Semiconductor Intellectual Property (IP) Market Share, Size, Trends, Industry Analysis Report, By IP Core (Hard IP Core, Soft IP Core); By Design IP; By Interface Type; By IP Source; By End-User; By Vertical; By Region; Segment Forecast, 2024- 2032
- Published Date:Feb-2024
- Pages: 118
- Format: PDF
- Report ID: PM1550
- Base Year: 2023
- Historical Data: 2019 – 2022
Report Outlook
Global semiconductor intellectual property (IP) market size was valued at USD 6.93 billion in 2023. The market is anticipated to grow from USD 7.48 billion in 2024 to USD 14.28 billion by 2032, exhibiting a CAGR of 8.4% during the forecast period.
Semiconductor Intellectual Property (IP) Market Overview
Semiconductor intellectual property (IP) refers to a reusable part in the design of chip layouts, logic, or cells. Typically created to be licensed to multiple dealers as a foundational component for various advanced devices and chip designs, SIP is pre-verified and often involves a licensing fee. It is commonly applied to processors, memory drives, interconnects, and peripherals.
The anticipated expansion of the global semiconductor IP market is primarily driven by the increasing prevalence of connected devices in daily life. The heightened demand for electronics in the healthcare sector due to the COVID-19 pandemic and the growing necessity for teleconferencing tools amid the outbreak are additional factors expected to boost the semiconductor IP market. These connected devices utilize various communication protocols, including Bluetooth, Wi-Fi, and NFC, to connect to other devices or networks.
The increasing desire for consumer electronics, particularly in developing nations like India and China, presents a growth opportunity in the semiconductor IP market. The various consumer electronics categories encompass TVs, cameras, laptops, accessories, wearable electronics, desktops, audio or video equipment, gaming consoles, tablets, smartphones, home appliances, camcorders, and more. The semiconductor IP market is anticipated to drive the adoption of these devices due to substantial technological advancements and the growing demand for high-speed broadband connectivity.
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Moreover, several semiconductor intellectual property (IP) market key players in the industry are embracing proprietary IP solutions in the production of consumer electronics.
For instance, In March 2022, Kudelski launched a comprehensive IP product portfolio that offers semiconductor manufacturers strong cryptographic capabilities seamlessly incorporated into their system-on-chip product categories.
The escalating demand for automation and the swift adoption of IP core products in the consumer electronics industry are contributing to semiconductor intellectual property (IP) market growth. Furthermore, the industry is experiencing rapid expansion driven by increased internet penetration and the growing adoption of smart connected devices, thereby fostering market growth.
Semiconductor Intellectual Property (IP) Market Dynamics
Market Drivers
Growing Demand for Advanced Consumer Electronic Devices is Bolstering the Semiconductor Intellectual Property (IP) Market Share
The global semiconductor IP market size is experiencing growth due to the increasing adoption and development of technologically advanced consumer electronics worldwide. According to the Center for National Interest Organization, the global consumer electronics market was valued at approximately USD 683 billion in 2020 and is projected to reach USD 881.7 billion by 2025. In 2021, the global shipment of consumer electronics reached around 4.4 billion units, marking a 2.7% increase compared to 2020.
Semiconductor IP solutions find extensive applications in manufacturing various electronic devices, including headphones, smartphones, innovative home products, and wearables. Wearable devices, in particular, incorporate memory and interface IP, enhancing everyday functionality and providing real-time feedback. These devices play a crucial role in the expanding connected world, as IP solutions aid in designing Systems on Chips (SoCs) that seamlessly integrate into these devices.
Additionally, the semiconductor intellectual property (IP) global market’s revenue growth is further driven by the increasing sales of wearables and other smart connected devices worldwide, fueled by the rising consumer demand for these intelligent devices.
Market Restraints
Ongoing Technological Advancements and Increasing Apprehensions Regarding Intellectual Property (IP) Theft
The landscape of technology is in a constant state of evolution, particularly within the electronics industry. In semiconductor manufacturing, there's a tangible limit to the production capabilities of existing materials. Also, there are growing concerns about potential threats related to Moore's Law, which serves as a tool for projecting and observing historical trends. It aids in aligning market needs with experience and production.
The electronics industry is grappling with challenges related to intellectual property (IP) theft from various sources. For instance, In July 2022, Tower Semiconductor (TS), an electronics component manufacturer, was accused of stealing semiconductor intellectual property. Wafer manufacturer IQE Ltd. filed a case of IP theft at the U.S. Central District Court of California, claiming to have substantial evidence supporting its allegations.
The escalating instances of IP thefts, coupled with the ongoing technological shifts in the consumer electronics sector, act as impediments to market growth.
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Report Segmentation
The market is primarily segmented based on IP core, design IP, interface type, IP source, end user, vertical, and region.
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By IP Core |
By Design IP |
By Interface Type |
By IP Source |
By End User |
By Vertical |
By Region |
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Semiconductor Intellectual Property (IP) Market Segmental Analysis
By Vertical Analysis
- In 2023, the consumer electronics segment held the largest semiconductor intellectual property (IP) market share. It is driven by the semiconductor intellectual property (IP) market trend of advancements in devices of wireless technology and the proactive wireless device development by key industry players. For instance, In June 2022, Vissonic Electronics Ltd. upgraded its teleconferencing system with the introduction of the Vissonic 5G Wi-Fi Wireless conference system. This comprehensive system seamlessly integrates a presentation system, wireless microphone, and conference system with a 5G Wi-Fi wireless access point, providing convenient solutions for audio access and local video in meeting rooms.
- The automotive sector is expected to experience the fastest CAGR throughout the forecast period. This upsurge can be attributed to the growing adoption of electric vehicles, coupled with a significant increase in the integration of EVs for wireless technology.
