The global Electronic System Design (ESD) industry delivered strong growth in the first quarter of 2026, with revenue increasing 12.7 percent to $5.75 billion, reflecting sustained demand for electronic design automation (EDA) software, semiconductor intellectual property (IP), and engineering services.
According to the latest Electronic Design Market Data (EDMD) report from the ESD Alliance, a SEMI Technology Coalition, industry revenue reached $5,747.8 million in Q1 2026, compared with $5,098.3 million in Q1 2025. The industry’s four-quarter moving average increased 10.3 percent, highlighting consistent long-term market growth.
The industry’s workforce also expanded significantly. Companies tracked in the EDMD report employed 72,544 people worldwide during Q1 2026, representing a 12.6 percent increase from 64,403 employees in Q1 2025 and a 1.1 percent rise compared with Q4 2025.
Among product categories, Computer-Aided Engineering (CAE) remained a key growth driver, with revenue rising 15.5 percent to $2,018.4 million, while its four-quarter moving average increased 13.1 percent.
Semiconductor Intellectual Property (SIP) generated the highest revenue among all categories, increasing 14.1 percent to $2,332.5 million, with a four-quarter moving average growth of 13.7 percent.
IC Physical Design and Verification revenue climbed 8.3 percent to $751.3 million, although its four-quarter moving average declined 0.9 percent.
Printed Circuit Board (PCB) and Multi-Chip Module (MCM) revenue rose 4.8 percent to $419.2 million, while the four-quarter moving average improved 4.3 percent.
Services revenue increased 6.5 percent to $226.4 million, supported by a 11.9 percent rise in its four-quarter moving average.
Regionally, the Americas remained the largest ESD market, procuring $2,433.8 million in electronic system design products and services during Q1 2026, representing 10.2 percent annual growth. The region’s four-quarter moving average increased 9.8 percent.
The Asia Pacific (APAC) region delivered the fastest growth among major markets, with procurement reaching $2,264.4 million, up 17.7 percent, while the four-quarter moving average advanced 14.5 percent.
The Europe, Middle East, and Africa (EMEA) region also recorded robust performance, with procurement increasing 17.6 percent to $766.4 million. Its four-quarter moving average grew 10.9 percent.
Japan was the only major region to report a decline. Procurement of electronic system design products and services fell 9.9 percent to $283.1 million in Q1 2026, while its four-quarter moving average decreased 12.4 percent.
The latest EDMD data indicates that growing semiconductor complexity, AI-driven chip development, and increasing demand for advanced electronic design tools continue to support expansion across the global electronic system design industry, particularly in CAE, semiconductor IP, and high-growth regions such as APAC and EMEA.
