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U.S. EDA Software Market to Nearly Double by 2032, Fueled by AI, IoT, and Cloud Innovation

Author : Aryan Kumar | Published On : 15 Oct 2025

According to the latest market research study published by P&S Intelligence, the U.S. electronic design automation software market is set to experience remarkable expansion, growing from USD 4.8 billion in 2024 to an anticipated USD 9.9 billion by 2032, reflecting a robust CAGR of 9.8% from 2025 to 2032. This surge is fueled by rapid advancements in semiconductor technology, increased adoption of AI and IoT, and rising complexity in electronic circuit designs.

EDA tools are becoming indispensable across industries—from automotive and aerospace to healthcare and consumer electronics—enabling companies to design, simulate, and verify increasingly sophisticated analog, digital, and mixed-signal applications. Innovations in computer-aided engineering (CAE), IC physical design and verification, and semiconductor IP are enhancing design efficiency, scalability, and production output.

Key Market Trends

Shift Toward Cloud-Based Solutions:

Cloud-based EDA tools are revolutionizing design workflows by offering scalable, cost-efficient, and flexible solutions. Teams can collaborate seamlessly across geographies, access advanced features instantly, and reduce product time-to-market—all while benefiting from robust security frameworks and ongoing software updates.

Growing Demand for Advanced Semiconductors:

The surge in IoT-enabled devices, high-performance computing, and miniaturized electronics is driving demand for sophisticated EDA tools. AI and machine learning are enabling designers to optimize chip layouts, detect errors early, and accelerate innovation. Verification tools, logic synthesis, and power optimization solutions are critical for ensuring superior performance and reliability in consumer electronics, automotive, and telecommunications products.

Get the sample copy of this report: https://www.psmarketresearch.com/market-analysis/us-electronic-design-automation-software-market/report-sample

Market Segmentation Insights

  • Component: CAE dominates with a 55% revenue share in 2024, essential for testing complex systems before production.
  • Deployment: On-premises solutions lead with 60% revenue share, offering data security and system customization, while cloud deployment emerges as the fastest-growing option.
  • Application: Digital design accounts for around 55% of the market, driven by IC and SoC demand across industries, while mixed-signal applications are the fastest-growing segment.
  • End Use: Consumer electronics leads with 40% share, reflecting the rising need for complex, high-performance devices. Automotive is the fastest-growing segment.
  • Regional: The Western U.S., led by Silicon Valley and Seattle, dominates with 45% market share and a 10% CAGR, driven by semiconductor, AI, 5G, and HPC advancements.

Industry Leaders Driving Innovation

The U.S. EDA market is highly competitive, with Synopsys, Cadence, Siemens EDA, and Mentor Graphics holding significant market shares. Other notable players include Ansys, Autodesk, Keysight Technologies, Altair, and The MathWorks, among others. Recent strategic acquisitions, such as Renesas Electronics acquiring Altium Limited and Ansys Inc.’s agreement to acquire Diakopto, highlight ongoing consolidation and innovation in the market.

With the market poised for unprecedented growth, EDA software is set to play a critical role in shaping the next generation of semiconductors, IoT devices, and AI-enabled electronics—enabling faster, smarter, and more efficient designs than ever before.