Technology Computer-Aided Design (TCAD) Market To Touch Valuation Of USD 395.0 Million By 2032: Astute Analytica

(MENAFN- GlobeNewsWire - Nasdaq) The global TCAD market flourishes, fueled by exploding electronics demand and the relentless pursuit of smaller, more powerful devices. North America dominates, spurred by government support and a robust design and manufacturing ecosystem.

New Delhi, April 04, 2024 (GLOBE NEWSWIRE) -- According to the latest research study by Astute Analytica, the global technology computer-aided design (TCAD) market is projected to generate revenue of US$ 395.0 million by 2032, up from US$ 216.2 million in 2023, at a CAGR of 7.3% during the forecast period 2024–2032.

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The persistent demand for advanced semiconductors across various industries, including electronics, artificial intelligence (AI), and the Internet of Things (IoT), is the primary engine driving this growth. This surge in demand necessitates meticulous design and optimization tools like TCAD to manage the increasing complexity of chip designs. Furthermore, substantial investments in research and development (R&D) by leading TCAD corporations, averaging 15% of their revenue, underscore the commitment to refining existing solutions and developing cutting-edge technologies.

The industry is also witnessing a marked shift towards cloud-based TCAD solutions. These solutions alleviate the high upfront costs associated with traditional on-premises setups by reducing them by up to 40-50%. Cloud-based TCAD provides unparalleled scalability, cost-effectiveness, and accessibility, making it especially attractive to small and medium-sized enterprises (SMEs) and businesses in emerging technology computer-aided design (TCAD) market. Additionally, the integration of AI and machine learning (ML) techniques within TCAD tools is creating remarkable efficiency gains. Businesses that leverage AI-powered TCAD tools have demonstrated up to a 25% increase in efficiency during the design and prototyping stages. This translates to significant cost savings and has the potential to reduce time-to-market.

Despite these positive trends, the TCAD market faces a notable challenge: the skills deficit. Mastering TCAD tools requires a specialized knowledge base encompassing semiconductor physics, device fabrication processes, and complex modeling techniques. This steep learning curve, coupled with the extended training period (up to 6 months) and associated costs (approximately $10,000 per professional), poses a barrier to wider adoption. Universities are actively addressing this by increasing their investment in TCAD tools by 12%, striving to produce a skilled workforce ready to meet the industry's demands.

Key Findings in Global Technology Computer-Aided Design (TCAD) Market

Market Forecast (2032) US$ 395.0 million
CAGR 7.3%
Largest Region (2023) North America (49.8%)
By Type Conventional TCAD (55.7%)
By Industry Electrical and Electronics Sector (27.6%)
By Deployment Mode On-Premises (65.7%)
By Application CMOS (40.6%)
Top Trends
  • Increasing adoption of TCAD in the development of advanced semiconductor devices and processes
  • Growing demand for 3D TCAD simulations for complex device structures
  • Integration of machine learning techniques with TCAD for faster and more accurate simulations
Top Drivers
  • Rapid advancements in semiconductor technology and the need for faster, smaller, and more efficient devices
  • Rising investments in R&D by semiconductor companies to stay competitive in the market
  • Growing demand for power electronics and the need for TCAD in designing and optimizing power devices
Top Challenges
  • High cost of TCAD software licenses and the need for skilled professionals to operate them
  • Complexity of advanced semiconductor devices and the need for more sophisticated TCAD models

High Demand for Advanced Semiconductor to Sail the Boat of Technology Computer-Aided Design (TCAD) Market

The global semiconductor market is experiencing strong demand, with revenue expected to reach $1 trillion by 2030. Approximately 70% of this growth is predicted to come from three key industries: automotive, computation and data storage, and wireless. The automotive industry is a major driver of the increasing semiconductor demand. While accounting for only 9% of demand in 2023, it could represent 13-15% by 2030. Demand in the automotive sector is expected to triple within this time frame, driven by advancements in autonomous driving and electric vehicles. The semiconductor content cost in a fully autonomous electric vehicle could reach $4000 by 2030, a significant increase from the $500 cost found in basic internal combustion engine vehicles. Other key segments driving semiconductor market growth include memory semiconductors, projected to generate $84 billion in revenue in 2023, and the logic semiconductor market, expected to reach a revenue of $173.4 billion in 2023.

