Semiconductor IP Market Set Explosive Growth to 2025

The global semiconductor intellectual property (IP) market has been segmented on the basis of regions into North America, Europe, Asia-Pacific, Latin America, and Middle East, and Africa. Asia-Pacific is expected to hold a dominant position in the global semiconductor IP market by 2025. The growth of regional market is primarily driven by increased use of consumer electronics products, which in turn has increased the demand for hard IPs such as analog IP. In Asia-Pacific, emerging economies such as India and China are manufacturing hubs for consumer electronic products, including smartphones, home appliances, and televisions. According to Coherent Market Insights’ analysis, in 2016, over 450 million units of smartphone devices were sold in China.

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A semiconductor Intellectual Property (IP) is a logic unit or logic chip that can be reused and is an intellectual property of a circuit. This IP is used in integrated circuit designs or field-programmable gate array (FPGA) logic designs as building blocks.

Semiconductor intellectual property enables faster chip design by using existing blocks. It is also responsible for improving the quality of any device, in turn enhancing the efficiency of the device. Miniaturization in electronic device size and to reduce production cost across the globe, are expected to positively impact growth of the semiconductor intellectual property market.

Increased utilization of smartphone devices is expected to boost the global market growth

Growing adoption of mobile devices, smartphones, tablets, and other connected devices due to increasing demand for high speed broadband connectivity and rampant advancements in technology, are in turn, expected to boost growth of the semiconductors IP market. Additionally, enhanced storage capability, fast processing speed, larger displays, and higher resolution displays, in turn are fuelling growth of the global mobile market.  This is subsequently expected to create a conducive environment for growth of the global semiconductor IP market. According to Coherent Market Insights’ analysis, as of 2016, around 350 units of mobile devices were sold globally, which accounted for an increase of over 3.7% from 2015. Revenue generated by smartphone devices alone, accounted for over 70% sales of the global mobile devices in 2016.

As the demand for miniature smartphone devices is increasing, the complexity in circuit design is also increasing. Hence, adoption of modern system on chip (SOC) design technology, which employs semiconductor IP cores, is also increasing. This in turn, is expected to enhance growth of the global semiconductor IP market.

However, rampant advancements in technology and limitation of patented technologies are expected to restraint growth of the semiconductor IP market, globally.

Semiconductor IP Market: Competitive Background

Major players operating in the global semiconductor IP market include Arm, Synopsys, Cadence, Imagination, Lattice Semiconductor, Ceva, Rambus, Mentor Graphics, Ememory, and Sonics.

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