The Global Semiconductor IP Market Size Was Valued At USD 4.58 Billion In 2021. The Market Is Projected To Grow From USD 4.95 Billion In 2022 To USD 8.53 Billion By 2030, Exhibiting A CAGR Of 8.1% During The Forecast Period.

Semiconductor IP Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. Demand for semiconductor IP in all regions is higher than expected compared to levels before the pandemic. According to our research, the global market grew 6.9% in 2020 compared to 2019.

The report covers a wide range of design IP solutions and products from companies like Arm Limited, Synopsys Inc., Lattice Semiconductor Corporation, Cadence Design Systems, Inc., Imagination Technologies Ltd., and others. These players offer Interface IP, Denali Memory Interface, and Storage IP that support a wide range of industry standards for making controllers and smart devices. Also, Renesas IP solutions firm offers a wide range of IP solutions for different microcontroller units (MCUs) and system-on-chip (SoC) products. These IP solutions include IP for central processing units, IP for processors, IP for memory, IP for interfaces, IP for timers, IP for memory, and IP for analogue. Renesas gives its customers access to high-quality, high-performance IP solutions that are based on silicon.

The market is growing because the need for automation is growing and more IP Core products are being used in the consumer electronics industry. This is happening quickly, which helps the market grow. Also, the industry is growing quickly because more people are getting online and more people are buying smart connected devices, which helps the market grow.

Also, many of the top players in the market are using patented IP solutions in the production of consumer electronics.

Market Dynamics:

Latest Trends:

The growth of the market is driven by the increasing use of wireless technologies.

The market is growing because more and more devices are using wireless technology and the top players are investing more money to make more advanced wireless products. The International Telecommunication Union (ITU) says that by 2020, the U.S. will have spent around USD 600 billion on wireless technologies. This is because 5G and wireless devices are becoming more popular. Also, the biggest market players are putting money into developing wireless technology devices all over the world to meet consumer needs. For example, in March 2021, Apple, Inc. spent about USD 1.2 billion in Munich, Germany, to develop wireless technology. The company wanted to make 5G wireless technologies for the future by making hardware and software products that worked well together.

With so much more money going into developing and investing in wireless technology, the demand for IP solutions is on the rise. These solutions, like silicon-based design (ASIC) IP, interface IP, and processor IP, are the building blocks of portable and wireless devices. They are used to make things like smartwatches, headphones, and smartphones that use wireless technology.

Driving Factors:

Market growth is driven by the rising demand for high-tech consumer electronics.

The global semiconductor IP market is growing because more people are buying and making high-tech consumer electronics all over the world. The Center for National Interest Organization says that the global market for consumer electronics will be worth about USD 683 billion in 2020 and is expected to reach USD 881.7 billion by 2025. About 4.4 billion units of consumer electronics will have been shipped around the world in 2021, which is 2.7% more than in 2020.

Many different kinds of electronic devices, like smartphones, headphones, wearables, and some new home products, are made with these IP solutions. Wearable devices are made with the memory and interface IP that brings technology into our everyday lives to make things work better and give us feedback in real time. IP solutions help design System on Chips (SoCs) that fit into these devices. This is a big part of why the world is becoming more and more connected. The growth of the global market is likely to be driven by the rise in sales of wearables and other smart connected devices around the world, as well as the rise in demand for these smart devices from consumers around the world.

Restraining Factors:

Market growth is slowed by constant changes in technology and rising worries about IP theft in business.

Technology is always changing, especially in the field of electronics. The semiconductor industry is facing a physical limit on how much it can make with the materials it already has, and Moore's law is posing more and more threats. Moore's law is used to look at historical trends and make predictions about them. It helps to connect what people know and what the market wants.

IP theft from different vendors is a problem for the electronics industry. For example, in July 2022, Tower Semiconductor (TS), a company that makes electronic parts, was accused of stealing semiconductor IP. The IP theft case was filed at the U.S. Central District Central Court of California by IQE Ltd., which makes wafers. The IQE, which is based in Cardiff, also says that it has "significant evidence" to back up its claims.

The growth of the market is slowed down by the rise in IP thefts and the constant changes in technology in the consumer electronics industry.

Segmentation Analysis:

By Design IP Analysis:

The Global Semiconductor IP Market Analysis is broken up into Interface IP, Memory IP, Processor IP, and Others based on Design IP. Processor IP had the biggest market share and is expected to grow at the fastest rate during the forecast period, at a CAGR of 6.88%. Smart devices (like phones and tablets), cars, computers, and computer parts are just some of the ways this market can be used. By Design IP Segment, the processor chip segment is expected to have the biggest share of the market for semiconductor IP. Processor intellectual property (IP) can be used in many ways in both high-cost consumer electronics and high-cost automotive. These are used in advanced driver assistance systems (ADAS) and infotainment systems in the auto industry. One of the most important things for the growth of the processor IPs market is how many processors are used in consumer electronics.

