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Worldwide IP Market Revenues to Approach $10.3B by 2025, says Semico Research

The 3rd Party Semiconductor Intellectual Property (IP) market has seen great innovation in the products it offers to System-on-a-Chip (SoC) designers over the last ten years. If any market segment in the semiconductor industry typifies the intense evolutionary pressures that the entire electronics market has undergone, it is the 3rd Party IP market. Most of these evolutionary forces are driven by the need to integrate more functionality in fewer devices at the system level and in ever-smaller footprints. The primary method to accomplish this today is using 3rd Party IP. The IP market has evolved to supply the solutions SoC designers require to craft their very innovative silicon products in response to ever-changing market requirements. In addition, we see the industry is adding new Artificial Intelligence (AI) functionality to the list of IP current products as well. A new report from Semico Research, The Licensing, Royalty and Service Revenues for 3rd Party SIP: Market Analysis and Forecast for 2021 (SC105-21) forecasts that worldwide IP revenues will approach $10.3 billion by 2025.
“The introduction of AI has fostered a renaissance in CPU architectural exploration and development. This in turn has extended to the introduction of new types of IP supporting the market requirements for this new functionality. This trend will add to the already good growth of both the semiconductor industry and the IP market,” according to Rich Wawrzyniak, Principal Analyst for ASIC & SoC at Semico Research Corp. “There will be a continuous changeover from non-AI IP to AI-enabled IP as SoCs add different levels of AI functionality across most of the application niches driving sustainable growth well into the future.”
Key findings of the report include:

  • Revenues in the Asia Pacific region reached $1.7B in 2020.
  • The CPU market is the largest IP category today and will account for 34.4% of total market revenues by 2025.
  • While starting from a small base, eFPGA will have the highest growth rate with a CAGR of 68.4% through 2025.
  • Market revenues for IP in AI applications reached $272.4M in 2020.

The Licensing, Royalty and Service Revenues for 3rd Party SIP: Market Analysis and Forecast for 2021 (SC105-21) also tracks revenues by quarter. Semico has created this report to analyze the SIP market by functional category and then sub-divided these categories into revenues for licensing, royalties and services. Semico has arranged the SIP market by the following SIP types:
SIP Types Profiled and Analyzed

Memory CPU Core DSP Core
Graphics Analog Interface
Logic / Embedded Analytics Chip Enhancement Interconnect
Security Audio eFPGA

Each category consists of licensing revenues, royalty revenues and service revenues with actual revenues tracked from 1Q06 - 4Q20 and a forecast of revenues from 1Q21 - 4Q25. In addition, based on in-depth research Semico has conducted to gather data in the SoC design start landscape, three charts are included for each IP category that show the following data:

  • Average Licensing Revenues Per SoC Design ($K)
  • Average Royalty Revenue Per SoC ($0.00)
  • Average Service Revenues Per SoC Design ($K)

Data for the SIP market is broken down by geographical region (Americas, Europe, Japan, Asia Pacific, and China) and provides a forecast for each region for licensing, royalty and service revenues. The report now provides a forecast for AI IP revenues by IP category starting in 2016 and continuing through 2025.
Deliverables include both a Word file and an Excel spreadsheet, containing over 269 figures and 154 tables in 151 pages. 

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