Global Semiconductor Intellectual Property (IP) Market

Semiconductor Intellectual Property Market size was valued at USD 6.47 billion in 2023 and the total Semiconductor Intellectual Property revenue is expected to grow at a CAGR of 8.3% from 2024 to 2030, reaching nearly USD 11.27Billion by 2030.

Semiconductor Intellectual Property Market Overview

Semiconductor IP refers to a piece of design that is a reusable unit of logic or functionality or a layout of a design that is developed with the idea of licensing it to many vendors for using it as a building block in different chip designs. Semiconductor IP helps to provide integrated circuit layout design that is the intellectual property of its creator or party.

1.According to an estimate, about 5 billion people around the world have access to the internet every day, and about 65% use laptops. By the end of 2025, global laptop shipments are projected to reach 270 million units.

2. According to MMR analysis, the average American has access to 10 or more connected devices in their home that are semiconductor-enabled.

The semiconductor intellectual property market is poised for significant growth between 2024 and 2030 driven by a mix of factors that offer promising opportunities. The report offers a comprehensive analysis of the sector, providing in-depth insights into market divisions based on design, IP core, revenue source, application, and geographical region.

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The demand & integration of power electronics in consumer electronics and connected devices such as TVs, smartphones, wearable, connected vehicles, and others are driving the growth of semiconductor IP across the globe. Additionally, efficient, faster, and reliable processors, memory, and interface products further intensify the semiconductor intellectual property market demand in the future.
The advancements in multicore technology for consumer electronics and increasing demand for modern system-on-chip (soc) designs contribute to the market's upward trajectory. As consumers prioritize products with efficient and reliable processors, the market is expected to thrive. This scenario provides a fertile ground for established companies and new entrants to capitalize on emerging trends and favorable market dynamics.

Through meticulous research, the report reveals crucial information such as market size, share, growth trajectory, competitive framework, and key factors that drive or hinder market growth. This complete perspective of the Global Semiconductor intellectual property market assists stakeholders in identifying growth opportunities within the industry and making well-informed decisions.

1. In March 2023, India and the U.S. signed a memorandum of understanding (MoU) establishing the semiconductor supply chain and innovation partnership under the framework of India-U.S. Commercial Dialog.

Semiconductor Intellectual Property Market Dynamics

Healthcare Device Innovation Fuels Global Semiconductor IP Growth

The notable shift from large expensive traditional procedures to small, disposable, and minimally invasive therapeutic tools drives the semiconductor intellectual property market. These cutting-edge devices utilize microelectronic and micromechanical technologies which require precise and efficient manufacturing processes enabled by semiconductor IPs. The transformation in medical device technology regarding enhanced performance drives the demand for the semiconductor intellectual property market. The continuous evolution of diagnostic equipment like MRI, CT scans, and X-ray machines which depend on the semiconductor components to ensure precise imaging and accurate diagnosis necessitates the demand for high-quality semiconductor IPs. Additionally, the development of implantable medical devices including pacemakers, defibrillators, neurotransmitters, and drug delivery systems, etc., requires highly reliable electronic components manufactured using advanced semiconductor technologies contributing to the rising demand for semiconductor Intellectual property market growth. The demand for semiconductor IP is on the rise as minimally invasive surgical procedures and wearable medical devices like endoscopes, surgical robots, etc rely on advanced electronic components. INFORMED, a European initiative that increases innovation in microfabricated medical devices by providing an integrated pilot production platform further fuels the demand for semiconductor IP components. For instance, Irish and Dutch partners of INFORMED have demonstrated innovations like smart dressings with integrated sensors, showcasing the potential of microfabricated medical devices in improving patient care. The advancements in medical device technology fueling innovation in diagnostic equipment, imaging devices, and implantable medical devices drive the demand for the semiconductor intellectual property market. As medical devices continue to evolve, the demand for semiconductor IP is positioned to remain tough, positioning the global semiconductor intellectual property market for significant growth.