In terms of regional trends, the semiconductor market share has undergone a major shift from American and European countries towards Asian countries over the past two decades. This is primarily due to the rise of electronic equipment production in Asia. Currently, China stands as the largest global consumer of semiconductors.

CMOS and TCAD: An Unstoppable Force in Semiconductor Innovation, Contribute More than 40.6% Revenue

The dominance of CMOS in the technology computer-aided design (TCAD) market is undeniable. The CMOS image sensor market's explosive growth, projected to reach $33.8 billion by 2030, directly fuels TCAD demand. TCAD has been instrumental in pushing the boundaries of CMOS image sensors, enabling pixel sizes as small as 0.7μm – a testament to its sophistication. The widespread use of Sentaurus TCAD tools by top semiconductor companies further solidifies its role in innovation. TCAD's significance across the semiconductor industry is clear. 78% of companies rely on TCAD during device research and process integration. Simulations reveal how mechanical stress can boost carrier mobility in CMOS transistors by up to 30%, while also highlighting the potential for 20% timing variations due to layout-dependent stress. Real-world examples, like TSMC's extensive use of TCAD in their 5nm CMOS node, underscore its practical value. As CMOS devices shrink, the complexity and computational demands of TCAD simulations increase, highlighting the need for ever-evolving tools.

TCAD goes beyond performance optimization. It has significantly reduced leakage currents in CMOS devices, improved the accuracy of CMOS image sensors, and boosted the fill factor of CMOS-based SPAD devices. TCAD simulations have contributed to sharper CMOS transistors, reduced series resistance, and the development of advanced materials like high-k dielectrics. Its impact extends to analog/RF CMOS circuits, parasitic modeling, and even reliability modeling – offering substantial improvements across all these areas.

The future of technology computer-aided design (TCAD) market in CMOS development is incredibly bright. Its ability to model self-heating effects, thermo-mechanical stress in 3D-IC packaging, and optimize ESD protection are essential in advanced nodes. Integration with machine learning promises to speed up innovation and reduce development costs. With a 40% growth in TCAD usage and its involvement in over 60% of CMOS projects, TCAD's position as a central pillar of semiconductor advancement is indisputable.

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Electrical and Electronics Industries are the Key Revenue Contributor to Global Technology Computer-aided Design Market

The rapid growth of the global power electronics market, projected to reach $53.3 billion by 2025, indicates a booming demand for TCAD. TCAD is indispensable for designing the power devices essential to this sector, including SiC diodes, MOSFETs, DMOSFETs, IGBTs, GaN diodes, and HEMTs. Silvaco, a leading TCAD vendor, highlights the long-standing, widespread use of their power device simulation tools in foundries and fabless companies – clear evidence of TCAD's established position within technology computer-aided design (TCAD) market.

Another major driver of TCAD adoption is the ever-expanding consumer electronics market, forecast to reach a staggering $1.239 trillion by 2030. This market depends heavily on chips meticulously designed and optimized with TCAD. It's no coincidence that the semiconductor industry, the most profitable within electronics, is a significant TCAD user. The global TCAD market itself is set to reach $3.2 billion by 2025, fueled primarily by the electrical and electronics sector. This strong demand is evident in industry surveys indicating that 78% of semiconductor companies, many catering to electronics, utilize TCAD throughout device research and process integration. Giants like TSMC, who serve the global electronics industry, rely heavily on TCAD, using it in over 50% of their process development tasks for advanced CMOS nodes.

The CMOS image sensor market, another pillar of the electronics industry, is also fueling technology computer-aided design (TCAD) market growth, anticipated to reach $34.8 billion by 2032. Designing the sophisticated sensors found in modern electronics necessitates complex 3D TCAD simulations. Major TCAD vendors like Synopsys confirm this trend, with their tools dominating the market – used by over 80% of top semiconductor companies globally.

