In the first quarter of 2023, the Electronic System Design (ESD) industry experienced a significant revenue surge, reaching $3.95 billion. This represents a 12% rise from the $3.53 billion recorded in Q1 2022, according to the ESD Alliance’s recent Electronic Design Market Data report. The four-quarter moving average, which juxtaposes the latest four quarters against the preceding four, saw growth of 12.7%.
The electronic design automation (EDA) sector maintained its impressive trajectory of double-digit gains in Q1 2023, as reported by Walden C. Rhines, the executive sponsor of the SEMI Electronic Design Market Data report.
All product categories and geographical regions showed significant growth. Notably, Computer Aided Engineering (CAD), Integrated Circuit (IC) Physical Design and Verification, Printed Circuit Board (PCB) and Multi-Chip Module (MCM), and Services all reported substantial increases.
In terms of employment, the companies monitored in the EDMD report had a global workforce of 57,696 in the first quarter. This figure reveals a 12.9% increase from the 51,093 employees in Q1 2022 and a 4.5% rise compared to Q4 2022.
The quarterly EDMD report provides an in-depth breakdown of revenue across various categories and regions. For instance, the IC Physical Design and Verification sector saw its revenue skyrocket by 24.6% to $675.8 million, with its four-quarter moving average climbing by 14.6%.
Revenue for Printed Circuit Board and Multi-Chip Module (PCB and MCM) soared by 25.6% to $368.4 million, while its four-quarter moving average increased by 15.7%.
Geographically, the Americas, the largest revenue-generating region for electronic system design products and services, garnered $1.7 billion in Q1 2023, marking a 12.7% rise. The region’s four-quarter moving average grew by 12.5%.
In Europe, Middle East, and Africa (EMEA), procurement of electronic system design products and services reached $530.1 million in Q1 2023, a significant increase of 21.6%. The four-quarter moving average for EMEA expanded by 9.6%.
Japan’s procurement of electronic system design products and services augmented by 4.3% to $272.7 million, with the country’s four-quarter moving average growing by 2.3%.
Lastly, the Asia Pacific (APAC) region procured $1.4 billion worth of electronic system design products and services in Q1 2023, representing a 9.6% increase. The four-quarter moving average for APAC rose by 16%.
This positive trend in the ESD industry is a clear indication of the growing global demand for electronics.
As technology continues to evolve at a rapid pace, so does the need for innovative electronic system designs that can keep up with demand.
Overall, the growth experienced by the ESD industry in Q1 2023 is a testament to its resilience and adaptability amidst constantly changing technological landscapes. This upward trajectory is expected to continue as new technologies emerge and existing ones continue to evolve.
