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  • Global Semiconductor IP Market | 2023-2028

    Global Semiconductor IP Market | 2023-2028

    Global Semiconductor IP Market | 2023-2028
    Report code - SR1848 Delivery - 2 Weeks
    Semiconductor IP Market Size, Share, Trend, Challenges, Opportunities, Forecast, See more...

    Market Insights

    The global semiconductor IP market is estimated to grow from USD 5.58 billion in 2022 to USD 7.74 billion by 2028 at a CAGR of 5.72% during the forecast period.

    semiconductor IP Market Size

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    What is semiconductor IP?

    A semiconductor intellectual property (IP) is referred to as the reusable unit of a logic, cell, or chip layout design. It is generally developed to be leased out to various vendors as a foundational component for various chip designs & sophisticated devices. SIP is pre-verified and usually has a license fee attached to its usage. SIPs are most commonly used for processors, interconnects, peripherals, and memory drives.

    Semiconductor IP Market Report Overview

    Market Size in 2028

    USD 5.58 Billion

    Market Size in 2022

    USD 7.74 Billion

    Market Growth (2023-2028)

    CAGR of 5.72

    Base Year of Study

    2022

    Trend Period

    2017-2021

    Forecast Period

    2023-2028

    Key Players

    The following are some of the key players operating in the semiconductor IP market-

    Recent Merger & Acquisitions:

    On 14 August 2023, Intel and Synopsys formed a strategic partnership to develop intellectual property for Intel 3 and 18A process nodes, a significant move for Intel Foundry Services (IFS), a potential semiconductor foundry for advanced integrated circuits. This agreement is not exclusive, benefiting IFS as customers often require IP from multiple vendors.

    On 29 July 2023, the Centre for Development of Advanced Computing (CDAC) partnered with Arm, a global leading semiconductor IP company, to expand support under the Design Linked Incentive Scheme (DLI) and boost semiconductor market growth in India. The Arm® Flexible Access for Startups program now accepts applications from startups qualifying under MEITY's SemiconIndia future design DLI scheme.

    Market Dynamics

    The global semiconductor IP market is driven by a host of factors, some of which are noted below:

    Increasing adoption of connected devices for daily use as well as a rise in the demand for electronics from the healthcare industry amid the COVID-19 pandemic along with the surging need for teleconference instruments.

    The connected devices are connected to other networks or devices through many communication protocols, such as NFC, Wi-Fi, and Bluetooth.

    Growing demand for consumer electronics particularly in emerging markets of China and India.

    Due to the growing trend of outsourcing semiconductor design, fabless semiconductor companies are seeing a rise in demand for semiconductor IP.

    The increasing requirement for high-performance, low-power semiconductors across a wide range of applications, including smartphones, tablets, laptops, and servers.

    The rising popularity of advanced technologies such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT), necessitate the use of specialized semiconductor IP.

    semiconductor IP market Snapshot

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    Challenges:

    The high development cost of semiconductor IP is a significant challenge for the semiconductor IP sector. Creating semiconductor IP is a difficult and time-consuming process. As a result, semiconductor IP vendors may find it difficult to repay their investment in IP creation.

    Another difficulty for the semiconductor IP business is the extended development cycle for semiconductor IP. A new piece of semiconductor IP can take several years to develop. This can make it challenging for semiconductor IP sellers to keep up with the semiconductor industry's rapid pace of innovation.

    Another concern is the increased rivalry in the semiconductor IP industry. The market is crowded with semiconductor IP vendors, and competition is severe. As a result, semiconductor IP vendors may find it challenging to differentiate their products and services from those of their competitors.

    Opportunities:

    The increasing complexity of semiconductor designs is driving the increased demand for custom semiconductor IPs. As semiconductor designs get increasingly complicated, semiconductor businesses are finding it more difficult to produce all of the IP they require in-house. This creates an opportunity for semiconductor IP providers to give unique IP solutions to their customers based on their specific needs.

    A further significant prospect for the semiconductor IP market is the growing need for semiconductor IP for developing applications. As new applications emerge, such as wearables, drones, and driverless vehicles, specialized semiconductor IP is required to support these applications. Semiconductor IP providers who can create IP solutions for these upcoming applications will be well-positioned for expansion.

    The expanding trend of IP licensing is bringing new revenue streams to semiconductor IP producers. Traditionally, semiconductor IP providers sold their IP primarily through direct sales. However, IP licensing is becoming more popular as semiconductor businesses seek to license IP from third-party providers. This trend is presenting semiconductor IP vendors with new revenue prospects.

    Segment Analysis

    Revenue Trends

    The market has been classified into license, royalty & services. Under these, the royalty segment occupied the largest market share in 2022 & is expected to remain the largest market for semiconductor IP during the forecast period. Because of mass procurements of semiconductor IPs from leading electronics device manufacturers. However, the licensing category is expected to develop with the highest CAGR during the forecast period. This is primarily due to the increasing acceptance of licensed semiconductor IP goods and solutions from wireless device manufacturers. Several wireless device makers are adopting license IP solutions to produce connected communication devices.

