Electronic system design (ESD) industry logs $4 billion revenue in Q1-23; revenue rises 12%

Electronic System Design (ESD) or electronic design automation (EDA) industry revenue increased 12% from $3,527.7 million in the first quarter of 2022 to $3,951.1 million in the first quarter of 2023, the ESD Alliance, a SEMI Technology Community, announced in its latest Electronic Design Market Data (EDMD) report. The four-quarter moving average, which compares the most recent four quarters to the prior four, rose 12.7%.

“The electronic design automation (EDA) industry continued to post double-digit gains in Q1-2023, with increases in all product categories and geographic regions,” said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. “Product categories Computer-aided engineering, IC physical design and verification, PCB and multi-chip module, and services -- all reported double-digit increases.”

The companies tracked in the EDMD report employed 57,696 people globally in Q1 2023, a 12.9% jump over the Q1 2022 headcount of 51,093 and up 4.5% compared to Q4 2022.

The quarterly EDMD report contains detailed revenue information with the following category and geographic breakdowns.

Revenue by product and application category

• Computer-aided engineering (CAE) revenue rose 15.1% to $1,434.1 million. The four-quarter CAE moving average increased 18.6%.
• IC physical design and verification revenue jumped 24.6% to $675.8 million. The four-quarter moving average for the category increased 14.6%.
• Printed circuit board and multi-chip module (PCB and MCM) revenue increased 25.6% to $368.4 million. The four-quarter moving average for PCB and MCM rose 15.7%.
• Semiconductor intellectual property (SIP) revenue increased 0.4% to $1,330.6 million. The four-quarter SIP moving average grew 5.7%.
• Services revenue increased 17.2% to $142.2 million. The four-quarter Services moving average rose 16.8%.

Revenue by region

• The Americas, the largest reporting region by revenue, procured $1,698.2 million of electronic system design products and services in Q1 2023, a 12.7% increase. The four-quarter moving average for the Americas rose 12.5%.
• Europe, Middle East, and Africa (EMEA) procured $530.1 million of electronic system design products and services in Q1 2023, a 21.6% increase. The four-quarter moving average for EMEA grew 9.6%.
• Japan’s procurement of electronic system design products and services increased 4.3% to $272.7 million. The four-quarter moving average for Japan rose 2.3%.
• Asia Pacific (APAC) procured $1,449.9 million of electronic system design products and services in Q1 2023, a 9.6% increase. The four-quarter moving average for APAC grew 16%.