Global Semiconductor Intellectual Property (IP) Market By Design IP (Processor IP, Interface IP, Memory IP, and Other Design IPs), By IP Core (Soft Core and Hard Core), By IP Source, By Vertical, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: March 2024
- Report ID: 73380
- Number of Pages: 298
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Report Overview
The global Semiconductor Intellectual Property (IP) Market was valued at USD 6.4 Billion in 2023. It is projected to grow 6.7% over the 2023-2032 forecast period. The market size in 2032 is expected to be USD 11.3 Billion.
Semiconductor IP (Semiconductor Intellectual Property/ SIP) is the design specification of the logic, cell, and ship layout of any or all parts of a microprocessor. These semiconductor designs are essential in today’s world, where chips power so many individuals’ daily devices. The Semiconductor IP market may remain the property of the company that created the design or be licensed to other companies. A semiconductor’s IP (or intellectual property) consists of all specifications, source codes, and other information required to manufacture that semiconductor.
Note: Actual Numbers Might Vary In The Final Report
Nowadays Integrated Circuits (IC) age, more system functionality is being integrated with single chips (System-On-Chip/SoC designs). These pre-designed IP blocks/cores are increasingly important in SOC designs. Because most SOC designs are based on a standard microprocessor, a lot of system functionality is standardized and can be reused across multiple designs. Many components have standardized designs and protocols, including the ARM bus protocols AHB, APB, and UART core. They can all be used as IP cores/blocks and licensed to various design firms for different designs.
Key Takeaways
- Semiconductor IP Market revenues are projected to reach USD 11.3 billion by 2032 with compound annual growth rates estimated at 6.7% over 2023-2032.
- Processor IP has been identified as the highest-valued segment, driven by increasing use of laptops, smartphones and tablets; memory IP is anticipated to experience the highest compound annual compound growth during this forecast period due to rising acceptance and usage of storage devices.
- Hard IP cores dominate the market due to their superior reliability and predictability in chip timing performance, particularly in electronic equipment such as smartphones, personal computers, and laptops.
- The royalty segment currently holds the highest market share, primarily driven by bulk acquisitions of semiconductor IPs by leading electronic device manufacturers.
- Consumer electronics represents the industry with the highest market share and is projected to experience compound annual compound annual growth at 7.2% during this forecast period, due to rising wireless device demand.
- The market is propelled by growing demand for SoCs, consumer electronics, automotive systems and telecom & data center applications coupled with diminishing design and manufacturing costs in the semiconductor industry.
- Asia Pacific holds the largest market share, driven by increasing technological advancements and electronic manufacturing in the region, while North America and Europe are also key contributors to market growth.
- Major players in the Semiconductor IP Market include Arm Holdings Ltd., Fujitsu Limited, Synopsys Inc., Cadence Design Systems, Inc., and others, who are adopting strategies like product innovation and mergers & acquisitions to stay competitive.
- The latest trend in the market is the increasing adoption of wireless technology-based products, driven by advancements in 5G and other wireless devices, further supporting market growth.
Driving Factors
Increasing demand for SoC will drive the market forward in the forecast period.
Semiconductor IP blocks can be combined with system-on-chip (SoCs) and application-specific integrated circuits (ASICs). Monolithic 3D IC technology is one example. It is expected to lower wafer costs due to scaling-up processes and smaller die sizes. There are multiple layers that can be processed together as well as heterogeneous integration. The demand for SoCs is also increasing due to the increased demand for power-efficient and smart devices.
This will drive the semiconductor IP market growth even more. The consumer electronics industry can include televisions, cameras, camcorders, notebooks, audio/video equipment, smartphones and tablets, computers, laptops, gaming consoles with accessories, home appliances, wearable electronics, and many other products. The demand for consumer electronics is increasing, especially in developing countries like India and China.
This increase is due to rising disposable incomes, the emerging middle class, and progressive government reforms. Chips such as System on Chip (SoCs) are used in consumer electronics, such as TVs, mobile phones, and MP3 players. The semiconductor IP blocks are used to combine SoCs. Companies can increase their revenues and save time by using semiconductor IP blocks instead of spending time designing every circuit. This will create many opportunities for key players in the global semiconductor IP market.
The design and development of semiconductor IP are constantly being reduced. Graphene transistors, self-organizing molecular devices, carbon nanotubes, and quantum computing all offer ways to circumvent the limitations of conventional semiconductor technologies. This helps to upsurge the market for semiconductor IP.
Restraining Factors
Upgrading the equipment should be done to balance the dynamic market.
As this market is very dynamic, the functionality of the chips can change very quickly. Because of these fluctuations, the growth of the market might get hampered. If the semiconductor IP market focuses on upgrading the equipment regularly, then this problem can be avoided.
Design engineers are faced with a daunting task when integrating acquired semiconductor IP blocks from third-party IP vendors onto SoCs. As the IP design complexity increases, so does the risk of IP integration. Because of this, the cost of the semiconductor IP and the production time also increases.
Design IP Analysis
The increasing use of laptops, smartphones, and tablets makes the processor IP the highest-valued segment.
