Market Study on Reference Designs: How are the Increasing Sales of Automobiles and Feature-rich Smartphones Creating Growth Opportunities for Reference Design Suppliers? Find Out with PMR.
Industry: Semiconductor Electronics
Published Date: June-2023
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 200
Report ID: PMRREP33492
The newly released reference design market analysis report by Persistence Market Research (PMR) reveals that global sales of reference designs in 2022 were held at US$ 22 billion. With an 11.3 % projected CAGR from 2023 to 2033, the market is expected to reach US$ 71.8 billion by the end of the forecast period 2023 to 2033.
The reference designs used in the automotive sector are expected to be a significant revenue-generating product and are projected to surge at a CAGR of over 11.2% from 2023 to 2033.
The reference design market plays a key role in driving innovation and accelerating the development of different products in different industries. A reference design acts as a blueprint or template that provides a comprehensive framework for developing a specific product or system. Integrating proven methodologies, architectures, and best practices, these designs enable companies to streamline their product development processes, reduce time to market and improve overall efficiency.
In today's competitive and rapidly evolving business environment, companies are under tremendous pressure to deliver cutting-edge products quickly and cost-effectively. Developing a product from scratch can be time and resource-intensive, requiring extensive research, design, prototyping, and testing. This is where reference designs come in, providing a valuable shortcut for companies looking to leverage their existing designs and expertise.
The reference design market serves a wide range of industries including electronics, semiconductors, automotive, aerospace, communications, and more. Companies operating in these areas have access to an extensive collection of reference designs covering various aspects such as circuit boards, software algorithms, mechanical components, system architectures, and user interfaces.
By using reference designs, companies can benefit from proven solutions that have already gone through rigorous testing and validation. This not only reduces the risks associated with product development but also allows companies to focus resources on value-adding activities such as customization, differentiation, and meeting specific customer needs.
Furthermore, the reference design marketplace fosters collaboration and knowledge sharing among industry players. Companies that develop reference designs often make their reference designs available to other companies for free or on a royalty basis. This collaborative approach fosters innovation and drives technological progress across the ecosystem.
The reference design market is experiencing significant growth due to increasing product complexity, increasing demand for rapid prototyping and development, and the need to gain an edge in the competitive market. Companies are actively seeking reference designs that give them a head start on developing products with improved features, performance, and reliability.
| Attributes | Details |
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Reference Designs Market Estimated Size (2023) |
US$ 24.6 billion |
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Projected Size (2033) |
US$ 71.8 billion |
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Value-based CAGR (2018 to 2022) |
12.4% |
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The USA Reference Designs Market CAGR (2023 to 2033) |
11.3 % |
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Key Companies Covered |
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As per the reference design market report by Persistence Market Research (PMR), historically, from 2018 to 2022, the value of the market increased by around 12.4 % CAGR. With an absolute dollar opportunity of US$ 47.2 billion during the forecast period, the market is projected to reach US$ 71.8 billion in valuation by 2033.
The global market for reference designs has experienced a significant upturn characterized by frequent applications across several sectors. As companies in these sectors leveraged reference designs, industry players noticed an increasing demand for their products. This period saw a marked shift towards augmented efficiency, simplified product development, and increased innovation through the use of these packaged design frameworks.
Several aspects contributed to the optimistic outlook for the reference design market through this period. Technological advances have played a key role as breakthrough innovations such as the Internet of Things (IoT), AI (artificial intelligence), and automation drive the need for ready-to-use design solutions. This has enabled companies to reduce time to market, optimize resources and advance competitive advantage in a progressively dynamic business environment.
Going forward, the reference design industry is composed to continue its upward trend driven by various transformative aspects. The forecast points to sustained and strong growth, fueled by the ever-evolving technology environment and the urgent need for productivity and innovation crossways the sector.
Disruptive technologies such as AR, VR, and blockchain can impact the reference design industry. These tools can not only revolutionize the product development process but likewise pave the way for new applications and custom cases in every industry.
As the global business environment becomes more competitive, corporations may look to reference designs to uphold their market position and drive differentiation. Customization and flexibility of reference designs are expected to play a key role in enabling manufacturers to modify their products to specific shopper requirements and serve niche markets.
A reference design provides a comprehensive framework, including specifications, architectures, and key components, based on proven design principles and best practices. They offer a foundation that can be customized and built upon, allowing companies to focus on differentiating their products while leveraging established design expertise.
Analyzing Demand from the Automotive Sector
Reference designs play a crucial role in the automotive industry, enabling manufacturers to streamline the development process, improve time-to-market, and enhance overall product quality. In the automotive sector, reference designs serve as valuable blueprints and frameworks. They help accelerate the design and implementation of several automotive systems and components.
