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Global Semiconductor IP Market To Reach $7.3 Billion By 2025: Reportlinker

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  • Automotive vertical is estimated to register higher CAGR growth during forecast period
  • APAC is projected to become the fastest geographical market between 2020 and 2025

The global semiconductor IP market size is estimated to be $ 5.6 billion in 2020 and is projected to reach $ 7.3 billion by 2025, at a CAGR of 5.5 per cent by Reportlinker. This growth is due to advancement in multicore technology for consumer electronics industry, increasing demand for modern SoC (system on chip) designs, mitigation of the continuously rising chip design cost and expenditure, growing adoption of connected devices for daily use.

The report added increasing demand for electronics from healthcare industry due to COVID-19, and increasing demand for teleconference instruments amid the COVID-19 pandemic could play a key role in driving the growth of the semiconductor IP market. It said that interface IPs provide designers with the confidence to develop complex SoCs in accordance with automotive process capability index distributions.

It added, “The interface design IP segment is projected to grow at the second highest CAGR from 2020 to 2025 for semiconductor IP market, by design IP.To handle the increasing multimedia processing and connectivity needs within low power consumption budgets, several electronic devices require efficient processor IPs and interface IPs.”

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Automotive vertical segment to lead

Automotive vertical segment is estimated to register higher CAGR growth during forecast period. This is mainly due to the increasing application of microprocessor units (MPUs), microcontroller units (MCUs), sensors, analog integrated circuits (ICs), interfaces, and memory in autonomous and premium cars.

The report added, “Roughly, 100 processors are used in a high–end automobiles, which makes it a flourishing application segment in the semiconductor IP market.Moreover, with the ongoing trends like touch–free human–machine interfaces revolutionizing the automotive industry, there is a growing significance of connected cars, which is further encouraging R&D in the semiconductor IP market.”

The introduction of technologies, such as advanced driver assistance systems (ADAS), adaptive cruise control, and intelligent parking assistance systems are expected to further fuel the market growth.

APAC is projected to become the fastest geographical market between 2020 and 2025. This is due to the boom of the semiconductor and electronics industry here. The availability and demand for low–cost electronic products in APAC countries such as China and India are expected to further contribute to an increased demand for semiconductors in the region.Favorable policies by the Chinese government and increased funding for promoting applications of semiconductors are expected to further drive the semiconductor IP market in China.

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