Beyond design, TCAD offers optimization throughout the electronics manufacturing process. It has slashed leakage currents in CMOS devices by 50%, played a vital role in developing high-performing CMOS sensors for particle physics experiments, and boosted the fill factor of CMOS-based SPAD devices. TCAD enables advancements such as improved transistor performance, reduced series resistance, and the development of advanced materials – all crucial for the electronics industry. It even extends to reliability by mitigating device degradation, reducing parasitic capacitance, and optimizing ESD protection.

North America Takes the Lead in Global Technology Computer Aided Design Market, Contribute over 49% Revenue

North America dominates the global technology computer-aided design (TCAD) market, generating over 49% of global revenue. This dominance is due to a powerful combination of factors. The US is home to semiconductor giants like Intel, Micron, Texas Instruments, and GlobalFoundries, who rely heavily on TCAD for cutting-edge chip design and development. Intel alone holds a remarkable 15.6% of the global semiconductor market share. Additionally, the US boasts a robust ecosystem of EDA (Electronic Design Automation) companies like Synopsys and Cadence, who are leaders in TCAD tools and solutions. Synopsys, for example, commands an impressive 32% market share in the TCAD segment.

The US government's initiatives like the CHIPS Act, which allocates $52 billion to bolster the domestic semiconductor industry, further amplifies TCAD usage. These investments fuel research and development, directly impacting TCAD tool development and adoption. Moreover, US-based foundries like Intel and GlobalFoundries (with a 7.4% share of the global foundry market) utilize TCAD extensively to advance their process development and optimization efforts.

The strong US educational system, along with its thriving industry, produces a vast pool of skilled engineers and researchers specializing in TCAD. Top universities conduct extensive research in semiconductor physics and device modeling, driving innovation and adoption. The country's strong intellectual property (IP) protection framework further encourages companies to invest in TCAD-driven innovation, with the US holding the largest share (57%) of the global semiconductor IP market.

The presence of a mature semiconductor supply chain, including materials and equipment suppliers, complements and supports the growth of the technology computer-aided design (TCAD) market within the United States. With the US semiconductor industry representing a substantial 47% of the global market share and boasting 12.5% of global semiconductor manufacturing capacity, the demand for TCAD solutions remains consistently high. Alongside its robust design ecosystem, the US military and aerospace sectors, significant users of high-performance chips, further contribute to the TCAD market's strength.

Beyond these core drivers, it's worth noting that US-based fabless semiconductor companies, exceeding 1,000 in number, are deeply reliant on TCAD for chip design. The US EDA industry, projected to grow at a CAGR of 7.1% until 2026, has companies accounting for 56% of the global market. The significant R&D spending by the US semiconductor industry (about 20% of its revenue) further includes investment in TCAD tools. With over 80 semiconductor fabs, the US has a strong foundation for process development and optimization – areas where TCAD plays a vital role. It's a powerful ecosystem where even the startup scene, with over 400 semiconductor startups, contributes to the demand for technology computer-aided design (TCAD) market.

Computer-Aided Design (TCAD) Market Key Players

  • Cogenda Software
  • Crosslight
  • Global TCAD Solutions GmbH
  • Graebert GmbH
  • NTT Data Mathematical Systems, Inc.
  • Silvaco
  • Synopsys
  • Tiberlab
  • Other Prominent Players

Key Segmentation:

By Type

  • Conventional TCAD
  • Atomistic TCAD

By Application

  • CMOS
  • Image Sensors
  • Analog/RF Devices
  • Others

By Deployment Mode

  • Cloud-Based
  • On-Premises

By Industry

  • Automotive
  • Shipbuilding
  • Aerospace & Defense
  • Animation
  • Architectural Design
  • Electrical and Electronics
  • Healthcare
  • Others

By Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • South America

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About Astute Analytica

Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.

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