New York, March 16, 2023 (GLOBE NEWSWIRE) -- The global semiconductor IP market was valued at around USD 6 million in 2022 and is estimated to be worth approximately USD 11 billion in 2032, growing at a CAGR of 6.7% between 2023 and 2032. Semiconductor intellectual properties are essential elements within electronic systems like logic cells and chip layouts which can easily be reused by their original creators. Many semiconductor intellectual properties are created with the intention of licensing them out to multiple organizations so they can serve as building blocks in various chip designs for semiconductors and electronics products.
Today's integrated circuit (IC), designs incorporate more system functionality into single chips (System on Chip). Pre-designed IP blocks and cores are increasingly important in these SoC designs. Because most SoC designs use a standard microprocessor, a lot of system functionality is standardized and can be reused across different designs.
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Key Takeaway:
- By Design IP, the processor ip segment held the biggest market share in 2022 and is expected to grow at a CAGR of 7.2% over the forecast period 2023 to 2032.
- By IP Core, the hardcore ip segment lead the market in 2022.
- By IP Source, the market is dominated by the royalty segment in 2022.
- By Vertical, the consumer electronics industry holds the largest market share in 2022.
- In 2022, Asia-Pacific Region dominated the market with the highest revenue share of 34.6%.
- North America is Projected to grow at a moderate CAGR over the forecast period 2023 to 2032.
The major drivers of the global semiconductor intellectual property (IP) markets are the increasing demand for advanced system-on-chip (SoC) design and the decreasing design and manufacturing costs. Additionally, increasing demand for semiconductor IP in automotive components, consumer electronics, telecom, and data centers will boost the growth of the semiconductor IP market.
Factors affecting the growth Semiconductor IP Market industry?
There are several factors that can affect the growth of the semiconductor IP market industry. Some of these factors include:
- Use of ASIC Chips: An Application-Specific Integrated Circuit is an IC chip that is specifically designed for a particular application. ASICs can be used in digital voice recorders or high-efficiency video encoders. This trending application is driving market growth and will likely continue to dominate the market.
- Surging Semiconductor Usage in the Defense Sector: The evolution of compound semiconductor supply chains has been greatly influenced by the defense industry. The money and applications provided by the defense agencies allowed compound semiconductor technology and other parts to grow and flourish. This trend is driven by the need for high-performance technology and solutions for defense applications.
- Increasing demand in autonomous and premium vehicles: The use of microprocessors, microcontroller units, sensors, and analog integrated circuits, as well as interfaces and memory, is increasing. Connected automobiles, vehicle connectivity, and electronic mobility are becoming more important in the automotive industry.
- Rising demand for SoC: The major drivers of the global semiconductor intellectual property (IP) markets are the increasing demand for advanced system-on-chip (SoC) designs and the decreasing design and manufacturing costs.
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Top Trends in Global Semiconductor IP Market
Market growth is supported by the increasing adoption of wireless technology-based products and increased investments by the top players in developing advanced wireless products. The report estimates that the U.S. spent around USD 600 billion on capital in wireless technology in 2020. This is due to 5G and other wireless devices. To meet consumer demands, the market's top players are also investing in wireless technology devices.
This increase in investment and development of wireless technology drives the demand for IP solutions. These solutions include silicon-based design IP (ASIC), interface IP, processor IP, and processor IP. They are the foundation of wireless and portable technology-based devices. These solutions are used in the manufacture of wireless technology devices like smartwatches and headphones.
Semiconductor IPs are used to enhance the functionality of IoT products. Palma Ceia SemiDesign, a semiconductor company that makes modem chips, has teamed up with Agile Analog to improve its ability to provide next-generation Wi-Fi and cellular IoT products. This is possible with the aid of power management IP and data converter. These enable IoT products to be deployed at their best while minimizing cost and time.
As data converter IPs are used to connect the real and digital worlds, companies in the semiconductor IP market are expanding their production capabilities. Data converter IPs have made it possible to achieve high-performance and low-power data conversion in both configurable analog-to-digital (ADC), and digital-to-analog (DAC). Companies in the semiconductor IP market are interested in wireless products that integrate power supply management functions.
