Market Overview

The size of the CAD and EDA market in FY2023 was valued at 321,100 million yen, 103.5% of the preceding fiscal year.
The weak yen in FY2022 stemming from the widening interest rate gap between Japan and the U.S. persisted into FY2023. Despite some fluctuations, the overall trend had a positive impact on Japanese manufacturers. As manufacturers were financially positioned to make capital investments, this provided a tailwind to the CAD market.
In the EDA market, revival the semiconductor industry is gaining momentum, with the government articulating a strategy centered on onshoring of semiconductor production. Building semiconductor manufacturing hubs in Japan marks an upward trend in the sector.
Meanwhile, investment in CAD solutions remains strong in the civil engineering and construction industry, particularly in companies that are increasingly focused on improving operational efficiency in response to global shortages and rising prices of crude oil and other raw materials

Noteworthy Topics

Trends of AI & Automation Solutions

The integration of AI into CAD solutions has been witnessed over the years. Some functions have already been in practical use.
AI is particularly well-suited for verification and analysis, and Electronic Design Automation (EDA) is an example. Designing chips had historically been a complex process that required significant resources, as manufacturer had to balance multiple factors which may contradict with the other, such as frequency, heat, and size. The application of AI for verification and design has been successfully implemented and is receiving high praise from users for its effectiveness.

In terms of user needs related to the utilization of AI, the automation of drawing creation and design has been a major topic across the domain/field. On top of verifications and analysis, CAD operators are bothered by deadlines and the amount of work required to create ordinary drawings and models. To meet the strong demand, CAD vendors are developing functions to automate drawing creation and design.

Future Outlook

The size of the CAD & EDA market in FY2024 is projected to be 338,811 million yen, 105.5% of the previous fiscal year.
Exchange rate trends, geopolitical risks, and the deterioration of the economic environment due to inflation may slow the expansion of the CAD & EDA market. However, the market is expected to remain robust in FY2024, as user companies' commitment to advancing DX and refining manufacturing processes continues to grow. The introduction of advanced CAD solutions, including AI and automation functions, is expected to increase. Driven by a growing number of user companies prioritizing the semiconductor sector, the CAD & EDA market is expected to experience continued growth.

Research Outline