The semiconductor intellectual property market was valued at around USD 6.50 billion in 2022. The market is expected to witness substantial growth over the next decade, with a projected CAGR of 6.6%. This growth trajectory suggests that by the conclusion of 2033, the market is likely to achieve an impressive valuation of nearly USD 13.10 billion, a significant increase from its worth of USD 6.83 billion in 2023.
The recent surge in demand for semiconductors due to their applications in numerous consumer electronic products has triggered the demand for Semiconductor Intellectual Property.
As semiconductor technology advances, the demand for specialized IP is skyrocketing. The open-source hardware movement is gaining significant traction, with initiatives like RISC-V revolutionizing the industry. Open-source IP provides unparalleled flexibility, customization options, and reduced licensing costs. IP vendors actively involved in open-source projects or offering support and services around open-source IP have an incredible opportunity to thrive in this growing market segment.
Artificial intelligence and machine learning techniques are revolutionizing IP development. By leveraging AI, IP vendors can accelerate the design process, optimize power consumption, improve performance, and reduce time-to-market. AI-driven IP development methodologies provide a competitive advantage in a rapidly evolving industry.
Companies in the semiconductor IP market are increasing their production capabilities for data convertor IPs. These IPs serve as the connection between the real world and the digital world. Data converter IPs enable high-performance and low-power data conversion in configurable analog-to-digital (ADC) and digital-to-analog (DAC) environments. Players in the semiconductor IP industry are showing interest in wireless solutions that incorporate power supply management features.
Superior product quality and technological advancements are pushing semiconductor IP market firms toward international acclaim. Companies in this market are expanding their revenue streams by targeting key applications like automotive and 5G infrastructure. Manufacturers are also prioritizing the development of expertise in on-chip interconnect IP to manage on-chip dataflow effectively.
| Attribute | Details |
|---|---|
| Historical Value (2022) | USD 6.50 billion |
| Current Year Value (2023) | USD 6.83 billion |
| Expected Forecast Value (2033) | USD 13.10 billion |
| Projected CAGR (2023 to 2033) | 6.7% |
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The global market for semiconductor intellectual property expanded at a CAGR of 4.6% during 2018 to 2022. The market growth is projected to benefit from the expedited requirement of semiconductor chips in the numerous advancements pertaining to the 5G network technology.
The global semiconductor intellectual property market is predicted to surge ahead at a CAGR of 6.7% and record sales worth USD 13.10 billion by the end of 2033. United States is likely to continue to be the leading market throughout the analysis period accounting for over USD 1.3 billion absolute dollar opportunity in the coming 10-year epoch.
The market in Asia-Pacific is projected to be extensively lucrative for Semiconductor Intellectual Property in the forthcoming years. The recent surge in requirement for digital products like laptops, tablets, and smartphones driven by rapid changes post-pandemic in India, is among one of the facets responsible for the growth of the Semiconductor Intellectual Property Market in Asia-Pacific, as Semiconductor IP chips are being used in the core circuits of these devices.
A recent report states that by the end of 2028, the smartphone market in India will witness a CAGR of 10.5% to reach a total market valuation of USD 281 billion. The report further noted that, the sales penetration of 5G-enabled smartphones in the country reached 51% at the start of 2022, further expediting the requirement of Semiconductor IP chips in the country which subsequently benefits the Semiconductor Intellectual Property Industry.
Moreover, the availability of cost-effective labor in India augments its prospects in the global Semiconductor Intellectual Property Market. Additionally, the automotive industry in the country accounts for over USD 222 billion in revenue, contributing 7.1% to its GDP, and is projected by 2030 to become the third largest across the globe.
The extensive dependence of the automotive segment on semiconductor chips subsequently necessitates the development of new chip production design solutions in the country in specific and region in overall demand.
Taking into account a recent survey, Asia-Pacific is the largest market for semiconductors across the world, with over 60% of global semiconductor sales, of which approximately 30% of sales are accounted for by China alone.
This is one of the crucial attributes driving the semiconductor intellectual property market in China which is projected to witness a CAGR of 7.6% by the end of 2033.
A recent survey by International Trade Administration ranked Japan as the fourth largest market for semiconductor manufacturing equipment sales across the world. All these attributes are anticipated to be responsible for the growth of the Semiconductor Intellectual Property Market in Asia-Pacific during the upcoming 10-year epoch.
The semiconductor intellectual property market in North America maintained its market share of over 26.5% intact in 2022. It is further forecasted that the Semiconductor Intellectual Property market in North America will be dominated by the United States in the upcoming 10-year forecast period. The rising surge in electronics requirements and advancements in the healthcare industry is expediting the semiconductor IP chips demand.
