For more information, visit https://semico.com/content/licensing-royalty-and-service-revenues-analysis-3rd-party-ip.
By all measures, the IP market today is not a mature market, nor is it nearing maturity. This is evident simply by looking at its dynamic nature and the level of innovation IP users demand and the IP vendors deliver. In a mature market, this would not be possible since lower growth levels would not allow for adequate resources to achieve the innovation this market delivers. A new report from Semico Research, Licensing, Royalty and Service Revenues Analysis For 3rd Party IP (SC105-23), forecasts that the worldwide 3rd Party IP market is in growth mode and is expected to reach $12.1B by 2027.
“Over the last ten years, the 3rd Party IP market has experienced intense evolutionary pressures to support the electronics market. Most of these evolutionary forces are driven by the need to integrate more functionality in fewer devices at the system level and in ever-smaller footprints,” says Jim Feldhan, President, Semico Research. “The IP market has evolved to supply the solutions SoC designers require to craft their innovative designs in response to changing market requirements. While the drive to integrate more on the SoC was a driving force in the market, the concept of chiplets is looking to reverse this multi-decade trend at least at the leading edge and for the very large chips. With that said, the 3rd party IP will continue to be a critical piece of the solution even in the chiplet methodology of chip designs.”
Additional key findings include:
- The CPU market is the largest IP category accounting for 35.4% of total market revenues by 2027.
- From 2022 to 2027, Licensing revenues will increase at a faster rate than will Royalty revenues.
- The total market revenues for IP in AI applications reached $468M in 2022.
- The Asia Pacific market will grow to reach $3.0B by 2027.
