Inc., Agnisys Inc., Aldec, Inc., Altium Ltd., Ansys Inc., Cadence Design System, Inc., Infineon Technologies AG (Infineon Technologies Americas Corp.), Altair Engineering Inc., Keysight Technologies, Inc., Siemens EDA, Autodesk Inc., Synopsys Inc., Xilinx Inc., Zuken Inc., Silvaco, Inc, and other prominent players.

 

By Type

• CAE

• SIP

• IC Physical Design and Verification

• PCB and MC

By Application

• Military & Defense

• Aerospace

• Consumer Electronics

• Telecom

• Automotive

• Industrial

• Others

Table of Content

1              Executive Summary

1.1          Market Attractiveness Analysis

1.1.1      U.S. Cloud Automation EDA Market, By Type

1.1.1.1   CAE (Computer Aided Engineering)

1.1.1.2   SIP (Semiconductor Intellectual Property)

1.1.1.3   IC (Integrated Circuit) Physical Design and Verification

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

1.1.2      U.S. Cloud EDA Market, By Application

1.1.2.1   Military/Defense

1.1.2.2   Aerospace

1.1.2.3   Telecommunication

1.1.2.4   Automotive

1.1.2.5   Industrial

1.1.2.6   Consumer Electronics

1.1.2.7   Others

2              Market Introduction

2.1          Definition

2.2          Scope of the Study

2.3          Market Structure

2.4          Key Buying Criteria

2.4.1      Military/Defense

2.4.2      Aerospace

2.4.3      Telecommunication

2.4.4      Automotive

2.4.5      Industrial

2.4.6      Consumer Electronics

2.4.7      Others

2.5          Macro Factor Indicator Analysis

2.5.1      U.S. Nominal GDP Trends, USD Trillion, (2016-2020)

2.5.2      U.S. Government IT Spending Trends, USD Billion, (2016-2021)

2.5.3      U.S. Military Expenditure, USD Billion, (2016-2020)

2.5.4      U.S. Aerospace and Defense Trade Balance, USD Billion, (2015-2019)

2.5.5      U.S. Inflation Rate, Consumer Prices (Annual %) (2015-2019)

3              Research Methodology

3.1          Research process

3.1.1      Research Phases

3.1.2      Methodology

3.1.3      Split of Primary and Secondary Research of U.S. Cloud EDA Market

3.2          Primary Research

3.2.1      Breakdown of Primary Research Respondents, By Industry Participants

3.3          Secondary Research

3.4          Market Size Estimation

3.5          Market Breakdown & Data Triangulation

3.6          List of Assumptions

4              Market Dynamics

4.1          Introduction

4.2          Drivers

4.2.1      Increasing demand for miniature electronic devices owing to rising 3D printing industry

4.2.2      Increasing adoption of SoC technology across various applications

4.2.3      Growth in adoption of Industry 4.0 techniques like IoT, and Machine Learning

4.2.4      Drivers Impact Analysis

4.3          Restraints

4.3.1      Vulnerability due to Open Source Software

4.3.2      Restraint Impact Analysis

4.4          Opportunities

4.4.1      Technological Advancements

4.5          Impact of COVID on market

4.5.1      Increasing demand for system level design simulation

4.5.2      Impact on Cloud Market

4.5.3      Impact on Overall Market Year-over-Year Growth from 2020-2022

5              Market Factor Analysis

5.1          Value Chain Analysis/Supply Chain Analysis

5.1.1      IT Infrastructure and Prototyping

5.1.2      Platform Support Services and System Integration

5.1.3      Regulatory Approvals

5.1.4      Deployment and Distribution

5.2          Porter’s Five Forces Model

5.2.1      Bargaining Power of Suppliers (Moderate)

5.2.2      Bargaining Power of Buyers (Low to Moderate)

5.2.3      Threat of New Entrants (Low to Moderate)

5.2.4      Threat of Substitutes (Moderate)

5.2.5      Intensity of Competitive Rivalry (Moderate to High)

6              US Cloud Electronic Design Automation Market Estimates & Forecast, By Type

6.1          Introduction

6.2          CAE

6.3          SIP

6.4          IC Physical Design and Verification

6.5          PCB and MCM

7              U.S. Cloud Electronic Design Automation Market Estimates & Forecast, By Application

7.1          Introduction

7.2          Military/Defense

7.3          Aerospace

7.4          Telecommunication

7.5          Automotive

7.6          Consumer Electronics

7.7          Industrial

7.8          Other Applications

8              Competitive Landscape

8.1          Introduction

8.2          Key Players Market Share Analysis, 2019 (%)

8.2.1      Amazon Web Services Inc.

8.2.2      Dell Technologies Inc.

8.2.3      Xilinx Inc.

8.2.4      Synopsys Inc.

8.2.5      Other Market Players

8.3          Competitive Benchmarking, By Operating Parameters

8.4          Competitor Dashboard

8.5          Major Growth Strategy in the Market

8.6          Key Developments & Growth Strategies

8.6.1      New Product Development

8.6.2      Merger and Acquisitions

8.6.3      Contracts & Agreements

8.6.4      Expansions & Investments

8.7          Cloud Vendors Market Share in Semiconductor Design

9              Company Profile

9.1          AGILENT TECHNOLOGIES INC.

9.2          Snapshot

9.3          Overview

9.4          Financial Overview

9.5          Product & Services Landscape