1. According to MMR analysis, in 2022, about 200000 pacemakers have been implanted in the United States annually

Constant Advances in Technology resulting in an Increased Expenditure

As industries such as healthcare, automotive, and telecommunication grow, the need for semiconductor IPs rises but the cost of research and development, production, and implementation of advanced technologies puts pressure on the market players. The complexity of new IPs including advanced design techniques and cutting-edge manufacturing processes, demands sizeable financial investment from the companies. Though countries like Germany & France have strong industrial bases, the expenses of keeping up with rapidly advancing IP developments affect their market positioning. The innovation trends indicate the rise in semiconductor IP expenses owing to the need for miniaturization and high-performance semiconductor devices. For instance, the global semiconductor market is expected to grow at a CAGR of 6.3% from 2021 to 2026, but the increasing cost of R&D and production limits the semiconductor intellectual property market's growth potential. While constant advances in technology drive innovation in the global semiconductor intellectual property market, the resulting increase in expenditure presents a notable restraint.

Semiconductor Intellectual Property Market Segment Analysis

Based on Design, the Processor IP segment held the largest market share in the global Semiconductor Intellectual Property Market. According to MMR analysis, the segment is further expected to grow at a CAGR of 8.3% during the forecast period and stands out as the dominant segment within the Global Semiconductor Intellectual Property Market. Processor IPs are widely used in manufacturing consumer electronics like smartphones, tablets, CPUs, etc. and the constant demand of these electronics necessitates the need for advanced processor design. The rising sales of these smart IoT devices benefit the processor IPs segment growth in the global semiconductor intellectual property market. Additionally, AI & 5G technology requires processors that handle complex algorithms and vast amounts of data. An increase in speed, bandwidth, and data output for automotive & mobile applications has increased the complexity of infrastructure and application processor technologies and requires new processor IPs driving their demand in the global semiconductor intellectual property market.

1. According to MMR, the consumer's Internet of Things device sales are expected to increase from USD 45 billion in 2021 to USD 154 billion by 2028.

Processor IPs offer pre-designed and verified processor cores, enabling the designers to integrate processing functionality into their system on chips at lower costs, a crucial aspect for the key players to stay competitive in the fast-growing electronics market. The availability of a wide range of processors catering to different requirements provides a greater market further fueling the demand for processor IPs segment on the global semiconductor intellectual property market. As the electronics industry evolves, the demand for processor IP solutions is expected to grow with pace.

Semiconductor Intellectual Property Market Regional Insights

Asia Pacific dominated the Global Semiconductor Intellectual Property Market with the highest share in 2023 and is expected to grow at a CAGR of 8.3% during the forecast period and maintain its dominance during the forecast period. The dominance of the region is driven by considerable investments from the key players in electronic device manufacturing.

1. Samsung Electronics has planned to invest about USD 489 Billion in semiconductors and biologics in the next five years in the Asia Pacific region.

The presence of a large number of semiconductor manufacturing companies in the region, increasing demand for semiconductor IP solutions in industries such as consumer electronics and automotive, and the rising demand for semiconductor solutions in emerging technologies like IoT and wearable devices drives the demand for Semiconductor Intellectual Property Market in the region. The surge in digital products like laptops, tablets, and smartphones post-pandemic has been responsible for the growth of the semiconductor intellectual property market in the region as semiconductor IP chips are used in the core circuits. Countries like China, India, and Japan play a major role in consumer electronics device exports accounting for about 50% of the total exports in the region.

1. According to MMR analysis, the sales penetration of 5G-enabled smartphones in India reached 51% in the beginning of 2022, further accelerating the requirement of semiconductor IP chips.

Additionally, the automotive industry in India which contributes about 7.1% of the GDP is expected to become the third largest globally by 2030. The dependence of the automotive segment on semiconductor chips necessitates the development of new production design solutions in the region further fuelling the demand for Semiconductor Intellectual Property Market.

1. According to MMR analysis, Asia Pacific is the largest market for semiconductors globally with over 60% of global sales of which China accounted for about 30%.

Semiconductor Intellectual Property Market Competitive Landscapes

The Global Semiconductor Intellectual Property Market is competitive among companies owing to the presence of numerous players across the industry. The major players in the market include Arm Limited (UK), Synopsys, Inc. (US), Cadence Design Systems, Inc. (US), Imagination Technologies(UK), CEVA, Inc. (US), Lattice Semiconductor (US), Rambus (US), eMemory Technology Inc. (Taiwan), VeriSilicon (China), Achronix Semiconductor Corporation (US), among others. These companies are pushing boundaries, investing in research and development to expand their product lines, and undertaking strategic activities including new product launches, contractual agreements, mergers and acquisitions, and collaborations with other organizations. The Semiconductor Intellectual Property Market is growing significantly in the coming years owing to the rising trend of health wearables, increased use of laptops & tablets, and rising government support.

