Semiconductor Embedded Services Market - Forecast(2024 - 2030)

Semiconductor Embedded Services Market Overview

The global Semiconductor Embedded Services market size is forecast to reach $109.4 billion by 2026, growing at CAGR 5.79% from 2021 to 2026. The growth of the semiconductor embedded service market is mainly driven by increasing demand of technologically advanced electronic products across various industries. Such high demand of consumer electronics creates opportunities for various service types such as field programmable gate array design, ASIC design, SoC design, product development services, verification and validation safety testing services and many more; along with microprocessor including digital signal processor; bipolar junction transistors and others, which positively affects the growth of semiconductor embedded services industry. Moreover, increasing industrial growth, increasing implementation of advanced technologies such as AI, ML, IoT and others in electronics products and rising demand for automation accelerate the growth of this market, as it creates demand for advanced embedded services. Hence, the above-mentioned factors are set to boost the growth of Semiconductor Embedded Services market during the forecast period 2021-2026.

Report Coverage

The report: “Semiconductor Embedded Services Market– Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Semiconductor Embedded Services Market.

By Type: Product Development Services, Embedded Design Services, Cloud, IoT, and Application Development Services, PCB Design, SoC Design, Silicon Validation, product verification and validation, Physical Implementation and DFT, Analog & Mixed Signal Design and Layout, embedded software, EMI/EMC & safety testing, Systems Level Design, FPGA Design, ASIC Design and others.
By End User: Automotive, Healthcare, Consumer Electronics, manufacturing, Aerospace & Defence, Public & Government sector, IT & Telecommunications, and others.
By Geography: North America (U.S, Canada, Mexico), South America (Brazil, Argentina and others), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan India, South Korea, Australia and Others), and RoW (Middle East and Africa). 

Key Takeaways

• ASIC design is anticipated to witness a significant market growth during the forecast period, due to its various advantages such as enhanced performance level, increased reliability, greater IP security and so on.
• APAC held significant Semiconductor Embedded Services market share and is analysed to be the fastest growing segment during 2021-2026, owning to the increasing economical growth and high demand for semiconductor products.
• The market of Semiconductor Embedded Services market is estimated to witness a significant upsurge during the forecast period, owing to the growing demand of electronic products across industries.
• This industry is consolidated with top market players including STMicroelectronics, Intel, NXP Semiconductor, Texas Instruments, Microchip among others.
  
  

Semiconductor Embedded Services Market Value Share, by Geography, 2020 (%)

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Semiconductor Embedded Services Market Segment Analysis - By Type

On the basis of type, Semiconductor Embedded Services market is segmented into Product Development Services, Embedded Design Services, Cloud, IoT, and Application Development Services, PCB Design, SoC Design, Silicon Validation, product verification and validation, Physical Implementation and DFT, Analog Design and Layout, embedded software, EMI/EMC & safety testing, Systems Level Design, FPGA Design, ASIC Design and others. According to Semiconductor Embedded Services market report of IndustryARC, ASIC design services segment is anticipated to witness significant amount of growth with a CAGR of 6.29% in the forecast period 2021-2026. This growth is mainly attributed to the growing demand for technologically advanced electronic products across industries. ASIC design is a crucial component of semiconductor products, which offers enhanced performance, increased reliability, greater IP security, even more than a microcontroller or FPGA design. In March 2021, Alphawave IP teamed up with EnSilica, leading provider of custom ASIC design and supply services, to expand the capabilities of both the companies in the UK and Europe. Hence, its benefits over the other segments, and high usage rate of this design have significant potential to drive the market in the forecast period 2021-2026.

Semiconductor Embedded Services Market Segment Analysis - By End User

Based on end-user, Semiconductor Embedded Services market is segmented into Automotive, Healthcare, Consumer Electronics, manufacturing, Aerospace & Defence, Public & Government sector and others. Consumer electronics segment held the major Semiconductor Embedded Services market share around 32.5% in 2020, and is anticipated to witness the fastest growth with a CAGR of 7.29% in the forecast period 2021-2026, owing to the growing penetration of IoT, increasing demand for laptops, personal computers, smart phones and other smart gadgets. Advancements in digital technologies, economic growth and affordability of these devices trigger the demand for consumer electronics along with various semiconductor embedded services. In October 2020, QuickLogic Corporation announced about the availability of ArticPro 3 embedded FPGA IP, which is available on Samsung’s 28nm FD–SOI process, enabling OEMs and semiconductor companies to seamlessly integrate the capability of discrete FD-SOI FPGAs into their own ASICs/SoCs. This product optimizes system performance, power consumption and cost for Edge AI across various end users including consumer sector. Apart from that, after the break-out of Covid-19, the increasing demand for PCs and laptops for various applications, including e-learning, work from home and others; is also a major factor driving growth of this market. Hence, the above-mentioned factors will drive the growth of this market during the forecast period 2021-2026.

