Global IC Design Service Market is Expected to Reach USD 56,071.9 Million by 2031

According to a recent market study published by Growth Market Reports, titled, “Global IC Design Service Market by Type, Service Type, Enterprise, Application, End-use Industry and Region: Size, Share, Trends and Opportunity Analysis, 2016-2031”, the market was valued at USD 18,495.2 Million in 2022 and is expected to grow at a moderate growth rate of 13.3% during the forecast period 2023-2031.

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As per Growth Market Reports industry analyst Akash Vedpathak, “Global IC Design Service Market” is anticipated to witness significant growth during the forecast period 2023-2031.

The IC Design services enable the development of advanced technologies that cater to the increasing demand for high-performance, low-power, and miniaturized electronic devices. ICs are considered as brain of modern electronics that powers everything from smartphone and computers to cars and medical devices. IC design services are essential for various industries such as telecommunications, automotive, aerospace, consumer electronics, medical devices, Internet of Things (IoT), and data processing. The increasing demand for more sophisticated and miniaturized IC designs is boosting the IC design service market by creating more demand for specialized and customized solutions for various applications and industries. The proliferation of 6G technology is projected to create numerous opportunities for the IC design service market.

Key factors that are anticipated to fuel the demand for the global IC design service market during the forecast period are rising adoption of sophisticated and miniaturized IC designs and AI and ML integration for error detection in IC designs. Conversely, high investment requirements hamper the market growth of the IC Design Service market. Proliferation of 6G Technology creates opportunities for future market growth.

Value chain management is an essential part of any business. The value chain analysis is a powerful strategic tool that enables businesses to dissect the various activities involved in delivering a product or service to customers. IC design service refers to the process of designing and developing integrated circuits (ICs), which are the building blocks of electronic devices. IC design service is provided by companies that specialize in developing and manufacturing ICs for electrical devices. These companies work closely with clients to understand and implement their requirements into functional and optimal IC designs. The IC design flow includes several steps in which the high-level requirements of projects are broken down into small ones. This helps to achieve the goal of developing a circuit on a silicon wafer to execute the intended function. It includes steps such as architectural design, logic design, physical design, physical verification, and signoff.

The primary, as well as secondary research methodology, is used for keen observation and study about the IC Design Service market. The primary research methodology involves commercial agreements made with the primary respondents as well as consulting partners to extract critical information pertaining to the syndicated as well as consulting projects. Primary interviews conducted with the stakeholders across industry verticals on regular intervals in line with the ongoing studies and to keep ourselves abreast with the latest market trends & developments. Validation of the estimated market size, current and future trends done from the key opinion leaders (KOLs). These KOLs are the CXO level people from leading companies in the industry and possess the experience of around 10-20 years in the industry. On the other-hand the secondary research methodology involves exhaustive desk research undertaken to understand the prevailing market trends & dynamics, market competition, customer insights and other KPIs. Company websites, their SEC filings, annual reports, broker & financial reports and investor presentations are scanned for understanding the competitive scenario, details and developments, and the overall competitive landscape. Regional government and statistical databases analyzed for macro & micro analysis. Research publications and paid data are referred to obtain and validate the market estimations, budget, expenditure, and other statistical insights.

The COVID-19 pandemic has significantly impacted the IC Design Service market. The fabless operations of IC design resulted in less demand for direct labor when compared to foundries and OSAT firms. Thus, the IC design industry was not as severely affected by the pandemic as the semiconductor industry. Furthermore, EDA companies and foundries expanded their cloud-based design and verification environments. IC designers were able to overcome the operational and output shortcomings associated with having their personnel work remotely through these cloud-based platforms.

Key Takeaways from the Study:

• In terms of type, the IC Design Service market is segmented into analog IC, digital IC, and mixed IC. The digital IC segment held significant share of the market in 2022 and is projected to expand at a significant CAGR during the forecast period. The growth of digital ICs is driven by the rising complexity and miniaturization of IC designs, which require increasingly sophisticated and efficient digital circuitry for high performance and functionality.

• Based on service type, the IC design service market is segmented into circuit design, layout design, package design and others. The Circuit Design segment held significant market share in 2022, owing to rising demand for high-performance and low-power digital circuit design, as well as increased use of automation tools and software. Also, Emerging technologies such as nanotechnology, quantum computing, and neuromorphic computing are expected to revolutionize the Circuit design process.

• Based on enterprise size, the IC design service market is segmented into small & medium enterprise and large enterprise. The large enterprise segment held significant share of the market in 2022 and is projected to expand at a significant CAGR during the forecast period, owing to the rising demand of IC design services in large enterprises. IC design services help the organization to stay forefront in technological advancements and maintain a competitive edge in the market.

• On the basis of application, the IC design service market is segmented into micro components (MCU/MPU), FPGAs, memories, analog, optical sensor, non-optical sensors, digital ASICs, and others. The memories segment held significant share of the market in 2022 and is projected to expand at a significant CAGR during the forecast period. IC design services provide a flexible, efficient, and cost-effective approach to memory application development, enabling the creation of complex and reliable memory-based products for various applications.

• Based on End-Use industry, the IC design service market is segmented into Communication, Consumer Electronics, Automotive, Computing, and Industrial. The communication segment held significant share of the market in 2022 and is projected to expand at a significant CAGR during the forecast period, owing to the increasing demand for wireless communication devices such as mobile phones, satellites, and Wi-Fi, among others. Furthermore, increasing rise of 5G networks, combined with the impending arrival of 6G, is boosting demand for integrated circuits(ICs) capable of handling higher bandwidth, lower latency, and increasing complexity, which is contributing to the growth of the communication segment.

• On the basis of region, the global IC design service market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Asia Pacific accounted for significant global market share in 2022. The market in Asia Pacific is projected to expand at a significant CAGR during the forecast period, due to the rapid development and integration of advanced technologies in the region. The market is supported by the presence of major semiconductor companies, particularly within China, South Korea, Japan, and Taiwan. The region is expected to continue leading the global IC design service market, driven by the growing demand from the consumer electronics, automotive, and telecommunication sectors.

Report Scope:

Target Audience:

• Supply-side: Integrated Circuits Manufacturers, IC design service providers

• Demand Side: Consumer Electronics, Automotive, Industrial and other industries.