Electronic systems design industry to generate $5.5 billion revenue by Q4 2025

Electronic system design (ESD) industry revenue increased by 10.3% to $5,466.3 million in Q4 2025 from $4,955.2 million registered in Q4 2024. ESD AllianceA SEMI technology community, announced today in its latest Electronic Design Market Data (EDMD) report. Based on a comparison of the last four quarters, the four-quarter moving average increased by 10.1%.

“The electronic design automation (EDA) industry continues to report strong year-over-year revenue growth in Q4 2025,” said Walden C. Rhines, executive sponsor of the SEMI Electronic Design Market Data Report. “Product categories CAE, PCB & MCM, semiconductor IP (SIP), and services all recorded gains. Geographic regions including the Americas, EMEA, and APAC recorded growth in Q4, with double-digit growth in the Americas and APAC.”

Companies tracked in EDMD According to the report, 71,517 people were employed globally in the fourth quarter of 2025, which is an increase of 13.8% compared to 62,833 in the fourth quarter of 2024, but 2.3% less than the third quarter of 2025.

quarterly EDMD The report includes detailed revenue information under the following category and geographic breakdowns.

Revenue by Product and Application Category – Year-on-Year Change

• Computer-Aided Engineering (CAE) Revenue increased 5.0% to $1,887.4 million. The four-quarter CAE moving average increased 5.6%.

• IC physical design and verification Revenue declined 2.6% to $777.2 million. The four-quarter moving average for the category declined 5.1%.

• Printed Circuit Boards and Multi-Chip Modules (PCB and MCM) Revenue rose 1.8% to $484.6 million. The four-quarter moving average for PCBs and MCM rose 4.5%.

• Semiconductor Intellectual Property (SIP) Revenue increased 18.3% to $2,083.2 million. The four-quarter SIP moving average rose 17.4%.

• services Revenue increased 19.6% to $233.9 million. The four-quarter moving average of services rose 15.6%.

Revenue by region – year-on-year change

• of AmericaThe largest reporting region by revenue, purchased electronic systems design products and services worth $2,473.5 million in the fourth quarter of 2025, an increase of 13.9%. The four-quarter moving average for the US rose 10.6%.

• Europe, Middle East and Africa(EMEA) Purchased electronic systems design products and services worth $683.4 million in the fourth quarter of 2025, an increase of 9.8%. The four-quarter moving average for EMEA rose 9.4%.

• from japan Procurement of electronic systems design products and services declined 18.8% to $258.5 million in Q4 2025. The four-quarter moving average for Japan declined 7.4%.

• Asia Pacific (APAC) Electronic system design products and services worth $2,050.8 million were purchased in the fourth quarter of 2025, an increase of 11.3%. The four-quarter moving average for APAC rose 12.6%.

About EDMD Report

ESD Alliance electronic design market data (formerly Market Statistics Service) report presents revenue data for the electronic design automation (EDA), SIP, and services industry quarterly. Both public and private companies contribute data to the reports available from SEMI. Each quarterly report is published approximately three months after the quarter end. EDMD Report data is divided as follows:

• Revenue by product category (CAE, IC physical design and verification, SIP, PCB and MCM layout and services), including several detailed sub-categories

• Revenue by geographic region (US, EMEA, Japan and APAC)

• Total employment in participating companies

For information about SEMI market research reports, visit SEMI Market Research Report and Database Catalog.

About Electronic Systems Design Alliance

The Electronic System Design (ESD) Alliance, a SEMI technology community, is the central voice for communicating and promoting the value of the semiconductor design ecosystem as a critical component of the global electronics industry. As an international association of companies providing goods and services in the semiconductor design ecosystem, it is a forum to address technical, marketing, economic and legislative issues affecting the entire industry. For more information about the ESD Alliance, visit http://esd-alliance.org.

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SEMI® is a global industry association connecting more than 3,000 member companies and 1.5 million professionals worldwide in the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through advocacy, workforce development, sustainability, supply chain management and other programs. Our SEMICON® exhibitions and events, technology community, standards and market intelligence help advance our members’ business development and innovations in design, devices, components, materials, services and software, enabling smarter, faster, more secure electronics. visit www.semi.orgContact a regional office, and connect with SEMI Linkedin And x To know more.

The information provided by ESD Alliance is believed to be accurate and reliable, but ESD Alliance assumes no responsibility for any errors that may appear in this document. All trademarks and registered trademarks are the property of their respective owners.