65.4% of Global Semiconductor IP Market Revenue is generated by Direct Sources Segment

The semiconductor sector is predicted to rise by 5.9% in 2020, according to WSTS, which is a major increase over the previous year's demand collapse. As a result, several semiconductor vendors are projected to increase their R&D budgets; for instance, Samsung plans to invest USD 115 billion by 2030 to increase its share of the contract chip manufacturing industry, with USD 63.1 billion dedicated to R&D. A logic unit or logic chip that may be reused is referred to as a semiconductor Intellectual Property (IP). This IP is employed as a building block in integrated circuit and FPGA logic designs. By repurposing existing blocks, semiconductor intellectual property allows for speedier chip design. It's also in charge of upgrading the device's quality, which improves its efficiency.

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Data Bridge Market Research analyses that the semiconductor IP market is expected to grow at a CAGR of 6.1% in the forecast period of 2022 to 2029 and is expected to reach USD 6,895,660.78 thousand by 2029. The key factors driving market growth are increasing multicore technological advancements across numerous sectors and increased need for sophisticated SoC (system on chip) designs for various applications. Furthermore, rising need for semiconductor IPs in the consumer electronics, telecommunications and data center, and automotive verticals will fuel growth over the coming years.  

semiconductor IP market

Surging use of smartphone devices is expected to drive the market's growth rate during the forecast period.

The growing use of mobile devices, smartphones, tablets, and other connected devices due to rising demand for high-speed internet connectivity and rapid technological breakthroughs is likely to enhance the semiconductor IP market's growth. Furthermore, increased storage capacity, faster processing speeds, larger displays, and higher quality displays are all driving the global mobile market forward. This is projected to create a favorable environment for the worldwide semiconductor IP market to expand. The complexity of circuit design is growing in tandem with the desire for tiny smartphone devices. As a result, modern system on chip (SOC) design technology that uses semiconductor IP cores is becoming more popular. Therefore, the semiconductor IP market is estimated to grow more rapidly.

Report Scope and Market Segmentation

Report Metric

Details

Forecast Period

2022 to 2029

Base Year

2021

Historic Years

2020 (Customizable to 2014 - 2019)

Quantitative Units

Revenue in USD Thousand, Volumes in Units, Pricing in USD

Segments Covered

Type (CPU SIP, Wired SIP, GPU SIP, Memory SIP, DSP SIP, Library SIP, Infrastructure SIP, Digital SIP, Analog SIP, Wireless SIP and Others), Form (Soft Form, Hard Form), IP Source (Licensing, Royalty), Channel (Direct Sources, Internet Catalogue), End User (Automotive, Telecom, Consumer Electronics, Industrial, Defense, Commercial, Medical, Others)

Countries Covered

U.S., Canada, Mexico, Germany, France, U.K., Italy, Spain, Switzerland, Netherlands, Russia, Turkey, Belgium, Rest of Europe, Japan, China, South Korea, India, Australia, Singapore, Thailand, Malaysia, Indonesia, Philippines, Rest of Asia-Pacific, South Africa, Israel, U.A.E., Saudi Arabia, Egypt, Rest of Middle East and Africa, Brazil, Argentina and Rest of South America

Market Players Covered

Rambus (US), Dolphin Design SAS (France), Xilinx (US), Arm Limited (a subsidiary of softbank group corp.) (UK), Cadence Design Systems, Inc. (US), Siemens (Germany), eMemory Technology Inc. (Taiwan), Wave Computing, Inc. (US), Lattice Semiconductor (US), VeriSilicon (China), Digital Core Design (Poland), Dream Chip Technologies GmbH (Germany), Achronix Semiconductor Corporation (US), Faraday Technology Corporation (Taiwan), Synopsys, Inc. (US), Imagination Technologies Limited (UK), and CEVA, Inc. (US)

Data Pointers Covered in Report

In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Segment Analysis:

The semiconductor IP market is segmented on the basis of type, form, IP Source, channel, and end user.

  • On the basis of type, the market is segmented into CPU SIP, wired SIP, GPU SIP, memory SIP, DSP SIP, library SIP, infrastructure SIP, digital SIP, analog SIP, wireless SIP, and others. In 2022, CPU SIP segment is expected to dominate the global semiconductor IP market with 40.20% market share because CPU SIP is an integral part of computational operations.
  • On the basis of form, the market is segmented into soft form and hard form. In 2022, soft form is expected to dominate the global semiconductor IP market with 69.8% market share due to its customization application.

In 2022, the soft form segment is projected to hold the largest share of form segment in the semiconductor IP market

In 2022, the soft form segment is anticipated to hold the largest share of global semiconductor IP market owing to its application in customization. The soft form segment is growing with a CAGR of 6.20% in the forecast period of 2022 to 2029.

