EDA Industry Reaches $5.1 Billion in Q2 2025 Revenue
Strong Quarterly Growth for Electronic Design
The Electronic System Design industry demonstrated robust expansion in Q2 2025. Revenue reached $5.09 billion, representing 8.6% year-over-year growth. This performance significantly outpaced the $4.69 billion recorded during the same period in 2024. Furthermore, the four-quarter moving average showed even stronger momentum with a 10.4% increase.
Industry Leadership Perspective
“The EDA sector continues its impressive revenue expansion,” stated Walden C. Rhines, executive sponsor of the SEMI Electronic Design Market Data report. “Multiple product categories achieved substantial growth, particularly CAE and Services with double-digit gains. All major geographic regions except Japan reported positive results, with Americas and EMEA showing particularly strong performance.”
Workforce Expansion Continues
The industry’s employment figures mirrored the positive revenue trends. Companies tracked in the report employed 72,529 professionals globally in Q2 2025. This represents a significant 14.8% increase compared to Q2 2024 headcount of 63,188. Additionally, workforce numbers grew 12.6% from the previous quarter, indicating sustained hiring momentum.
Product Category Performance Analysis
Computer-Aided Engineering (CAE) led the growth with a remarkable 17.2% increase to $1.93 billion. Semiconductor Intellectual Property followed with solid 8.7% growth reaching $1.83 billion. Services revenue expanded by 11.9% to $201.2 million, while PCB and MCM categories grew 7.8%. However, IC Physical Design and Verification revenue declined by 9.9% to $701.9 million, representing the only category showing contraction.
Regional Market Insights
The Americas maintained its position as the largest regional market, generating $2.28 billion in revenue with 12.2% growth. EMEA followed with impressive 11.4% expansion to $650.9 million. Asia Pacific regions grew 6.7% to $1.88 billion, while Japan experienced a 9.2% decline to $277.4 million. The four-quarter moving averages remained positive across all regions except Japan.
Market Implications and Trends
The consistent growth across most segments indicates strong underlying demand for electronic design solutions. The double-digit increases in CAE and Services suggest accelerating adoption of advanced simulation tools and professional services. From my perspective, the workforce expansion signals industry confidence in sustained growth and reflects the increasing complexity of semiconductor design requirements.
Industry Reporting Methodology
The EDMD report provides comprehensive quarterly revenue data for the EDA, Semiconductor IP, and Services industries. Both publicly traded and private companies contribute their financial data to this comprehensive analysis. SEMI publishes each quarterly report approximately three months after the quarter concludes, ensuring accurate and verified information.
About the ESD Alliance
The Electronic System Design Alliance operates as a SEMI Technology Community. It serves as the primary advocacy organization for the semiconductor design ecosystem. The alliance addresses technical, economic and legislative challenges affecting the global electronics industry. It provides a collaborative forum for companies across the semiconductor design supply chain.
SEMI’s Global Role
SEMI connects over 3,000 member companies and 1.5 million professionals worldwide. The association focuses on key industry challenges through advocacy, workforce development and supply chain management. SEMICON expositions and technology communities drive innovation across semiconductor design, manufacturing equipment, materials and software solutions.
Frequently Asked Questions
What drove the strongest growth in Q2 2025?
Computer-Aided Engineering showed the most significant expansion at 17.2% year-over-year growth, followed by Services at 11.9%.
Which geographic region performed best?
The Americas reported the strongest results with 12.2% revenue growth, closely followed by EMEA at 11.4% expansion.
How has industry employment changed?
Global employment increased 14.8% year-over-year to 72,529 professionals, indicating strong industry health and expansion.
Which product category showed decline?
IC Physical Design and Verification revenue decreased 9.9%, representing the only category experiencing contraction during the quarter.
What is the four-quarter moving average trend?
The industry’s four-quarter moving average increased 10.4%, suggesting sustained growth momentum beyond the quarterly results.
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