LONDON--(EON: Enhanced Online News)--Technavio analysts forecast the global semiconductor fabrication software market to grow at a CAGR of almost 2% during the forecast period, according to their latest report.
“The features and functionalities offered by consumer electronic devices are increasing as electronic device manufacturers are focusing on differentiating their offerings from competitors. This explains the growing need for multifunctional ICs. Semiconductor device manufacturers have addressed this need by developing new and more complex architecture and design of semiconductor devices.”
The research study covers the present scenario and growth prospects of the global semiconductor fabrication software market for 2017-2021. The report considers the revenue generated from licensing several software tools to semiconductor companies worldwide.
The global semiconductor fabrication software market will grow at a moderate rate during the forecast period. This is due to the licensing or subscription business model followed by the semiconductor fabrication software vendors. Most end-users have already subscribed for the semiconductor fabrication software tool required for device designing requirement. Thus, semiconductor fabrication software vendors gain their revenue largely from the subscriptions, which are realized on a yearly basis.
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Technavio hardware and semiconductor analysts highlight the following three factors that are contributing to the growth of the global semiconductor fabrication software market:
Growing complexity of semiconductor device designs
The growing complexity of the semiconductor chip designs has made the manufacturing process of semiconductor devices difficult and complicated. Some of the leading chip manufacturers such as Intel and Samsung look to avoid this impact by adding more engineers to the project teams. However, this impacts their R&D expenses as more capital is spent on paying employee salaries. Other semiconductor companies have shifted to a new business model (fabless semiconductor companies) to focus only on the design of semiconductor devices while outsourcing the production to foundries.
Sunil Kumar Singh, a lead embedded systems research analyst at Technavio, says, “The features and functionalities offered by consumer electronic devices are increasing as electronic device manufacturers are focusing on differentiating their offerings from competitors. This explains the growing need for multifunctional ICs. Semiconductor device manufacturers have addressed this need by developing new and more complex architecture and design of semiconductor devices.”
Increasing requirement for SoC technology
The last decade has witnessed a growth in the market for smart appliances and digital homes. This has resulted in the demand for high-power, efficient, and smart electronic devices from the end-user segment. These changes have been brought about by advances in device technology and the integration of billions of transistors on SoC. The high processing capability of these chips has made it possible to adhere to the demand for embedded graphics and multicore technologies.
“The use of SoCs has grown substantially over the last five years. Many smart electronic devices such as wireless communication equipment, electrocardiogram, smartphones, telemetry devices, automotive body electronics, and others have started integrating this technology,” adds Sunil.
Demand for miniaturized electronic devices of high precision across sectors
The demand for compact electronic devices has grown in many sectors like automotive, industrial manufacturing, healthcare, and communications. This trend has forced semiconductor IC manufacturers to focus their R&D expenditure on reducing the size while optimizing the performance of ICs. This has led to the emergence of micro-electro-mechanical systems (MEMS) and 3D semiconductor devices.
This use of MEMS and 3D devices has led to the development of denser ICs over the last decade. MEMS and 3D ICs have many interconnects and transistors, without occupying any extra space, which requires finer deposition and patterning.
- Applied Materials
- Cadence Design Systems
- Mentor Graphics
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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