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The semiconductor intellectual property (IP) market is expected to be valued at $6.22 billion by 2023, at a CAGR of 4.87% between 2017 and 2023, according to a new report by MarketsandMarkets. The major factors driving this market include the advancement in multicore technology for consumer electronics sector, increasing demand for modern SoC designs leading to market growth, and growing demand for connected devices.
The increase in the use of consumer electronics in all the regions is boosting the growth of the semiconductor IP market for the consumer electronics vertical. Moreover, the markets for consumer electronics in Asia-Pacific (APAC) and RoW are expected to provide further growth opportunities for the market players as these regions are in a growing phase. In addition, APAC holds dominant share in the market for consumer electronics.
Owing to the increased demand for microprocessor, microcontroller, digital signal processor, and graphics processing unit across various verticals, the processor IP segment held the largest share of the semiconductor IP market in 2016, and it is expected to continue the same during the forecast period. The growth of the segment during the forecast period is attributed to the increasing application of processors in the telecom industry for 5G and in high-end cars. The market for processor IP for the automotive vertical is expected to grow at the highest CAGR between 2017 and 2023 due to increasing use of processors in advanced driver assistance systems (ADAS) and infotainment systems.
Asia Pacific Market
APAC held the largest share of the market in 2016 and is likely to dominate the semiconductor IP market with the largest market share during the forecast period as well. APAC is a major market for the consumer electronics, telecom, and automotive verticals. Also, this region has become a global focal point for large investments and business expansion opportunities. Moreover, the developments in electric vehicles are expected to provide an opportunity to the growth of the semiconductor IP market in China.