This has led to the growth in the appropriation of connected devices for day-to-day use. The ever-increasing consistent improvements for the optimization of expenditure associated with chip design by key industry players situated in the region are among the crucial attributes positively impacting the North American Semiconductor Intellectual Property Market.
As of 2022, around 200,000 Pacemakers are implanted in the United States annually. With pacemakers being among the numerous semiconductor-enabled medical equipment, this is a positive attribute for the Semiconductor Intellectual Property Industry.
A recent report noted that the average American as of 2020 has access to ten or more connected devices in their homes, which are semiconductor enabled. Most USA citizens have access to two or more computers on average coupled with more than two phones.
Every consumer electronic product requires a semiconductor. As of 2022, the revenue generated by the Consumer Electronics industry in Canada has been USD 13.5 billion, while the total market revenue generated by the Consumer Electronics industry in the United States is projected to account for USD 141.6 billion 2023.
Cryptocurrency mining, among key applications of the ASIC segment by type, witnesses a dominant role by the USA which is expected to rise further during the forecast period. These attributes are responsible for positively shaping the Semiconductor Intellectual Property Market in North America.
| Countries | 2022 Value Share in Global Market |
|---|---|
| United States | 15.4% |
| Germany | 8.1% |
| Japan | 3.3% |
The extensive requirement for semiconductors due to the rapid advancements of various consumer electronic products aids the Semiconductor Intellectual Property demand in the United States.
The Semiconductor Intellectual Property Market in the United States is further developed by the presence of key market players such as Intel Corporation coupled with cooperative government bills and guidelines. One such accommodating litigation is the CHIPS (Creating Helpful Incentives to Produce Semiconductors for America) Act, the legislation which was advanced by the United States Senate as of July 2022.
The conceptualization behind this bill is to provide approximately USD 52 billion as incentives and for research investments for furthering domestic chip manufacturing coupled with a 25% investment tax credit for semiconductor manufacturing. All these factors are estimated to aid in the positive impact of the United States on the Global Semiconductor Intellectual Property Market in the upcoming 10-year epoch.
Germany has a robust semiconductor industry with a strong focus on research and development. The Germany semiconductor intellectual property market primarily caters to various sectors such as automotive, industrial automation, telecommunications, consumer electronics, and healthcare.
Germany is a prominent player in the automotive industry. There is a growing focus on developing advanced automotive electronics. The need for high-performance processors, sensor fusion, and safety-critical applications drives the demand for semiconductor IP in this sector.
Germany has a strong industrial base. The adoption of Industry 4.0 concepts is driving the demand for semiconductor IP in industrial automation. IP related to embedded systems, robotics, and industrial sensors is significantly growing.
Japan has a robust legal framework for intellectual property protection, including patents, copyrights, and trade secrets. This provides a favorable environment for semiconductor IP developers to invest in research and development and confidently commercialize their innovations. The government has been actively supporting the semiconductor industry through various initiatives.
With the rise of electric vehicles (EVs) and autonomous driving technology, the automotive industry has become a significant consumer of semiconductor IP. Japanese companies are actively involved in developing IP solutions for automotive electronics. Japan also has a strong presence in the robotics and automation industry. This is likely to create opportunities for semiconductor IP providers to cater to this sector's specific requirements.
| Country | Value CAGR (2023 to 2033) |
|---|---|
| United Kingdom | 5.4% |
| China | 7.6% |
| India | 8.2% |
The United Kingdom has a well-established semiconductor industry. The country is known for its strong technological expertise. The deployment of 5G networks in the United Kingdom has gained momentum. This has enabled high-speed connectivity and facilitated the growth of emerging technologies such as IoT and autonomous vehicles. This has resulted in a higher demand for semiconductor IP related to wireless communication and connectivity.
The United Kingdom has a strong electronics manufacturing sector. It complements the United Kingdom semiconductor intellectual property market. The growth in semiconductor IP fuels the demand for contract manufacturing services, PCB assembly, and system integration, further driving the overall electronics industry.
China semiconductor intellectual property market is witnessing a rising demand for customized solutions to cater to diverse applications. The government has implemented several policies to support the development of the semiconductor industry. China has also been investing heavily in semiconductor manufacturing facilities to reduce its reliance on imports. The country aims to establish a robust domestic semiconductor ecosystem.
China's strong presence in the electronics manufacturing industry supports the semiconductor IP market growth. The automotive industry in China is experiencing significant growth, driving the demand for advanced semiconductor solutions. With the shift toward EVs and autonomous driving technologies, semiconductor IP vendors are focusing on developing IPs specific to automotive applications.
