Growth in the recent five years is primarily driven by the following major factors, such as increasing automation integrations in the highly prominent manufacturing sector worldwide, design complexities of consumer electronic devices, and growing needs for high-speed IC designing capabilities facilitating lesser time-to-market for the products.
Growing needs for facilitating lesser time-to-market for designing high functionality chips
In a highly competitive scenario, time-to-market of any product plays an extremely critical role. Lesser is the time-to-market for the product, the higher is the possibility of the company taking a competitive advantage in the semiconductor IP market. Product testing can consume an inordinate amount of time and resources, slowing the time to market. Traditional technician-on-the-bench testing can take up to two weeks to fully characterize a product such as an RF power amplifier (PA). It's a long, tedious, and repetitive process. It's costly as well as the cost of manpower and the cost of lost opportunity for the results in a loss of efficiency, loss of profit, and higher product pricing.
Semiconductor IP Market Insights
In the twenty first century, the upcoming electronic and semiconductor technologies are paving way for automation to be introduced heavily in the manufacturing sector. Over the past two decades, automation in manufacturing has been a constant factor leading to transformation in the factory floor operations, manufacturing employment, as well as the dynamics of the manufacturing sector on a whole.
An increased productivity ranging between 10-20% is observed when automation is integrated on any lean assembly line. Further, Industry 4.0 is another buzzing trend that is anticipated to take up the manufacturing sector in the coming years. The advent of Industry 4.0 or the Industrial Internet of Things (IIoT) that would utilize the powers of collaborative robots, and automated guided vehicles is further anticipated to drive productivity in the manufacturing sector.
2018: CEVA and Nokia Collaborated for 4.9G and 5G Technologies. This collaboration is a direct result of CEVA's strong competencies and investment in advanced DSP technologies for next generation heterogeneous networks. It further expands CEVA's foothold as the end-to-end wireless DSP provider, covering base stations, cellular IoT, terminals, and any other form of cellular enabled device.
2018: Arm unveiled it has expanded design possibilities with free Cortex-M processors for Xilinx FPGAs through collaboration with Xilinx. The New no royalties, no license fee access model designed to support more developers benefit from industry-leading Arm technology, with a common software base across their whole device portfolio.
2018: Sonics Inc. partnered with SiFive, the leading provider of processor core IP based on the RISC-V instruction set architecture. Under this partnership, both the company's focus to facilitate agile RISC-V SOC design platform with IP industry's most widely used NOCs
Strong internet infrastructural deployments in the advanced countries coupled with the rolling out of advanced infrastructures such as 5G, fiber optic cables, will enable establishment of new use cases such as Fixed Wireless Access, Massive IoT and Critical IoT. Such advancements in the internet technology are driving individuals and businesses to harness the best out of the presented opportunity and maximize the revenue generation streams. It is estimated that each individual will have close to a dozen number of devices that would be connected over the internet by 2020. As per the Ericsson’s latest mobility report, the number of mobile subscriptions grew at $ percent year-on-year basis and has reached 7.9 billion in the first quarter of 2018. The number of mobile broadband subscriptions are growing at 20 percent year-on-year reaching a total of 5.5 billion in the first quarter of 2018. The number of mobile subscriptions exceeds the population in many countries, which is largely due to inactive subscriptions, multiple device ownership or optimization of subscriptions for different types of calls. As a result, the number of subscribers is lower than the number of subscriptions.
The global Semiconductor IP market is estimated to be US$ 3,346.1 million in 2017 and is estimated to reach US$ 8,265.6 million by 2025. Since the advent of the semiconductor industry, the semiconductor IP has existed in the market with a relatively weaker presence and lesser recognition amongst the various players in the ecosystem. The prominent IC suppliers such as Intel, Fairchild, Texas Instruments, and Motorola had started developing proprietary SIP for internal usage purposes. Also, these SIPs used to be protected by the companies through patents, legal protections and trade secrets. Over the years, the designs of the ICs started getting more complex, and the size of ICs started reducing. Also, the volumetric requirement of the ICs increased over the years.
The global Semiconductor IP market is experiencing an intense growth with regards to the investments, new product developments, and deployment for future in the current scenario and is anticipated to rise in the coming years. The Semiconductor IP market consists of some well-established players across the globe, which invest huge amounts in order to deliver the most advanced product to the customers. Also, there are many stakeholders in the Semiconductor IP ecosystem that are involved in the end-to-end development of Semiconductor IP and ensuring that the best service is made available for the users. Government funding for research & development, automotive manufacturers, communication equipment manufacturers, strategic partnerships between chipset manufacturers, equipment vendors, network operators and Government bodies are anticipated to enable huge surges in the Semiconductor IP market over the forecast period.