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%.
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