    End-Use Trends

    The market has been classified into consumer electronics, computers and peripherals, automobiles, industrial, and others. Under these, the consumer electronics segment held a significant market share in 2022 & is expected to maintain its dominance during the forecast period. This is mainly attributed to the increasing adoption of modern system-on-chips (SOC) designs in consumer electronics such as smartphones, tablets, laptops, etc., thereby boosting segment growth.

    IP Trends

    The market has been classified into Processor IP, Wired and Wireless Interface IP, and Others. Under these, the processor IP sector is expected to have the greatest market share since it is widely employed in the production of consumer electronics such as smartphones, CPUs, laptops, and others. Additionally, the market is divided into design IP segments such as interface IP, processor IP, memory IP, and others (verification IP, graphics IP). The expanding global sales of various smart and IoT devices support the expansion of the processor IP market. 

    Regional Analysis

    The Asia Pacific semiconductor IP market held the highest market share in 2022 and is projected to grow at a healthy CAGR in the coming years. This is majorly ascribed to the presence of domestic players, strong presence of semiconductor and consumer electronics manufacturers, growing use of smart devices, surging, and robust demand for smart wearables, laptops, and smartphones, etc., further bolsters the regional market growth during the review period.

    Segmentation

    This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

    The semiconductor IP marketis segmented into the following categories. 

    By Revenue Type

    • License
    • Royalty
    • Services

    By IP Type

    • Processor IP
    • Wired
    • Wireless Interface IP

    By End-Use Type

    • Consumer Electronics
    • Computers and Peripherals
    • Automobile
    • Industrial

    By Region

    • North America (Country Analysis: The USA, Canada, and Mexico)
    • Europe (Country Analysis: Germany, France, The UK, Russia and Rest of Europe)
    • Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and Rest of Asia-Pacific
    • Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

    Semiconductor IP Market Segmentation

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    Report Features

    This report provides semiconductor IP market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market

    What Deliverables Will You Get in this Report?

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth Analysis of the global semiconductor IP market

    How lucrative is the future?

    The market forecast and trend data and emerging trends

    Which regions offer the best sales opportunities?

    Global, regional, and country-level historical data and forecasts

    Which are the most attractive market segments?

    Market segment analysis and Forecast

    Which are the top players and their market positioning?

    Competitive landscape analysis, Market share analysis

    How complex is the business environment?

    Porter’s five forces analysis, PEST analysis, Life cycle analysis

    What are the factors affecting the market?

    Drivers & challenges

    Will I get the information on my specific requirement?

    10% free customization

    Target Audience

    The target audience of the semiconductor IP market includes-

    • Companies
    • Distributors
    • Consumer electronics companies
    • Government organizations

    COVID-19 Impact Analysis

    The COVID-19 pandemic has moderately affected the semiconductor IP sector. The pandemic has caused the semiconductor companies to mobilize quickly and make both long-term and short-term adjustments in their business models in the sales & distribution capabilities of their product offerings are concerned. Supply disruptions as well as shifts in consumer spending affected the market growth.

    Research Methodology

    This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data. We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

    Customization Option

    Stratview Research offers one of the following free customization options to our respectable clients:

    Company Profiling

    • Detailed profiling of additional market players (up to three players)
    • SWOT analysis of key players (up to three players)

    Competitive Benchmarking

    Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

    Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

    Recent Development

    On 5 September, 2023 UK startup Agile Analog joined the TSMC IP Alliance Program, offering its complete range of IP to customers. The deal, which uses its in-house tool Composa, enables custom analog and power IP for data conversion, power management, security, and IC monitoring.

    On 23 August 2023, Nordic Semiconductor plans to acquire Atlazo, a US-based AI hardware IP and expertise company, for its ability to enhance AI acceleration in its IoT SoC portfolio.

    Frequently Asked Questions (FAQs)

    A semiconductor intellectual property (IP) is referred to as the reusable unit of a logic, cell, or chip layout design. It is generally developed to be leased out to various vendors as a foundational component for various chip designs & sophisticated devices. SIP is pre-verified and usually has a license fee attached to its usage. SIPs are most commonly used for processors, interconnects, peripherals, and memory drives.

    The market was valued to grow from USD 5.58 billion in 2022 to USD 7.74 billion by 2028.

    The market is projected to grow at a CAGR of 5.58% during the forecast period.

    The study period of this market report is 2017-2028.

    The key players operating in the market are Faraday Technology Corporation (Taiwan), Fujitsu Ltd (Japan), Mindtree Limited (India), ARM Ltd (SoftBank) (UK), Synopsys Inc. (US), Cadence Design Systems Inc. (US), CEVA Inc. (US), Andes Technology Corporation (Taiwan), MediaTek Inc. (Taiwan), and Digital Media Professionals (Japan).

    The target audience of the market includes Semiconductor IP companies, Semiconductor IP distributors, Consumer electronics companies, Government organizations.

    Asia Pacific market held the highest market share in 2022 and is projected to grow at a healthy CAGR in the coming years.

    Increasing adoption of connected devices for daily use as well as rise in the demand for electronics from the healthcare industry amid the COVID-19 pandemic along with surging need for teleconference instruments are likely to boost the market growth.