Reference designs used in designing automotive infotainment systems and connectivity solutions enable manufacturers to deliver enhanced in-car experiences. These designs cover areas such as multimedia interfaces, touchscreens, audio systems, navigation, and wireless connectivity.
By leveraging reference designs, automakers can quickly integrate modern infotainment features into their vehicles, providing drivers and passengers with seamless connectivity, entertainment, and convenience.
Reference designs also provide a pre-designed framework and blueprint for developing intelligent systems that enhance driver safety and improve vehicle performance. These designs enable automotive manufacturers to quickly integrate advanced functionalities into their vehicles, reduce development time, and ensure compliance with safety regulations.
With the increase in the demand for automobiles around the world, the use of reference design in the automotive sector is also projected to grow.
Analyzing Sales in the Consumer Electronics Sector
In the consumer electronics industry, reference designs are extensively used to accelerate the development of several products. These designs provide a pre-designed framework for developing consumer electronic devices such as smartphones, smart home devices, wearable technology, streaming media devices, and gaming consoles.
Reference designs encompass hardware specifications, software frameworks, connectivity options, and user interface guidelines. By leveraging reference designs, manufacturers can streamline the design process, reduce time-to-market, and ensure compatibility with industry standards.
With the increase in the number of mobile devices operating around the world, the use of reference design in mobile devices is projected to rise. These are crucial factors expected to expand the market over the forecast period.
Reference designs often use patented technology or proprietary information, which might be protected under copyright infringement laws. Organizations may be reluctant to use reference designs due to concerns about intellectual property infringement and possible legal disputes. This may limit the availability and acceptance of certain reference designs, especially those related to highly specialized or proprietary technology.
Reference designs provide a solid foundation, but do not always meet the specific requirements and unique needs of each organization or project. Customizations can be confined within the framework of the reference design. This might require additional effort and resources to adapt the design to specific-use cases. This often forces companies to develop their designs from scratch to fully comply with their desired specifications.
Asia Pacific had a reference designs market size of US$ 11.4 billion in 2022 and US$ 12.8 billion in 2023. Asia Pacific is projected to surge to US$ 37.3 billion by 2033. The historical CAGR between 2018 and 2022 is 51.9% and is projected to keep growing at ~46% CAGR during the forecast period 2023 to 2033.
Asia Pacific has a predominant automobile market with a significant number of cars sold every year. The automotive industry utilizes reference design to create a standardized blueprint of the car for manufacturing. They also use the reference design to check the compatibility and reliability of several new features added to a car.
In 2020, over 28.3 million cars were sold in the Asia Pacific region, with this figure projected to rise to around 37.5 million units sold in the region by 2022. With the increase in the demand for automobiles in the region the use of reference design for creating blueprints for the car is also projected to increase therefore expanding the market during the assessment period.
How is Demand for Reference Designs Expected to Shape in the United States?
The reference design market in the United States is expected to surge to US$ 13.1 billion with an absolute dollar growth of US$ 8.6 billion by 2033. The reference designs market in the United States has grown at a CAGR of 12.3% from 2018 to 2022, and is projected to surge at 11.3% CAGR during 2023 to 2033.
In 2020, there were around 298.8 million smartphone users in the United States, which climbed to about 307 million smartphone users by 2022, and it is projected that by 2027, the country will have around 328 million smartphone users.
With the increase in the number of smartphone users in the country, the market for reference design is projected to expand during the assessment period. With more smartphone users, there is a need to cater to diverse consumer preferences, market segments, and price sensitivities. These factors are helping surge sales in the market.
Reference designs help manufacturers are developing a wide range of smartphones quickly and efficiently. Reference designs provide a starting point for customization and differentiation while ensuring compatibility, performance, and quality standards.
What is the Potential for United Kingdom in the Field of Reference Designs?
The demand for reference designs in the United Kingdom is expected to rise to US$ 2.6 billion by 2033. It presents an absolute dollar growth opportunity of US$ 1.7 billion by 2033. The market has grown at a CAGR of 11.8% from 2018 to 2022 and is expected to surge at a CAGR of 11.1% through 2033.
In 2018, over 60,000 electric vehicles were sold in the United Kingdom, which climbed to around 365,000 by 2022 and is anticipated to increase to around 637,000 electric vehicles sold by 2027.
Reference designs in electric vehicles provide a pre-designed framework for developing efficient and high-performance electric powertrain systems, battery management systems, and charging infrastructure. They offer guidelines and specifications that enable manufacturers to streamline the development process and ensure compatibility with industry standards.
What Positions China as a Leading Player in the Market for Reference Designs?
