Semiconductor IP Market by Growing Technology Trends till 2025

(3 August 2020) According to the new research report published by The Insight Partners, titled “Semiconductor IP Market – Global Analysis and Forecast to 2025”, The global semiconductor IP market is expected to grow at a CAGR of 11.9% during the forecast period 2018 – 2025, to account to US$8,265.6Bn by 2025.

In 2017, North America accounted for the largest revenue share in the semiconductor IP market. APAC is expected to be the fastest growing region in the integrations of Semiconductor IP. The major reason for this is the presence of large semiconductor manufacturing hub in the region. Taiwan, China, South Korea, Vietnam are some of the important countries in Asia that comprise of large semiconductor manufacturing units. Also, inexpensive labor, skilled professionals, and lesser cost of raw materials in this region is another factor driving the growth of semiconductor industry in Asia and in turn favoring the growth of Semiconductor IP in the region.

Growing usage of the semiconductor based electronic devices in various industry verticals owing to the advent of IoT and Industrial IoT is one major factor driving the demands for these products. The semiconductor IP blocks enable in the reduction of manufacturing costs to the equipment manufacturers. Huge volumes of ICs are churned in a shorter span of time that is enabled by the semiconductor IP solutions is another major factor that is replacing the inefficient human designing methods for ICs across all the major industry verticals.

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(150 – Pages, 14 – Tables, 65 – Figures)

Electronics sector is anticipated to be one of the largest adopters of the Semiconductor IP globally. Manufacturing of automotive, consumer electronics, communication equipment, healthcare related equipment, and other devices are leading the integrations of semiconductor IP products into the different assembly lines at the factory floor. Also, the trend towards miniaturization in the consumer electronics industry has driven package component sizes down to the design-rule level of early technologies. Crucial in integrated circuit (IC) package technology is that it must deliver higher lead counts, reduced lead pitch, minimum footprint area, and significant volume reduction. As a result, this has led to semiconductor manufacturers developing the small outline package (SOP), surface-mount memory packaging.

Key findings of the study:

  • North America is anticipated to account the largest semiconductor IP market share
  • Based on the type, processor SIP is projected to dominate the semiconductor IP market
  • Licensing led the semiconductor IP market by source in 2017
  • In 2017, the electronics segment dominated the market by industry vertical

The Semiconductor IP (SIP) or silicon IP market used for building large and complex ICs required in today’s electronic devices is a highly concentrated market, with only small chunk of leading semiconductor manufacturers, foundries and players accounting for a hefty share of total market revenue in the semiconductor IP industry. It is expected that the market will become even more intense in the near future with big players in the market acquiring smaller semiconductor market participants, and progression in corporate restructuring of business. Therefore, to sustain and grow in the industry, companies will have to obtain or increase their orders for customers doing large volume production.

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The top companies operating in the field of Semiconductor IP include Cadence Design Systems, Sonics, ARM Holdings, Verisilicon, Rambus, Ceva, Imagination Technologies, Synopsys, Ememory Technology, and Lattice Semiconductor among others. Various other companies operating in the market and are coming up with new technologies and offerings which is helping the market for Semiconductor IP to expand over the years in terms of revenue and subscription.

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