Semiconductor Embedded Services Market Segment Analysis - By Geography

North America held a significant market share of 33%, in 2020 and is estimated to grow with a CAGR of 4.29% during the forecast period 2021-2026. Presence of emerging economies such as India, Japan, China, South Korea, Australia and others and increase in purchasing power along with the high industrialization rate, remote work culture and BYOD, create a huge demand for electronic products across this region. This in turn drives the growth of semiconductor embedded services. According to a report of IBEF, Indian appliance and consumer electronics (ACE) market accounted for $10.93 billion in 2019 and is projected to reach $21.18 billion by the year 2025. Furthermore, increasing investments on R&D projects for electronic products and embedded systems plays a major role in driving the market. In August 2021, SASTRA University and Tata Electronics jointly launched an MTech programme in VLSI design, in collaboration with two Taiwanese universities, Asia University and Yuan Ze University. Similarly, in April 2021, the Indian Institute of Science (IISc) and TalentSprint, an NSE Group company, announced about their fourth deep tech program with the launch of the PG Level Advanced Certification Program in VLSI Chip Design, which will help the industry professionals in developing the design of future-ready chips with various advanced capabilities such as AI, IoT, VR, Mobility, Cloud and Analytics. Such initiative to develop the advance products will drive the growth of this industry during 2021-2026.

Semiconductor Embedded Services Market Drivers

Growing Demand for electronics devices across industries drives the growth of this market

Due to various reasons such as increasing penetration of bring your own device (BYOD) culture, remote working, popularity of technologically advanced smart gadgets, growth in various industrial sector creates the demand for advanced electronics product. According to the India Electronics and Semiconductor Association (IESA), semiconductor consumption in India was worth $21 billion in 2019, growing at the rate of 15.1%. Such high adoption rate offers the incentives to the players of this market to offer enhanced embedded services and to make investments for the development, which is driving the growth of this market. For instance, In November 2020, Google teamed up with SkyWater Technology and an Efabless, an IC design kit vendor, to enable Open-Source manufacturing of Custom ASICs. Such developments contribute towards the growth of this market. Moreover, technological advancements and the implementation of such technologies in semiconductor products fuel the growth of this market. Hence, the above-mentioned factors will drive the growth of this market during the forecast period 2021-2026.

Various Strategic steps taken by the market players to expand their market share influences the growth of this market

The players of this market are taking more strategic steps for the expansion of the market through new product launches, acquisition, investments and others, which is set to drive the semiconductor embedded services market during the forecast period 2021-2026. In February 2020, Tessolve acquired Test & Verification Solutions (T&VS) to consolidate its position as a leading engineering solution provider. After this acquisition, Tessolve expanded its product portfolio by offering full turnkey VLSI design services from RTL to GDSII. In May 2020, Altium announced about the availability of its Altium 365, a cloud platform for printed circuit board (PCB) design that works in correlation with the Altium Designer, an industry standard for PCB design. Similarly, in November 2020, OKI and Mipsology teamed-up for enabling FPGA-Based Machine Learning (ML) Development Support Services for autonomous driving, medical, and video monitoring and various other applications. Hence, these types of strategic developments taken by the market players are analyzed to boost the growth rate of semiconductor embedded services market during the forecast period 2021-2026.

Semiconductor Embedded Services Market Challenges

Low energy efficiency level and other issues of FPGA affects the growth of this market negatively

Although the usage rate of semiconductor embedded services is growing at a rapid phase along with the increasing demand for electronics, the energy efficiency level of FPGA is a huge obstacle for the growth of this market. Despite having numerous benefits, FPGA consumes way more power, which affects the demand for FPGA negatively, thereby affecting the growth rate of this market. Additionally, it is also much slower and larger in size, due to which FPGA, is not suited for high volume mass applications and has been reserved for low volume mass production, which affects the semiconductor embedded services market. Hence, these are factors that will hinder the market growth in the forecast period 2021-2026.

Semiconductor Embedded Services Market Landscape

Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the Semiconductor Embedded Services Market. As of 2020, the market for Semiconductor Embedded Services industry outlook is consolidated with the top market players. Semiconductor Embedded Services top companies include:

1. Intel
2. Renesas
3. NXP Semiconductor
4. Texas Instruments
5. Microchip
6. Cypress Semiconductor
7. Qualcomm
8. Analog Devices
9. Infineon

Acquisitions/Technology Launches/Partnerships

• In April 2021, leading semiconductor engineering and R&D service provider, Tessolve raised $40 million fund from a Singapore based company, Novo Tellus. The raised fund will be strategically used to strengthen their capabilities across chip design, embedded services offerings and expand its ASIC design business.
• In October 2020, Wipro announced its plan to acquire Eximus Design, a US based ASIC design services company with expertise in Semiconductor software and systems design, in a $80 million deal, to strengthen their position in VLSI and system design services market.

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