Powering the Future: Why Thermal Management Defines the Future of Electronics
Standard of Excellence: Engineering Is the New Sales—How Technical Collaboration Wins Business
SMT Perspectives & Prospects: Artificial Intelligence, Part 7—Data Module 2
ESD Alliance Reports Electronic System Design Industry Posts $5.5 Billion in Revenue in Q4 2025
April 13, 2026 | SEMIEstimated reading time: 1 minute
Electronic System Design (ESD) industry revenue increased 10.3% to $5,466.3 million in the fourth quarter of 2025 from the $4,955.2 million registered in the fourth quarter of 2024, the ESD Alliance, a SEMI Technology Community, announced in its latest Electronic Design Market Data (EDMD) report. The four-quarter moving average rose 10.1%, based on a comparison of the most recent four quarters to the prior four.
A black and white image of a numberDescription automatically generated with medium confidence“The electronic design automation (EDA) industry continues to report strong year-over-year revenue growth in Q4 2025,” said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. “Product categories CAE, PCB and MCM, Semiconductor IP (SIP), and Services all reported gains. Geographic regions including Americas, EMEA, and APAC reported growth in Q4, with a double digit increase in Americas and APAC.”
The companies tracked in the EDMD report employed 71,517 people globally in Q4 2025, a 13.8% increase over the Q4 2024 headcount of 62,833 but down 2.3% compared to Q3 2025.
The quarterly EDMD report contains detailed revenue information within the following category and geographic breakdowns.
Revenue by Product and Application Category – Year-Over-Year Change
- Computer-Aided Engineering (CAE) revenue increased 5.0% to $1,887.4 million. The four-quarter CAE moving average increased 5.6%.
- IC Physical Design and Verification revenue decreased 2.6% to $777.2 million. The four-quarter moving average for the category decreased 5.1%.
- Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue rose 1.8% to $484.6 million. The four-quarter moving average for PCB and MCM rose 4.5%.
- Semiconductor Intellectual Property (SIP) revenue increased 18.3% to $2,083.2 million. The four-quarter SIP moving average rose 17.4%.
- Services revenue increased 19.6% to $233.9 million. The four-quarter Services moving average rose 15.6%.
Revenue by Region – Year-Over-Year Change
- The Americas, the largest reporting region by revenue, procured $2,473.5 million of electronic system design products and services in Q4 2025, a 13.9% increase. The four-quarter moving average for the Americas rose 10.6%.
- Europe, Middle East, and Africa (EMEA) procured $683.4 million of electronic system design products and services in Q4 2025, a 9.8% increase. The four-quarter moving average for EMEA grew 9.4%.
- Japan’s procurement of electronic system design products and services decreased 18.8% to $258.5 million in Q4 2025. The four-quarter moving average for Japan decreased 7.4%.
- Asia Pacific (APAC) procured $2,050.8 million of electronic system design products and services in Q4 2025, an 11.3% increase. The four-quarter moving average for APAC grew 12.6%.
Share on:
Testimonial
"In a year when every marketing dollar mattered, I chose to keep I-Connect007 in our 2025 plan. Their commitment to high-quality, insightful content aligns with Koh Young’s values and helps readers navigate a changing industry. "
Brent Fischthal - Koh YoungSuggested Items
Spirit Electronics Named Authorized Distributor for Microchip Technology
04/17/2026 | Globe NewswireSpirit Electronics, a vertically integrated electronics design and manufacturing solutions provider serving the military and aerospace markets, announced that it has been designated as an authorized distributor for the Americas for Microchip Technology, a broadline supplier of semiconductors committed to making innovative design easier through total system solutions.
Cadence, NVIDIA Expand AI & Accelerated Computing Partnership
04/17/2026 | Cadence Design Systems, Inc.At CadenceLIVE Silicon Valley 2026, Cadence announced an expanded partnership with NVIDIA to deliver accelerated solutions across agentic AI, physics-based simulation and digital twins to unlock new levels of productivity and accelerate next‑generation engineering design flows across semiconductor design, physical AI systems and hyperscale AI factories.
Teradyne Acquires TestInsight, Accelerating Time to Market for AI and Data Center Devices
04/16/2026 | BUSINESS WIRETeradyne, Inc., a leading provider of automated test equipment (ATE) and advanced robotics, announced it has acquired TestInsight, a leading provider of semiconductor test development, validation, and conversion software widely used across the industry.
Cadence, Google Scale AI Chip Design with ChipStack on Google Cloud
04/16/2026 | Cadence Design SystemsCadence, an industry leader in AI-driven computational software for semiconductor and system design, announced a strategic collaboration with Google to optimize the Cadence® ChipStack™ AI Super Agent with Gemini on Google Cloud.
ESD Alliance Reports Electronic System Design Industry Posts $5.5 Billion in Revenue in Q4 2025
04/15/2026 | SEMIElectronic System Design (ESD) industry revenue increased 10.3% to $5,466.3 million in the fourth quarter of 2025 from the $4,955.2 million registered in the fourth quarter of 2024, the ESD Alliance, a SEMI Technology Community, announced today in its latest Electronic Design Market Data (EDMD) report.