Global Interface IP Market to Reach $1.5 Billion by 2026

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Apr 18, 2022, 11:30 ET

SAN FRANCISCO, April 18, 2022 /PRNewswire/ -- A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled "Interface IP - Global Market Trajectory & Analytics". The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.

FACTS AT A GLANCE

Global Interface IP Market to Reach $1.5 Billion by 2026

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Edition: 9; Released: February 2022
Executive Pool: 711
Companies: 18 - Players covered include ARM Holdings Plc; Cadence Design Systems, Inc.; eSilicon Corporation; Faraday Technology Corporation; Rambus, Inc.; Synopsys, Inc. and Others.
Coverage: All major geographies and key segments
Segments: End-Use (Fabless Semiconductor Companies, IDMs, Foundries)
Geographies: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

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ABSTRACT-

Global Interface IP Market to Reach $1.5 Billion by 2026
Intellectual property (IP) in general terms refers to a patent, which ascertains the ownership of knowledge and also offers protection for the same. In the fields of semiconductor and EDA (Electronic design automation), the term refers to a pre-packed design or verification unit that is available for the purpose of licensing. A semiconductor intellectual property core refers to a reusable unit of integrated circuit (IC chip), logic, or cell layout design. Also referred to as IP core or IP block, semiconductor intellectual property core can be solely used by the owner of the IP or can be licensed by the IP owner to other parties. With modern IC designs emphasizing on incorporating more and more system functionality into one single chip (System on Chip or SoC), the pre-designed IP cores have become relevant and important. IP cores can be used as building blocks within field-programmable gate array (FPGA) logic designs or application-specific integrated circuit (ASIC) designs. Interface IP refers to IP core for the interfaces such as Ethernet, DDR4/LPDDR4, HDMI, USB3/2, PCIe3, SATA, BT Dual Mode, ZigBee, Wi-Fi, and SD/SDIO. As modern electronic systems are made in numerous designs and with diverse functional attributes, different interfaces entail importance in different product verticals, making interface IP extremely relevant.

Amid the COVID-19 crisis, the global market for Interface IP estimated at US$1.0 Billion in the year 2022, is projected to reach a revised size of US$1.5 Billion by 2026, registering a compounded annual growth rate (CAGR) of 11.3% over the analysis period. The United States represents the largest regional market for Interface IP, and is projected to reach US$456.6 Million by 2026. China is expected to spearhead growth and emerge as the fastest growing regional market with a CAGR of 15.2% over the analysis period. The market is driven mainly by the escalating demand for modern SoC (System on a chip) chips. Over the years, manufacturers of semiconductor chips have been engaged in developing SoC technology, in order to keep up with the rapidly rising demand for embedding a growing range of functions into a single IC.

Driven by the constant endeavors of semiconductor chipmakers to develop advanced SoC chips, SoC designers are required to use high quality IP blocks to cut down risk in design integration, thus fueling growth in the interface IP market. Another factor driving growth in the market is the rapidly rising demand for a range of smart consumer electronics and versatile communication devices, which will further drive demand for SoCs. Several manufacturers of smart electronics are increasingly looking to integrate SoCs into various devices including smartphones, wireless communication systems, telemetry devices and electrocardiogram machines among others. Also, with a growing number of mixed signal SoC manufacturers incorporating ever growing number of functionalities onto a single chip at moderate cost, the penetration of SoCs in varied applications continues to grow. This is likely to further aid the demand for Interface IP in the coming years. Increasing IoT deployments, rising popularity of mobile computing devices, and rising adoption of IPv6 (Internet Protocol version 6) as a replacement for IPv4 are also leading to the growth of interface IP market. With such advancements leading to the growing number of hosts being connected to the Internet, the amount of data being transmitted and the overall network traffic continues to grow at an exponential rate. This has consequently boosted deployment of next generation wireless technologies such as Wi-Fi, BLE (Bluetooth low energy), and ZigBee along with wireless standards such as 4G and 5G across the world. Such wireless technologies and standards offer wireless connectivity similar to broadband connections. Driven by the rapidly rising demand for wireless technologies, the interface IP market is witnessing healthy growth.

Developed regions of North America and Europe capture a considerable share of the global interface IP market. The large share of these regions is mainly attributed to the presence of a number of fabless semiconductor companies. Emerging economies of Asia-Pacific are likely to present significant growth opportunities for the interface IP market, specifically in countries such as Taiwan and China. With Asian countries such as China, Japan, Taiwan, and South Korea being hubs of electronic devices manufacturing activity, demand is expected to rise for Interface IP in the coming years. More

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