Semiconductor IP Market size is set to grow by USD 2.71 billion from 2024-2028, complex chip designs and use of multi-core technologies to boost the market growth, Technavio

NEW YORK, June 18, 2024 /PRNewswire/ — The global semiconductor IP market  size is estimated to grow by USD 2.71 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 7.47%  during the forecast period. Complex chip designs and use of multi-core technologies is driving market growth, with a trend towards emergence of nanophotonic ICs. However, reuse of semiconductor IP  poses a challenge. Key market players include Achronix Semiconductor Corp., Advanced Micro Devices Inc., Alphawave IP Group plc, Arm Ltd., Arteric Inc., Cadence Design Systems Inc., CAST Inc., CEVA Inc., Dolphin Design SAS, Dream Chip Technologies GmbH, eMemory Technology Inc., Faraday Technology Corp., Imagination Technologies Ltd., Lattice Semiconductor Corp., Perceptia Devices Australia, Rambus Inc., Siemens AG, Synopsys Inc., VeriSilicon Microelectronics Shanghai Co. Ltd., and videantis GmbH.

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Key Market Trends Fueling Growth

The semiconductor IP market is experiencing growth due to the integration of nanophotonic structures in electronic devices. These structures enable the development of miniaturized semiconductor devices with higher integration densities, high-density optoelectronic ICs for optical fiber communication, and flexible electronics circuits. IBM is a leading vendor in this space, having developed low-cost, commercially available electronic-photonic ICs. The adoption of nanophotonic technology for transistor development, such as carbon nanotube transistors, is increasing design complexity and driving innovation in memory chip layout design. The global nanophotonic IC market is expected to reach USD79.42 million by 2021, growing at a CAGR of 14.51%. 

The Semiconductor Intellectual Property (IP) market is experiencing significant growth due to the increasing demand for advanced technologies. Chip companies require efficient and effective IP cores for their designs. Memory IP, such as SRAM and ROM, is a major segment in this market. Processors, connectivity IP, and interface IP are also key areas of focus. The trend towards miniaturization and higher performance is driving the need for new and innovative IP solutions. Companies like Intellectual Property (IP) providers offer a wide range of IP cores for various applications. These IP cores are essential for the design and development of modern electronic systems. The IP market is competitive, with many players vying for market share. However, those who can provide high-quality, reliable, and cost-effective IP solutions will thrive in this market. 

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Market Challenges

• The semiconductor industry faces significant challenges with third-party IP usage, leading to extensive IP reuse over the past 15 years. Companies often lack proper methods to manage and track IP cores, including crucial RTL data and licensing metadata. This oversight can result in unintentional IP reuse, causing financial penalties and legal issues. Few companies prioritize IP block management, leaving many vulnerable to IP violations. Instances of unintentional IP reuse include new design teams mistakenly using third-party IP and engineers unaware of IP agreement terms. Annual IP reuse increases financial liability for companies at risk of IP violations. Proper IP management is essential to mitigate these challenges and ensure the semiconductor IP market’s growth.
• The semiconductor IP market faces several challenges in today’s technology landscape. Intellectual property (IP) providers must keep up with the rapid advancements in technology, such as the increasing complexity of designs and the need for smaller, more power-efficient chips. Technologies like FinFET and 7nm processes require new and innovative IP solutions. Additionally, the growing importance of security and reliability in semiconductor designs presents a challenge for IP providers. Cost and time-to-market pressures also loom large, making it essential for IP providers to offer flexible licensing models and efficient design integration. Competition from both established players and new entrants adds to the complexity of the market. Overall, the semiconductor IP market requires providers to be agile, innovative, and responsive to meet the evolving needs of the industry.

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Segment Overview 

This semiconductor ip market report extensively covers market segmentation by

1. End-user 

• 1.1 Fabless semiconductor companies
• 1.2 IDMs
• 1.3 Foundries

Application 

• 2.1 Mobile computing devices
• 2.2 Consumer electronics
• 2.3 Automotive
• 2.4 Industrial automation
• 2.5 Others

Form Factor

• 3.1 Processor IP
• 3.2 Physical IP
• 3.3 Digital IP

Geography 

• 4.1 North America
• 4.2 APAC
• 4.3 Europe
• 4.4 South America
• 4.5 Middle East and Africa

1.1 Fabless semiconductor companies-  In the semiconductor industry, fabless companies opt for third-party IP licenses to minimize manufacturing overheads and reduce design time. This approach saves fabless companies an average of USD90-190 million and cuts down designing time by half, compared to in-house processor development. Notable companies, including Actions Semiconductor, Allwinner Technology, Marvell, AMD, Broadcom, MediaTek, Microchip, Rambus, Qualcomm, Xilinx, and Realtek, have adopted this strategy to meet OEM requirements and bring semiconductor devices to market more efficiently. The use of third-party IPs is projected to continue growing in the forecast period.

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Research Analysis

The Semiconductor IP market plays a crucial role in system design, enabling the creation of various electronic devices in sectors such as telecommunications, automotive, consumer electronics, industrial devices, and emerging technologies. Chip design processes involve significant development expenses, making IP cores an essential component for operational efficiency and cost-effectiveness. SoC designs incorporate processors, memory modules, analog circuits, and interface modules from IP providers. Collaboration between semiconductor manufacturers and IP providers is essential for innovation, product launches, and time-to-market advantages. Design efficiency, chip reliability, and performance are key considerations in the selection of IP cores. Intellectual property protection is essential to prevent patent infringement and maintain a competitive edge in research and development. Market expansion in various sectors drives the demand for semiconductor IP solutions.

Market Research Overview

The Semiconductor Intellectual Property (IP) market refers to the buying and selling of pre-designed and tested semiconductor IP cores and blocks. These IP cores and blocks include digital signal processing (DSP) cores, memory interfaces, and processor cores, among others. The semiconductor IP market caters to various industries such as automotive, consumer electronics, industrial, and telecommunications. The market is driven by the increasing demand for miniaturization, cost reduction, and time-to-market considerations in semiconductor design. The semiconductor IP market also offers benefits such as reduced design risk, faster time-to-market, and lower development costs. The market is expected to grow significantly due to the increasing adoption of advanced technologies such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT).

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation

• End-user
• Fabless Semiconductor Companies
• IDMs
• Foundries
• Application
• Mobile Computing Devices
• Consumer Electronics
• Automotive
• Industrial Automation
• Others
• Form Factor
• Processor IP
• Physical IP
• Digital IP
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Company Landscape

11 Company Analysis

12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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