Global semiconductor intellectual property market size is estimated to be valued at USD 5,774.3 Mn in 2025. Demand is expected to reach USD 11,162.7 Mn by 2032, exhibiting a compound annual growth rate (CAGR) of 9.9% from 2025 to 2032.
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Increasing demand for technologically advanced electronic devices across different industries such as consumer electronics, automotive, telecommunication, and others. The rising penetration of smartphones, tablets and other connected devices is driving the need for specialized (Intellectual Property) IPs. Moreover, the evolution of advanced technologies such as 5G networks, artificial intelligence, augmented reality, and Internet of Things is further fueling market growth.
The implementation of advanced node sizes in chip manufacturing is also propelling semiconductor foundries to focus on developing specialized IPs. Leading players are investing heavily in R&D to develop innovative IPs which can help them gain a competitive advantage in the market. However, high costs associated with IP development and ongoing modifications as per technological advancements pose a major challenge to market growth.
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US-China Technology Trade Tensions and Export Controls |
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AI and Machine Learning Chip Architecture Revolution |
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Automotive Industry Electrification and Autonomous Driving |
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The Soft-core segment is estimated to dominate the market share of 55.9% in 2025 owing to its adaptability and portability across various semiconductor fabrication processes and technologies. Soft cores facilitate seamless integration into ASIC/FPGA devices from different vendors since they do not target a particular fabrication technology or architecture. This gives chip designers ample flexibility to experiment with IP in early stages of their projects and port it across existing or future fabrication nodes during product evolution.
In the terms of Design IP, the processor IP segment is estimated to hold the highest share of the market in 2025 owing to continuous technological advancements in processors. The exponential growth in data and connectivity needs has pushed semiconductor companies to develop more powerful and efficient processors. As the complexity and performance of processors increase with each generation to support applications such as AI, machine learning and IoT, the demand for sophisticated Processor IP is also rising.
The Royalty segment is estimated to hold the highest share of the market of 54.7% in 2025 as IP reuse becomes more pervasive in the semiconductor industry. As semiconductor designs grow exponentially complex, reusing pre-verified and well-designed IP blocks through licenses and royalty agreements has emerged as an economically prudent strategy for chip companies. It helps them focus internal engineering efforts on innovation while leveraging the expertise of IP vendors.
The IDMS segment is estimated to dominate the market share with largest share in 2025 owing to the growing need for efficient, centralized management of increasing IP assets, especially among large enterprises and R&D-intensive industries. The surge in global patent filings, coupled with the complexity of managing IP portfolios across multiple jurisdictions, is driving demand for advanced data management systems.
The consumer electronic segment is estimated to dominate the market share with largest share in 2025 owing to the rapid innovation and high demand for smart devices, wearables, and connected home technologies. This sector relies heavily on semiconductor IP, design patents, and proprietary software, driving the need for robust IP protection and management.
For instance, in March 2025, Sofics announced a strategic partnership aimed at enhancing integrated circuit (IC) designs for customers in key sectors such as IoT, wireless, and automotive.
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Asia Pacific region exhibits the dominating region with 39.6% shares in 2025. The growth in the global market. Aggressive strategies adopted by governments to indigenous manufacturing and global companies to expand in emerging countries are contributing to accelerated adoption. In addition, growing electronics demand from a burgeoning consumer base is propelling the market higher.
North America is expected to account for the dominating region with 26.8% shares in 2025. North America’s semiconductor intellectual property market demand is fueled by the concentration of leading tech companies and semiconductor designers in the region. Countries like the U.S. are home to global players that drive significant innovation through R&D investments. Supportive government policies have also encouraged development of indigenous semiconductor technologies.
For instance, in March 2025, TSMC announced its intention to expand its investment in advanced semiconductor manufacturing in the United States by an additional $100 billion.
The United States is the powerhouse of semiconductor IP, underpinning North America’s projected 21.7% market share in 2025. This dominance stems from leading IP design firms, robust R&D investments, and government support for indigenous semiconductor technologies.
For instance, in December 2023, the US Patent and Trademark Office (USPTO) launched the Semiconductor Technology Pilot Program for patent applications for processes or apparatuses for manufacturing semiconductor devices.
China emerges prominently within the Asia‑Pacific region, which is the fastest-growing market with 11.1% shares in 2025. The growth is driven by strong electronics demand and government strategies to reduce import dependence.
For instance, in September 2025, China launched two probes targeting the U.S. semiconductor sector on Saturday (September 13, 2025) ahead of talks between the two nations in Spain this week on trade, national security and the ownership of social media platform TikTok.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2024 | Market Size in 2025: | USD 5,774.3 Mn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 9.9% | 2032 Value Projection: | USD 11,162.7 Mn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
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 Technology 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), and Cobham Gaisler AB |
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The growth of semiconductor intellectual property in the automotive industry is due to increasing application of microcontroller units (MCUs), microprocessor units (MPUs), sensors, interfaces, analog integrated circuits (ICs), and memory products in autonomous and premium cars.
For instance, in July 2020, Imagination Technologies announced that NXP, the leading automotive semiconductor supplier, has extended its license for Imagination’s Ethernet Packet Processor (EPP) IP for use in S32 vehicle network processors.
Artificial Intelligence is offering lucrative opportunities for semiconductor companies. Semiconductor companies have benefited from increased digitization and cloud usage across various industries such as healthcare, telecom, and automotive which has accelerated chip demand.
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.
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About Author
As an accomplished Senior Consultant with 7+ years of experience, Pooja Tayade has a proven track record in devising and implementing data and strategy consulting across various industries. She specializes in market research, competitive analysis, primary insights, and market estimation. She excels in strategic advisory, delivering data-driven insights to help clients navigate market complexities, optimize entry strategies, and achieve sustainable growth.
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