Electronic System Design Industry Sees 12.8% Revenue Growth to $5.1 Billion in Q1 2025, Driven by Semiconductor IP and Regional Expansion

The Electronic System Design (ESD) industry reported a 12.8% revenue increase to $5,098.3 million in Q1 2025, up from $4,521.6 million in Q1 2024, according to the ESD Alliance’s Electronic Design Market Data (EDMD) report. The four-quarter moving average for the industry rose by 12.6%, reflecting sustained growth over the past year.

The report highlights varied performance across product categories. Computer-Aided Engineering (CAE) revenue grew 7.8% to $1,747.6 million, with a four-quarter moving average increase of 11.4%. IC Physical Design and Verification revenue declined 9.9% to $693.5 million, though its four-quarter moving average rose 2.3%. Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue increased 5.5% to $399.8 million, with an 8.9% rise in the four-quarter moving average. Semiconductor Intellectual Property (SIP) revenue saw a significant 29.6% increase to $2,044.8 million, with an 18.7% rise in the four-quarter moving average. Services revenue grew 22.3% to $212.6 million, with a four-quarter moving average increase of 26.0%.

All geographic regions reported revenue growth. The Americas, the largest market, generated $2,208.3 million, a 14.0% increase, with a four-quarter moving average growth of 17.0%. Europe, Middle East, and Africa (EMEA) recorded $651.5 million, up 12.5%, with an 11.4% increase in the four-quarter moving av...