Semiconductor Intellectual Property Market
The market for Semiconductor Intellectual Property was estimated at $6.9 billion in 2023; it is anticipated to increase to $12.5 billion by 2030, with projections indicating growth to around $19.2 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global Semiconductor Intellectual Property Market Outlook
Revenue, 2023
$6.9B
Forecast, 2033
$16.2B
CAGR, 2024 - 2033
8.9%
The Semiconductor Intellectual Property industry revenue is expected to be around $8.2 billion in 2024 and expected to showcase growth with 8.9% CAGR between 2024 and 2033. The field of Semiconductor Intellectual Property (IP) pertains to the licensing and utilization of design elements in the manufacturing of semiconductors to facilitate quicker and cost efficient creation of cutting edge chips. In the year 2023, the semiconductor IP market was valued at around USD 6.9 billion with estimations foresee a rise to USD 12.5 billion by 2030 and potentially escalating further to about USD 19.2 billion by the year 2035, growing at a growth rate of approximately 8.9% CAGR.This surge is fueled by the need for bespoke high performance semiconductor layouts in industries such, as consumer electronics, automotive and telecommunications.
Using preexisting and validated intellectual property blocks speeds up the creation of chips in the semiconductor industry while lowering potential risks and expenses involved in the process. These IP blocks are extensively utilized in sectors that demand sophisticated and high speed chips such as System on Chips (SoCs), Application Specific Integrated Circuits (ASIC) and Field Programmable Gate Arrays (FPGAs) enhancing adaptability and productivity, in semiconductor advancement.
Market Key Insights
- The Semiconductor Intellectual Property market is projected to grow from $6.9 billion in 2023 to $16.2 billion in 2033. This represents a CAGR of 8.9%, reflecting rising demand across Consumer Electronics, Automotive and Telecommunications.
- Arm, Synopsys, Cadence Design Systems are among the leading players in this market, shaping its competitive landscape.
- U.S. and China are the top markets within the Semiconductor Intellectual Property market and are expected to observe the growth CAGR of 6.5% to 9.3% between 2023 and 2030.
- Emerging markets including India, Brazil and UK are expected to observe highest growth with CAGR ranging between 8.5% to 11.1%.
- Transition like Shift Towards Processor IP for AI Applications is expected to add $509 million to the Semiconductor Intellectual Property market growth by 2030.
- The Semiconductor Intellectual Property market is set to add $9.3 billion between 2023 and 2033, with service providers targeting Interface IP & Memory IP Type projected to gain a larger market share.
- With Rising demand for customizable ip solutions, and Growing adoption of iot and 5g networks, Semiconductor Intellectual Property market to expand 135% between 2023 and 2033.
Opportunities in the Semiconductor Intellectual Property
Cutting edge tools for verifying IP simplify the process of integration by lowering expenses and enhancing compatibility, across applications.
Growth Opportunities in North America and Asia-Pacific
North America leads the way in semiconductor intellectual property (IP), thanks to the strong demand in data centers as well as telecommunications and automotive sectors. The region boasts players such as Arm and Marvell who play a significant role in this industry.
In the Asia Pacific region, semiconductor intellectual property (IP) is being adopted quickly in China and South Korea driven by consumer electronics and telecommunications industries. Notable companies such as Synopsys and VerSilicon are active, in this region.
Market Dynamics and Supply Chain
01
Driver: Rising Demand for Customizable IP Solutions, and Increased Investment in AI-Driven Chip Design
Customizable intellectual property cores provide adaptability in chip design to cater to the requirements of sectors such as automotive and consumer electronics. The incorporation of AI technology into semiconductor intellectual property facilitates computing capabilities in industries such as data centers and telecommunications industry; leading to an increased need.
Creating semiconductor Intellectual Property (IP) plays a role in the advancement of Internet of Things (IoT) and 5th generation (5G) applications, by facilitating rapid processing and seamless connectivity.
02
Restraint: High Licensing Costs, and IP Security Concerns
Licensing costs for semiconductor IP can be significant and may restrict access, for smaller businesses.
