Semiconductor Modeling And Simulation Market Size To Hit USD 10.41 Billion By 2032 Due To The Growth Of AI And Machine Learning SNS Insider

(MENAFN- GlobeNewsWire - Nasdaq) The U.S. Semiconductor Modeling and Simulation Market was valued at USD 1.21 billion in 2024 and is projected to reach USD 2.57 billion by 2032, growing at a CAGR of 9.89% during the forecast period 2025–2032.

Austin, Sept. 26, 2025 (GLOBE NEWSWIRE) -- Semiconductor Modeling and Simulation Market Size & Growth Insights:

According to the SNS Insider,“The Semiconductor Modeling and Simulation Market size was worth USD 4.85 Billion in 2024 and is projected to reach USD 10.41 Billion by 2032, growing at a CAGR of 10.04% over 2025-2032.”

Growing Adoption of AI, Machine Learning, and 5G is Propelling Market Expansion

The needs for semiconductor design and simulation are also evolving as a result of the development of AI and machine learning. More and more people are using simulator tools to quickly assess the hardware quality of AI algorithms. Businesses may optimize chips to perform better overall by tailoring them to AI workloads.

Additionally, the demand for semiconductors that do the heavy lifting associated with complicated data processing will only grow when 5G networks are deployed. Modeling is required for high-speed connections in order to ensure dependable performance throughout the time domain. Design validation for next mobile, Internet of Things, and communication devices is made possible via simulation. Significant innovation and industry growth in semiconductors are being driven by the integration of AI and 5G. Advanced modeling and simulation tools become necessary as a result of such technology.

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Leading Market Players with their Product Listed in this Report are:

• Synopsys Inc.
• Cadence Design Systems Inc.
• ANSYS Inc.
• Mentor Graphics Corporation
• Silvaco Inc.
• Altair Engineering Inc.
• Dassault Systèmes SE
• Siemens PLM Software
• Keysight Technologies Inc.
• COMSOL Inc.
• Aspen Technology Inc.
• MathWorks Inc.
• Lam Research Corporation
• Applied Materials Inc.
• GlobalFoundries Inc.
• Intel Corporation
• Samsung Electronics Co. Ltd.
• Taiwan Semiconductor Manufacturing Company Limited (TSMC)
• NVIDIA Corporation
• Broadcom Inc.

Semiconductor Modeling and Simulation Market Report Scope:

Report Attributes	Details
Market Size in 2024	USD 4.85 Billion
Market Size by 2032	USD 10.04 Billion
CAGR	CAGR of 7.18% From 2025 to 2032
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segmentation	. By Component (Software, Hardware and Services) . By Application (Consumer Electronics, Automotive, Aerospace and Defense, Industrial, Healthcare, and Others) . By Deployment Mode (On-Premises and Cloud) . By End-User (BFSI, IT and Telecommunications, Manufacturing, and Others)

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Key Industry Segmentation

By Deployment Mode

In the semiconductor modeling and simulation market, cloud deployment leads by holding around 61.89% share in 2024 due to its scalability, flexibility, and ability to support collaborative design workflows across multiple locations. Cloud segment is also expected to witness rapid growth with a CAGR of 10.11% due to its rapid adoption as more companies are moving away from traditional on-premise offerings towards more agile, subscription -based deployment.

By Component

The software segment dominated the market as the largest component by holding the largest share of 63.33% due to its essential role in designing, testing, and validating semiconductor devices. The services segment is expected to grow at a CAGR of 10.33% owing to the greater need for consulting, integration, training and support.

By Application

The market was dominated by the Consumer Electronics segment, which held the largest share of around 43.23% in 2024 owing to the high volume of smartphones, laptops, and wearable devices requiring advanced chip designs. The automotive segment is expected to grow with the fastest CAGR of 10.63% over 2025-2032 due to the rising adoption of advanced driver-assistance systems (ADAS), electric vehicles (EVs) and autonomous driving solutions.

By End-User

The BFSI (Banking, Financial Services, and Insurance) segment held the largest share of 38.54% in 2024 due to its demand for high-performance computing and secure, reliable semiconductor devices for data processing and transaction systems. The IT and telecommunications segment is the fastest growing with a CAGR of 10.40%, as 5G infrastructure, cloud computing and expanding data center requirements boost demand.

North America Led the Market with a Share of 36.40% in 2024; Asia Pacific is Expected to Witness Fastest CAGR of 29.76% in the Market During 2025-2032

Due to its robust semiconductor sector, substantial R&D expenditures, and early adoption of cutting-edge simulation technologies, North America led the Semiconductor Modeling and Simulation Market in 2024 with a 36.40% revenue share. The Semiconductor Modeling and Simulation Market is anticipated to develop at the quickest rate in Asia-Pacific between 2025 and 2032, with a projected compound annual growth rate (CAGR) of 29.76%. This growth is attributed to rapid industrialization, increased semiconductor production, and rising investments in advanced chip design.

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Recent News:

• In July 2025, Synopsys completed its USD 35 billion acquisition of Ansys, combining leaders in silicon design, IP, and simulation and analysis to enable customers to rapidly innovate AI-powered products. This acquisition positions Synopsys to lead in an expanded USD 31 billion total addressable market (TAM).

• In August 2025, Cadence Design Systems Inc. unveiled its Palladium Dynamic Power Analysis (DPA) App, developed in collaboration with NVIDIA. This tool operates on the Palladium Z3 Enterprise Emulation Platform, enabling engineers to analyze the power consumption of billion-gate AI chip designs across billions of cycles within hours, achieving up to 97% accuracy.

Exclusive Sections of the Semiconductor Modeling and Simulation Market Report (The USPs):

• FIRST-PASS SILICON SUCCESS RATE (%) – measures the share of advanced SoCs that work on first silicon; critical for forecasting NRE risk, time-to-market and cashflow pressures.
• RESPINS PER TAPE-OUT – average number of respins across process nodes; helps quantify schedule slippage and re-spin engineering costs per project.
• AUTOMATED VS MANUAL MODEL-CALIBRATION PENETRATION (%) – shows how many design teams use automated calibration workflows; indicates maturity of toolchains and potential for scaling simulation throughput.
• YIELD IMPROVEMENT ATTRIBUTABLE TO PRE-SILICON SIMULATION (%) – estimates % uplift in wafer yield driven by modeling/simulation (links first-pass rate to economic upside).
• TIME-TO-TAPEOUT REDUCTION (WEEKS) – average weeks saved in the design cycle due to improved simulation-driven validation and automated calibration; important for competitive positioning.
• COST PER TAPE-OUT SAVINGS (%) – percentage reduction in total tape-out cost (NRE + respin) achieved through higher first-pass success and automation; directly ties simulation ROI to bottom-line.

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