1. In July 2023, Faraday Technology Corporation introduced a complete SerDes (serializer/deserializer) solution that includes SerDes IP design on the UMC 28 nm process node. Additionally, they offer an IP advanced (IPA) service, encompassing IP subsystem integration, PHY hardcore implementation, and thorough signal integrity/power integrity (SI/PI) analysis on the system, incorporating package and PCB design.

2. In April 2023, Alphawave Semi launched its connectivity silicon platform on TSMC‐™s most advanced 3nm process with its ZeusCORE Extra-Long-Reach (XLR) 1-112Gbps NRZ/PAM4 serialiser- deserialiser ("SerDes") IP.

3. In September 2023, Synopsys, Inc. collaborated with Intel and achieved end-to-end 64 GT/s interoperability between Synopsys‐™ IP for PCI Express (PCIe) 6.0 and Intel‐™s PCIe 6.0-enabled test chip.

4. In September 2023, Arteris, Inc. and Alchip Technologies, Ltd., a top-tier ASIC leader, announced a collaboration to enhance the delivery of high-performance SoCs with unmatched bandwidth and ease of physical design. This collaboration delivers highly optimized SoCs across various market segments.

5. In July 2023, Cadence Design Systems, Inc. and Rambus Inc. announced that they had entered into a definitive agreement for Cadence to acquire the Rambus SerDes and memory interface PHY IP business. Rambus will retain its digital IP business, including memory and interface controllers and security IP. The expected technology asset purchase also brings Cadence experienced PHY engineering teams in the United States, India, and Canada, further expanding Cadence's talent base.

Global Semiconductor IP Market Scope: Inquire before buying

Global Semiconductor IP Market, by Region

North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)

Semiconductor Intellectual Property Market Key Players

1.Synopsys, Inc.(US)
2.Cadence Design Systems, Inc. (US)
3.CEVA, Inc. (US)
4.Lattice Semiconductor (US)
5.Rambus (US)
6.Achronix Semiconductor Corporation (US)
7.Analog Bits (US)
8.ARTERIS, INC (US)
9.Eureka Technology, Inc. (US)
10.SiFive, Inc. (US)
11.Silvaco, Inc. (US)
12.Qualcomm (US)
13.Avery Design Systems (US)
14.Altera (Intel Corporation) (US)
15.CAST Inc (US)
2. Europe
1.Arm Limited (UK)
2.Imagination Technologies (UK)
3.Frontgrade Gaisler (Sweden)
4.Dolphin Design (France)
5.Dream Chip Technologies GmbH (Germany)
6.ALPHA WAVE SEMI (UK)
3. Asia Pacific
1.eMemory Technology Inc. (Taiwan)
2.VeriSilicon (China)
3.Faraday Technology Corporation (Taiwan)
4.M31 Technology Corporation (Taiwan)
5.Renesas Electronics Corporation (Japan)
6.Fujitsu Ltd (Japan)
7.Takumi (Japan)
8.Denso Corporation (Japan)

FAQs:
1. What are the growth drivers for the Semiconductor Intellectual Property Market?
Ans. Growing Adoption of Connected Devices for Daily Use and Increasing Demand for Electronics in Healthcare and Telecommunications Industries fuels the Semiconductor Intellectual Property Market growth.

2. What are the trends in Semiconductor Intellectual Property Market growth?
Ans. The rising popularity of Risc-V Processor Technology and increasing AI, IoT, and other technologies are the trends in for Semiconductor Intellectual Property Market.

3. Why do consumer electronics have the largest market share in the Semiconductor Intellectual Property Market?
Ans. Consumer electronics, such as smartphones, tablets, and smartwatches, drive the demand for high-performance semiconductors due to their evolving functionalities and increasing popularity among consumers, leading to a significant market share in the industry.

4. What is the projected market size & and growth rate of the Semiconductor Intellectual Property Market?
Ans. Semiconductor Intellectual Property Market size was valued at USD 6.47billion in 2023 and the total Semiconductor Intellectual Property (IP) revenue is expected to grow at a CAGR of 8.3% from 2024 to 2030, reaching nearly USD 11.27Billion by 2030.

5. What segments are covered in the Semiconductor Intellectual Property Market report?
Ans. The segments covered in the Semiconductor Intellectual Property Market report are design, IP core, revenue source, industry, and region.