Challenges arise in licensing property in the semiconductor sector due to the risks linked with theft and security breaches.
03
Opportunity: Emerging Markets for Semiconductor IP and Development of IP Solutions for AI and ML Applications
The increasing use of advanced technology in developing countries leads to the need for semiconductor intellectual property in various industries such as consumer electronics and telecommunications.
Using IP for AI and machine learning applications improves processing abilities. Creates new market potentials, in data centers and self operating systems.
04
Challenge: Complexity in IP Integration
Incorporating IP cores, into tailored designs can be quite intricate as it demands expertise and tools to guarantee smooth integration and optimal functionality.
Supply Chain Landscape
1
Processor & Memory IP Provider
ArmSynopsys
2
Design House
CadenceeSilicon
3
Chip Manufacturer
BroadcomAMD[Integrates IP cores into final chip designs]
4
End-User
Consumer ElectronicsAutomotiveTelecommunications[Apple, Samsung, Cisco]
1
Processor & Memory IP Provider
ArmSynopsys
2
Design House
CadenceeSilicon
3
Chip Manufacturer
BroadcomAMD[Integrates IP cores into final chip designs]
4
End-User
Consumer ElectronicsAutomotiveTelecommunications[Apple, Samsung, Cisco]
Use Cases of Semiconductor Intellectual Property in Consumer Electronics & Automotive
Consumer Electronics : Semiconductor intellectual property (IP) plays a role in expediting and making the chip design process more efficient for electronic devices commonly used by consumers such as smartphones and tablets. It boosts the performance of these products significantly. Companies such as Arm and Cadence Design Systems are at the forefront of providing IP solutions tailored for consumer electronics.
Automotive : The growing need for in car technology and connectivity has led to a rise in semiconductor property that aids in the development of advanced driver assistance systems (ADAS) and entertainment features for automobiles. Synopsys and CEVA are known suppliers, in the automotive industry.
Telecommunications : In the field of telecommunications and technology development of 5th generation networks (5G) and data centers greatly benefits from semiconductor property (IP), which plays a vital role in improving connectivity and bandwidth capabilities for various applications in the industry. Focused companies like Broadcom and Rambus are actively involved in providing IP solutions tailored to meet the needs of telecom sectors.
Data Centers : Semiconductor intellectual property (IP) is utilized in data centers to enhance the efficiency of processing and storage functions in processors and networking equipment. Marvell and Xilinx are at the forefront of providing IP solutions tailored for data centers.
Recent Developments
Advances in semiconductor IP technology are focusing on processor IP for intelligence and high speed interface IP for 5th generation cellular networks (5G). Arm provides processor IP tailored for AI tasks and Synopsys offers interface IP to meet the connectivity requirements of 5G networks while Cadences memory IP solution improves data processing, in the telecommunications sector.
October 2024 : Arm introduced a processor design tailored for artificial intelligence and machine learning tasks intended for use, in data centers and autonomous technologies.
July 2024 : Synopsys broadened its range of Interface IP offerings to accommodate 5G connectivity solutions.
May 2024 : Cadence unveiled a memory intellectual property solution designed for data processing, in the telecommunications industry.
Impact of Industry Transitions on the Semiconductor Intellectual Property Market
As a core segment of the Semiconductor industry,
the Semiconductor Intellectual Property market develops in line with broader industry shifts.
Over recent years, transitions such as Shift Towards Processor IP for AI Applications and Increased Focus on High-Speed Interface IP for 5G have redefined priorities
across the Semiconductor sector,
influencing how the Semiconductor Intellectual Property market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Shift Towards Processor IP for AI Applications
The use of specialized processor IP for AI tasks is becoming increasingly popular as it offers powerful solutions, for data centers and autonomous systems.
02
Increased Focus on High-Speed Interface IP for 5G
In 5G and Internet of Things (Iot) applications, having the right interface IP is crucial for fast data transmission to ensure smooth connectivity and efficient processing.