Rising revenues, shifting regions, and surging demand, the electronic design industry closed 2025 with $5.47 billion, reflecting global momentum despite Japan’s decline.
Global revenue for the electronic system design (ESD) industry rose 10.3% year-on-year (YoY) to $5,466.3 million in the fourth quarter of 2025, according to the latest report published by the ESD Alliance, a SEMI Technology Community.
The four-quarter moving average also increased by 10.1%, reflecting sustained growth across product categories and regions.
Walden C. Rhines, Executive Sponsor of the EDMD report, said the electronic design automation (EDA) sector continued to show strong performance, with gains recorded in computer-aided engineering (CAE), printed circuit boards and multi-chip modules (PCB and MCM), semiconductor intellectual property (SIP), and services.
The Americas and Asia-Pacific reported double-digit growth, while Europe, the Middle East and Africa (EMEA) also expanded. Japan, however, registered a decline.
Employment in companies tracked by the report stood at 71,517 in Q4 2025, up 13.8% from 62,833 a year earlier, though down 2.3% compared with Q3 2025 (QoQ).
By product category, CAE revenue increased 5% to $1887.4 million, while PCB and MCM rose 1.8% to $484.6 million. SIP recorded the strongest growth, up 18.3% to $2,083.2 million, and services revenue climbed 19.6% to $233.9 million. IC physical design and verification was the only category to decline, falling 2.6% to $777.2 million.
Regionally, the Americas remained the largest market, with revenue of $2473.5 million, up 13.9%. APAC followed with $2050.8 million, an 11.3% increase. EMEA grew 9.8% to $683.4 million, while Japan’s revenue dropped 18.8% to $258.5 million.
The report, published quarterly, compiles revenue data from public and private companies across product categories and regions, alongside employment figures, providing a comprehensive view of industry trends.
