PCB Design Software Market
Industry: IT and Telecommunication
Published Date: October-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 185
Report ID: PMRREP34884
The PCB design software market is estimated to increase from US$ 3.9 Bn in 2024 to US$ 9.2 Bn by 2031. The market is projected to record a CAGR of 13.4% during the forecast period from 2024 to 2031.
Governments of several countries are investing in semiconductor manufacturing to boost global competitiveness. It is hence creating a high demand for data processing and raising the use of printed circuit board (PCB) design software. In September 2024, for instance, the Central Government of India announced its plans to upgrade its chip production incentive policy. It plans to increase the funds to US$ 15 Bn for the second phase, which shows a surge from the US$ 10 Bn provided in the first phase.
Tata Group recently joined hands with Powerchip Semiconductor Manufacturing Corporation (PSMC), headquartered in Taiwan, to develop India’s commercial semiconductor fabrication plant. Similar initiatives are anticipated to create new growth prospects in the coming years.
Key Highlights of the Market
|
Market Attributes |
Key Insights |
|
Market Size (2024E) |
US$ 3.9 Bn |
|
Projected Market Value (2031F) |
US$ 9.2 Bn |
|
Global Market Growth Rate (CAGR 2024 to 2031) |
13.4% |
|
Historical Market Growth Rate (CAGR 2019 to 2023) |
9.7% |
|
Region |
Market Share in 2024 |
|
North America |
37.6% |
In 2024, North America is expected to dominate with around 37.6% of the global PCB design software market share. This growth is attributed to ongoing innovations in 3D design and visualization technology across the U.S. and Canada.
Both government and private agencies in North America are striving to accelerate the development of the semiconductor manufacturing sector. The U.S., for example, introduced the CHIPS and Science Act to strengthen its domestic manufacturing, supporting various technologies.
Backed by the aforementioned Act, several companies across North America declared about US$ 50 Bn in investments, especially in local semiconductor manufacturing. Micron Technology, Inc., based in Idaho, announced an investment of US$ 40 Bn in the production of memory chips, significant for electronic devices and computers. The company aims to create nearly 40,000 new jobs in manufacturing and construction. In the next decade, this investment is expected to surge the U.S. memory chip industry share to 10%. Similar investment plans by other players are projected to bolster growth in North America.
Europe is expected to hold a significant share of the PCB design software industry in 2024. Countries like Germany, U.K., and Italy are focusing on boosting clean technology infrastructure. The trend is anticipated to create a high demand for cutting-edge PCB designs for the manufacturing of components, such as radar and battery management systems in autonomous vehicles. NXP Semiconductors N.V., headquartered in the Netherlands, for example, recently announced its plans to launch PCB-powered toolkits.
Europe’s well-established aerospace and defense industry is another key consumer of software to design PCB boards. Innovations by companies such as Airbus SE often require state-of-the-art circuit boards. PCB software solutions featuring multi-layer capabilities are anticipated to be demanded as these help comply with strict durability and performance standards revolving around defense, aviation, satellite, and electronics.
|
Category |
CAGR through 2031 |
|
Application - Computer and Consumer Electronics |
15.7% |
By application, the computer and consumer electronics segment is projected to dominate and exhibit a CAGR of 15.7% from 2024 to 2031. The global shift toward multifunctional and compact devices, such as fitness trackers and foldable smartphones is anticipated to bolster the segment. These devices rely on unique software solutions that can handle simulation requirements and intricate designs. The demand for High-Density Interconnect (HDI) PCBs is set to rise with the immense popularity of wearable technology. Consumer electronics brands are hence set to launch upgraded products to gain a competitive edge. For example,
|
Category |
Market Share in 2024 |
|
Deployment - On-premise |
77.6% |
In 2024, the on-premise deployment segment is projected to capture an impressive 77.6% of market share. As digital data transmission increases, so does the risk of cyber intrusions, making on-premise solutions more appealing.
For better control over confidential information and adherence to rigorous guidelines, several businesses, especially those in sectors like government, healthcare, and finance, prefer on-premise solutions. By retaining information within the local environment, these systems offer improved security and can reduce the dangers of data breaches and unauthorized access that are frequently connected to cloud settings.
The need for PCBs that can manage wireless connection and high-speed data transfer has grown as a result of the expansion of IoT gadgets and introduction of 5G networks. PCB software helps in reducing interference while assisting in the creation of designs that satisfy these performance requirements. Smart home appliances and industrial IoT solutions are the two key products that are anticipated to require strong PCB design platforms.
Demand for PCB boards is likely to surge in the medical and healthcare sectors during the forecast period. It is anticipated to be driven by increased reliance on cutting-edge medical equipment to prevent chronic illnesses.
Several organizations are rapidly shifting toward cloud-based solutions to maintain business continuity. For example, Altium, a U.S.-based international software company, responded by enhancing its Altium 365 platform. It allows its teams to collaborate remotely and effectively manage PCB designs amid the challenges of long distances.
The PCB design software market overview states that the industry experienced notable growth over the past few years, with a CAGR of 9.7% from 2019 to 2023. This growth was attributed to the increasing demand for advanced electronic devices and rising complexity of PCB designs, which necessitated sophisticated software solutions.
Due to fierce competition, manufacturers also experienced high pressure to release products as soon as possible. Simulation and prototyping features in PCB software helped speed up development, allowing businesses to launch products more quickly.
