Technology CAD Software Market Size, Share & Trends Analysis Report By Application (CMOS, Image Sensors, Solar Cells, Analog/RF Devices), By Region, And Segment Forecasts, 2023 - 2030

Technology CAD Software Market Trends

The global technology CAD software market size was valued at USD 9.68 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 8.3% from 2023 to 2030. Technology Computer-Aided Design (TCAD) is a simulation software for designing and optimizing semiconductor processing technologies and devices. This software has two major functions: device simulation and process simulation. The software performs these functions by capturing the description of the transistor layout, device behavior, and fabrication process for making silicon. Technology computer-aided design improves wafer yield by using model-based simulation. It is used by semiconductor or Integrated Circuit (IC) manufacturers to reduce time consumed in testing wafer runs while developing a new device. Technology computer-aided design optimizes process modules and reduces the development of experimental cycles.

TCAD software also increases yield and robustness and captures and analyzes process variation's impact on device performance. Such factors are anticipated to fuel market growth for computer-aided design software over the forecast period. Technological advancements and the growing adoption of advanced electronic components are evident in the healthcare industry.

For instance, the advent of smart healthcare systems, such as Implantable and Wearable Medical Devices (IWMD), and the emergence of transformative technologies, have positively impacted market growth. Furthermore, increasing usage of digital equipment, such as computer-controlled medical equipment, is expected to encourage manufacturers to adopt TCAD software for designing the necessary MCMs and PCBs.

There has been a significant increase in consumer and wireless electronic product sales in recent years. The increasing demand for electronic products has augmented the need for chips and systems with benefits such as reduced size, improved functionality & performance, and lower power consumption. The design process for these chips and systems is extremely complex and requires state-of-the-art design solutions. It is expected to drive the market for computer-aided design software over the forecast period.

The rising adoption of technology, including computer-aided design software, for designing electronic systems in augmented reality, machine learning, the Internet of Things, VR, aerospace and defense, and autonomous vehicle subsystems, is expected to drive market growth. Hardware designers adopt novel manufacturing methods and products, such as multiple-patterning lithography and FinFET transistors, to design chips effectively.

Key customers, such as hardware designers, prefer technologies such as computer-aided design software that ensure faster time-to-market, mitigate risks, achieve the highest quality of results, and maximize profitability. Technology computer-aided design software providers invest in M&As, technological advancements, and better solution offerings to withstand competition. Furthermore, several TCAD software providers aim to expand their presence in Asia, as electronics manufacturing activities have increased.

Furthermore, the trend toward miniaturization of chips and other systems has allowed manufacturers to use electronic components in diverse applications, such as smart fitness products and surgical devices. The rising awareness and acceptance of smart fitness devices encourage electronic design companies to invest in innovative design software tools for designing enhanced and compact products, propelling market growth for technology-aided design software over the forecast period.

Application Insights

The solar cells segment dominated the market with a majority revenue share of 31.5% in 2022. This demand is attributable to the rising usage of solar cells in electric vehicles, electricity generation, and solar-powered vehicles. Furthermore, the rising demand for renewable energy sources owing to their environmental benefits has significantly fueled the demand for solar cells, creating growth opportunities for the segment.

The image sensors segment is expected to expand at the fastest CAGR of 9.8% during the forecast period in the technology CAD software market. Image sensors are widely used in applications such as smartphones, digital cameras, autonomous vehicles, medical imaging devices, and surveillance systems. As these industries continue to expand, the demand for image sensors and the need for advanced TCAD software to design and optimize these sensors also increase.

The CMOS segment is expected to grow at a significant rate over the forecast period. CMOS stands for complementary metal-oxide semiconductor and is widely used in microprocessors, microcontrollers, and digital cameras. Growing usage of microprocessors and controllers in smartcard applications, automated controls, sensing applications, and other smart devices, coupled with the changing dynamics of processors in terms of size and processing power, is expected to propel the demand for microprocessors and microcontrollers, resulting in segment growth.

Regional Insights

North America accounted for the largest market revenue share of 40.1% in 2022. The growth of the TCAD software market in the region can be attributed to several factors, including the presence of numerous technology computer-aided design software providers and semiconductor manufacturing companies. Furthermore, the increasing deployment of automated, connected, and smart vehicles and the ongoing rollout of the infrastructure necessary to establish connectivity with these vehicles are expected to drive regional market growth.

On the other hand, Asia Pacific is projected to demonstrate growth at the fastest rate of 10.9% over the forecast period. The adoption of technology computer-aided design software in the region is anticipated to rise due to the expanding presence of electronics manufacturing companies, particularly in China. With its abundant, low-cost labor and readily available raw materials, China accounted for over 30.0% of the global production output, contributing to the region's growth.

Key Companies & Market Share Insights

The market for technology computer-aided design software is consolidated and characterized by intense competitive rivalry. In addition, the market has witnessed various inorganic growth strategies such as acquisitions and mergers, partnerships, and collaborations adopted by companies in recent years.

For instance, in March 2020, Silvaco, Inc., in partnership with the American-Dutch semiconductor manufacturer NXP Semiconductors N.V., announced that the companies would create a next-gen MIPI I3C semiconductor intellectual property. Under this collaboration, Silvaco will make available to its clients directly a new set of state-of-the-art MIPI V1.1 specification-compliant intellectual property cores.

Market players also focus on expanding their businesses by launching various partnership programs. For instance, in June 2020, Synopsys, Inc. announced its academic partnership extension by entering into a contract for licensing new digital synthesis technologies from EPFL, the Lausanne-based Swiss Federal Institute of Technology. The company developed a digital circuit design flow for Superconducting Electronics (SCE) in collaboration with the Yokohama National University and the University of Rochester.

This work has been done under the Intelligence Advanced Research Projects Activity’s (IARPA) SuperTools project. The study focuses on developing a superconducting electronics circuit design, by creating a wide-ranging set of EDA and TCAD tools, for enabling the design and analysis of SCE circuits with Very-Large-Scale Integration (VLSI).

Recent Developments

• In June 2023, Silvaco Group, Inc., a provider of TCAD software and design IP, announced that SK Powertech had chosen its Victory TCAD solution for power devices. The objective is to expedite the R&D of SK Powertech's next-generation SiC power devices. By utilizing Silvaco's Victory TCAD solution, SK Powertech anticipates notable progress in its power management technology

• In April 2022, Synopsys, Inc. announced a definitive agreement to acquire WhiteHat Security, a reputable Software-as-a-Service (SaaS) application security solutions provider. This strategic acquisition will enhance Synopsys' SaaS capabilities and bolster its dynamic application security testing (DAST) technology, solidifying its position as a leader in the application security testing market

• In May 2022, Nanoacademic Technologies Inc., a software company based in Montreal, launched QTCAD, an advanced spin-qubit modeling tool for the quantum academic community. QTCAD utilizes finite-element method (FEM) simulation to accurately forecast the performance of solid-state spin-qubit devices operating at sub-Kelvin temperatures. By enabling the pre-production evaluation of these devices, QTCAD is a valuable cost-saving solution, allowing for extensive exploration of different semiconductor design scenarios

Technology CAD Software Market Report Scope

Global Technology CAD Software Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global technology CAD software market report on the basis of application and region:

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • CMOS

  • Image Sensors

  • Solar Cells

  • Analog/RF Devices

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • Saudi Arabia

    • South Africa

    • UAE