By design IP, the semiconductor IP market is classified into processor IP, interface IP, memory IP, and other IPs. In 2022, the processor IP held the biggest market share and is expected to grow at a CAGR of 7.23% over the forecast period. The reason behind this segment’s domination is its use in manufacturing consumer goods such as laptops, CPUs, smartphones, etc. The market is boosted with the help of sales of these smart & IoT devices.
In addition, the forecast period will witness the highest CAGR of the memory IP segment. This is because consumers are accepting and utilizing storage devices like data centers, memory devices, and flash drives.
IP Core Analysis
The hardcore segment dominates the market because of more reliability.
On the basis of Core analysis, the global semiconductor IP market size is divided into softcore and hardcore. Due to the increased demand for processors for electronic equipment including smartphones, personal computers, and laptops, the hardcore segment is the dominant market share. Hard cores can be either analog or digital IP cores, whose function is almost inaccessible to chip designers. Hard cores offer greater predictability in chip timing performance and more area for their specific technology.
The softcore segment is also anticipated to have evident growth and the highest CAGR during the forecast period. The main drivers behind this segment’s growth are increasing investment & development of advanced technologies such as AI, 5G, etc.
IP Source Analysis
Royalty is much needed because of the rising number of bulk acquisitions of semiconductor IPs.
By IP source, the market is segmented into royalty and licensing. The royalty segment had the highest market share in 2022 because of the bulk acquisitions of semiconductor IPs from the leading electronic device manufacturers. The licensing segment is anticipated to have the highest CAGR during the forecast period. This is because of the increasing acquisition of licensed semiconductor IP products and solutions by wireless device manufacturers.
Note: Actual Numbers Might Vary In The Final Report
Vertical Analysis
The sky is the limit for the consumer electronics industry.
By vertical analysis, the global semiconductor IP market is divided into consumer electronics, telecom & data centers, automotive, industrial, aerospace & defense, and other verticals. Out of these segments, the consumer electronics industry holds the largest market share and is projected to have a CAGR of 7.2% over the forecast period. The increasing demand for wireless devices is the main driving factor for this segment’s growth.
The automotive segment follows consumer electronics in terms of market share. It is also predicted to have the highest CAGR of 7.4% during the forecast period. The reason behind this surge is the increasing adoption of electric vehicles by consumers. Expenditure on equipment and semiconductor IPs is rising in the defense sector as the need for semiconductor IPs in radar, communication systems, and electronic warfare is increasing quickly. Even though the volume of semiconductor IPs in the defense sector is not as great as that in the consumer electronics industry, the devices in the defense sector have the highest prices. This boosts the market growth further.
Key Market Segments
Based on Design IP
- Processor IP
- Interface IP
- Memory IP
- Other Design IPs
Based on IP Core
- Soft Core
- Hard Core
Based on IP Source
- Royalty
- Licensing
Based on Vertical
- Consumer Electronics
- Telecom & Datacenters
- Automotive
- Industrial
- Aerospace & Defense
- Other Verticals
Growth Opportunities
The Automotive sector and telecom & data center sectors create demand for chips.
The automotive sector and telecom & data center businesses rely on complex and highly sophisticated electronic systems. In these businesses, the need for semiconductor IP is increasing; therefore, development in chip manufacturing is needed. Small gadgets with high performance and functional use are getting popular which are also used in the automotive industry; this will be a good opportunity for semiconductor IP market players.
Latest Trends
Going wireless is the new trend.
Market growth is supported by the increasing adoption of wireless technology-based products and increased investments by the top players in developing advanced wireless products. This is due to 5G and other wireless devices. To meet consumer demands, the market’s top players are also investing in wireless technology devices.
Regional Analysis
Asia Pacific holds the largest market share due to increasing technological advances and the manufacturing of electronics in the region.
The market is segmented into North America, Western Europe, Eastern Europe, Asia Pacific (APAC), Latin America, and Middle East & Africa. Asia Pacific region dominates the market with about 34.6% market share and is expected to have a CAGR of 6.97% during the forecast period. This is due to the rising investment in electronics manufacturing in this region. The market is driven by the growing export of electronic components and the presence of electronic device manufacturers.
North America is projected to grow at a moderate rate of CAGR over the forecast period due to the increasing accumulation of 5G and wireless technology developments. Specifically, the US in North America is going through these changes at the quickest pace. It is expected to have about 77% market share in North America in 2032. Many market vendors are from the US which gives the region a competitive edge. The US government plays a major role in the development of the regional semiconductor industry, directly contributing to the semiconductor IP market growth.
Europe is expected to experience a moderate growth rate due to increasing consumer demand for connected gadgets. This is due to the COVID-19 pandemic and the rapid adoption of digital technology-based devices. Slow investment in research and development in the semiconductor sector has caused Latin American countries like Brazil, Argentina, and Brazil to grow at a slower rate. The rising popularity of smart devices like smartphones and laptops will drive Latin America’s IP market.
Due to increased IoT spending and an increase in digital transformation strategies in many countries of the region, the Middle East and Africa are growing at a moderate rate. A potential growth opportunity in the region for semiconductor IP products is anticipated to be created by an increase in IoT spending.