Market Growth
ASIC's uniqueness has revolutionized electronics manufacturing. The die sizes are smaller, but the density of logic gates per chip is higher. ASICs are often preferred for high-level applications. ASIC chips are used as IP cores in satellites, ROM manufacturing, microcontrollers, and many other applications in medical and scientific fields. One of the most common ASIC applications is cryptocurrency mining.
Cryptocurrency mining requires high-speed hardware and more power. An ordinary CPU cannot offer such high computing power at high speeds. ASIC bitcoin miners use chips that are embedded in specially-designed motherboards and power supplies. This is a trending application that is driving market growth and will likely continue to be a dominant force in the future.
Regional Analysis
The market is segmented into North America, Western Europe, Eastern Europe, Asia Pacific (APAC), Latin America, the Middle East, and Africa. Asia-Pacific dominates the market with a market share of around 34.6% and is expected to grow at a CAGR of 6.97% during the forecast period. This is due to the increasing investment in electronics manufacturing in the region. The market is driven by increasing exports of electronic components and the presence of electronic device manufacturers.
North America is expected to grow at a moderate CAGR rate during the forecast period owing to the increasing accumulation of 5G and wireless technology developments. The United States, in North America in particular, is experiencing these changes fastest. It is expected to capture approximately 77% market share in North America by 2032.
Many market suppliers come from the United States, giving the region a competitive advantage. The US government plays a key role in the development of the region's semiconductor industry, directly contributing to the growth of the semiconductor IP market.
Competitive Landscape
The competitive landscape of the market has also been examined in this report. Some of the major players include Arm Holdings Ltd., Fujitsu Limited, Synopsys Inc., Cadence Design Systems, Inc., Imagination Technologies, CEVA Inc., eMemory Technology Inc., Lattice Semiconductor Corp., Open-Silicon Inc., Mentor Graphics Corporation, Achronix Semiconductor Corporation, Rambus Inc., Faraday Technology Corporation, Verisilicon Holdings Co., Multicore Technology, and Other Key Players
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Scope of the Report
| Report Attribute | Details |
| Market Value (2022) | USD 6 Billion |
| Market Size (2032) | USD 11 Billion |
| CAGR (from 2023 to 2032) | 6.7% |
| Asia Pacific Revenue Share | 34.6% |
| Historic Period | 2016 to 2022 |
| Base Year | 2022 |
| Forecast Year | 2023 to 2032 |
Market Drivers
Semiconductor IP blocks are compatible with the system–on–chip (SoCs), and application-specific integrated Circuits (ASICs). Monolithic 3D IC technology is an example. Due to scale-up and smaller die sizes, it is expected to lower wafer cost. Multiple layers can be combined as well as heterogeneous integrated.
Due to the increased demand for smart and power-efficient devices, the demand for SoCs has also been increasing. This will further drive semiconductor IP market growth. Consumer electronics can include televisions and cameras, camcorders and notebooks as well as audio/video equipment, smartphones, tablets, and computers. It also includes gaming consoles with accessories, home appliances, and wearable electronics. In developing countries such as India and China, the demand for consumer electronics is rising. This is due to increasing disposable incomes, the rising middle class, as well as progressive government reforms.
Chips such As System on Chip (SoCs), are used in consumer electronics such as TVs, MP3 players, and mobile phones. Combining SoCs can be done with semiconductor IP blocks. Instead of designing each circuit individually, companies can use semiconductor IP blocks to increase their revenue and save time. This will open up many opportunities for the key players in global semiconductor IP markets.
The design and development of semiconductor IPs are constantly being streamlined. There are many ways to bypass the limitations of traditional semiconductor technologies, including graphene transistors and self-organizing molecular devices, carbon nanotubes, and quantum computing. This allows for a rise in the demand for semiconductor IP.
Market Restraints
This market is dynamic and the functionality of chips can change quickly. These fluctuations could limit the market's growth. This problem can be avoided if the semiconductor IP market focuses more on the regular upgrading of the equipment.
When integrating acquired semiconductor IP blocks of third-party vendors onto SoCs, design engineers face a difficult task. The risk of IP integration increases with increasing complexity in IP design. This increases the cost of semiconductor IP as well as the time it takes to produce.
