Semiconductor Intellectual Property Core Licensing Market Size:
The semiconductor intellectual property (IP) core licensing market is anticipated to expand at a high CAGR over the forecast period.
The semiconductor intellectual property (IP) core licensing market is experiencing strong growth due to the increase in complexity of chip designs. Another factor expanding the market is he accelerating demand for customized, high-performance semiconductor solutions across industries. Companies have started using more advanced System-on-Chip (SoC) and Application-Specific Integrated Circuit (ASIC) designs. These IP cores also cover areas such as processors, interconnects, memory, multimedia, and security. It will also allow semiconductor firms to focus on innovation while building on proven, modular building blocks.
Furthermore, this made the reuse of pre-verified IP cores essential to reduce time consumption and development cost. The licensed IP cores cover areas such as processors, interconnects, memory, multimedia, and security. The rapid adoption of technologies such as AI, machine learning, 5G, and IoT is also expanding the market. The semiconductor IP core licensing model enhances design flexibility and accelerates innovation. It also helps in standardizing essential functions across the global semiconductor ecosystem.IP core licensing is considered a key driver of scalability and competitiveness in the semiconductor industry.
Semiconductor Intellectual Property (IP) Core Licensing Market Overview & Scope:
The semiconductor intellectual property (IP) core licensing market is segmented by:
- IP Core Type: Hard IP cores hold a significant share of the semiconductor IP core licensing market. This is because they offer optimized and silicon-verified performance. They are also essential for high-speed, high-reliability applications. They are also used in advanced chips where area, power, and timing are all neatly controlled.
- Design Type: Processors IP holds a significant share of the semiconductor IP core licensing market. This is because processors are the fundamental building blocks of almost all modern electronic devices. It is used in all kinds of devices such as smartphones, automotive systems, smart appliances, industrial equipment, and data centres.
- End User: Consumer electronics hold a significant share of the semiconductor IP core licensing market because they have high production volumes and rapid innovation cycles. Devices such as smartphones, tablets, smart TVs, wearables, and gaming consoles require highly integrated and specialized semiconductor solutions
- Region: The Asia-Pacific semiconductor IP core licensing market is rapidly expanding because the region has a booming semiconductor industry. Another factor leading to the growth of this market is increasing government support and the rapid growth of advanced technologies. Countries like China and India have become hubs for semiconductor innovation.
Top Trends Shaping the Semiconductor Intellectual Property (IP) Core Licensing Market
- Rise of RISC-V-Based IP Cores: A trend in the semiconductor IP core licensing market is the rise in the adoption of open-source RISC-V architecture. Companies like Andes Technology and SiFive are providing RISC-V processor IP cores for ASIC designs. This shift supports cost-effective, customizable solutions for AI, IoT, and automotive applications
- Increased Focus on Security-Focused IP- Another significant trend is that the semiconductor IP core licensing market is growing concerns over cybersecurity in IoT, automotive, and defence applications. This increases demand for IP cores with embedded security systems.
- Demand for High-Bandwidth Interface IPs: IP cores, such as PCIe, Ethernet, and SerDes, have an increase in demand due to he expansion of 5G, AI, and data centre applications. These IPs enable ASICs to handle massive data structures.
Semiconductor Intellectual Property (IP) Core Licensing Market Growth Drivers vs. Challenges:
Drivers:
- Rising Demand for Advanced Consumer Electronics: One of the key drivers of the semiconductor IP core licensing market is the rising demand for advanced consumer electronics. The adoption of smartphones, wearables, tablets, gaming consoles, and smart home devices fuels demand for high-performance, energy-efficient semiconductor IPs. An IP core reduces development time and costs for consumer device manufacturers. According to NITI Aayog’s report on “Electronics: Powering India’s Participation in Global Value Chains”, India’s electronics market is forecasted to grow from USD 101 billion in 2023 to USD 278 billion by 2030.
- Expansion of 5G and IoT Technologies: Another key driver of the semiconductor IP core licensing market is the growing adoption of 5G and IoT technologies. Companies are now able to offer video scalers, high-efficiency AV1 codecs, and high-speed communication blocks. This market is helping 5G and IoT experiences by integrating advanced multimedia processing and real-time data communication into compact, power-efficient chips. According to 5G Americas, in 2024, 5G had 2.25 billion connections worldwide. By the end of the year 2024, the United States and Canada combined accounted for 182 million 5G connections, showing a 20% increase from the prior year.
Challenges:
- IP Theft and Counterfeiting Risks: One of the major challenges of the semiconductor IP core licensing market is the risk of intellectual property theft and counterfeiting. It threatens both the integrity and value of licensed IP. IP cores have high commercial and technological value, which makes them attractive targets for unauthorized replication or misuse. Regions with inconsistent enforcement of IP protection laws are considered highly. The companies that invest heavily in digital rights management and licensing controls are hugely impacted.
Semiconductor Intellectual Property (IP) Core Licensing Market Regional Analysis:
- North America: North America’s semiconductor (IP) core licensing market is witnessing strong growth due to the rise in demand for custom chip designs and the rise in complexity in semiconductor manufacturing. Innovation in sectors such as automotive, consumer electronics, AI, and telecommunications is another factor that is pushing the market demand. In the United States, this market is expanding due to the presence of leading semiconductor companies, robust R&D ecosystems, and high adoption of advanced technologies. Companies are increasingly licensing IP cores for processors, memory interfaces, security features, and connectivity solutions.
Semiconductor Intellectual Property (IP) Core Licensing Market Competitive Landscape
The market has many notable players, including. Imagination Technologies, Silvaco Inc., Andes Technology Corporation, Ceva Inc., MIPS Technologies, SiFive Inc., Arteris Inc., Menta S.A.S., Zipcores, Allergo DVTamong others
- Product Launch: In May 2025., Siemens announced the launch of Solido IP validation Suite Software. This software will help reduce the consumption of time by validating IP across various types of platforms and formats.
- Product Launch: In March 2024, Arteris announced the launch of Ncore cache coherent network-on-chip (NoC) IP, leading to the acceleration of system-on-chip (SoC) creation. Ncoe helps in the fast integration of hardware accelerators into a coherent domain. Ncore can support multiple processor IPs such as RISC-V and Armv9 Cortex.
Semiconductor Intellectual Property (IP) Core Licensing Market Scope:
| Report Metric |
Details |
| Growth Rate |
CAGR during the forecast period |
| Study Period |
2021 to 2031 |
| Historical Data |
2021 to 2024 |
| Base Year |
2025 |
| Forecast Period |
2026 – 2031 |
| Segmentation |
IP Core Type, Design Type, End-User, Region |
| Geographical Segmentation |
North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies |
- Imagination Technologies
- Silvaco Inc.
- Andes Technology Corporation
- Ceva Inc.
- MIPS Technologies
|
Semiconductor Intellectual Property (IP) Core Licensing Market Segmentation:
By IP Core Type
- Hard IP Core
- Soft IP Core
By Design Type
- Processor IP
- Memory IP
- Interface IP
- Others
By End User
- Consumer Electronics
- Telecommunication & Data Centres
- Automotive
- Aerospace & Defence
- Others
By Region
- North America
- South America
- Europe
- United Kingdom
- Germany
- France
- Italy
- Spain
- Others
- Middle East & Africa
- Asia Pacific
- China
- India
- Japan
- South Korea
- Thailand
- Others
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