The global market is projected to accelerate with a CAGR of 13.4% from 2024 to 2031. It will likely be driven by the integration of artificial intelligence and machine learning in design processes. At the same time, the growing trend of miniaturization in electronics is anticipated to create new prospects.
Rising Focus on Sustainability to Positively Influence Demand
To achieve environmental goals, businesses from a wide range of industries are proactively implementing sustainable practices. For instance, the first water-soluble PCB, Soluboard, was recently created by Jiva Materials. This biodegradable substitute for conventional electronics demonstrates the increasing trend toward environmentally friendly materials, particularly in electronic devices, where buyers are prepared to spend more money on green products.
In addition to environmental responsibilities, these sustainability initiatives are also motivated by consumer demand and legal constraints. For example,
Several firms are investigating recyclable supplies and energy-efficient manufacturing techniques for PCB production. As demonstrated by companies like Apple and Fairphone, which place a strong emphasis on eco-friendly supply chains, this trend is in line with the growing demand for consumer goods that are ecologically conscientious.
Emergence of Compact and Highly Efficient PCBs to Bolster Growth
Increasingly lightweight yet effective PCBs have been developed by manufacturers as a result of the growing IoT applications, which range from smart cities to medical equipment. Flexible PCBs are becoming immensely popular as a way to fit several modules, such as Bluetooth and Wi-Fi, into constrained locations. These developments are a reflection of the growing demand for effective thermal dissipation and sensor integration management.
Flexible PCBs that can bend and conform to various shapes are further becoming increasingly important for industries like aerospace and automotive, as gadgets become compact. However, as these solutions require specialized materials, their production prices are high. Experts in the field anticipate more innovations in 2024 that will likely lower the cost of these PCBs without compromising functionality.
Availability of Open-source Software May Pose Risks of Vulnerabilities
Key companies are increasingly turning to open-source software as it is free and accessible online. However, the presence of pirated copies can create risks due to vulnerabilities from components and third-party vendors.
The growing threat from third-party applications can put the security of enterprise applications at risk. For example, a survey from November 2021 found that 33% of security breaches were linked to third-party services or software. Additionally, about 35% of external attacks took advantage of vulnerabilities, leading to data exploitation. As a result, the availability of open-source software can limit business opportunities and PCB design software demand.
Complex and Time-Consuming Processes
The complex and time-consuming process of developing software is expected to slow down the global PCB design software market. Engineers often find that the software doesn't meet their needs, mainly due to changing requirements related to signal and power integrity.
Software solutions with the necessary features can be very complicated to use, leading to longer design times. PCB design software typically needs to work with other tools, like simulation or mechanical design software. This integration can be challenging, often causing compatibility issues and data translation errors, which can hinder productivity and efficiency in the process.
Introduction to Generative AI Cultivates New Prospects
The semiconductor and electronics industry has been showcasing exciting progress with the rise of generative AI. Cadence Design Systems, for instance, recently rolled out AI in its main chip design software. This would make it easier for designers to create smaller, faster processors that use less power and save on costs.
The firm’s Cadence Allegro X AI tool automates the placement and routing of PCBs for small to medium-sized designs. This innovation is likely to help speed up the layout process and cut down on analysis time, making it a game-changer for engineers working on electronic designs. Similar innovative product launches by key companies are expected to create novel opportunities.
Adoption of Product Lifecycle Management to Establish New Pathways
By enabling better collaboration, data management, and integration throughout the design process, Product Lifecycle Management (PLM) software is greatly bolstering the prospects for PCB design software. Product development cycles can be greatly accelerated with PLM integration by optimizing workflows and lowering the regularity of design modifications. Companies are projected to cater to market needs faster with this acceleration.
PLM solutions further help reduce design process interruptions by enabling traceable and controlled modifications to design data. Maintaining adherence to rules and industry norms requires this capacity, thereby creating opportunities.
The PCB design software industry is characterized by intense competition, with several key players innovating to capture high share. Various companies are anticipated to introduce innovative products to gain a competitive edge. These products can enhance collaboration and streamline the design process through cloud-based solutions, allowing teams to work seamlessly across different locations.
As the market grows, companies are focusing on integrating advanced technologies such as AI and machine learning to improve design efficiency and accuracy. This competitive landscape is expected to evolve rapidly, driven by continuous innovation and increasing complexity of electronic designs.
Recent Industry Developments
|
Attributes |
Details |
|
Forecast Period |
2024 to 2031 |
|
Historical Data Available for |
2019 to 2023 |
|
Market Analysis |
US$ Billion for Value |
|
Key Regions Covered |
|
|
Key Market Segments Covered |
|
|
Key Companies Profiled |
|
|
Report Coverage |
|
|
Customization & Pricing |
Available upon request |
By Deployment
By Component
By Application
By Region
To know more about delivery timeline for this report Contact Sales
The market is predicted to rise from US$ 3.9 Bn in 2024 to US$ 9.2 Bn by 2031.
Autodesk Inc., ANSYS, Inc., Cadence Design Systems, Inc., and Siemens are a few leading providers.
The computer and consumer electronics segment is likely to lead in the next ten years.
Altium Designer is considered the best software for PCB design.
Yes, LibrePCB is a free electronic design automation suite.
