A semiconductor Intellectual Property (IP) is a logic unit or logic chip that can be reused and is an intellectual property of a circuit. This IP is used in integrated circuit designs or field-programmable gate array (FPGA) logic designs as building blocks. Semiconductor intellectual property (IP) enables faster chip design by using existing blocks. It is also responsible for improving the quality of any device, in turn enhancing the efficiency of the device. Miniaturization in electronic device size is expected to positively impact growth of the semiconductor intellectual property market. As the demand for miniature smartphone devices is increasing, the complexity in circuit design is also increasing. Hence, adoption of modern system on chip (SOC) design technology, which employs semiconductor IP cores, is also increasing. This in turn, is expected to enhance growth of the global semiconductor IP market. Growing adoption of mobile devices, smartphones, tablets, and other connected devices due to availability of high speed broadband connectivity and rampant advancements in technology, are in turn, expected to boost growth of the semiconductors IP market. Furthermore, rising investment in research and development activities in the field of semiconductors and increasing traction of data converter IPs in wireless & IoT products is expected to drive the global semiconductors IP market.
The global Semiconductor Intellectual Property (IP) market is expected to witness significant growth during the forecast period (2020–2027) due to the advancement in multicore technology in the consumer electronics sector. Consumer electronics are becoming smarter and more intelligent due to increasing research and development activities. This is due to advanced components and chips made with the help of complex IPs designed for every application. The consumer electronics sector offers tremendous growth opportunities for the semiconductor industry and the semiconductor IP market players. The semiconductor industry is highly dependent on consumer electronics such as smartphones, tablets, and memory products. Many digital consumer products such as digital cameras, televisions, washing machines, refrigerators, and LED bulbs also use semiconductors. Integrated Circuits (ICs) and Systems-on-Chip (SoCs) are extensively used in these consumer electronics, and an increase in demand for these products is reinforcing the semiconductor IP market because semiconductor IPs are used to build ICs and SoCs. In addition to consumer electronics, semiconductor IPs play a central role in the operation of bank ATMs, the internet, communications, and other parts of social infrastructure such as the medical network used for the care of elderly, among others.
For instance, In May 2020, Arm Holdings launched IP equipped with 5G connectivity. The products include Arm Cortex-A78 CPU, Arm Mali-G78 GPU, Arm Ethos-N78 NPU, and others. These IP products are specially designed for mobile connectivity devices such as smartphones.
The major factor restraining growth of the global Semiconductor Intellectual Property (IP) market is increasing number of counterfeits. Counterfeit semiconductor products have proliferated due to poor supply chain practices and purchasing low quality products at a minimum cost. The market includes independent distributors and brokers that obtain products from a wide range of suppliers. However, some suppliers introduce counterfeits into the market supply chain. The only way to ensure that semiconductor components are authentic and have optimal quality and reliability, is to buy them exclusively through authorized sources.
|Base Year:||2019||Market Size in 2019:||US$ 4,111.0 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||8.9%||2027 Value Projection:||US$ 7,103.0 Mn|
Arm Holdings, Synopsys, Inc., Cadence Design Systems, Inc., Imagination Technologies Limited, Lattice Semiconductor Corporation, CEVA, Inc., Rambus Incorporated, Silvaco Inc., Intel Corporation, eMemory Technology Inc., Dream Chip Technologies GmbH (Goodix Technology Co. Ltd.), VeriSilicon Microelectronics (Shanghai) Co., Ltd., Achronix Semiconductor Corporation, Open-Silicon, Inc., Dolphin Design SAS, Faraday Technology Corporation, Xilinx, Inc., Mentor, a Siemens Business, Semiconductor Manufacturing International Corp. (SMIC), Cobham Gaisler AB, Arasan Chip Systems Inc., HDL Design House, Mixel Inc., and TDK Corporation (InvenSense).
|Restraints & Challenges:||
Semiconductor Intellectual Property (IP) Market - Impact of Coronavirus (Covid-19) Pandemic
Globally, most of the countries are affected by COVID-19 and most of the countries have announced lockdown. COVID-19 has a significant impact on the supply-side as well as the demand side of the semiconductors industry. Companies are quickly evaluating impacts on three fronts: supply chain, market demand, and workforce. Slowdown in production by consumer electronics companies and automotive OEMs due to COVID-19 crisis has resulted in demand variation for semiconductor chips. Due to COVID-19 pandemic, there has been reduction in demand for mobile phones and consumer electronics, driven by loss of income and stay-at-home orders. However, increased demand for cloud infrastructure to support distributed workforce will have positive impact on the global semiconductor intellectual property (IP) market in the long term.
Asia Pacific held dominant position in the global semiconductor intellectual property (IP) market in 2019
Asia Pacific held dominant position in the global semiconductor intellectual property (IP) market in 2019, accounting for 38.4% share in terms of value, followed by North America and Europe.
Figure 1: Global Semiconductor Intellectual Property (IP) Market Share (%), By Region, 2019
Asia Pacific is expected to account for the largest market share during the forecast period, owing to frequent product launches and technological developments in semiconductor IP products by manufacturers. For instance, in 2018, Faraday Technology Corporation launched multi-protocol video interface IP based on UMC 28nm HPC and USB 2.0 OTG PHY IP. Multi-protocol video interface IP is specially designed for emerging technologies such as Virtual Reality. Also, in June 2017, VeriSilicon Microelectronics (Shanghai) Co., Ltd. launched Vivante CC8000, an IP series based on scalable and parallel MESH (Memory Efficient Shader) processor architecture. The product is specially developed for cryptography, machine vision, advanced signal processing, and other applications.
