PCB Design Software Sales Reach Record $450M in Q3
MILPITAS, CA – Printed circuit board and multichip module design software revenue rose 5.8% year-over-year to $450.8 million in the third quarter, the ESD Alliance announced on Jan. 14.
The four-quarter moving average, which compares the most recent four quarters to the prior four, for PCB and MCM rose 9.1%.
On the whole, electronic system design industry revenue increased 8.8% year-over-year to $5.1 billion in the third quarter. The four-quarter moving average rose 13.7%.
“The electronic design automation industry reported significant revenue growth in Q3 2024,” said Walden C. Rhines, executive sponsor of the SEMI Electronic Design Market Data report. (Rhines offers additional details and analysis on the PCB Chat podcast.)
“Product categories Computer-Aided Engineering and Services posted double-digit growth, with printed circuit board and multichip module, and semiconductor intellectual property also posting growth. Regionally, the Americas along with Europe, Middle East, and Africa reported double-digit growth. The four-quarter moving average increased for all product categories and regions.”
Within the PCB and MC segment, IC package design was the strongest area of growth, followed by library and PCB analysis tools. They were offset in part by a drop of about 10% for physical layout tools.
“What I look for is how well is the option growing for PCB tools for those who are going into MCM design or multi-die per interposer design; that’s bound to be a growing category,” said Rhines.
The companies tracked in the report employed 62,417 workers globally in the third quarter, up 4.5% from a year ago but down 1.2% sequentially.
By product category, computer-aided engineering (CAE) revenue jumped 16% to $1.9 billion. The four-quarter CAE moving average increased 14.5%. Integrated circuit (IC) physical design and verification revenue decreased 5.5% to $854.4 million. The four-quarter moving average increased 4.3%. Semiconductor intellectual property (SIP) revenue increased 7% to $1.7 billion. The four-quarter SIP moving average rose 17.5%. Services revenue rose 45% to $200.8 million, with the four-quarter services moving average rising 31%.
The Americas, the largest reporting region by revenue, procured $2.3 billion worth of electronic system design products and services in the quarter, a 17% increase. The four-quarter moving average rose 17%. Europe, Middle East, and Africa (EMEA) procured $645.6 million of electronic system design products and services, a 17% increase. The four-quarter moving average for EMEA grew 15.4%. Japan’s orders decreased 3.5% to $298.5 million, although the four-quarter moving average increased 7.6%. Asia Pacific (APAC) fell 0.7% to $1.8 billion, and the four-quarter moving average grew 10.6%.
Hot Takes
China’s IC imports in 2024 reached $385 billion, up 10.4% year-over-year. (China General Administration of Customs)
Global server shipments are projected to grow at a compound annual growth rate (CAGR) of 4% from 2024 to 2029. (DigiTimes Research)
India’s electronics exports increased 35.1% to $3.6 billion in December, the highest total in 24 months. (India Commerce Ministry)
North American EMS shipments fell 7.8% in December compared to the same month last year and 8.3% sequentially. Bookings rose 28% year-over-year and increased 16.9% from the previous month. (IPC)
North American PCB bookings jumped 59.9% year-over-year in December and ticked up 6.2% versus the preceding month. Shipments were down 0.3% and 3.9%, respectively, from December 2023 and November 2024. (IPC)
Worldwide smartphone shipments grew to 1.24 billion units in 2024, a 6.4% increase from 2023. (IDC)
Worldwide IT spending is expected to total $5.61 trillion in 2025, an increase of 9.8% from 2024. (Gartner)
AI server shipments increased by 46% year-over-year in 2024 and are expected to account for more than 70% of the total value of the entire server industry in 2025. (TrendForce)
Global PC shipments totaled 262.7 million units in 2024, up 1% from the previous year. (IDC)
Global semiconductor sales hit $57.8 billion in November, an increase of 20.7% compared to the November 2023 total of $47.9 billion. (SIA)
Electronics industry sentiment dipped in December, as the demand index declined 1.8% and remained below the benchmark 100 level for the fourth consecutive month, signaling continued contraction. The labor costs index climbed two percentage points from its all-time low, while the material costs index dropped four percentage points. A majority of responding firms continue to report ongoing increases in both labor and material costs, straining operations. (IPC)
NAND flash makers will continue to face dual pressure from weak demand and oversupply in 2025, and are responding by cutting production. (TrendForce)
The US consumer technology industry will grow 3.2% in 2025 to a record $537 billion. (Consumer Technology Association)
