The driving factors for the growth of this market include increasing demand for advanced SoCs in the consumer sector, increased funding from governments and investors, emerging IoT ecosystem, recovering automotive sector, and growing popularity of miniaturized devices.
The global semiconductor intellectual property market has numerous small and large players, currently. In order to tap into the rising demand for less expensive and highly reliable end-products with way more sophisticated features, many new players are foraying into the market.
Meanwhile, well-entrenched players are scouting for suitable opportunities to acquire other IP companies to bolster their positions in the market.
An advantage of semiconductor intellectual property is that it enables manufacturers to design chips faster making use of existing blocks.
Semiconductor intellectual property cores improve quality of devices and up efficiency of final product. Rising demand for reduced design and manufacturing costs, across the world have resulted in the growth of the semiconductor intellectual property market.
Serving to have a negative impact of the global semiconductor intellectual property market, on the flipside, is the detection of infringement of patented technologies. As a result, most companies in the market have changed their long-term licensing contracts to medium-term and short-term ones.
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As per Transparency Market Research, the global market for semiconductor intellectual property will likely register a CAGR of 10.7% during the period between 2017 and 2025 to attain a value of US$9.1 bn by the end of 2025.
Use in Netlist and Synthesizable Cores Makes Soft IP Leading Segment
By type, the two key segments of the global market for semiconductor intellectual property are soft IP and hard IP. In 2016, the segment of soft IP accounted for a greater market share of 51.7%.
The segment enjoys greater market share on account of the rising use of soft IP core such as netlist and synthesizable cores in a range of applications to improve the hardware quality.
The soft IP core segment is predicted to rise at a 13.1% CAGR from 2017 to 2025, owing to its ability to carry out testing in the virtual environment and optimize hardware components.
Based on application, the global market for semiconductor intellectual property can be classified into automotive, healthcare, telecommunications, consumer electronics,. Of these, the automotive segment is expected to clock maximum CAGR of 11.2% during the forecast period.
This is linked to the rising demand of hard IP cores and soft IP cores in the automotive segment. In terms of market share, on the other hand, the consumer electronics segment led the way with a share of 10.9% in 2016.
Asia Pacific Propelled to Fore by Consumer Electronics Industry
From a geographical perspective, Asia Pacific dominated the market with a share of 32.4% in 2016. The market in the region has been boosted primarily by the booming consumer electronics industry which has upped demand for hard IP core such as analog IP,.
Nations of India, China, and Japan, which are manufacturing hubs for consumer electronic products such as television, home appliances,. are said to be powering the market in Asia Pacific.
Europe is another key region in the global semiconductor intellectual property market, which is anticipated to clock a 10.9% CAGR during the period between 2017 and 2025. The market in Europe is being driven mainly by the countries of France, Germany, and the U.K.
Two factors are responsible for driving impressive growth in the market in the region are progress in the semiconductor market and presence of prominent vendors focusing on development of semiconductor IP cores.
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Some of the main players in the global semiconductor intellectual property market are Altera (acquired by Intel Corporation), Cadence Design Systems, Inc., Ceva Inc., Cast In., eSilicon Corporation, Kilopass Technology Inc., Imagination Technologies Limited, Mentor, Open-Silicon, Inc., Silabtech Private Limited, Synopsys Inc., and Videantis GmbH.
Semiconductor Intellectual Property Market, By Architecture Design
- Digital IP
- Physical IP
- Processor IP
Semiconductor Intellectual Property Market, By Type
- Hard IP
- Soft IP
Semiconductor Intellectual Property Market, By Industry
- Consumer Electronics
In addition, the report provides cross-sectional analysis of the semiconductor intellectual property market with respect to the following geographical segments:
- North America
- The U.S.
- Rest of North America
- The U.K.
- Rest of Europe
- Asia Pacific (APAC)
- Rest of APAC
- Middle East and Africa (MEA)
- GCC Countries
- South Africa
- Rest of MEA
- South America
- Rest of South America
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