ESD industry posts $5.1 billion in revenue in Q2 2025
The Electronic System Design (ESD) industry revenue increased 8.6% to USD 5,089.4 million in the second quarter of 2025 from the USD 4,685.5 million registered in the second quarter of 2024, according to the ESD Alliance, a SEMI Technology Community. 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 Q2 2025," said Walden C. Rhines, Executive Sponsor of the SEMI Electronic Design Market Data report, ina. press release. "Product categories including Computer-Aided Engineering (CAE), Printed Circuit Board and Multi-Chip Module, Semiconductor IP, and Services reported increases, with CAE and Services showing double digit gains. Geographic regions including Americas, EMEA, and APAC reported growth in Q2, even hitting double digits in Americas and EMEA."
The companies tracked in the EDMD report employed 72,529 people globally in Q2 2025, a 14.8% increase over the Q2 2024 headcount of 63,188 and up 12.6% compared to Q1 2025.
The quarterly EDMD report contains detailed revenue information within the following category and geographic breakdowns.
Revenue by product and application category – YoY change
- Computer-Aided Engineering (CAE) revenue increased 17.2% to USD 1,929 million. The four-quarter CAE moving average increased 13.5%.
- IC Physical Design and Verification revenue decreased 9.9% to USD 701.9 million. The four-quarter moving average for the category decreased 3.1%.
- Printed Circuit Board and Multi-Chip Module (PCB and MCM) revenue rose 7.8% to USD 430.5 million. The four-quarter moving average for PCB and MCM rose 8.8%.
- Semiconductor Intellectual Property (SIP) revenue increased 8.7% to USD 1,826.7 million. The four-quarter SIP moving average rose 13.2%.
- Services revenue increased 11.9% to USD 201.2 million. The four-quarter Services moving average rose 21.3%.
Revenue by region – YoY change
The Americas, the largest reporting region by revenue, procured USD 2,282.4 million of electronic system design products and services in Q2 2025, a 12.2% increase. The four-quarter moving average for the Americas rose 14.1%.
Europe, Middle East, and Africa (EMEA) procured USD 650.9 million of electronic system design products and services in Q2 2025, an 11.4% increase. The four-quarter moving average for EMEA grew 10.7%.
Japan's procurement of electronic system design products and services decreased 9.2% to USD 277.4 million. The four-quarter moving average for Japan increased 4.4%.
Asia Pacific (APAC) procured USD 1,878.7 million of electronic system design products and services in Q2 2025, a 6.7% increase. The four-quarter moving average for APAC grew 7.2%.
