Electronic System Design Industry Posts $4.7 Billion in Revenue in Q2 2024, ESD Alliance Reports

MILPITAS, Calif. — October 7, 2024 — Electronic System Design (ESD) industry revenue increased 18.2% to $4,685.5 million in the second quarter of 2024 from the $3,962.7 million registered in the second quarter of 2023, the ESD Alliance, a SEMI Technology Community, announced today in its latest Electronic Design Market Data (EDMD) report. The four-quarter moving average, which compares the most recent four quarters to the prior four, rose 18%.

“The electronic design automation (EDA) industry reported substantial revenue growth in Q2 2024,” said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. “All product categories reported increases, with IC Physical and Semiconductor IP and Services posting double-digit growth. Further, all geographic regions reported double-digit growth.”

The companies tracked in the EDMD report employed 63,188 people globally in Q2 2024, a 6.8% jump over the Q2 2023 headcount of 59,160 and up 2.5% compared to Q1 2024.

The quarterly EDMD report contains detailed revenue information with the following category and geographic breakdowns.

Revenue by Product and Application Category – Q2 2024 Year-Over-Year Change

• Computer-Aided Engineering (CAE) revenue increased 8.9% to $1,646.4 million in Q2 2024. The four-quarter CAE moving average increased 16%.
• IC Physical Design and Verification revenue grew 13.1% to $779.3 million. The four-quarter moving average for the category increased 17.1%.
• Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue rose 8.2% to $399.2 million. The four-quarter moving average for PCB and MCM rose 13.6%.
• Semiconductor Intellectual Property (SIP) revenue jumped 33.9% to $1,680.7 million. The four-quarter SIP moving average rose 21.7%.
• Services revenue rose 30.8% to $179.8 million. The four-quarter Services moving average rose 18.4%.

Revenue by Region – Q2 2024 Year-Over-Year Change

• The Americas, the largest reporting region by revenue, procured $2,034.9 million of electronic system design products and services in Q2 2024, a 25% increase. The four-quarter moving average for the Americas rose 18.3%.
• Europe, Middle East, and Africa (EMEA) procured $584.6 million of electronic system design products and services, a 14.8% increase. The four-quarter moving average for EMEA grew 16.3%.
• Japan’s procurement of electronic system design products and services grew 26.4% to $305.4 million. The four-quarter moving average for Japan increased 16.5%.
• Asia Pacific (APAC) procured $1760.6 million of electronic system design products and services, an 11.2% increase. The four-quarter moving average for APAC grew 18.5%.

About the EDMD Report

The ESD Alliance Electronic Design Market Data report presents Electronic Design Automation (EDA), SIP and Services industry revenue data quarterly. Both public and private companies contribute data to the report available from SEMI. Each quarterly report is published approximately three months after quarter close. EDMD report data is segmented as follows:

• Revenue by product category (CAE, IC Physical Design and Verification, SIP, PCB/MCM Layout, and Services) including numerous detailed sub-categories
• Revenue by geographic region (Americas, EMEA, Japan and APAC)

• Total employment at participating companies

For information about SEMI market research reports, visit the SEMI Market Research Reports and Databases Catalog.

About the Electronic System Design Alliance

The Electronic System Design (ESD) Alliance, a SEMI Technology Community, is the central voice to communicate and promote the value of the semiconductor design ecosystem as a vital component of the global electronics industry. As an international association of companies providing goods and services throughout the semiconductor design ecosystem, it is a forum to address technical, marketing, economic and legislative issues affecting the entire industry. For more information about the ESD Alliance, visit http://esd-alliance.org.

About SEMI

SEMI^® is the global industry association connecting over 3,000 member companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON^® expositions and events, technology communities, standards and market intelligence help advance our members’ business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit www.semi.org to learn more.