By IP Source Analysis
- The largest market share in the semiconductor intellectual property (IP) market, based on IP source, is held by the royalty segment. This dominance is attributed to the advantages provided by royalty IP sources, allowing manufacturers the freedom to produce unlimited products while paying royalties only for the actual products sold. This is especially beneficial in the current landscape of rapid technological advancements. The expansion of the 5G network by operators has further contributed to the growth of the royalty segment, given the reliance on various processor and interface IPs in many base stations and wireless network equipment.
- Furthermore, the licensing segment is anticipated to demonstrate consistent growth, exhibiting the fastest CAGR throughout the forecast period. The increasing uptake of licensed semiconductor IP products and solutions by wireless device manufacturers predominantly drives the growth. Numerous manufacturers of wireless devices are leveraging licensed IP solutions to develop connected communication devices.
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Semiconductor Intellectual Property (IP) Market Regional Insights
The Asia Pacific Region Dominated the Global Market with the Largest Market Share in 2023
The Asia Pacific region dominated the market with the largest revenue share. It is attributed to significant investments by key players in electronics device manufacturing within the region. For instance, In May 2022, Samsung Group planned to invest around USD 489 billion in semiconductor and biologics development over the next five years in the Asia Pacific region.
Furthermore, the presence of electronics device manufacturers and the escalating export of electronics components from the Asia Pacific region are catalysts for market growth. As per the Invest Asian Organization, the consumer electronics sector contributed to about 50% of total exports from various Asia Pacific countries, including China, India, and Japan.
North America is poised for growth due to the increasing adoption of wireless technology and advancements in 5G technology. The region is anticipated to experience a moderate CAGR during the forecast period.
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Competitive Landscape
The semiconductor intellectual property (IP) market is fragmented and is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.
Some of the major players operating in the global market include:
- Achronix Semiconductor Corporation
- ALPHAWAVE SEMI
- Analog Bits
- Arm Limited
- ARTERIS, INC
- Cadence Design Systems, Inc.
- CEVA, Inc.
- Dolphin Design
- Dream Chip Technologies GmbH
- eMemory Technology Inc.
- Eureka Technology, Inc
- Frontgrade Gaisler
- Imagination Technologies
- Lattice Semiconductor
- Rambus
- Silicon Storage Technology, Inc.
- Synopsys, Inc.
- VeriSilicon
Recent Developments
- In September 2023, VeriSilicon disclosed that Inuitive, a prominent vision-on-chip processor company, has incorporated its dual-channel Image Signal Processor (ISP) IP into its widely produced NU4100 vision AI processor. This IP boasts low latency and low power capabilities, contributing to an exceptional imaging and vision experience across various applications, including robots, augmented reality (AR), virtual reality (VR), mixed reality (MR), drones, and more.
- In March 2023, eMemory Technology Inc. and United Microelectronics Corporation, a top-tier global semiconductor foundry, revealed that eMemory's Resistive Random Access Memory (RRAM) IPs have achieved qualification on UMC's 22nm ultra-low-power process. This further enhances UMC's extensive embedded memory portfolio tailored for IoT and mobile applications. The collaborative efforts of the two companies also extend to the joint development of new RRAM solutions specifically designed for the automotive sector.
- In March 2023, Rambus disclosed plans to include IP cores like Arm CryptoCell and CryptoIsland Root of Trust cores in its security IP portfolio. This expansion allows customers to benefit from a comprehensive security IP portfolio customized to suit their specific architecture. Additionally, Rambus will extend continuous support, maintenance, and development for Arm security IP.
Report Coverage
The semiconductor intellectual property (IP) market report emphasizes key regions across the globe to provide a better understanding of the product to the users. Also, the report provides market insights into recent developments and trends and analyzes the technologies that are gaining traction around the globe. Furthermore, the report covers an in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.
The report provides a detailed analysis of the market while focusing on various key aspects such as competitive analysis, IP core, design IP, interface type, IP source, end user, and vertical and futuristic growth opportunities.
Explore the landscape of the semiconductor intellectual property market in 2024 through detailed market share, size, and revenue growth rate statistics meticulously organized by Polaris Market Research Industry Reports. This expansive analysis goes beyond the present, offering a forward-looking market forecast till 2032, coupled with a perceptive historical overview. Immerse yourself in the depth of this industry analysis by acquiring a complimentary PDF download of the sample report.
Semiconductor Intellectual Property (IP) Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 7.48 billion |
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Revenue forecast in 2032 |
USD 14.28 billion |
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CAGR |
8.4% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments covered |
By IP core, By Design IP, By Interface Type, By IP Source, By End User, By Vertical, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, regions, and segmentation. |
Explore the landscape of Semiconductor Intellectual Property Market in 2024 through detailed market share, size, and revenue growth rate statistics meticulously organized by Polaris Market Research Industry Reports. This expansive analysis goes beyond the present, offering a forward-looking market forecast till 2032, coupled with a perceptive historical overview. Immerse yourself in the depth of this industry analysis by acquiring a complimentary PDF download of the sample report.
FAQ's
The semiconductor intellectual property (IP) market report covering key segments are IP core, design IP, interface type, IP source, end user, vertical, and region.
The semiconductor intellectual property (IP) market size is projected to be worth USD 14.28 billion by 2032.
The semiconductor intellectual property (IP) market is projected to exhibit a CAGR of 8.4% during the forecast period.
The Asia Pacific region is leading the global market.
The key driving factors in the semiconductor intellectual property (IP) market are growing demand for advanced consumer electronic devices and increasing sales of wearables.
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