Note: Actual Numbers Might Vary In The Final Report
Key Regions and Countries Covered in this Report:
- North America
- The US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Russia
- Netherland
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia
- New Zealand
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
Key Players Analysis
The Semiconductor IP Market share is well-consolidated. Large-scale vendors are capable of backward and forward integration. Many players also operate the business in both national and international territories. The major players are adopting strategies such as product innovation and mergers & acquisitions to stay ahead of their competition.
Top Key Players in The Market
- Arm Holdings Ltd.
- Fujitsu Limited
- Synopsys Inc.
- Cadence Design Systems, Inc.
- Imagination Technologies
- CEVA Inc.
- eMemory Technology Inc.
- Lattice Semiconductor Corp.
- Open-Silicon Inc.
- Mentor Graphics Corporation
- Achronix Semiconductor Corporation
- Rambus Inc.
- Faraday Technology Corporation
- Verisilicon Holdings Co.
- Multicore Technology
- Other Key Players
Recent Key Developments
- Faraday Technology Corporation announced its LPDDR4X and LPDDR4X combo IP, up to 42Gbps, in June 2021. This is available in Samsung’s 14nm LPC processes. Two hardened configurations are available to support corner-edge and in-line placement.
- In the same month, Arm Limited launched the Physical and POP IP Platforms on Samsung Foundry 5nm Technologies. Arm and Samsung Foundry also collaborated in the development of Arm solutions that are compatible with Samsung’s advanced production techniques to meet market demands.
- Cadence Design Systems, Inc. announced low-power IP to the PCI Express 5.0 specification in May 2021. This IP targets hyper-scale computing, networking, storage, and applications that are built on TSMC N5 process technology. The PCIe 5.0 technology includes a companion controller, a PHY, and a verification IP (VIP), which are targeted at SoC designs that require very high bandwidth.
Report Scope
Report Features Description Market Value (2023) US$ 6.4 Bn Forecast Revenue (2032) US$ 11 Bn CAGR (2023-2032) 6.7% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Design IP- Processor IP, Interface IP, Memory IP, and Others Design IPs; By IP Core- Soft Core and Hard Core; By IP Source- Royalty and Licensing; and By Vertical- Consumer Electronics, Telecom & Datacenters, Automotive, Industrial, Aerospace & Defense, and Other Verticals. Regional Analysis North America – The U.S. & Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands & Rest of Europe; APAC- China, Japan, South Korea, India, Australia, New Zealand, Singapore, Thailand, Vietnam & Rest of APAC; Latin America- Brazil, Mexico & Rest of Latin America; Middle East & Africa- South Africa, Saudi Arabia, UAE & Rest of MEA Competitive Landscape Arm Holdings Ltd., Fujitsu Limited, Synopsys Inc., Cadence Design Systems, Inc., Imagination Technologies, CEVA Inc., eMemory Technology Inc., Lattice Semiconductor Corp., Open-Silicon Inc., Mentor Graphics Corporation, Achronix Semiconductor Corporation, Rambus Inc., Faraday Technology Corporation, Verisilicon Holdings Co., Multicore Technology, and Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is Semiconductor Intellectual Property (IP)?Semiconductor Intellectual Property refers to the designs, blueprints, or specifications that are essential for the manufacturing of semiconductor chips. These IPs are crucial for creating integrated circuits, microprocessors, and other electronic components.
Why is Semiconductor IP important in the market?Semiconductor IP serves as the building blocks for designing and manufacturing complex chips, enabling companies to develop advanced electronic products more efficiently and cost-effectively. It also allows for the creation of innovative, customized solutions tailored to specific market demands.
How big is Semiconductor Intellectual Property (IP) Market?The global Semiconductor Intellectual Property (IP) Market was valued at USD 6.4 Bn in 2023. It is projected to grow 6.7% over the 2023-2032 forecast period. The market size in 2032 is expected to be USD 11.3 Bn.
How is Semiconductor IP licensed?Semiconductor IP can be licensed through various models, including royalty-based licensing, upfront licensing, or a combination of both. The terms of the license agreement typically outline the usage rights, payment terms, and restrictions on the use of the IP.
What is the role of Intellectual Property (IP) in the Semiconductor industry?Intellectual Property plays a vital role in protecting the innovative designs and technological advancements in the semiconductor industry. It encourages companies to invest in research and development by providing legal protection for their creations and fostering a competitive market environment.
What are the emerging trends in the Semiconductor IP Market?Some emerging trends in the Semiconductor IP Market include the growing demand for AI-optimized IP, the development of advanced security IPs, the integration of IPs for IoT devices, and the adoption of IPs tailored for edge computing and 5G technology.
Semiconductor Intellectual Property (IP) MarketPublished date: March 2024add_shopping_cartBuy Now get_appDownload Sample - Arm Holdings Ltd.
- Fujitsu Limited
- Synopsys Inc.
- Cadence Design Systems Inc.
- Imagination Technologies
- CEVA Inc.
- eMemory Technology Incorporated
- Lattice Semiconductor Corp.
- Open-Silicon Inc.
- Mentor Graphics Corporation
- Achronix Semiconductor Corporation
- Rambus Inc.
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