Cloud Electronic Design Automation (EDA) Market Outlook (2023 to 2033)
The global cloud electronic design automation (EDA) market is expected to reach a market valuation of US$ 6.7 billion by the year 2023. A CAGR of 9.8% is expected to grow over the forecast period. With cloud-based electronic design automation, demand for digital tools and analog design will likely be boosted in the market.
Using cloud technology, engineers can conduct research, analyze, and design on a secure and dynamic platform. The CEDA platform is used for embedded systems, electronic components for automobiles, industrial automation, and more. The majority of CEDA's services and tools are delivered via cloud computing, including model-based prototyping, high-performance computing, and collaboration tools.
Electronics developers are looking for innovative solutions to gain a competitive advantage due to design complexity and the competitive nature of the market. A key area of research is using cloud computing to dramatically boost the productivity of electronic design automation (EDA). In comparison with traditional on-premise EDA, cloud-based EDA offers numerous features:
Developing electronic products in a timely and cost-effective manner
Remote access to the design files enables design team members to collaborate and communicate more effectively.
The latest features and resources are accessible with cloud-based EDA solutions.
The data backups and storage on secure servers provided by cloud EDA solutions provide an extra layer of security
Increased awareness of modern and sustainable technologies
Growth in revenue and profits as well as innovation in business models
Intense competition and rising IC complexity have challenged the electronics industry. To keep up with the strong competition in this environment, companies are rethinking prior assumptions to boost their productivity and minimize their development timeframes. Moving to the cloud may prove to be the most promising opportunity for the majority of companies. The use of cloud EDA for chip design facilitates the use of high-performance computing (HPC) resources on demand, which reduces development time and costs by removing the need for expensive on-premise infrastructure.
A growing number of EDA companies are utilizing machine learning (ML) techniques to optimize chips and explore design space. ML-based design can be achieved with the aid of cloud EDA, which can utilize the enormous computing power available in the cloud.
With cloud-based software tools and services, electronic design automation (EDA) allows the design, testing, and validation of electronic systems. Cloud EDA has become a prominent feature of the United States as some of the world's leading companies and startups are headquartered in the country, including major semiconductor producers. The increasing complexity of electronic systems and the need for high-performance computing have spurred the growth of cloud EDA in the United States. In the coming years, more semiconductor companies are expected to adopt cloud EDA technologies, leading to continued market growth.
Cloud electronic design automation is being explored by key producers to increase their market share. To serve large customer bases, manufacturers are developing innovative offerings that will fuel the growth of the cloud-based electronic design automation market. Manufacturers are expanding their global footprints and product portfolios through strategies such as mergers and acquisitions. Several international market players are acquiring businesses and launching new products to gain revenue share through new technology. For instance, Marvell recently announced plans to move its EDA workflow off-premises to Amazon Web Services (AWS).
A cloud EDA platform offers EDA tools and software on a pay-per-use basis, leveraging cloud computing technology. By using this approach, users can access powerful computing resources and collaboration tools from anywhere across the globe, providing a scalable, cost-effective, and flexible alternative to traditional EDA solutions. Additionally, Cloud EDA enables multiple designers to work simultaneously on similar projects, regardless of their location.
Data Points
Key Statistics
Estimated Base Year Value (2022)
US$ 2.5 billion
Expected Market Value (2023)
US$ 2.63 billion
Anticipated Forecast Value (2033)
US$ 6.7 billion
Projected Growth Rate (2023 to 2033)
9.8% CAGR
Electronic Design Automation is also known as electronic computer aided design (ECAD). Cloud electronic design automation is category of software tools that are used for designing, specification, verification, implementation of the electronic systems like printed circuit boards or integrated circuits.
Cloud electronic design automation tools have replaced manual methods for circuit board and semiconductor design techniques and these tools help to improve the construction of electronic component through universal design technique.
By using the cloud electronic design automation tools different kinds of bugs and defects in chips, circuit board are eliminated. Cloud electronic design automation tool do not require a dedicated system and also solves the storage issues as all the data is stored on cloud.
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Growing Complexity of PCB Circuits is driving the Growth of Cloud Electronic Design Automation Market
Building a circuit involves implementing multiple wires and components and before designing, an engineer must consider a number of aspects such as input signals, desired output and error tolerance. Number of components and wires increases when circuit to be build is complex, which increases the probability of introducing errors. The design is relatively large and that is therefore a reasonable amount of drawing involved.
It provides a completed schematic at the end of this section so, if user have mastered the basics at any point, there is no need to continue with drawing the remainder of the circuitry. However, with cloud electronic design automation software, an engineer can simulate the circuit design and can get an idea about real-time issues associated with applying the circuit.
Using a cloud electronic design automation software with features such as auto-placement, auto-routing and auto-tuning can reduce errors to a great extent and make fabrication easier. This saves time as the potential errors are addressed before building the prototype. These are features and benefits are driving the market growth.
Availability of open source software and pirated versions on the Internet is hampering growth of the global market
Many electronic design automation software are available online for free and offer a variety of features. Moreover, in many countries like USA, Russia, China, the pirated software are used commonly, due to this companies are being forced to offer low price software. This is a major factor expected to restrain growth of the market.
The key players in the cloud electronic design automation (EDA) market are
Sigasi
Keysight Technologies
JEDA Technologies
CadSoft Computer
Cadenece Design System
Silvaco International
Mentor Graphics
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain of the global Cloud Electronic Design Automation (EDA) market. The report provides an in-depth analysis of parent market trends, macroeconomic indicators and governing factors along with Cloud Electronic Design Automation (EDA) market attractiveness as per segments.
The report on Cloud Electronic Design Automation (EDA) market also maps the qualitative impact of various factors on Cloud Electronic Design Automation (EDA) market segments and geographies.