The reference designs market in China is estimated to grow to be worth US$ 15.7 billion with an absolute dollar growth potential of US$ 10.3 billion by 2033. The market in China has grown at a CAGR of 12.2% during 2018 to 2022. It is further projected to surge at a CAGR of 11.2% from 2023 to 2033.
China has the world's predominant automobile market. In 2020, over 25 million units of automobiles were sold in China, which climbed to around 27 million units by 2022 and is expected to reach approximately 39 million unit sales of automobiles by 2027.
With the increase in the number of cars in the country, the use of reference designs is also projected to surge as reference designs are utilized in several areas of automobile development. It provides a pre-designed framework and blueprint for manufacturers, thus increasing efficiency and reducing costs. This is expected to help market expansion during the market during the assessment period.
Why is Japan Becoming a Global Hub for Reference Design Companies?
The reference designs market in Japan is anticipated to be worth US$ 14.6 billion, with an absolute dollar growth opportunity of US$ 9.6 billion by 2033. The market surged at a CAGR of 12.3% from 2018 to 2022 and is estimated to grow at a CAGR of 11.2% from 2023 to 2033.
In 2022, there were about 107 million smartphone users in Japan, with that figure projected to increase to 115 million by 2027.
With the increase in the number of smartphone users, the use of reference designing is projected to surge in the country. Reference designs help manufacturers in developing a wider range of smartphones quickly and efficiently, thus boosting the market by catering to diverse preferences.
Which Industry Vertical Using Reference Designs is Projected to Witness Significant Growth?
The automotive industry is projected to witness significant growth as it has grown at a CAGR of 12.2% from 2018 to 2022. It is expected to further surge at a CAGR of 11.2% from 2023 to 2033.
Reference designs in the automotive industry serve as standardized blueprints or templates for the development of various components and systems. These designs provide a foundation for automakers, allowing them to streamline the design and production processes, reduce costs, and ensure compatibility and reliability.
Reference designs are extensively used for electronic control units (ECUs), infotainment systems, advanced driver assistance systems (ADAS), electric vehicle powertrains, and autonomous driving systems. They offer a starting point that incorporates proven technologies, architectures, and industry standards, eliminating the need to start from scratch.
This saves time and resources that would otherwise be spent on designing and testing complex systems.
Which Product Type of Reference Designs is Expected to be Highly Lucrative?
Hardware reference designs are projected to witness significant growth as it has grown at a CAGR of 12.1% from 2018 to 2022. It is expected to grow at 10.9% CAGR from 2023 to 2033.
Hardware reference designs are pre-defined blueprints or templates that serve as a starting point for the development of several electronic hardware components. These designs encompass the schematic diagrams, layout guidelines, and other specifications necessary for building a specific hardware product or subsystem.
Hardware reference designs are widely used by manufacturers to streamline the design and production processes, reduce development time and costs, and ensure compatibility and reliability. They provide a proven framework that incorporates best practices, industry standards, and optimized configurations.
Hardware reference designs are particularly valuable in areas such as consumer electronics, Internet of Things (IoT) devices, embedded systems, and communication equipment. They cover a wide range of hardware components, including microcontrollers, system-on-chips (SoCs), printed circuit boards (PCBs), sensors, and display modules.
By leveraging hardware reference designs, manufacturers can jumpstart their development projects. This can help them conveniently focus on customizations, optimizations, and value-added features rather than starting from scratch. These designs foster innovation, collaboration, and knowledge sharing among hardware designers and engineers, enabling faster time-to-market for products and driving advancements in technology.
The key market players are investing heavily in expanding their presence in several segments around the world. The companies are also focussing on collaborations to augment their market positions.
The leading players in the market are Intel Corporation, NVIDIA Corporation, Qualcomm Incorporated, Texas Instruments Incorporated, Broadcom Inc., ARM Holding, Mediatek Inc, Xilinx, Inc, AMD, And STM Microelectronics.
For instance,
| Attribute | Details |
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Reference Designs Market Estimated Size (2023) |
US$ 24.6 billion |
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Projected Value (2033) |
US$ 71.8 billion |
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Value-based CAGR (2018 to 2022) |
12.4% |
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U.S Reference Designs Market CAGR (2023 to 2033) |
11.3 % |
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Market Analysis Unit |
Value (US$ billion) |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Covered |
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Pricing |
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The market of reference designs globally was worth US$ 22 billion in 2022.
The global market size of reference designs is projected to witness a market size of US$ 24.6 billion in 2023.
The valuation of the reference designs industry in 2033 is expected to be US$ 71.8 billion.
The growth of the reference designs industry over the last 4 years was estimated at 12.4% CAGR.
The projected CAGR for the reference designs industry is 11.3% over the forecast period.
