ESDA Report: Electronic System Design Industry Sales Reach $5.6 Billion in the Third Quarter of 2025

On January 12, 2026, Pacific Time in California, USA, the Electronic System Design Alliance (ESDA), a technical community under SEMI, announced in its newly released “Electronic Design Market Data Report” (EDMD) that in the third quarter of 2025, sales in the electronic system design (ESD) industry grew by 8.8% year-on-year, rising from $5.1145 billion in the third quarter of 2024 to $5.5664 billion. Compared with the previous four quarters, the moving average growth rate over the most recent four quarters was 10.4%.

Walden C. Rhines, the initiator of SEMI’s Electronic Design Market Data Report, stated: “In the third quarter of 2025, the electronic design automation (EDA) industry continued to achieve strong year-on-year sales growth. All product categories saw increases, with semiconductor intellectual property (SIP) and services recording double-digit growth. Growth was observed across the Americas, EMEA (Europe, the Middle East, and Africa), and the Asia-Pacific region, with the Asia-Pacific region posting double-digit growth.”

The total global workforce of the companies tracked in the EDMD report reached 73,185 in the third quarter of 2025, an increase of 17.3% from 62,417 in the third quarter of 2024, and a 0.9% increase compared to the second quarter of 2025.

The EDMD quarterly report includes the following detailed information, categorized by type and geography.

Sales by Product and Application Category—Year-on-Year Change

·Sales of Computer-Aided Engineering (CAE) increased by 9.1% to $2.0978 billion; the four-quarter moving average for CAE grew by 11.6%.

·Sales in IC physical design and verification increased by 1.3% to $865.4 million; however, the four-quarter moving average for this category declined by 1.2%.

·Sales of printed circuit boards (PCBs) and multi-chip modules (MCMs) increased by 3.4% to reach US$466.2 million; the four-quarter moving average for PCBs and MCMs rose by 8.1%.

·Semiconductor Intellectual Property (SIP) sales grew by 13.6% to reach $1.9157 billion; the four-quarter moving average for SIP increased by 14.8%.

·Service sales increased by 10.2% to $221.4 million; the four-quarter moving average for services rose by 13.7%.

Sales by Region — Year-on-Year Change

·In the Americas (the region with the largest sales), procurement of electronic system design products and services reached US$2.4022 billion in the third quarter of 2025, representing a 3.4% increase; the four-quarter moving average for the Americas showed a growth of 10.3%.

· Procurement in Europe, the Middle East, and Africa (EMEA) reached $675.1 million for electronic system design products and services, representing a 4.6% increase; EMEA’s four-quarter moving average grew by 7.6%.

·Japan’s procurement of electronic systems design products and services declined by 11.5% to US$264 million; Japan’s four-quarter moving average increased by 2.4%.

·In the Asia-Pacific (APAC) region, procurement of electronic system design products and services reached US$2.223 billion, representing a 20.5% increase; the four-quarter moving average for the APAC region grew by 12.8%.

Source: SEMI China