China Electronic Design Automation (EDA) Tools Market Size (2024 - 2029)

The China Electronic Design Automation Tools Market is experiencing significant growth, driven by the country's substantial presence in the semiconductor industry and the increasing demand for consumer electronics. The market's expansion is supported by the consolidation of state-supervised Chinese companies, enhancing their competitiveness against foreign entities. Additionally, the Chinese government's investment in domestic semiconductor development is further propelling the market. Despite challenges posed by the coronavirus outbreak, which has disrupted the global tech sector, the market continues to grow due to these underlying factors.

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Market Size of China Electronic Design Automation (EDA) Tools Industry

China Electronic Design Automation (EDA) Tools Market
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 10.20 %
Market Concentration Medium

Major Players

China Electronic Design Automation (EDA) Tools Market Major Players

*Disclaimer: Major Players sorted in no particular order

China Electronic Design Automation Tools Market Analysis

The China Electronic Design Automation (EDA) Tools Market is expected to register a CAGR of 10.2% during the forecast period (2021 - 2026). China commands a significant share of the semiconductor industry. According to SEMI, China is expected to be the top country in fab investment in 2020, with more than USD 20 billion in expenditure.

  • The EDA tools market in the overall Asia-Pacific region is witnessing growth primarily owing to the large presence of electronics and automobile manufacturing companies, as well as an increasing purchasing power of the consumers. The region has witnessed robust growth in the adoption of smartphones and digitization of business processes, thereby fueling the deployment of EDA tools to cater to the booming consumer electronics manufacturing sector.
  • A specific trend in the Chinese market has been the consolidation, wherein under state-supervised Chinese players have been amalgamated to increase their manufacturing capacities and abilities to compete with foreign rivals. Through this process of consolidation, new Chinese semiconductor giants are emerging and utilizing their financial power and production capacities to augment the domestic production and reduce the country's reliance on imports.
  • Moreover, the Chinese government is actively investing in home-grown semiconductor development. In July 2019, China Integrated Circuit Industry Investment Fund, also known as the country's Big Fund, raised a capital worth USD 29.08 billion for its second phase. This is expected to contribute by bolstering chip design, advanced materials, and equipment areas.
  • The recent coronavirus outbreak in the country is disrupting the global tech sector, especially the hardware, electronic manufacturing services providers, and semiconductor companies, as operations in the world's largest tech manufacturing hub are threatened.

China Electronic Design Automation Tools Industry Segmentation

Electronic design automation (EDA) is a software that helps in designing electronic systems with the aid of computers; these tools are often used to design circuit boards, processors, and different types of complex electronics. The software tool is also known as electronic computer-aided design and has largely replaced manual methods for designing circuit boards and semiconductors.

By Type
Computer-aided Engineering (CAE)
IC Physical Design and Verification
Printed Circuit Board and Multi-chip Module (PCB and MCM)
Semiconductor Intellectual Property (SIP)
By Application
Communication
Consumer Electronics
Automotive
Industrial
Other Applications
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China Electronic Design Automation (EDA) Tools Market Size Summary

The China Electronic Design Automation (EDA) Tools Market is experiencing significant growth, driven by the country's robust semiconductor industry and increasing demand from sectors such as consumer electronics and automotive. The market is characterized by a strong presence of electronics and automobile manufacturing companies, coupled with rising consumer purchasing power. The Chinese government's strategic investments in home-grown semiconductor development and the consolidation of domestic players are further propelling the market. These efforts aim to enhance manufacturing capacities, reduce reliance on imports, and position China as a leading player in the global semiconductor landscape. The adoption of EDA tools is also fueled by innovations in autonomous vehicle technology and the growing popularity of electric vehicles, aligning with China's ambitious transportation sector advancements.

In the consumer electronics sector, the demand for EDA tools is driven by manufacturers' efforts to extend device battery life and enhance device capabilities. China's position as a leading revenue-generating market for semiconductors is bolstered by its expansive mobile market and digitization strategy, including initiatives like 5G commercialization. Despite challenges posed by the coronavirus outbreak, which has impacted production in various segments, the market remains competitive with both domestic and international players. Companies are focusing on product innovation and strategic mergers and acquisitions to maintain competitiveness. Notable developments include Altium's introduction of a cloud platform for PCB design and the establishment of Changsha GuangLi Microelectronics, Inc. to enhance integrated circuit technology services in central and southern China.

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China Electronic Design Automation (EDA) Tools Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Government Support for EDA Tool Development

      2. 1.2.2 Growing Prevalence of PCB Design, System Design and PL/FPGA Design

    3. 1.3 Market Restraints

      1. 1.3.1 Lack of Comprehensiveness of Chinese Digital Design Tools

    4. 1.4 Porters 5 Force Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Impact of COVID-19 on the EDA Tools Market, with focus on China

    6. 1.6 Impact of US-China Trade War on the China EDA Tools Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Computer-aided Engineering (CAE)

      2. 2.1.2 IC Physical Design and Verification

      3. 2.1.3 Printed Circuit Board and Multi-chip Module (PCB and MCM)

      4. 2.1.4 Semiconductor Intellectual Property (SIP)

    2. 2.2 By Application

      1. 2.2.1 Communication

      2. 2.2.2 Consumer Electronics

      3. 2.2.3 Automotive

      4. 2.2.4 Industrial

      5. 2.2.5 Other Applications

China Electronic Design Automation (EDA) Tools Market Size FAQs

The China Electronic Design Automation (EDA) Tools Market is projected to register a CAGR of 10.20% during the forecast period (2024-2029)

Altium Limited, Cadence Design Systems Inc., Xpeedic Technology, Inc., Semitronix Corporation and Beijing Aerdai Information Technology (Aldec Inc.) are the major companies operating in the China Electronic Design Automation (EDA) Tools Market.

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China Electronic Design Automation Tools Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)