The global electronic system design (ESD) industry grew 8.6% year-on-year to $5.1bn in the second quarter of 2025, driven by robust demand in the Americas and Europe, according to the latest data from the ESD Alliance, part of the SEMI Technology Community.
The report, which tracks revenue across major categories of electronic design automation (EDA) tools and semiconductor intellectual property (IP), showed a 10.4% increase in the four-quarter moving average, indicating sustained industry momentum.
“The electronic design automation industry continues to report strong year-over-year revenue growth in Q2 2025,” said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. “Product categories including Computer-Aided Engineering (CAE), Printed Circuit Board and Multi-Chip Module, Semiconductor IP, and Services reported increases, with CAE and Services showing double-digit gains.”
The Americas led the growth, with revenue climbing 12.2% to $2.28bn, followed by the Europe, Middle East, and Africa (EMEA) region, which rose 11.4% to $650.9m. Asia-Pacific (APAC) saw a more moderate 6.7% rise to $1.88bn, while Japan was the only region to contract, down 9.2% to $277.4m.
Across product categories, Computer-Aided Engineering led the expansion, jumping 17.2% to $1.93bn. Semiconductor IP rose 8.7% to $1.83bn, while revenue from Printed Circuit Board and Multi-Chip Module tools increased 7.8% to $430.5m. Services grew 11.9% to $201.2m, but IC Physical Design and Verification tools fell 9.9% to $701.9m.
The ESD Alliance also reported a significant rise in industry employment, with companies in its survey employing 72,529 people globally in Q2 2025, up 14.8% from a year earlier and 12.6% higher than in Q1.
The ESD Alliance’s Electronic Design Market Data report, formerly known as the Market Statistics Service, collects quarterly revenue data from both public and private EDA and semiconductor IP companies.
The latest figures underscore the continued importance of design tools in enabling next-generation semiconductor innovation, as chipmakers push into advanced process nodes and system-level integration amid intensifying global competition.