  • On the basis of IP source, the market is segmented into licensing and royalty. In 2022, licensing segment is expected to dominate the global semiconductor IP market with 63.6% market share due to its cost-effectiveness.
  • On the basis of channel, the market is segmented into direct sources and internet catalogue. In 2022, direct sources segment is expected to dominate the global semiconductor IP market with 65.4% market share because of its easy accessible characteristics in giving the necessary information about a semiconductor IP product.

In 2022, the direct sources segment of channel segment is anticipated to dominate the semiconductor IP market

In 2022, the direct sources segment of this market will dominate the semiconductor IP market because of its easy accessible characteristics in giving the necessary information about a semiconductor IP product. The direct sources segment is expected reach the highest CAGR of 6.20% in the forecast period of 2022-2029.

  • The market is segmented into automotive, telecom, commercial, consumer electronics, industrial, defense, medical, and others based on end user. In 2022, automotive segment is expected to dominate the global semiconductor IP market with 34.8% market share due to rising necessity of semiconductor products in the automotive sector.

Major Players

Data Bridge Market Research recognizes the following companies as the major semiconductor IP market players in semiconductor IP market are Rambus (US), Faraday Technology Corporation (Taiwan), eMemory Technology Inc. (Taiwan), Imagination Technologies Limited (UK), and CEVA, Inc. (US).

semiconductor IP market

  • In November 2021, Elmos Semiconductor SE announced a long-term partnership with Semiconductor IP market leader Arm, whose energy-efficient processor designs have enabled advanced computing in more than 200 billion chips. For its next generation of automotive microcontroller unit (MCU) products, Elmos has licensed a number of IP from the industry-leading Arm(R) Cortex(R)-M family. Elmos will be able to deliver innovative products for critical applications such as ADAS and autonomous driving, dynamic lighting, and thermal management as a result of this collaboration, which addresses the unique current and future technology demands from automotive suppliers and vehicle manufacturers.
  • In October 2021, Synopsys announced the industry's first complete HBM3 IP solution, including controller, Physical Layer/Device (PHY), and verification IP for 2.5D multi-die package systems. HBM3 technology enables SoC designers to address critical high-bandwidth and low-power memory needs for high-performance computing, artificial intelligence, and graphics applications.
  • In August 2021, Rambus announced the completion of the acquisition of PLDA. Rambus obtained essential building blocks for its CXL Memory Interconnect Initiative and expanded its digital controller solutions with complementing CXL 2.0, PCIe 5.0, and PCIe 6.0 controller and switch IP.

Regional Analysis

Geographically, the countries covered in the semiconductor IP market report are U.S., Canada, Mexico, Germany, France, U.K., Italy, Spain, Switzerland, Netherlands, Russia, Turkey, Belgium, Rest of Europe, Japan, China, South Korea, India, Australia, Singapore, Thailand, Malaysia, Indonesia, Philippines, Rest of Asia-Pacific, South Africa, Israel, U.A.E., Saudi Arabia, Egypt, Rest of Middle East and Africa, Brazil, Argentina and Rest of South America.

As per Data Bridge Market Research analysis:

North America is the dominant region in semiconductor IP market during the forecast period 2022 -2029

North America will continue to dominate the semiconductor IP market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period due to the increasing demand for semiconductor IP in this region. In the United States and Canada, many semiconductor IP providers are high. The necessity to improve electronics production will lead to extraordinary advancements. These two regions will dominate the semiconductor IP market.

Asia-Pacific is estimated to be the fastest growing region in semiconductor IP market the forecast period 2022 -2029

The Asia-Pacific region is anticipated to be the fastest growing region during the forecast period of 2022-2029. The increasing use of smart devices such as smartphones and smart bands which further paves the way for the growing penetration of various design IPs in these smart devices is the main driver of market expansion in the region. The rising demand for smart wearables, laptops and other electronic devices in this region is expected to propel the market's growth rate.

COVID-19 Impact Analysis

COVID-19 has prompted the semiconductor market to mobilize swiftly and undertake short-term and long-term changes to their business models in terms of product sales and distribution capacities. As the virus spread over the world, supply networks were interrupted, causing uncertainty about quarantine duration and impacting product sales. The outbreak has hastened the implementation of digital services in all businesses. Consumer behaviour has changed significantly, and demand for semiconductor devices has migrated to ASICS, memory, and sensors.

In 2020, the semiconductor IP market was marginally decreased due to the influence on automotive, industrial commercial, and other verticals. In 2020, global demand for autos fell considerably as governments around the world implemented lockdowns in response to the pandemic, and travel rates fell dramatically. The automotive and industrial verticals' growth has been hampered by supply chain disruptions, travel limitations, uneven or limited manufacturing capacities of companies, and lower demand from end users owing to economic downturns.

With eased lockdown in countries including China, India, the United States, and Germany, as well as vaccines being rolled out by a number of countries since December 2020, the manufacturing sector is expected to pick up the pace in the coming months gradually, and the semiconductor IP market is expected to recover by mid-2022.

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