The key drivers fueling the growth of this market include advancement in multicore technology for the consumer electronics industry, increasing demand for modern SoC (system on chip) designs and more
According to the new market research report “Semiconductor Intellectual Property (IP) Market with COVID-19 Impact Analysis by Design IP, IP Core, IP Source, End User, Vertical (Consumer Electronics, Telecom & Data Centers, Automotive, Commercial, Industrial), and Geography – Global Forecast to 2025”, published by Markets and Markets, the market will grow to USD 7.3 billion by 2025 (forecast year) from USD 5.6 billion in 2020 (estimated year), at a CAGR of 5.5 per cent between 2020 to 2025.
“The processor IP segment of the semiconductor IP market, by design IP is estimated to hold the largest market share in 2025. 5G technology is driving massive increment in speed, bandwidth, and data throughput for automotive and mobile applications by introducing carrier aggregation and increased throughput with advanced modulation via mmWave spectrums,” read the report.
It continued, “This has added a great deal of complexity for infrastructure, baseband, and application processor technologies. In order to address this complexity, new innovative processor IPs are required. All these factors are expected to contribute to the growth of the processor IP market during the forecast period.”
The key drivers fueling the growth of this market include advancement in multicore technology for the consumer electronics industry, increasing demand for modern SoC (system on chip) designs, mitigation of the continuously rising chip design cost and expenditure, and growing adoption of connected devices for daily use. Moreover, increasing demand for electronics from the healthcare industry due to COVID-19 and increasing demand for teleconference instruments amid the COVID-19 pandemic can play a key role in driving the growth of the semiconductor IP market.
The IDM segment of the semiconductor IP market, by functionality, is expected to register a higher CAGR during the forecast period. IDM companies are investing heavily in research and development to develop technologically advanced, energy-efficient, and miniature products such as MEMS sensors, LEDs, memory devices, interposers, and logic devices to be used in various applications, including consumer electronics, automotive, and medical. Such developments are expected to increase their market growth during the forecast period and aid in the growth of the semiconductor IP market.
Americas is expected to hold the largest share of the semiconductor IP market in 2025. The growth in the region can be attributed to the increasing adoption of IoT–enabled connected devices.