ESD Alliance Reports Electronic System Design Industry Posts $5.1 Billion in Revenue in Q1 2025

All Geographic Regions Reported Growth, with Americas, EMEA, and Japan Recording Double Digit Increases

MILPITAS, Calif. — July 15, 2025 — Electronic System Design (ESD) industry revenue increased 12.8% to $5,098.3 million in the first quarter of 2025 from the $4,521.6 million registered in the first quarter of 2024, the ESD Alliance, a SEMI Technology Community, announced today in its latest Electronic Design Market Data (EDMD) report. The four-quarter moving average rose 12.6%, based on a comparison of the most recent four quarters to the prior four.

“The electronic design automation (EDA) industry once again reported strong year-over-year revenue growth in Q1 2025,” said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. “Product Categories CAE, IC Physical Design and Verification, and PCB & MCM reported single digit increases, with Semiconductor IP and Services reporting significant double-digit increases. All geographic regions reported growth in Q1, with Americas, EMEA, and Japan reporting double digit growth.”

The companies tracked in the EDMD report employed 64,403 people globally in Q1 2025, a 4.5% increase over the Q1 2024 headcount of 61,653 and up 2.5% compared to Q4 2024.

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

Revenue by Product and Application Category – Year-Over-Year Change

• Computer-Aided Engineering (CAE) revenue increased 7.8% to $1,747.6 million. The four-quarter CAE moving average increased 11.4%.
• IC Physical Design and Verification revenue decreased 9.9% to $693.5 million. The four-quarter moving average for the category increased 2.3%.
• Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue rose 5.5% to $399.8 million. The four-quarter moving average for PCB and MCM rose 8.9%.
• Semiconductor Intellectual Property (SIP) revenue increased 29.6% to $2,044.8 million. The four-quarter SIP moving average rose 18.7%.
• Services revenue jumped 22.3% to $212.6 million. The four-quarter Services moving average rose 26.0%.

Revenue by Region – Year-Over-Year Change

• The Americas, the largest reporting region by revenue, procured $2,208.3 million of electronic system design products and services in Q1 2025, a 14.0% increase. The four-quarter moving average for the Americas rose 17.0%.
• Europe, Middle East, and Africa (EMEA) procured $651.5 million of electronic system design products and services in Q1 2025, a 12.5% increase. The four-quarter moving average for EMEA grew 11.4%.
• Japan’s procurement of electronic system design products and services grew 11.9% to $314.2 million. The four-quarter moving average for Japan increased 12.1%.
• Asia Pacific (APAC) procured $1,924.2 million of electronic system design products and services in Q1 2025, an 11.6% increase. The four-quarter moving average for APAC grew 8.2%
  

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