The new report published by Global Industry Analysts Inc., titled Semiconductor (Silicon) Intellectual Property (SIP) – Global Market Trajectory & Analytics, predicts that the global SIP market will be nearly $7.5 Billion by 2026.
Semiconductor IPs are reusable unit of a logic, chip or cell layout designs that is leased to different vendors as the foundational component of advanced devices and chip designs in lieu of license fees. Generally used for memory drives, interconnects, processors, and peripherals, semiconductor IPs are offered as independent soft IP blocks that can be produced in line with fabrication processes, or as hard IP blocks that are dedicated to specific applications. Growth in the global market is being driven on account of the continuous expansion of end-use industries and technological advancements. Growth in the electronics industry is fueled by the increasing penetration of multicore technology in consumer electronics. The quad- or dual-core processors used in smartphones, tablets and laptops rely on semiconductor IPs for reliable performance. Increasing adoption of advanced system-on-chip designs, the popularity of IoT-powered connected devices coupled with increasing use of carbon nanotubes, graphene transistors and self-organizing molecular devices is expected to create a favorable environment for the semiconductor IP market.
Amid the COVID-19 crisis, the global market for Semiconductor (Silicon) Intellectual Property (SIP) estimated at US$5.2 Billion in the year 2020, is projected to reach a revised size of US$7.5 Billion by 2026, growing at a CAGR of 6.2% over the analysis period. Processor IP, one of the segments analyzed in the report, is projected to grow at a 5.9% CAGR to reach US$4.7 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Interface IP segment is readjusted to a revised 6.9% CAGR for the next 7-year period. This segment currently accounts for a 17.2% share of the global Semiconductor (Silicon) Intellectual Property (SIP) market.
The US Market is Estimated at $1 Billion in 2021, While China is Forecast to Reach $1.4 Billion by 2026
The Semiconductor (Silicon) Intellectual Property (SIP) market in the U.S. is estimated at US$1 Billion in the year 2021. The country currently accounts for a 17.9% share in the global market. China, the world’s second-largest economy, is forecast to reach an estimated market size of US$1.4 Billion in the year 2026 trailing a CAGR of 7.7% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 4.5% and 4.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.9% CAGR while the Rest of European market (as defined in the study) will reach US$1.3 Billion by the end of the analysis period. Asia-Pacific remains the hotspot for growth led by the well-established electronics industry in key regional markets such as Taiwan, Korea, Japan, and China. Anticipated huge long-term demand for consumer electronics such as personal computers, smartphones, laptops in developing markets such as India and China, thanks to rapid industrialization, increasing urbanization, employment opportunities, and rising spending power among huge middle-class segment will spur demand in the region.
Memory IP Segment to Reach $1.1 Billion by 2026
In the global Memory IP segment, US, Canada, Japan, China, and Europe will drive the 6.5% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$467.7 Million in the year 2020 will reach a projected size of US$741.6 Million by the close of the analysis period. China will remain among the fastest-growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$294.2 Million by the year 2026.