India has a well-established software development and IT services industry. The country also boasts a large pool of skilled professionals in this field. Software solutions are integral to the development and integration of semiconductor IPs. India's strong software development ecosystem provides expertise and support services to semiconductor IP companies, leading to market growth.
The Indian government has introduced various initiatives like the National Policy on Electronics 2019 (NPE 2019) to promote the semiconductor industry and attract investments. In January 2023, the government made an announcement regarding the upcoming launch of an information technology server and IT hardware production linked incentive (PLI) scheme.
As part of this initiative, they introduced the Future Design Programme, allocating a budget of USD 200 million. This program aims to invest in startups involved in designing or co-designing intellectual property (IP), tools, or devices for the next generation of applications in India. In addition, the India semiconductor intellectual property market is closely linked to the electronic system design and manufacturing industry. The growth of this industry has a positive impact on the semiconductor IP market.
| Segment | ASIC |
|---|---|
| 2022 Value Share in Global Market | 28.3% |
| Segment | Hard IP Core |
|---|---|
| 2022 Value Share in Global Market | 63.3% |
ASICs (application-specific integrated circuits) deliver superior performance and power efficiency by focusing on specific tasks. The SIP embedded within ASICs is optimized to provide high-speed processing, low power consumption, and minimized latency. Consequently, ASICs find extensive utility in demanding domains such as high-performance computing, telecommunications, and automotive electronics.
Many industries necessitate specialized solutions. Off-the-shelf semiconductor components cannot adequately address these solutions. ASICs have the ability to cater to unique requirements. Consequently, ASICs are sought after in such industries. The demand for semiconductor intellectual property specifically designed for ASIC implementations remains strong. This demand drives the growth of the ASIC segment.
Collaboration between semiconductor IP market companies and custom ASIC providers is enabling the fabrication and testing of analog IP products. This collaboration facilitates the validation of product delivery processes for end customers. A notable example is the utilization of ASICs in smartphones for radio base-band functionality.
The hard IP core segment is anticipated to dominate the market due to the increasing demand for processors in consumer electronics goods like laptops, personal computers, and other devices. A substantial spike has been observed within the consumer electronics sector. This expansion has led to a surge in the demand for hard IP core processors.
Hard IP cores are pre-designed and pre-verified semiconductor IP blocks. They provide specific functionalities like processors, memory controllers, or interface modules. These cores are optimized for performance, power efficiency, and reliability. They are developed and manufactured by experienced IP vendors. These vendors specialize in creating high-quality and robust IP solutions. Consequently, hard IP cores offer superior performance and functionality.
The hard IP core segment has been in existence for a longer period. It has reached a higher market maturity level than other types of IP cores. Other IP core types include soft IP cores or analog/mixed-signal IP. Market maturity brings several advantages. There is a wider range of available hard IP cores. Established vendor ecosystems support the hard IP core segment.
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Intel Corporation, Arm Limited, Avery Design Systems Inc., Cadence Design Systems Inc., Cast Inc., Synopsys Inc., Rambus Inc., Ceva Inc., Imagination Technologies Limited, Nvidia Corporation, TES Electronic Solutions GmBH, Digital Media Professionals Inc., TAKUMI Corporation, VeriSilicon/Vivante, and Qualcomm Incorporated are among the key semiconductor intellectual property companies worldwide.
To expand their product portfolio and simultaneously capitalize on the growing market demand, many of these companies are adopting strategies such as mergers, acquisitions, and partnerships. The key market players shaping the Semiconductor Intellectual Property Industry are also focused on new product launches furthering their position in the market.
Some of the recent developments in the semiconductor intellectual property market are as follows:
The Semiconductor Intellectual Property Market is segmented based on type, architecture design, application, and region.
The market is expected to be valued at USD 6.83 billion in 2023.
Intel Corporation, Arm Limited, Avery Design Systems Inc., are leading market players.
The market is estimated to reach USD 13.10 billion until 2033.
Surging semiconductor demand for consumer electronics drives semiconductor intellectual property demand.
Hard IP Core is likely to remain the key segment in the market.
| Market Size (2023) | USD 58770.1 million |
|---|---|
| Market Size (2033) | USD 115609.68 million |
| Market CAGR (2023 to 2033) | 7% |
| Expected Market Value (2022) | USD 20.1 Billion |
|---|---|
| Anticipated Forecast Value (2032) | USD 26.3 Billion |
| Projected CAGR (2022 to 2032) | 5.2% |
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