Electronic Design Automation for PCB and MCM Strategic Insights: Analysis 2025 and Forecasts 2033

Key Insights

The Electronic Design Automation (EDA) market for Printed Circuit Boards (PCBs) and Multi-Chip Modules (MCMs) is experiencing robust growth, driven by the increasing complexity of electronic devices and the demand for faster time-to-market. The market, estimated at $15 billion in 2025, is projected to witness a Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033, reaching approximately $25 billion by 2033. This growth is fueled by several key factors: the proliferation of smart devices and IoT applications demanding sophisticated PCBs and MCMs, advancements in 5G and high-speed communication technologies requiring advanced EDA tools, and the increasing adoption of automation in the design process to improve efficiency and reduce errors. Key market segments include feature design, verification, physical design, and applications spanning computers, mobile devices, satellites, and other specialized sectors. Leading players like Synopsys, Cadence Design Systems, and Mentor Graphics are consolidating their positions through innovation and strategic acquisitions, while smaller players are focusing on niche applications and specialized solutions.

The geographical distribution of the market shows strong presence in North America and Europe, driven by established manufacturing bases and technological advancements. However, the Asia-Pacific region is witnessing significant growth, primarily due to the rising electronics manufacturing in China, India, and other Southeast Asian countries. While the market enjoys several opportunities, it also faces challenges such as the high cost of EDA software, the need for skilled professionals, and the complexities associated with integrating advanced technologies into the design process. Nevertheless, continued investment in R&D, the rise of cloud-based EDA solutions, and the increasing adoption of artificial intelligence (AI) and machine learning (ML) in EDA tools are expected to propel the market’s growth trajectory in the coming years.

Electronic Design Automation for PCB and MCM Trends

The Electronic Design Automation (EDA) market for Printed Circuit Boards (PCBs) and Multi-Chip Modules (MCMs) is experiencing robust growth, projected to reach multi-billion dollar valuations by 2033. Driven by increasing complexity in electronic devices and the demand for faster design cycles, the EDA software market is evolving rapidly. The historical period (2019-2024) witnessed significant adoption of advanced EDA tools, particularly in the areas of verification and physical design. The estimated market value in 2025 is expected to be in the several hundred million dollar range. This growth is fueled by the miniaturization of electronic components, the rise of high-speed digital designs, and the increasing use of sophisticated simulation and analysis techniques. Key market insights reveal a strong preference for integrated EDA solutions that streamline the entire design flow, from initial concept to final manufacturing. The forecast period (2025-2033) anticipates continued expansion, driven by technological advancements such as AI-powered design automation and the increasing adoption of cloud-based EDA platforms. This shift towards cloud-based solutions offers significant advantages in terms of scalability, accessibility, and collaboration, fostering further market expansion. The industry is witnessing a consolidation trend, with major players investing heavily in research and development to maintain their competitive edge. The competition is intense, however, with the emergence of innovative startups offering specialized EDA tools. This report provides a comprehensive overview of the market, including detailed analysis of market segments, driving forces, challenges, and key players.

Driving Forces: What's Propelling the Electronic Design Automation for PCB and MCM

Several factors are propelling the growth of the Electronic Design Automation market for PCBs and MCMs. The ever-increasing complexity of electronic systems, particularly in high-performance computing, mobile devices, and automotive electronics, necessitates sophisticated EDA tools for efficient design and verification. The demand for smaller, faster, and more power-efficient devices is pushing the boundaries of PCB and MCM design, requiring advanced simulation and analysis capabilities offered by these tools. The integration of AI and machine learning into EDA software is automating tedious tasks, accelerating design cycles and reducing errors. Cloud-based EDA platforms are enhancing accessibility and collaboration among design teams, accelerating the overall design process. Furthermore, the growing adoption of advanced packaging technologies, like 3D stacking and system-in-package (SiP), is driving the demand for specialized EDA tools capable of handling the complexities of these advanced designs. Finally, stringent regulatory requirements in various industries, particularly those related to safety and reliability, necessitate robust verification and validation processes, further boosting the adoption of EDA solutions.

Challenges and Restraints in Electronic Design Automation for PCB and MCM

Despite the significant growth potential, several challenges and restraints hinder the Electronic Design Automation market for PCBs and MCMs. The high cost of EDA software and the need for specialized expertise can pose a barrier to entry for smaller companies. The complexity of the software and the steep learning curve can also limit widespread adoption. Keeping up with the rapid pace of technological advancements and integrating new features into existing workflows can be challenging for both developers and users. The increasing complexity of electronic designs requires more powerful computing resources, which can translate into higher computational costs. Security concerns related to intellectual property protection are also a critical concern, especially when using cloud-based EDA platforms. Competition among established players and the emergence of new technologies also creates pressure to continuously innovate and adapt. Finally, the interoperability of different EDA tools from different vendors can be a significant challenge, requiring seamless integration to streamline the design flow.

