First, the good news. The EDA industry will grow from $6.2 billion in 2015 to $9.0 billion in 2019, according to Gary Smith, chief analyst at Gary Smith EDA. Year-to-year growth rates will range from +4% to +11.2%.
But in his annual presentation on the eve of the Design Automation Conference (DAC 2015), Smith noted that Wall Street is unimpressed. “The people I talk to want long-term steady growth, no sharp up-turns, no sharp downturns,” Smith said. “To the rest of Wall Street, we’re boring.”
Smith spent the rest of his talk noting how EDA can be a lot less boring and, potentially, a whole lot bigger. For starters, what if we add semiconductor IP to EDA revenues? Now we’re looking at $12.2 billion in revenue by 2019, Smith said. (He acknowledged, however, that the IP market itself is going to take a “dip” due to the move towards platform-based IP and away from conventional piecemeal IP).
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