U.S. Electronic Design Automation Software Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

U.S. Electronic Design Automation Software Market Emerging Trends

Shift toward Cloud-Based Solutions Is Key Trend

• Cloud-based EDA tools are more scalable and flexible in terms of usage than the standard on-premises solutions, enabling users to access them at their convenience.
• A cloud-based EDA solution proves less expensive for users over time because they do not need to purchase initial licenses or physical hardware components.
• Design teams are working on cloud-based platforms so they can collaborate regardless of distance, to obtain equivalent access to design assets.
• Cloud-based EDA tools minimize the design cycle duration, which decreases product time to market.
• Cloud-based EDA service providers maintain seamless software updates, which enable them to offer the newest features to their users.
• Cloud-based access delivers designers advanced operational capabilities without requiring them to wait for software development or hardware implementation.
• Cloud providers dedicate major resources to developing robust security frameworks, which protect the stored data, ensuring full confidentiality for user information.

Growing Demand for Advanced Semiconductors Propels Market

• The growing semiconductor sector and its related fields, such as photonics and micromechanics, drive the requirement for EDA software.
• Users need advanced EDA tools to create efficient processors and systems because of the rising adoption of the IoT technology in new kinds of devices.
• Advanced EDA tools are needed to create intricate IC designs, especially since manufacturers want smaller electronic devices with increased performance.
• This drives the demand for advanced EDA tools among businesses making smaller electronic products for consumer electronics, medical devices, and automobiles.
• Using artificial intelligence and machine learning in electronic design automation tools allows designers to get a more-precise result and find new design solutions quickly.
• The increasing complexity of system-on-a-chip (SoC) makes testing each design necessary to prevent any error before manufacturing.
• Verification tools help designers find errors quickly, which allows them to fix them before reaching the production stage, saving time and money.
• The broadening use of AI and automation across semiconductor codecs drives organizations to use stronger verification methods to test layouts faster and enhance design quality.
• The consumer electronics, automotive, and telecommunications industries use functional verification tools to guarantee that their products adhere to the high performance and reliability standards.
• Local synthesis tools convert high-level design descriptions into optimal structures that can meet all the required space and performance requirements.
• Today's complex IC and SoC designs used in consumer technology, automobiles, and internet platforms need this basic design technique.
• The growing digital design complexity leads chipmakers to use advanced logic synthesis tools.

U.S. Electronic Design Automation Software Market Segmentation Analysis

Component Insights

The computer-aided engineering (CAE) category dominates the market with a revenue share of 55% in 2024. CAE software is essential in developing complex electronic systems and testing them before production, which helps firms reduce waiting times in launching their semiconductor and electronic products. More companies are outsourcing the manufacturing, and customers want advanced computing services. The rising demand for cloud services and the rising complexity in circuit integration contribute to market development.

The report examines the following types:

• Computer-aided Engineering (CAE) (Largest and Fastest-Growing Category)
• IC Physical Design and Verification
• Printed Circuit Board and Multi-Chip Module (PCB and MCM)
• Semiconductor Intellectual Property (SIP)

Deployment Insights

The on-premises category is the larger with 60% revenue in 2024, and this category is further expected to maintain its position during the forecast period. Organizations use on-premises deployment because it lets them handle their data securely, while customizing their system for specific needs. Companies prefer on-premises EDA solutions to maintain complete control over their electronic designs, which serve as intellectual properties with protected patents.

Here are the deployments studied in the report:

• Cloud (Faster-Growing Category)
• On-premises (Larger Category)

Application Insights

Digital design is the largest category with a revenue share of around 55% because of the rising demand for ICs and SoCs in all major industries. Digital design tools make circuit development easier through logic synthesis, simulation, and quality tests, to ensure that the outputs achieve all design specifications. The advancements in AI IoT and 5G communications further drive the demand for superior digital design tools.

The report examines the following applications:

• Analog Design
• Digital Design (Largest Category)
• Mixed-Signal Design (Fastest-Growing Category)

End Use Insights

Consumer electronics holds the largest share, of around 40%, because of the growing usage of smartphones, laptops, tablets, and smart home devices. The need for increasingly complex and feature-laden consumer electronics items drives the demand for advanced EDA tools to develop complex integrated circuit with improved performances and dependability.

The end uses covered in the report are:

• Aerospace and Defense
• Automotive (Fastest-Growing Category)
• Healthcare
• Industrial
• Consumer Electronics (Largest Category)
• Others

U.S. Electronic Design Automation Software Market Regional Outlook

West is the largest and fastest-growing region, with 45% share and 10% CAGR, respectively, led by Silicon Valley in California and Seattle in Washington. Western U.S. is home to the biggest semiconductor, technology, and EDA software companies. The research institutions and universities here need advanced EDA software systems to make chips and test their performance. The West leads the market because companies are rapidly taking advantage of the AI, 5G, and HPC technologies.

The regions analyzed in this report are:

• Northeast
• Midwest
• West (Largest and Fastest-Growing Category)
• South

U.S. Electronic Design Automation Software Market Share Analysis

• The market is fragmented as a limited number of companies— Synopsys, Cadence, Siemens EDA, and Mentor Graphics Company—hold the major share combined.
• New companies struggle to enter this market because producing development tools costs a lot, and the major firms control extensive intellectual property, which they rely on to build effective EDA suites.
• Major EDA producers merge with any newcomer and partner with other leaders to develop more products and add advanced AI/ML features to their existing software.

U.S. Electronic Design Automation Software Market Developments

• In August 2024, Renesas Electronics Corporation acquired Altium Limited; the acquisition was announced in February 2024.
• In May 2023, Ansys Inc. entered into an agreement to acquire Diakopto.