By IP Source Analysis:

The market is split into Licensing and Royalty based on IP Source. In 2020, royalties made up the biggest share of the market, and they are expected to grow at the fastest rate (a CAGR of 6.60%) over the next five years. During the forecast period, this segment will grow in a way that will be good for business. This is because technology is changing so that manufacturers can decide how many products to make and pay a royalty for only those products. In the semiconductor industry, the royalty sourcing model is becoming more and more common because designers want to keep their upfront costs as low as possible. The company that makes chips will have to pay a royalty for every single chip it makes. Royalty is expected to be the biggest part of the market for a long time. A rise in demand for semiconductor intellectual property (IP) is expected to help the market grow quickly in the coming years. This is because more people want modern system on chip (SoC) designs. The semiconductor business has a lot to gain from the global Semiconductor IP Market.

By End-User Analysis:

The Global Semiconductor IP Market is divided into Consumer Electronics, Automotive, Industrial, Telecom, Aerospace & Defense, and Other, based on End-User. Consumer Electronics had the biggest market share and is expected to grow at the fastest rate over the next few years, at a CAGR of 6.88%. In 2020, the automotive market was the second largest. It is expected to grow at the fastest rate, with a CAGR of 6.93%. The growth of the Semiconductor IP Market is expected to be driven by the development of multicore technology for the consumer electronics industry, the growing demand for modern System-on-Chip (SoC) designs, and the reduction of the constantly rising costs and spending on chip design. The Semiconductor IP Market is also expected to grow because more people are using connected devices in their daily lives, the healthcare industry is buying more electronics because of the COVID-19 pandemic, and more people are using teleconference tools because of the COVID-19 pandemic.

Regional Insights:

During the forecast period, Asia-Pacific is expected to have the largest share of the global market. This is because major players are putting more money into making electronics in this region. For example, in May 2022, Samsung Group planned to spend about USD 489 billion over the next five years in the Asia-Pacific area to develop semiconductors and biologics.

The growth of the market is also helped by the fact that there are companies that make electronic devices and that the Asia-Pacific region is exporting more and more electronic parts. The Invest Asean Organization says that around half of all exports from most Asia-Pacific countries, such as China, India, and Japan, came from the consumer electronics industry.

During the time frame of the forecast, North America is expected to grow at a moderate CAGR. This is because wireless technology is becoming more popular and 5G technology is being developed. Semiconductor Equipment and Materials International (SEMI) says that in 2020, about 38.9% of all money spent in the electronics industry around the world came from North America.

Europe is expected to grow at a moderate CAGR because more and more people want devices that can connect to the internet. According to the Broadband Forum, the market value of connected devices for homes in Europe is expected to reach about USD 157 billion by 2023. This growth is mostly due to the COVID-19 pandemic, which is a result of how quickly digital devices are being used.

South American countries like Argentina, Brazil, and others are growing at a slower rate because the semiconductor industry isn't investing as much in research and development. The growth of smart devices like laptops, smartphones, and personal computers is likely to drive the IP market in South America.

The Middle East and Africa is growing at a moderate CAGR because more money is being spent on Internet of Things (IoT) and more countries in this area are focusing on digital transformation. According to the International Data Corporation (IDC), the Middle East and African countries spent USD 8.47 billion on Internet of Things (IoT) technologies in 2019 and are expected to spend USD 17.63 billion by 2023. With such a big increase in IoT spending, there could be a chance for semiconductor IP products and solutions to grow in the region.

Scope Analysis

Recent Development:

• In May 2022, Faraday Technology Corporation launched Soteria's advanced secure IP subsystem. This solution provides a custom SoC design that enables hardware security for a wide range of IoT applications. Faraday Technology Corporation provides several security solutions, including IP Security System software solutions for secure SoC development.
• In June 2021, Sondrel launched Quad Channel, an IP platform with ISO-26262 applications. This IP reference platform is designed to simplify and design semiconductor components.
• In November 2021, Elmos Semiconductor SE teamed up with Arm Holdings Ltd to manufacture and design an energy efficient IP processor. Arm Holdings Ltd has delivered over 200 billion chips for advanced computing. Elmos Semiconductor SE has received a broad IP product license from Arm Holding Ltd for its automotive microcontroller unit products.
• In October 2021, Synopsys Inc. launched an IP solution called HBM3 for various semiconductor components such as controllers, physical layer devices and verification IP. HBM3 IP technology helps designers meet the low-power memory and high-bandwidth requirements for SoCs.
• In August 2021, Rambus Incorporated acquired the semiconductor intellectual property company's PLDA SAS licensor and acquired the developed and licensed chip maker. The acquisition expands the company's digital controller offering and secures the building blocks for the CXL memory interconnect initiative.

Market Segmentation

By Design IP:

• Interface IP
• Memory IP
• Processor IP
• Others

By IP Source:

• Licensing
• Royalty
• Others

By End-user:

• Consumer Electronics
• Automotive
• Industrial
• Telecom
• Aerospace & Defense
• Others

By Companies:

• Arm Holdings Ltd (U.K.)
• Synopsys Inc. (U.S.)
• Cadence Design Systems, Inc. (U.S.)
• Imagination Technologies Ltd (U.K.)
• Ceva Inc. (U.S.)
• Lattice Semiconductor Corporation (U.S.)
• Rambus Inc. (U.S.)
• eMemory Technology, Inc (Taiwan)
• Silicon Storage Technology, Inc (U.S.)
• VeriSilicon Microelectronics Co., Ltd. (China)
• Others