Semiconductor IP Market 2019 Global Industry Size, Demand, Growth Analysis, Share, Revenue, Manufacturers and Forecast 2025

Press Release

According to a recent report published by Allied Market Research, titled, Global Semiconductor IP Market by Design IP, IP Source, and Application: Global Opportunity Analysis and Industry Forecast, 2017-2024, the global semiconductor IP market was valued at $3,434 million in 2017, and is projected to reach $5,701 million by 2024, growing at a CAGR of 7.30% from 2018 to 2024.

At present, Asia-Pacific dominates the market, followed by North America. In 2017, China dominated the Asia-Pacific market and Germany led the overall market in Europe. However, in North America, the U.S. currently dominates the market.

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Semiconductor IP is a chip layout design, unit of logic, which is reusable. In addition, it is also the intellectual property of only one party. Such IP core can be either used by or owned by one party. These IP cores are used as the building blocks within FPGA logic designs or ASIC chip designs.

Rise in demand for the modern system on chip (SoC) design and reduction in production and design cost majorly drive the market. Despite such advantages, fluctuations in the development or functionality of the chips impedes the growth of this market. In the near future, rise in demand for the consumer electronics, and new technological developments is expected to create lucrative opportunities for the key players operating in the semiconductor IP market.

The global semiconductor IP market is segmented based on design IP, IP source, application, and region. Based on design IP, the market is categorized into processor IP, interface IP, memory IP, and other IP. Processor IP is then further subdivided into microprocessor unit, microcontroller unit, and digital signal processor. Other IP is bifurcated into analog-to-digital (ADC) converters and digital-to-analog (DAC) converters. Depending on IP source, it is divided into licensing, royalty, and services. By application, it is classified into consumer electronics, telecom, automotive, aerospace, healthcare, agriculture, and others (government, hospitality, and more). Furthermore, the market is analyzed across North America, Europe, Asia‐Pacific, and LAMEA.

Key players profiled in the report include ARM, Synopsys, Imagination Technologies, Cadence, Ceva, Verisillicon, eMemory Technology, Rambus, Lattice (Silicon Image), and Sonics.

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Top Impacting Factors

Rise in demand of the modern system on chip (SoC) design and reduction in manufacturing and design cost impact the growth of the market. In addition, fluctuations in the development or functionality of the chips affect the growth of the global semiconductor IP market. These factors are anticipated to either drive or hamper the market growth.

Increase in Demand of the Modern System on Chip (SoC) Design

Semiconductor IP blocks are combined with the system on-chip (SoCs) and application specific integrated circuit (ASICs) products. Such products are then used for the production of chips, which are then installed in MP3 players, automobiles, televisions, mobile phones, and more. In addition, there is rise in the demand for smart and power efficient devices, which propels the demand for the SoCs. This in turn is anticipated to fuel the growth of the global semiconductor IP market.

Reduction in Manufacturing and Design Cost

There is continuous reduction in the design and the development of the semiconductor IP. For instance, use of monolithic 3D IC technology is projected to reduce the cost of the wafer due to reduced die size, scaling up of the processes, heterogeneous integration, and multiple layers processed together. This cost reduction supplements the growth of the semiconductor IP market.

Fluctuations in the Development or Functionality of the Chips

There is possibility that in near future, the market could lead to dead end due to the continuous changes in the functionality or development of the chips. Such fluctuations in the chips are expected to hamper the stated market growth. To avoid such circumstances, the semiconductor IP market should focus on the upgradation of the equipment on a periodic basis.

Rise in Demand for the Consumer Electronics

Consumer electronics includes various types of products such as televisions, cameras & camcorders, notebooks, audio/video devices, smartphones & tablets, desktops, laptops, gaming consoles and accessories, home appliances, wearable electronics, and others. There is a rise in demand for the consumer electronics especially in the developing countries such as India, China, and more. Factors like rising disposable incomes, emerging middle class, and progressive government reforms are propelling the demand for consumer electronics even further. Consumer electronics such as televisions, mobile phones, MP3 players, and more includes chips such as System on Chip (SoCs). SoC’s are combined with the semiconductor IP blocks. The semiconductor IP helps companies to increase their revenue and not waste time on designing the whole circuit every time. This in turn is anticipated to create numerous opportunities for the key players operating in the global semiconductor IP market.

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