What are the key trends influencing electronic design automation (EDA)?
The areas of EDA and what, in the financial world, is often referred to as technical software, including simulation and analysis, mechanical CAD and product lifecycle management (PLM), are really interacting more closely and merging as the design chain of OEMs—developing electronic systems—and semiconductor providers undergoes significant transformations. As to the markets, in 2019, the EDA and semiconductor IP market of $10B+ served as an enabler for the $430B semiconductor market (according to Omdia Research) that in exchange fuelled a $2.4 trillion OEM electronics market. By 2024, the semiconductor and OEM markets are expected to grow to roughly $530B and $2.8T respectively.
What are some of the vertical consumer end markets that drive all of this?
End-market demand for electronics in eight key verticals—consumer, compute, mobile, networking, automotive, aerospace/defence, industrial and healthcare—is very strong. Some key subsegments stand out due to their semiconductor growth potential, namely artificial intelligence/machine learning (AI/ML)-enabled smart assistants, game consoles, augmented reality/virtual reality (AR/VR) in the consumer vertical, data centre servers and storage in compute, mobile communications infrastructure and security in networking, and ADAS, hybrid and connectivity in automotive, as well as automation in home and industry, and even virtualization in healthcare and aerospace/defence.
You mentioned changing design chains. Can you please elaborate?
The dynamics within the industry design chains are poised for change, with OEMs in automotive, hyperscale companies in compute and new players for next-generation networking simply reshuffling the design chain—just like the mobile industry did during the past two decades. Several of these industries are interconnected, with IoT sensors and terabytes of data collected in cars linked via next-generation networks for compute at the edge and in data centres, with data being the universal fuel. For instance, traditional system companies like Facebook, Google, Amazon and Microsoft, often referred to as the Tier 1 “hyperscalers”, have been influencing electronic design with their contributions to