9.6          Key Development (Merger & Acquisition and Other Strategies)

9.7          SWOT Analysis

9.8          Key Strategies

9.9          AGNISYS INC.

9.1          Snapshot

9.11        Overview

9.12        Product & Services Landscape

9.13        Key Development (Merger & Acquisition and Other Strategies)

9.14        SWOT Analysis

9.15        Key Strategies

9.16        ALDEC INC.

9.17        Snapshot

9.18        Overview

9.19        Product & Services Landscape

9.2          Key Development (Merger & Acquisition and Other Strategies)

9.21        SWOT Analysis

9.22        ALTIUM LIMITED

9.23        Snapshot

9.24        Overview

9.25        Financial Overview

9.26        Product & Services Landscape

9.27        Key Development (Merger & Acquisition and Other Strategies)

9.28        SWOT Analysis

9.29        Key Strategies

9.3          ANSYS INC.

9.31        Snapshot

9.32        Overview

9.33        Financial Overview

9.34        Product & Services Landscape

9.35        Key Development (Merger & Acquisition and Other Strategies)

9.36        SWOT Analysis

9.37        Key Strategies

9.38        CADENCE DESIGN SYSTEMS, INC.

9.39        Snapshot

9.4          Overview

9.41        Financial Overview

9.42        Product & Services Landscape

9.43        Key Development (Merger & Acquisition and Other Strategies)

9.44        SWOT Analysis

9.45        Key Strategies

9.46        INFINEON TECHNOLOGIES AG

9.47        Snapshot

9.48        Overview

9.49        Financial Overview

9.5          Product & Services Landscape

9.51        Key Development (Merger & Acquisition and Other Strategies)

9.52        SWOT Analysis

9.53        Key Strategies

9.54        ALTAIR ENGINEERING INC.

9.55        Snapshot

9.56        Overview

9.57        Financial Overview

9.58        Product & Services Landscape

9.59        Key Development (Merger & Acquisition and Other Strategies)

9.6          SWOT Analysis

9.61        Key Strategies

9.62        KEYSIGHT TECHNOLOGIES, INC

9.63        Snapshot

9.64        Overview

9.65        Financial Overview

9.66        Product & Services Landscape

9.67        Key Development (Merger & Acquisition and Other Strategies)

9.68        SWOT Analysis

9.69        Key Strategies

9.7          SIEMENS EDA

9.71        Snapshot

9.72        Overview

9.73        Financial Overview

9.74        Product & Services Landscape

9.75        Key Development (Merger & Acquisition and Other Strategies)

9.76        SWOT Analysis

9.77        Key Strategies

9.78        AUTODESK INC.

9.79        Snapshot

9.8          Overview

9.81        Financial Overview

9.82        Product & Services Landscape

9.83        Key Development (Merger & Acquisition and Other Strategies)

9.84        SWOT Analysis

9.85        Key Strategies

9.86        SYNOPSYS, INC.

9.87        Snapshot

9.88        Overview

9.89        Financial Overview

9.9          Product & Services Landscape

9.91        Key Development (Merger & Acquisition and Other Strategies)

9.92        SWOT Analysis

9.93        Key Strategies

9.94        XILINX, INC.

9.95        Snapshot

9.96        Overview

9.97        Financial Overview

9.98        Product & Services Landscape

9.99        Key Development (Merger & Acquisition and Other Strategies)

9.1          SWOT Analysis

9.101     Key Strategies

9.102     ZUKEN

9.103     Snapshot

9.104     Overview

9.105     Financial Overview

9.106     Product & Services Landscape

9.107     Key Development (Merger & Acquisition and Other Strategies)

9.108     SWOT Analysis

9.109     Key Strategies

9.11        SILVACO, INC.

9.111     Snapshot

9.112     Overview

9.113     Product & Services Landscape

9.114     Key Development (Merger & Acquisition and Other Strategies)

9.115     SWOT Analysis

9.116     Key Strategies

10           EDA User Companies’ Strategy About Introducing Public Cloud

10.1        Introduction

10.2        Objective of using Public Cloud Instead of On-premise (or Along with On-premise)

10.2.1    Micron Technology Inc.

10.2.2    CNEX Labs Inc.

10.2.3    Cypress Semiconductor Corporation

10.2.4    NVIDIA Corporation

10.2.5    Advanced Micro Devices, Inc. (AMD)

10.3        In Case of Using Public Cloud Along with On-premise, the Policy of Which to Use Public Cloud or On-premise

10.3.1    Micron Technology Inc.

10.3.2    CNEX Labs Inc.

10.3.3    Cypress Semiconductor Corporation

10.3.4    NVIDIA Corporation

10.3.5    AMD

10.4        In Case of Using Public Cloud Along with On-premise, the Ratio of Public Cloud to On-premise

10.4.1    Micron Technology Inc.

10.4.2    CNEX Labs Inc.

10.4.3    Cypress Semiconductor Corporation

10.4.4    NVIDIA Corporation

10.4.5    AMD

10.5        Problems with Introducing Public Cloud

10.5.1    Micron Technology Inc.

10.5.2    CNEX Labs Inc.

10.5.3    Cypress Semiconductor Corporation

10.5.4    NVIDIA Corporation

10.5.5    AMD

10.6        EDA User Companies’ Application Example About Introducing or Utilizing Public Cloud

10.6.1    Micron Technology Inc.

10.6.2    CNEX Labs Inc.

10.6.3    Cypress Semiconductor Corporation

10.6.4    NVIDIA Corporation

10.6.5    AMD