Semiconductor Intellectual Property (IP) Market worth $7.3 billion by 2025 - Exclusive Report by MarketsandMarkets™

CHICAGO, Oct. 30, 2020 /PRNewswire/ -- According to the new market research report "Semiconductor Intellectual Property (IP) Market with COVID-19 Impact Analysis by Design IP, IP Core, IP Source, End User, Vertical (Consumer Electronics, Telecom & Data Centers, Automotive, Commercial, Industrial), and Geography - Global Forecast to 2025", published by MarketsandMarkets™, the market will grow to USD 7.3 billion by 2025 (forecast year) from USD 5.6 billion in 2020 (estimated year), at a CAGR of 5.5% between 2020 to 2025. The key drivers fueling the growth of this market include advancement in multicore technology for the consumer electronics industry, increasing demand for modern SoC (system on chip) designs, mitigation of the continuously rising chip design cost and expenditure, and growing adoption of connected devices for daily use. Moreover, increasing demand for electronics from the healthcare industry due to COVID-19 and increasing demand for teleconference instruments amid the COVID-19 pandemic can play a key role in driving the growth of the semiconductor IP market.

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The processor IP segment to hold the largest market share in 2025

The processor IP segment of the semiconductor IP market, by design IP is estimated to hold the largest market share in 2025. 5G technology is driving massive increment in speed, bandwidth, and data throughput for automotive and mobile applications by introducing carrier aggregation and increased throughput with advanced modulation via mmWave spectrums. This has added a great deal of complexity for infrastructure, baseband, and application processor technologies. In order to address this complexity, new innovative processor IPs are required. All these factors are expected to contribute to the growth of the processor IP market during the forecast period.

The IDM segment to register higher CAGR during the forecast period

The IDM segment of the semiconductor IP market, by functionality, is expected to register a higher CAGR during the forecast period. IDM companies are investing heavily in research and development to develop technologically advanced, energy-efficient, and miniature products such as MEMS sensors, LEDs, memory devices, interposers, and logic devices to be used in various applications, including consumer electronics, automotive, and medical. Such developments are expected to increase their market growth during the forecast period and aid in the growth of the semiconductor IP market.

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Americas is projected to hold the largest share of the semiconductor IP market in 2025

Americas is expected to hold the largest share of the semiconductor IP market in 2025. The growth in the region can be attributed to the increasing adoption of IoT–enabled connected devices. Also, the growing government support to develop the semiconductor market in American countries, such as US and Canada, is expected to drive the semiconductor IP market during the forecast period. For instance, the US government introduced the CHIPS Act to provide a range of federal investments to companies and encourage the next generation of semiconductor manufacturing. The Act provides a 40% refundable income tax credit for the semiconductor manufacturing industry and funds up to USD 12 billion to promote research in advanced semiconductor technologies. Such developments are expected to drive the market for semiconductor IP in Americas.

Arm Holdings (UK), Synopsys (US), Cadence Design Systems, Inc. (US), CEVA (US), Imagination Technologies (UK), Rambus Inc. (US), eMemory Technology Corporation (Taiwan), Mentor Graphics (US), and Lattice Semiconductor Corp. (US) are the key players in the global semiconductor IP market. These players are increasingly undertaking strategies such as product launches and development, expansions, partnerships, collaborations, contracts, and acquisitions to increase their market share.

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