North America is expected to exhibit significant growth during the forecast period, owing to the high presence of key manufacturers such as Synopsys, Inc., Cadence Design Systems, Inc., Lattice Semiconductor Corporation, CEVA, Inc., and Rambus Incorporated, among others. Moreover, North America-based vendors are also expanding their business activities in Europe region through acquisitions. For instance, in September 2020, Silvaco, Inc. acquired IP solution, patents, and analysis technologies of Wave Solutions S.A., a Europe-based technology company. Through this acquisition, Silvaco will expand its RF SOI product line-up to address the increasing demand for IoT and 5G devices.
Processor IP segment is expected to drive the market growth during the forecast period
Among design IP, the Processor IP segment is expected to hold dominant position in the global semiconductor intellectual property (IP) market during the forecast period. Increasing demand for advanced semiconductor processors in tablets, smart-phones, and wireless devices is also expected to drive the semiconductor IP market growth.
For instance, in September 2020, Synopsys, Inc. announced that DSP Group, Inc., a leading global provider of wireless and voice-processing chipset solutions for converged communications, selected Synopsys DesignWare ARC EM5D Processor IP for its high-efficiency control and signal processing capabilities to enable development of its DBMC2-TWS advanced adaptive processing audio codec for true wireless stereo (TWS) headsets.
Figure 2: Global Semiconductor Intellectual Property (IP) Market Value (US$ Mn) Analysis and Forecast, 2017 - 2027
The global semiconductor intellectual property (IP) market was valued at US$ 4,111.0 Mn in 2019 and is expected to reach US$ 7,103.0 Mn by 2027 at a CAGR of 8.9% between 2020 and 2027.
Major players operating in the global semiconductor intellectual property (IP) market include Arm Holdings, Synopsys, Inc., Cadence Design Systems, Inc., Imagination Technologies Limited, Lattice Semiconductor Corporation, CEVA, Inc., Rambus Incorporated, Silvaco Inc., Intel Corporation, eMemory Technology Inc., Dream Chip Technologies GmbH (Goodix Technology Co. Ltd.), VeriSilicon Microelectronics (Shanghai) Co., Ltd., Achronix Semiconductor Corporation, Open-Silicon, Inc., Dolphin Design SAS, Faraday Technology Corporation, Xilinx, Inc., Mentor, a Siemens Business, Semiconductor Manufacturing International Corp. (SMIC), Cobham Gaisler AB, Arasan Chip Systems Inc., HDL Design House, Mixel Inc., and TDK Corporation (InvenSense).
Semiconductor IP core are virtual components that can be used to build integrated semiconductor devices and systems-on-chip. Continuous developments are being conducted in the field of semiconductor IP, to offer intelligent products enabled with information processing and communication capabilities. The rapid innovation has led to exponential growth in the number of transistors on a chip and expanded the applications of ICT such as cell phones, computers, air conditioning system, etc. Semiconductor IP enables innovation and growth in industries including medical devices, IT solutions, and IoT. Advancement in semiconductor technology has a positive impact on nearly every sector, including automotive, agriculture, bio-medical, and defense.
Rising demand for chips due to growing use of Artificial Intelligence (AI) will contribute significantly to the industry’s overall growth. Much of that demand is coming from the automotive and industrial markets, the two fastest-growing segments. The industrial market continues to be driven by increasing demand for AI chips in both security and healthcare sectors. The cloud is the biggest market for AI chips, as its adoption in data centers continues to increase as a means of enhancing efficiency and reducing operational cost. Growing adoption of AI-based solutions is expected to offer further potential revenue opportunities to vendors of semiconductor intellectual property.
The global semiconductor intellectual property market is expected to grow significantly during the forecast period, owing to the growing adoption of data converter IPs in wireless & IoT products. Data converter IPs are at the core of every analog interface to SoCs (systems-on-chip). Semiconductor IPs are used in SoCs to reduce the complexity and risk inherent in designing for smart technology while meeting the performance, area, and power (PPA) requirements. For instance, Synopsys’ high-quality DesignWare Data Converter IP solutions have been implemented in more than 300 production designs for mobile and wireless communications (5G, LTE/LTE-A, NB-IOT/CAT-M, WiFi 11ac/ax), wired communications (PLC, MoCA), IF demodulation, radar and imaging, multimedia and digital TV, Internet of Things (IoT), and sensor data acquisition applications.
Among industry vertical, automotive segment is expected to exhibit the highest growth during the forecast period. The demand for semiconductor IP is rapidly increasing in the automotive industry owing to its adoption in the self-driven and premium cars. The self-driven cars or high end cars use semiconductor chip sets in electric control units, safety systems, and infotainment systems. The automotive industry is going through digital transformation which is expected to propel growth of the semiconductor IP market during the forecast period. Semiconductor IPs are also used in advanced driver assistance system, which enhances the driving experience. According to CMI’s study 2020, global self-driven cars market is expected to showcase a CAGR of 41.1%, in terms of revenue, during the forecast period 2020-2027.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.