Semiconductor IP Market worth $5.63 Billion by 2020

The Semiconductor IP marketplace is a two digit rate growing market which should continue its increase next years according to Gartner Dataquest and according to a new market research report by Form Factor.

Semiconductor IP is expected to reach $5.63 billion in 2020 at a CAGR of 12.6% from 2014 to 2020. Semiconductor IPs are used almost in all semiconductor application , beginning with consumer segment and telecommunication market areas and now up to more conservative market segments as medical, automotive and defense.

Presently, there have been remarkable changes recorded in the landscape of the semiconductor IP industry’s ecosystem with several developments in market segments such as open source IP vendors, IP core developers, IP aggregators, IP licensing vendors, and IP Customers including fabless companies, foundry, and IDM players. The Semiconductor IP Market is growing in both the Integrated Circuit (IC) IP and System-on-Chip (SoC) IP sub-sectors.

The IP market is growth is possible due to the following reasons:

• It’s simply cost-effective to purchase IP than to develop it internally. For high complexity IPs, that requires heavy verification efforts – the time to market is also comes into play.
• Companies tend to focus on their core competence and outsource IPs from 3-party suppliers.

Today, ARM, Synopsys, and Imagination Technologies are the three major market leaders contributing the largest market share in the semiconductor IP market space. Moreover, ARM continues to be the clear market leader in semiconductor IP core licensing.