Semiconductor IP Market Global Forecast to 2026: Expanding Telecommunications & Data Center and Automotive Verticals to Drive Growth - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Semiconductor Intellectual Property (IP) Market with COVID-19 Impact Analysis by Design IP (Processor IP, Memory IP, Interface IP, Other IPs), IP Source (Royalty, Licensing), IP Core (Hard IP, Soft IP), Vertical and Geography - Global Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.

The global semiconductor IP market size is expected to grow from USD 5.5 billion in 2021 to USD 7.2 billion by 2026, at a CAGR of 5.4%.

The market has a promising growth potential due to several factors, including growing adoption of semiconductor components especially processor IPs, interface IP in consumer electronics, automotive, telecommunications & data center verticals will drive the demand for this market in the near future.

The major factor restraining the growth of the semiconductor IP market constant technological changes in the semiconductor industry. In each leap, new technologies would enter the market and break the equilibrium. The same applies to the IC industry, where process nodes play a vital role. Changes in the nodes of a semiconductor chip can change design complexity, chip form factor, and IP core design architecture. The most common task in advanced SoC design is the effective implementation of these SoC chips in advanced technologies, such as 20 nm planar and FinFET processes. The adoption of advanced technology nodes increases design costs for IP vendors, while payments for licensing the IP suitable as per the new technology node may not match up to the rise in expenditure. The overall cost of SoC designs, including silicon IP and software IP, has increased by ~40%, with a shift in the node size from 32 nm to 28 nm, and is expected to increase by 30% after the shift to 22 nm. The overall cost of SoC silicon IP design has increased by approximately 36%, with the node of 28 nm.

The market slightly declined in 2020, mainly due to the impact of COVID-19. The supply chains were disrupted in March and April 2020 due to the lockdown imposed by various governments and labor shortages in these industries due to travel restrictions, which would affect the semiconductor IP market. Though the market has been impacted in 2020, it is expected to fully recover by mid 2022.

The royalty IP source segment is witnessing healthy growth due to rapid technological changes that are helping manufacturers to produce as many products as they want and pay a royalty for only those products. The rapid global rollout of the 5G network by operators is also supporting the growth of the royalty IP source segment as many base stations and wireless network equipment are based on different processor IPs and interface IPs. The increasing penetration of 5G smartphones is one of the major factors for the growing adoption of royalty IP sources. Various countries have already been investing in 5G technology to enhance their digital infrastructure and stay competitive in the digital economy. These countries are expected to play a vital role in the growth of the royalty IP source market in various verticals, such as consumer electronics and telecommunications & data center.

Market Dynamics

Drivers

• Advancements in Multicore Technology for Consumer Electronics Vertical
• Increasing Demand for Modern System-On-Chip Designs
• Decline in Cost Associated with Chip Designing
• Growing Adoption of Connected Devices for Daily Use
• Increasing Demand for Electronics in Healthcare and Telecommunications Industries Due to COVID-19 Crisis

Restraints

• Constant Technological Changes
• Concerns Related to Moore's Law

Opportunities

• Expanding Embedded DSP and Programmable DSP IP Segments
• Rising Demand for Advanced Semiconductor Components in Automotive and Telecommunications & Data Center Verticals

Challenges

• IP Thefts, Counterfeits, and Conflicts

Case Studies

• Synopsys Offered Its Foundation IP and Interface IP Solutions to ARBE (Israel) for High-Resolution Imaging Radar SOC
• Blaize Inc (US) Utilized Verisilicon 's Chip Design Expertise and IP Offerings for New Applications
• Achronix Semiconductor Utilized Synopsys's Designware Foundation IP and Interface IP for Its High-Performance Computing Fpgas
• Mentor Graphics Utilized Openfive's Ethernet-Pcs IP for Its Veloce Emulator with 3 Different Environment Setups
• DSP Group (US) Selected Synopsys' Designware Arc Em5D Processor IP for Its High-Efficiency Control and Signal Processing Capabilities
• Myson Century (Taiwan) Utilized Dcd's Dp80390/Dp8051 IP Core for Performance-Sensitive Applications
• Wave Computing Utilized Andes Technology's Andes System Control Processor IP in Its Current Generation Design of Revolutionary DPU
• Ensilica Provided Its ASIC Design, Software Development, and PCB Design for Safety-Critical Industrial Controller with An On-Chip High Current Switch
• Digital Core Design Provided Its IP Solutions to Texas Advanced Optoelectronics Solutions Inc (Us)To Achieve Performance Efficiency in Implementation of New Project
• Ensilica Provided Its Customer with Complete SOC Development of GNSS Baseband Processor with Power Management

   

Companies Mentioned

• Achronix Semiconductor
• Alphawave IP
• Analog Bits
• ARM
• Arteris
• Cadence
• Ceva
• Cobham Gaisler
• Dolphin Design
• Dream Chip Technologies
• Ememory
• Eureka Technology
• Faraday Technology
• Imagination Technologies
• Lattice Semiconductor
• M31 Technology
• Openfive
• RambUS
• Renesas
• Silvaco
• SST
• Synopsys
• Transpacket
• Verisilicon
• Xilinxa

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