Semiconductor IP Market Size Worth $9.67Bn, Globally, by 2028 at 10% CAGR

The semiconductor IP market size is expected to grow from $4.95 billion in 2021 to $9.67 billion by 2028; it is estimated to grow at a CAGR of 10% from 2021 to 2028.

The Insight Partners published latest research study on “Semiconductor IP Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type (Processor SIP, Interface SIP, Physical SIP, Analog SIP, and Others), Source (Licensing and Royalty), and Industry Vertical (Telecom, Automotive, Industrial, Electronics, Medical, and Others)”, the global semiconductor IP market growth is driven by modular nature enabling integration flexibility which results to generate high demand from the manufacturing sector, design complexities of consumer electronic devices coupled with consistent innovations, and growing needs for facilitating lesser time-to-market for designing high functionality chips.

The key players operating in the semiconductor IP market include Arm Holdings Plc; CEVA Inc; Imagination Technologies Limited, Cadence Design Systems, Inc.; and Synopsys. Various other companies operating in the market and are coming up with new technologies and offerings, which is contributing to the expansion of the semiconductor IP market, in terms of revenue and subscription.

In 2022, CEVA, Inc. announced the expansion of its IP market reach by introducing the Fortrix SecureD2D IP solution, enabling secure data exchange between different chiplets within a Heterogenous System on Chip (HSoC).
The global Semiconductor IP market is experiencing an intense growth with regards to the investments, new product developments, and deployment for future in the current scenario and is anticipated to rise in the coming years. The Semiconductor IP market consists of some well-established players across the globe, which invest huge amounts in order to deliver the most advanced product to the customers. Also, there are many stakeholders in the Semiconductor IP ecosystem that are involved in the end-to-end development of Semiconductor IP and ensuring that the best service is made available for the users. Government funding for research & development, automotive manufacturers, communication equipment manufacturers, strategic partnerships between chipset manufacturers, equipment vendors, network operators and Government bodies are anticipated to enable huge surges in the Semiconductor IP Market over the forecast period.

In the semiconductor IP market, new business models have evolved for ensuring sustainability as well as progress sufficing the ever increasing demands from the customer. The businesses in the semiconductor IP market have evolved to become one-stop solution providers that offer a wide range of IP cores and platforms that includes graphics, video, cloud software, connectivity and others. Therefore, customers who deal with multiple sources for SIP based products face challenges for the variety of business models and the different fees involved in those models.

The global semiconductor IP market is segmented based on type, source, and industry vertical. Based on type, the semiconductor IP market is segmented into Processor SIP, Interface SIP, Physical SIP, Analog SIP, and Others. Based on source, semiconductor IP market is segmented into licensing and royalty. Based on industry vertical, semiconductor IP market is segmented into Telecom, Automotive, Industrial, Electronics, Medical, and Others.

Europe comprises several major manufacturing industries—such as aerospace, machinery & equipment, automotive, shipbuilding, and military vehicle manufacturing. The automotive industry is considered to be a crucial industry as it significantly contributes to the GDP of EU countries. The EU is the leading producer of motor vehicles, and several premium automotive manufacturers are based in the region. The vehicle manufacturing industry produces ~19.2 million cars, vans, buses, and trucks, collectively, every year. Moreover, ~300 vehicle assembly and manufacturing facilities are located in around 26 countries across the region.

According to the “ACEA”, with the presence of companies such as BMW, Volkswagen, Audi, and Aston Martin, Europe accounts for 21% of cars manufactured across the world. Germany is the largest contributor to the automotive market in the region, accounting for ~30% share. The growing inclination toward the integration of electronics into the automotive sector, coupled with the emergence of autonomous driving, advanced driver assist systems, in-vehicle infotainment, and vehicle telematics, has resulted in elevated demands for semiconductor-based ICs.

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