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Semiconductor Intellectual Property (IP) Market worth $7.2 billion by 2026 - Exclusive Report by MarketsandMarkets™
[January 28, 2022]

Semiconductor Intellectual Property (IP) Market worth $7.2 billion by 2026 - Exclusive Report by MarketsandMarkets™

CHICAGO, Jan. 28, 2022 /PRNewswire/ -- According to the report "Semiconductor Intellectual Property (IP) Market with COVID-19 Impact Analysis by Design IP (Processor IP, Memory IP, Interface IP, Other IPs), IP Source (Royalty, Licensing), IP Core (Hard IP, Soft IP), Vertical, and Geography - Global Forecast to 2026", published by MarketsandMarkets™, the global market is expected to grow from USD 5.5 billion in 2021 to USD 7.2 billion by 2026, at a CAGR of 5.4%. Increasing the advancements for multicore technology across various sectors as well as rising demand for modern SoC (system on chip) designs for different applications are the primary factors driving the market growth. Moreover, growing adoption of semiconductor IPs in consumer electronics, telecommunications & data center as well as automotive verticals will drive the demand for this technology in the near future.

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The market has slightly declined in 2020, mainly due to the impact of COVID-19. The supply chains was disrupted in March and April 2020 due to the lockdown imposed by various governments and labor shortages in these industries due to travel restrictions, that affected the semiconductor IP market. Though the market is impacted in 2020, it is expected to fully recover by 2021.

Processor IP is estimated to contribute largest market share in the said market during the forecast period

The processor IP segment is expected to hold a major share of the semiconductor IP market during the forecast period. 5G technology is making massive increments in speed, bandwidth, and data throughput for automobile and mobile applications by introducing carrier aggregation and increased throughput with advanced modulation via mmWave spectrums. Such advancements have increased the complexity of infrastructures, basebands, and application processor technologies. To address this issue, new innovative processor IPs are required. All these factors are expected to fuel the demand for processor IPs during the forecast period.

Automotive vertical is estimated to be the fastest-growing market during the forecast period

The semiconductor IP market for the automotive verticals is expected to grow at the highest CAGR during the forecast period due to the increasing applications of microprocessor units (MPUs), microcontroller units (MCUs), sensors, analog intgrated circuits (ICs), interfaces, and memory in autonomous and premium cars. The introduction of technologies such as advanced driver assistance systems (ADAS), adaptive cruise control, and intelligent parking assistance systems are expected to further boost the market growth. Furthermore, the market growth can also be attributed to the increased demand for vehicle connectivity and the growing significance of connected cars.

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Asia Pacific is expected to grow at the highest rate

The market in APAC is expected to grow at the highest rate during 2021–2026. The global market players are experiencing increased demand for semiconductors such as cores and processors from countries such as China, Japan, Taiwan and South Korea. Major players in the chip industry in APAC include Intel (US), Qualcomm (US), Advanced Micro Devices, Inc. (US), and Texas Instruments (US). The consumer electronics vertical would continue to dominate the market in APAC. Increasing demand for consumer electronics, especially smartphones, is expected to drive the growth of the semiconductor IP market in APAC. China is expected to hold the largest market share in APAC by 2026.

Major players in the semiconductor IP market include Arm Holdings Ltd (UK), Synopsys Inc(US),  Cadence Design Systems, Inc (US) Imagination Technologies Ltd (UK), CEVA Inc (US),Lattice Semiconductor Corporation (US), Rambus Inc(US), eMemory Technology, Inc (Taiwan), Silicon Storage Technology, Inc (US) and VeriSilicon Microelectronics Co., Ltd. (China) among others.

Related Reports:

Compound Semiconductor Market with COVID-19 Impact Analysis by Type (GaN, GaAs, SiC, InP), Product (LED, RF Devices, Power Electronics), Application (Telecommunication, General Lighting, Automotive, Power Supply), and Geography - Global Forecast to 2025

Microcontrollers, DSP, & IP Core Chip Market by Type, Applications (Automotive & Transportation, Consumer Electronics, Industrial, Communications, Security, and Medical & Healthcare) and Geography (Americas, Europe, APAC & ROW) - Analysis & Forecast to 2014 – 2020

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