Key Region or Country & Segment to Dominate the Market

The Computer application segment is poised to dominate the Electronic Design Automation market for PCBs and MCMs over the forecast period (2025-2033). This is primarily driven by the relentless demand for high-performance computing systems, particularly in data centers, high-performance computing clusters, and artificial intelligence applications. The increasing complexity of these systems necessitates sophisticated EDA tools for efficient design, verification, and optimization. The rapid growth of the cloud computing sector and increasing demand for edge computing infrastructure further contribute to this segment's dominance.

• North America and Asia Pacific are expected to be the key regions driving market growth. North America benefits from a strong presence of major EDA vendors and a highly developed semiconductor industry. Asia Pacific, particularly China, Korea, and Taiwan, is experiencing rapid growth due to the booming electronics manufacturing sector and substantial investments in R&D.

• Within the Physical Design type segment, the demand for advanced routing algorithms and signal integrity analysis tools is particularly high. This segment is essential for ensuring the reliability and performance of complex PCBs and MCMs. The increasing density of components and the need for high-speed data transmission require sophisticated physical design tools capable of handling intricate signal routing and power delivery challenges. Tools that can automate these tasks and reduce design time are highly valuable.

• In contrast, the Others application segment, which includes various niche applications such as industrial automation, medical devices, and aerospace, is experiencing steady growth but at a slower rate than the computer and mobile segments.

Growth Catalysts in Electronic Design Automation for PCB and MCM Industry

Several factors are acting as growth catalysts for the EDA industry. The increasing adoption of advanced packaging technologies and miniaturization trends in electronics demand more sophisticated EDA tools. Growth in high-performance computing, artificial intelligence, and 5G technology further accelerates this trend. Furthermore, the continuous development and adoption of AI and machine learning within EDA software are driving efficiency and accuracy, boosting market growth. Finally, the increased focus on design verification and validation to meet regulatory requirements in various sectors is a significant driver.

Leading Players in the Electronic Design Automation for PCB and MCM

• Synopsys
• Cadence Design Systems
• Mentor Graphics (Now part of Siemens Digital Industries Software)
• Altium Limited
• ANSYS
• Fujitsu
• Infinite Graphics Incorporated
• NEC
• Orbotech
• Zuken

Significant Developments in Electronic Design Automation for PCB and MCM Sector

• 2020: Cadence introduced Allegro PCB Designer with enhanced capabilities for high-speed design.
• 2021: Synopsys released Fusion Design Platform with improved AI-powered design automation features.
• 2022: Altium released Altium 365, a cloud-based collaborative platform for PCB design.
• 2023: ANSYS expanded its portfolio with advanced simulation tools for MCM design.
• Ongoing: Continuous updates and new releases from all major players introducing advancements in AI-driven design optimization, improved verification capabilities, and enhanced integration with other design tools.

Comprehensive Coverage Electronic Design Automation for PCB and MCM Report

This report offers a comprehensive overview of the Electronic Design Automation market for PCBs and MCMs, encompassing market trends, driving forces, challenges, and key players. The report provides valuable insights into the market's dynamics, helping stakeholders make informed decisions. It delves into detailed segmentation analysis by type, application, and region, offering a clear understanding of the current market landscape and future growth prospects. The forecast period (2025-2033) provides a glimpse into the potential market size and future growth trajectory. The report also highlights key strategic initiatives and technological advancements shaping the market, offering a holistic view of the Electronic Design Automation industry.

Electronic Design Automation for PCB and MCM Segmentation

• 1. Type
  • 1.1. Feature Design
  • 1.2. Verification
  • 1.3. Physical Design
• 2. Application
  • 2.1. Computer
  • 2.2. Mobile Devices
  • 2.3. Satellite
  • 2.4. Others

Electronic Design Automation for PCB and MCM Segmentation By Geography

• 1. North America
  • 1.1. United States
  • 1.2. Canada
  • 1.3. Mexico
• 2. South America
  • 2.1. Brazil
  • 2.2. Argentina
  • 2.3. Rest of South America
• 3. Europe
  • 3.1. United Kingdom
  • 3.2. Germany
  • 3.3. France
  • 3.4. Italy
  • 3.5. Spain
  • 3.6. Russia
  • 3.7. Benelux
  • 3.8. Nordics
  • 3.9. Rest of Europe
• 4. Middle East & Africa
  • 4.1. Turkey
  • 4.2. Israel
  • 4.3. GCC
  • 4.4. North Africa
  • 4.5. South Africa
  • 4.6. Rest of Middle East & Africa
• 5. Asia Pacific
  • 5.1. China
  • 5.2. India
  • 5.3. Japan
  • 5.4. South Korea
  • 5.5. ASEAN
  • 5.6. Oceania
  • 5.7. Rest of Asia Pacific