ESD Alliance Reports Electronic System Design Industry Posts $5.6 Billion in Revenue in Q3 2025
APAC Region Reported Double-Digit Year-over-Year Revenue Increase
MILPITAS, Calif., Jan. 12, 2026 /PRNewswire/ -- Electronic System Design (ESD) industry revenue increased 8.8% to $5,566.4 million in the third quarter of 2025 from the $5,114.5 million registered in the third quarter of 2024, the ESD Alliance, a SEMI Technology Community, announced today in its latest Electronic Design Market Data (EDMD) report. The four-quarter moving average rose 10.4%, based on a comparison of the most recent four quarters to the prior four.
"The electronic design automation (EDA) industry continues to report strong year-over-year revenue growth in Q3 2025," said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report. "All product categories reported increases, with Semiconductor IP (SIP) and Services showing double digit gains. Geographic regions including Americas, EMEA, and APAC reported growth in Q3, with a double digit increase in APAC."
The companies tracked in the EDMD report employed 73,185 people globally in Q3 2025, a 17.3% increase over the Q3 2024 headcount of 62,417 and up 0.9% compared to Q2 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 9.1% to $2,097.8 million. The four-quarter CAE moving average increased 11.6%.
- IC Physical Design and Verification revenue increased 1.3% to $865.4 million. The four-quarter moving average for the category decreased 1.2%.
- Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue rose 3.4% to $466.2 million. The four-quarter moving average for PCB and MCM rose 8.1%.
- Semiconductor Intellectual Property (SIP) revenue increased 13.6% to $1,915.7 million. The four-quarter SIP moving average rose 14.8%.
- Services revenue increased 10.2% to $221.4 million. The four-quarter Services moving average rose 13.7%.
Revenue by Region – Year-Over-Year Change
- The Americas, the largest reporting region by revenue, procured $2,402.2 million of electronic system design products and services in Q3 2025, a 3.4% increase. The four-quarter moving average for the Americas rose 10.3%.
- Europe, Middle East, and Africa (EMEA) procured $675.1 million of electronic system design products and services in Q3 2025, a 4.6% increase. The four-quarter moving average for EMEA grew 7.6%.
- Japan's procurement of electronic system design products and services decreased 11.5% to $264.0 million in Q3 2025. The four-quarter moving average for Japan increased 2.4%.
- Asia Pacific (APAC) procured $2,223.0 million of electronic system design products and services in Q3 2025, a 20.5% increase. The four-quarter moving average for APAC grew 12.8%.
About the EDMD Report
The ESD Alliance Electronic Design Market Data (formerly the Market Statistics Service) report presents Electronic Design Automation (EDA), SIP and Services industry revenue data quarterly. Both public and private companies contribute data to the report available from SEMI. Each quarterly report is published approximately three months after quarter close. EDMD report data is segmented as follows:
- Revenue by product category (CAE, IC Physical Design and Verification, SIP, PCB/MCM Layout, and Services) including numerous detailed sub-categories
- Revenue by geographic region (Americas, EMEA, Japan and APAC)
- Total employment at participating companies
For information about SEMI market research reports, visit the SEMI Market Research Reports and Databases Catalog.
About the Electronic System Design Alliance
The Electronic System Design (ESD) Alliance, a SEMI Technology Community, is the central voice to communicate and promote the value of the semiconductor design ecosystem as a vital component of the global electronics industry. As an international association of companies providing goods and services throughout the semiconductor design ecosystem, it is a forum to address technical, marketing, economic and legislative issues affecting the entire industry. For more information about the ESD Alliance, visit http://esd-alliance.org.
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About SEMI
SEMI® is the global industry association connecting over 3,000 member companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON® expositions and events, technology communities, standards and market intelligence help advance our members' business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit www.semi.org, contact a regional office, and connect with SEMI on LinkedIn and X to learn more.
The information supplied by the ESD Alliance is believed to be accurate and reliable, but the ESD Alliance assumes no responsibility for any errors that may appear in this document. All trademarks and registered trademarks are the property of their respective owners.
Association Contacts
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Phone: 978-769-2106
Email: pcohen@semi.org
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Email: squinn@kiterocket.com
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