Market Opportunities
The automotive industry as well as telecommunications and data center companies rely on complex and sophisticated electronic systems. These companies are in increasing demand for semiconductor IP. Therefore, the development of chip manufacturing is necessary. Small gadgets with high performance and functional benefits, which are also used in the automotive industry, are becoming more popular. This will be a good opportunity for participants in the semiconductor IP market.
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Report Segmentation of the Semiconductor IP Market
Design IP Insight
The market for semiconductor IP is divided into interface IP, processor IP, and memory IP. The market share of processor IP was the largest in 2022. It is predicted to grow at a CAGR of 7.23% during the forecast period. This segment is dominated by its use in the manufacture of consumer goods like smartphones, laptops, and CPUs. These smart and IoT devices are a major driver of the market.
The forecast period will also witness the highest CAGR for the memory IP segment. This is due to the fact that consumers accept and use storage devices such as flash drives, memory devices, and data centers.
IP Core Insight
Based on the core analysis, the global semiconductor IP market is segmented into softcore and hardcore.
The hardcore segment holds the dominant market share due to increasing demand for processors for electronic devices such as smartphones, PCs, and laptops. Hardcore is either analog or digital IP cores whose functionality is largely inaccessible to chip designers. Hard cores make chip timing performance more predictable and provide room for specific technologies.
The softcore segment is also expected to see significant growth and the highest he CAGR during the forecast period. The main factors behind the growth of this segment are increasing investment and the development of advanced technologies such as AI, and 5G.
IP Source Insight
IP sources divide the market into royalties and licenses.
The royalty segment captured the highest market share in 2022 due to high volumes of semiconductor IP acquisitions from leading electronic device makers.
The licensing segment is expected to register the highest CAGR during the forecast period. This is due to the increasing adoption by wireless device manufacturers of licensed semiconductor IP products and solutions.
Vertical Insight
Through vertical analysis, the global semiconductor IP market is segmented into consumer electronics, communications & data centers, automotive, industrial, aerospace & defense, and other verticals.
Among these segments, the consumer electronics industry holds the largest market share and is expected to grow at a CAGR of 7.2% during the forecast period. Increasing demand for wireless devices is the main driver of the growth of this segment.
The automotive segment follows consumer electronics in terms of market share. It is also projected to have the highest CAGR of 7.4% over the forecast period. The reason for this increase is the increasing acceptance of electric vehicles by consumers.
The rapidly growing need for semiconductor IP in radar, communication systems, and electronic warfare is driving increased spending on equipment and semiconductor IP in the defense sector. Although the defense sector does not have as much semiconductor IP as the consumer electronics industry, defense equipment has the highest prices. This will further drive market growth.
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Market Segmentation
By Design IP
- Processor IP
- Interface IP
- Memory IP
- Other Design IPs
By IP Core
- Soft Core
- Hard Core
By IP Source
- Royalty
- Licensing
By Vertical
- Consumer Electronics
- Telecom & Datacenters
- Automotive
- Industrial
- Aerospace & Defense
- Other Verticals
By Geography
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Key Market Players:
- Arm Holdings Ltd.
- Fujitsu Limited
- Synopsys Inc.
- Cadence Design Systems, Inc.
- Imagination Technologies
- CEVA Inc.
- eMemory Technology Inc.
- Lattice Semiconductor Corp.
- Open-Silicon Inc.
- Mentor Graphics Corporation
- Achronix Semiconductor Corporation
- Rambus Inc.
- Faraday Technology Corporation
- Verisilicon Holdings Co.
- Multicore Technology
- Other Key Players
Recent Development of the Sports Medicine Market
- In June 2021, Faraday Technology Corporation has announced the LPDDR4X/LPDDR4X combination IP at up to 42Gbps. This feature is available in Samsung's LPC 14nm processes. To support in-line and corner-edge placement, there are two hardened options.
- In May 2021, Cadence Design Systems, Inc. has announced low-power IP for the PCI Express5.0 specification. This IP is targeted at hyper-scale computing and networking, storage, as well as applications built on TSMC N5 technology. The PCIe 5.0 technology also includes a companion controller and a PHY. This IP is targeted at SoC designs that need very high bandwidth.
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